Full Transcript for How Much To Spend On Facebook Ads [Real Example Included]

objectives now, just an overall budget. 36 00:02:17,383 --> 00:02:20,808 If you're ready to start advertising on social media, Don't be intimidated, 37 00:02:20,888 --> 00:02:23,228 intimidated by the Facebook costs. 38 00:02:23,628 --> 00:02:30,608 You can start small with a, with a minimum of 1, 1 and 27 cents a day, where you 39 00:02:30,608 --> 00:02:32,988 can get, start getting to see results. 40 00:02:33,898 --> 00:02:37,168 This approach works for those who have a limited budget and want to 41 00:02:37,168 --> 00:02:38,758 test the waters before diving in. 42 00:02:39,418 --> 00:02:42,308 Before you start looking at allocating more money, here's a 43 00:02:42,308 --> 00:02:46,268 step by step guide that you can use, um, to decide what to do next. 44 00:02:47,048 --> 00:02:51,068 So number one, determine your monthly Facebook ad advertising budget. 45 00:02:52,138 --> 00:02:56,768 When it comes to determining, um, your monthly Facebook advertising 46 00:02:56,768 --> 00:02:59,198 budget, the key is to start small and adjust as you go. 47 00:03:00,058 --> 00:03:02,848 There are a number of factors that would lend to good results. 48 00:03:02,848 --> 00:03:07,078 For example, a lead generation campaign using the most relevant ads can be 49 00:03:07,078 --> 00:03:09,898 achieved at lower co at the lowest cost. 50 00:03:09,958 --> 00:03:14,308 To be more specific, a Facebook lead ad course is surprisingly low. 51 00:03:14,968 --> 00:03:19,443 Um, when it come, when it comes to getting a lead, Compared to other objective types. 52 00:03:19,813 --> 00:03:25,253 And I have done a podcast, I believe it's two episodes before this one. 53 00:03:25,303 --> 00:03:29,373 I don't remember what episode number it is where I go through the Facebook 54 00:03:29,383 --> 00:03:32,453 lead ads campaign in a great. 55 00:03:32,853 --> 00:03:35,503 Painful detail, step by step. 56 00:03:35,763 --> 00:03:39,693 So that is in my opinion, in terms of like, there are 57 00:03:39,693 --> 00:03:41,763 lower cost, costing campaigns. 58 00:03:41,773 --> 00:03:44,933 Like if you want to get a Facebook likes, or if you want to get engagement 59 00:03:44,933 --> 00:03:46,793 on a post, those are even cheaper. 60 00:03:47,193 --> 00:03:50,673 But if it is, you want to grow your email list actually from the, from the 61 00:03:50,683 --> 00:03:56,143 actual activity or, or investment, you want to get leads that you can use them 62 00:03:56,213 --> 00:03:58,993 to nurture and develop into something. 63 00:03:59,388 --> 00:04:03,358 Then the lowest cost one is a lead generation campaign, um, using 64 00:04:03,398 --> 00:04:08,038 Facebook lead ads, uh, head over to the show notes success and scramble. 65 00:04:08,248 --> 00:04:10,828 com forward slash EP two sixes six. 66 00:04:11,088 --> 00:04:14,778 And it's Echo Papa two six six to get access to the show notes where 67 00:04:14,778 --> 00:04:22,558 I've included a link to the Facebook lead ad, um, cost, uh, episode 68 00:04:22,598 --> 00:04:26,768 and show notes and step by step instructions and all of that, just in 69 00:04:26,768 --> 00:04:28,048 case you want to get access to that. 70 00:04:29,048 --> 00:04:32,928 So you'll want to consider how much you can realistically afford to spend. 71 00:04:34,083 --> 00:04:36,793 Another way to look at it is what is your lifetime budget? 72 00:04:37,293 --> 00:04:41,313 A good starting point is to allocate five to 10% of your overall advertising 73 00:04:41,313 --> 00:04:43,343 budget to Facebook and Instagram ads. 74 00:04:44,273 --> 00:04:48,108 The, this will give you the flexibility to experiment and learn 75 00:04:48,108 --> 00:04:49,753 from the camp, from your campaigns. 76 00:04:50,313 --> 00:04:54,313 I have to tell you, um, I've been up and running in this particular 77 00:04:54,313 --> 00:04:57,153 business since 2017, I believe it is. 78 00:04:57,483 --> 00:04:59,613 Um, so I don't know when you'll be listening to this, but it's 79 00:04:59,613 --> 00:05:02,603 been quite a number of years and. 80 00:05:03,343 --> 00:05:08,833 The biggest mistake I've made looking back, of course, 2020 vision is always 81 00:05:08,873 --> 00:05:13,033 best is that I didn't run Facebook ads much sooner or didn't spend time getting 82 00:05:13,033 --> 00:05:18,683 to understand how powerful they are or they were, especially Facebook lead ads. 83 00:05:19,323 --> 00:05:24,193 I could have grown my emails to 20, 000 people by now at the time of 84 00:05:24,193 --> 00:05:28,373 this recording, had I taken action and started spending money on other 85 00:05:28,373 --> 00:05:31,043 things that just didn't give me an ROI. 86 00:05:31,558 --> 00:05:35,588 Okay, now that I've, um, gotten off that little high podium, 87 00:05:35,588 --> 00:05:37,118 let's get back into the podcast. 88 00:05:37,868 --> 00:05:41,238 Once you've allocated a budget, it's important to track your results. 89 00:05:41,288 --> 00:05:45,618 This will give you an idea of how effective your campaigns are and 90 00:05:45,618 --> 00:05:46,788 how much you should be spending. 91 00:05:47,198 --> 00:05:50,638 Try using different, um, budget strategies, strategies 92 00:05:50,698 --> 00:05:51,588 for different campaigns. 93 00:05:51,608 --> 00:05:55,578 Sorry, this is a bit of a tongue twister with terminologies, but so bear with me. 94 00:05:56,008 --> 00:06:00,258 For example, you can use a cost per click pricing model. 95 00:06:00,673 --> 00:06:05,123 For campaigns that focus on conversion rates and a cost per thousand impressions 96 00:06:05,143 --> 00:06:07,693 campaigns that focuses on brand awareness. 97 00:06:07,743 --> 00:06:11,973 And as you can imagine, if you've never heard of any of these terminologies 98 00:06:11,983 --> 00:06:19,623 before, I have several episodes that covers Facebook ads, ads packages, 99 00:06:20,103 --> 00:06:21,843 um, which you should be spending. 100 00:06:22,078 --> 00:06:24,318 All different kinds of different things on

Facebook. 101 00:06:25,408 --> 00:06:29,088 So head over to show a second, um, to success and scramble the comfort 102 00:06:29,328 --> 00:06:33,778 slash EP two, six, six, and that's Echo Papa two, six, six, to get access 103 00:06:33,778 --> 00:06:36,508 to the show notes and all of the different links, all of the different 104 00:06:36,988 --> 00:06:39,468 Facebook ad resources are all in there. 105 00:06:39,858 --> 00:06:41,188 I'm so passionate about this. 106 00:06:41,228 --> 00:06:45,428 I've written so many different, um, articles and this, and I've recorded 107 00:06:45,428 --> 00:06:48,358 so many different, um, podcast episodes, because I just want anybody 108 00:06:48,358 --> 00:06:49,308 who's starting off in business. 109 00:06:49,608 --> 00:06:52,798 Now, once you're 12 months in business, you're ready for Facebook ads. 110 00:06:53,418 --> 00:06:54,128 Um, okay. 111 00:06:54,333 --> 00:06:54,943 Now, sorry. 112 00:06:54,983 --> 00:06:56,833 I just keep getting on that mic stand. 113 00:06:57,303 --> 00:06:58,153 Okay, here we go. 114 00:06:58,903 --> 00:07:05,413 So the difference between the different objectives ranging from, um, lowest, 115 00:07:05,593 --> 00:07:09,483 lowest cost, the highest course is your brand awareness campaign. 116 00:07:09,483 --> 00:07:13,073 So all you're doing is making people aware of, of, of your existence. 117 00:07:13,603 --> 00:07:14,843 And that's really low cost. 118 00:07:14,843 --> 00:07:19,443 You can start at a dollar, 27 a day, a dollar and 27 cents a day. 119 00:07:19,773 --> 00:07:21,593 And, um, you'd be able to spend. 120 00:07:23,258 --> 00:07:26,258 You know, let people, your potential audience know that you're there. 121 00:07:27,158 --> 00:07:30,928 Um, and then you can go to an engagement campaign where, you know, you probably 122 00:07:30,928 --> 00:07:35,008 put a post on your Facebook page and you get people to engage with it. 123 00:07:35,558 --> 00:07:37,528 And then next level up is a lead campaign. 124 00:07:37,548 --> 00:07:44,388 So now, as you can see the progression, the commitment is getting, um. 125 00:07:44,808 --> 00:07:49,278 More and more difficult, not difficult, but you're asking the user 126 00:07:49,278 --> 00:07:52,618 to do something, take a step closer to get closer and closer to you. 127 00:07:52,998 --> 00:07:54,578 So it was brand awareness, engagement. 128 00:07:54,578 --> 00:07:55,738 And the next one is the lead. 129 00:07:55,758 --> 00:07:58,428 So they now have to do something to get whatever it is you're giving 130 00:07:58,428 --> 00:08:01,158 them to a lead market or whatever. 131 00:08:01,198 --> 00:08:01,968 And then after that. 132 00:08:02,408 --> 00:08:06,928 The next level up from that then is a conversion, which is a sale and they, 133 00:08:07,148 --> 00:08:10,688 they brand awareness is the lowest cost and the conversion is the highest cost. 134 00:08:10,738 --> 00:08:13,538 And if it is, you're doing like a webinar, although it's a lead

135 00:08:13,538 --> 00:08:17,898 campaign and not a conversion, that is still much higher costs. 136 00:08:18,268 --> 00:08:21,548 So in other words, in the lead, in the lead generation category, there 137 00:08:21,548 --> 00:08:24,718 are several different, um, lead generation companies you can run. 138 00:08:25,058 --> 00:08:27,078 And they range again from lowest to highest. 139 00:08:27,798 --> 00:08:31,338 None of the lead generation ones are as low as a brand awareness campaign. 140 00:08:31,878 --> 00:08:32,198 Okay. 141 00:08:32,698 --> 00:08:37,358 For example, Facebook lights is like 20 cents or 10 cents a click or 142 00:08:37,358 --> 00:08:41,138 whatever it is equal, sorry, like, or a engagement, whatever it is. 143 00:08:41,868 --> 00:08:42,928 So, okay. 144 00:08:42,988 --> 00:08:45,458 Now that I've gotten all of that out of the way, let's continue. 145 00:08:46,048 --> 00:08:49,178 So with the right budget and strategies in place, you can ensure that Facebook ad 146 00:08:49,178 --> 00:08:50,678 campaigns are working for your business. 147 00:08:51,843 --> 00:08:57,783 Number two, consider the size, the size of your brand average, um, product course. 148 00:08:58,103 --> 00:09:01,023 When it comes to deciding how much to spend on Facebook ads, the size of your 149 00:09:01,193 --> 00:09:05,313 brand and the average cost of your product are two important factors to consider. 150 00:09:05,343 --> 00:09:09,073 Small business owners tend to have a much lower budget than obviously larger 151 00:09:09,073 --> 00:09:13,553 brands and hence many not able to afford the same amount of advertising. 152 00:09:13,893 --> 00:09:17,273 The cost of your product will also play a role in how much 153 00:09:17,273 --> 00:09:18,723 you spend on Facebook ads. 154 00:09:19,073 --> 00:09:21,373 If you're selling a premium product, you may invest. 155 00:09:21,753 --> 00:09:26,263 More money in ads in order to reach the right customers. 156 00:09:27,433 --> 00:09:31,573 Example of that, if it is the thing that you're selling, for example, a Gucci 157 00:09:31,573 --> 00:09:35,983 bag or Louis Vuitton, Vuitton, Vuitton, whatever it's called bag, handbag, 158 00:09:36,023 --> 00:09:42,353 clutch, whatever they call somewhere between 500 each, um, and the course. 159 00:09:42,848 --> 00:09:47,338 To acquire a lead and of course they acquire a sale when you, when you're 160 00:09:47,338 --> 00:09:50,868 selling something like that, it's going to be much higher because you're 161 00:09:50,888 --> 00:09:56,388 asking the person on the other end, who's buying to make a bigger, um, 162 00:09:57,008 --> 00:09:59,048 commitment in terms of the value, and of 163 00:10:03,158 --> 00:10:04,718 the actual thing that they're going to be buying. 164 00:10:05,508 --> 00:10:09,318 However, if you're selling something small, like a handkerchief or maybe 165 00:10:09,328 --> 00:10:15,343 a set of AirPods or, you know, a plug or something that's 15 or 20, Then the 166 00:10:15,343 --> 00:10:19,963 cost will be much lower and the cost for sale is going to eventually be much 167 00:10:19,973 --> 00:10:26,193 lower because the person making the commitment doesn't have to think really 168 00:10:26,193 --> 00:10:30,963 hard and set aside money and put aside a budget and you know, all of that 169 00:10:31,033 --> 00:10:33,243 just to make the, to make the purchase. 170 00:10:33,823 --> 00:10:34,963 So that's the reason why. 171 00:10:35,618 --> 00:10:40,158 Um, the conversion is so much higher because the commitment in the person's 172 00:10:40,168 --> 00:10:45,588 brain psychologically is much bigger when it is you asking them to spend 173 00:10:45,598 --> 00:10:46,838 money and to spend a lot more. 174 00:10:48,398 --> 00:10:52,448 So ultimately you need to consider the size of your brand and the average cost 175 00:10:52,508 --> 00:10:55,098 of your product when deciding how much you spend, how much you want to spend. 176 00:10:56,228 --> 00:11:02,628 At number three, we've got distribute your Facebook ad spend based on objectives. 177 00:11:02,958 --> 00:11:06,238 So say for example, you decide you're going to run a campaign because. 178 00:11:07,203 --> 00:11:14,033 Um, every, yeah, let's just not, let's see, uh, let's just say, uh, an event 179 00:11:14,053 --> 00:11:18,453 or a, let's just call it a campaign, but not campaigning that in a Facebook ads, 180 00:11:18,963 --> 00:11:24,533 um, sense a campaign as an, an overall campaign for the next three months. 181 00:11:24,553 --> 00:11:28,573 You're going to be running a series of even a series of campaigns. 182 00:11:28,593 --> 00:11:29,903 One is brand awareness. 183 00:11:29,913 --> 00:11:32,153 The next one is lead generation. 184 00:11:32,153 --> 00:11:32,983 And the next one is a conversion. 185 00:11:33,638 --> 00:11:36,678 You know, three, a three step kind of process, funnel, 186 00:11:36,688 --> 00:11:37,558 whatever you want to call it. 187 00:11:38,368 --> 00:11:42,678 Um, and because you, you have that in mind, then you're going to have to 188 00:11:42,678 --> 00:11:49,068 decide, okay, how much I'm going to spend overall, and then which kind of objective 189 00:11:49,098 --> 00:11:50,188 am I going to spend the money on? 190 00:11:50,708 --> 00:11:53,078 So if you're looking to maximize your Facebook ad spend, the key is to know 191 00:11:53,088 --> 00:11:57,988 how much money, um, to put into each objective, this helps you, um, to 192 00:11:57,988 --> 00:12:01,688 better target the right audiences and get the best results for your money. 193 00:12:02,158 --> 00:12:05,288 Generally, it is recommended to allocate budget based on outcomes. 194 00:12:05,378 --> 00:12:10,918 So, for instance, if you want to increase brand awareness, aim for, aim 195 00:12:10,918 --> 00:12:14,468 for a higher, well, not necessarily a higher budget, but a medium budget 196 00:12:14,468 --> 00:12:16,548 for reach and high frequency ad sets. 197 00:12:17,338 -->

00:12:22,268 Again, depending on your, your market industry, how many people 198 00:12:22,268 --> 00:12:24,128 are competing in that level. 199 00:12:24,378 --> 00:12:26,768 I don't think they're going to be a lot, but that's what you're looking at. 200 00:12:27,538 --> 00:12:30,058 One example of brand awareness is traffic campaigns, which requires 201 00:12:30,128 --> 00:12:31,278 implementation of a Facebook pixel. 202 00:12:32,128 --> 00:12:32,748 That is different. 203 00:12:32,758 --> 00:12:35,673 So you have brand awareness on Facebook and you have brand awareness on Twitter. 204 00:12:35,993 --> 00:12:40,593 Or facebook these are types are normally used by big brands to warm up their 205 00:12:40,603 --> 00:12:45,733 account Um, you can also orbit your account with video campaigns with lead 206 00:12:45,743 --> 00:12:50,743 Facebook lead ads you can orbit campaign your sorry your pixel using any of those 207 00:12:50,743 --> 00:12:54,483 as well If you want more conversions allocate more money to conversions 208 00:12:54,823 --> 00:13:00,478 Additionally, you can create audiences for each objective analyze How much you should 209 00:13:00,488 --> 00:13:02,288 be spending based on their performance. 210 00:13:02,478 --> 00:13:06,328 The key is to use the data to make informed decisions and stay flexible. 211 00:13:07,168 --> 00:13:08,598 Here is another thing. 212 00:13:09,018 --> 00:13:11,608 Normally when you run a campaign, an individual campaign, whether it 213 00:13:11,618 --> 00:13:15,748 be a lead out campaign or conversion or brand awareness campaign, you 214 00:13:15,748 --> 00:13:17,658 should ideally run it for 90 days. 215 00:13:18,288 --> 00:13:22,028 In the marketing world, a campaign should be run from, should be. 216 00:13:22,508 --> 00:13:29,268 You know, I'm going for 90 days to get the best amount of data to determine 217 00:13:29,398 --> 00:13:34,678 how good or bad that campaign was 90 days, if it is, you can't write for 218 00:13:34,678 --> 00:13:36,628 90 days, that's, that's, that's fine. 219 00:13:36,928 --> 00:13:38,848 But I'm just saying that 90 days is the thing. 220 00:13:38,848 --> 00:13:41,248 So when you're running a series of campaigns. 221 00:13:42,518 --> 00:13:46,998 Um, it would probably be best to do a brand awareness campaign for three 222 00:13:46,998 --> 00:13:52,408 months and then take that information and then run a lead out campaigns for 223 00:13:52,428 --> 00:13:56,118 another three months and then take that information around another, a conversion 224 00:13:56,198 --> 00:13:57,738 campaign for another three months. 225 00:13:58,718 --> 00:14:03,168 One key thing to realize, and this is, this is, if it's, if you don't listen 226 00:14:03,168 --> 00:14:07,508 to anything else I say on this episode, listen to this really important thing. 227 00:14:08,928 --> 00:14:10,908 It is mind blowing. 228 00:14:10,958 --> 00:14:12,888 When I, when I found out about this. 229 00:14:13,363 --> 00:14:19,503

It changed my entire perspective about Facebook ads and yes, you can 230 00:14:19,503 --> 00:14:22,743 still get restricted and blocked and all of that fancy things. 231 00:14:23,398 --> 00:14:28,738 But it's important for you to know the difference when the reason why 232 00:14:29,328 --> 00:14:32,178 Facebook has all these different, different, different, um, objectives, 233 00:14:32,218 --> 00:14:37,088 like a brand awareness, traffic, traffic campaign, lead, um, objective 234 00:14:37,718 --> 00:14:39,838 conversions is because the people. 235 00:14:40,423 --> 00:14:44,553 They target to take that particular action at different people. 236 00:14:45,073 --> 00:14:47,813 The person who sign up for a lead is going to be different from a 237 00:14:47,813 --> 00:14:49,693 person who actually spends money. 238 00:14:49,713 --> 00:14:50,503 Although I do both. 239 00:14:50,553 --> 00:14:53,693 Um, my profile on Facebook, I do both. 240 00:14:53,723 --> 00:14:54,723 I do both. 241 00:14:54,993 --> 00:14:56,413 I'm not an engagement person. 242 00:14:57,673 --> 00:15:01,273 I'm not a person, but I would, I would be a buyer. 243 00:15:01,663 --> 00:15:03,283 That's how Facebook has profiled me. 244 00:15:03,683 --> 00:15:05,993 So they'll show me ads for buying to buy things. 245 00:15:06,693 --> 00:15:08,233 I buy things. 246 00:15:08,773 --> 00:15:11,903 Um, but there are other people who would go on Facebook and 247 00:15:12,063 --> 00:15:13,513 what they love to do is engage. 248 00:15:13,513 --> 00:15:18,063 They love to comment and post, write comments, like, do all that kind of 249 00:15:18,063 --> 00:15:19,433 activity, but they're not buyers. 250 00:15:19,723 --> 00:15:20,843 They're more like tire kickers. 251 00:15:21,763 --> 00:15:25,813 And there are people who like to download free stuff, freebie seekers. 252 00:15:26,363 --> 00:15:28,603 They would go in and put in the details and they will never 253 00:15:28,603 --> 00:15:30,463 buy and they'll never engage. 254 00:15:31,073 --> 00:15:35,283 So when I'm, I'm telling you, if it's anything else you take away from 255 00:15:35,283 --> 00:15:40,383 this podcast, you can never go and say you're going to run a lead ad 256 00:15:40,383 --> 00:15:45,553 campaign with the intention of the person to buy because they'll never 257 00:15:45,553 --> 00:15:47,033 buy because they're freebie seekers. 258 00:15:47,623 --> 00:15:50,313 If it is, you run a lead ad campaign, Facebook will only target 259 00:15:50,313 --> 00:15:51,783 people who are freebie seekers. 260 00:15:52,233 --> 00:15:53,693 And that's why you're not getting any sales. 261 00:15:54,063 --> 00:15:57,093 If it is you're running a conversion campaign, Facebook will target buyers, 262 00:15:57,093 --> 00:15:58,383 people who've bought in the past. 263 00:15:58,773 --> 00:16:01,883 They have a buyer profile and the likelihood of them spending money with 264 00:16:01,883 --> 00:16:08,483 you is much higher than people are freebie seekers

or just people who like to engage. 265 00:16:09,633 --> 00:16:11,823 I mean, I'm going to just sit with that for a second. 266 00:16:12,303 --> 00:16:14,773 It might be the most mind blowing thing you've heard all 267 00:16:14,843 --> 00:16:16,393 day, all year, all century. 268 00:16:17,038 --> 00:16:20,148 But that is the reason why maybe in the past you've run Facebook 269 00:16:20,178 --> 00:16:24,488 ads and got no results because your targeting was off or your messaging 270 00:16:24,488 --> 00:16:25,708 was off or your audience was off. 271 00:16:26,018 --> 00:16:30,168 But if your targeting is off, in other words, you run, um, leader campaigns or 272 00:16:30,168 --> 00:16:33,358 winners campaigns and you got no results and you were hoping to get buyers. 273 00:16:33,878 --> 00:16:34,608 That's because. 274 00:16:35,043 --> 00:16:36,703 Facebook is not targeting buyers. 275 00:16:38,433 --> 00:16:41,273 All right, let's get back into the stream of things. 276 00:16:41,663 --> 00:16:45,393 So a good starting point is to allocate one third of your budget to what's 277 00:16:45,473 --> 00:16:50,243 like lookalike audiences, something I covered probably a couple of years back. 278 00:16:50,413 --> 00:16:51,863 You're gonna have to dig to find that one up. 279 00:16:51,893 --> 00:16:55,433 I'll include a link in the show notes, lookalike audiences, which will help 280 00:16:55,503 --> 00:17:00,123 you Quickly build an audience lookalike audiences are based on existing customers 281 00:17:00,123 --> 00:17:04,883 who can be sure that you're connecting with people who are Likely interested in 282 00:17:04,883 --> 00:17:09,203 your product or service in other words say for example I run a campaign that's a 283 00:17:09,203 --> 00:17:13,763 lead ad campaign or a conversion campaign and I got 50 people to buy 100 people to 284 00:17:13,763 --> 00:17:19,633 buy What I do then is a download a list of those buyers upload it into Facebook 285 00:17:19,703 --> 00:17:22,323 She can do this by the way didn't know that if you didn't know that you can 286 00:17:22,323 --> 00:17:27,063 upload your list of buyers into Facebook and ask Facebook to generate A lookalike 287 00:17:27,063 --> 00:17:31,793 audience from those profile of buyers, and then you can run ads using that 288 00:17:31,813 --> 00:17:36,363 audience that lookalike audience to buy whatever it is you want them to buy next. 289 00:17:36,783 --> 00:17:41,233 Okay, so many nuggets, I know, and I just, we have this amount of time. 290 00:17:41,243 --> 00:17:41,863 Let's keep going. 291 00:17:42,373 --> 00:17:45,213 So with another third of your budget, you can target interests and behaviors, 292 00:17:45,233 --> 00:17:48,393 which will ensure you're reaching the people who are likely to take action. 293 00:17:48,673 --> 00:17:52,783 This could be anything from people who are recently moved house, avid gamers. 294 00:17:53,338 --> 00:17:59,918 To people who, um, recently bought a lead, uh, a small item or who bought a 295 00:17:59,918 --> 00:18:03,908 Gucci bag or, you know, whatever it is you want to do, um, you can target that. 296 00:18:04,288 --> 00:18:07,858 And then finally, your last third of the budget should be used for targeting 297 00:18:08,288 --> 00:18:11,488 retargeting campaigns, which allow you to reach out to people who have 298 00:18:11,498 --> 00:18:13,228 already interacted with your business. 299 00:18:14,088 --> 00:18:16,898 Um, so this can work for any. 300 00:18:17,948 --> 00:18:21,768 So right now I'm, I'm running a lead ads campaign. 301 00:18:21,798 --> 00:18:27,098 I can build a lookalike audience with anybody who completed, um, signed up for 302 00:18:27,108 --> 00:18:33,358 my lead magnet, and then I could, um, run Facebook ads to that local, that group 303 00:18:33,358 --> 00:18:34,968 of lookalike people, if that makes sense. 304 00:18:35,718 --> 00:18:40,068 Um, This is a great way to drive conversions, maximize your ad spend. 305 00:18:40,068 --> 00:18:44,378 So there you have it, a strategic way to distribute your Facebook ad spend. 306 00:18:45,138 --> 00:18:48,478 Another way to retarget, uh, sorry, retargeting campaign is to target 307 00:18:48,478 --> 00:18:55,118 people who, who would, who saw your ad, but did not take action. 308 00:18:56,398 --> 00:19:01,348 So whether the ad for a lead magnet or maybe something to buy, you just 309 00:19:01,348 --> 00:19:04,598 remind them because people are busy, you know, they were about to sign 310 00:19:04,598 --> 00:19:06,998 up and then something distracted them or they were about to do 311 00:19:06,998 --> 00:19:08,248 some, you know, whatever it is. 312 00:19:10,058 --> 00:19:10,808 Now let's keep going. 313 00:19:11,308 --> 00:19:15,578 You can start a small campaign with just 1 a day. 314 00:19:15,708 --> 00:19:20,538 You can start a small budget of just 1 a day You can experiment with 315 00:19:20,558 --> 00:19:24,998 different ads, find out what works for your target audience, and slowly 316 00:19:25,018 --> 00:19:26,238 increase your budget as you go. 317 00:19:26,358 --> 00:19:28,078 Again, it's not necessarily 1 a day. 318 00:19:28,178 --> 00:19:29,628 I think the minimum is 1. 319 00:19:29,698 --> 00:19:30,608 27. 320 00:19:31,688 --> 00:19:39,598 Depending on the type of, um, objective that you are using or you're running with. 321 00:19:39,948 --> 00:19:40,318 Okay. 322 00:19:40,798 --> 00:19:43,498 Plus you don't have to commit a long term contract. 323 00:19:43,558 --> 00:19:46,588 You can pay as you go and adjust your budget at any time. 324 00:19:46,988 --> 00:19:51,788 However, do bear in mind that conversion campaigns have a higher cost when 325 00:19:51,788 --> 00:19:53,808 compared to lead generation objectives. 326 00:19:55,168 --> 00:19:55,698 So in other words, 1. 327 00:19:55,698 --> 00:20:00,038 27 would probably not cut it for conversion campaigns. 328 00:20:00,038 --> 00:20:07,248 You probably need 5 a day, but video views,

Facebook like campaigns, 329 00:20:07,278 --> 00:20:10,648 engagement campaigns, anything like that, you can probably get a 1. 330 00:20:10,758 --> 00:20:12,038 27 a day. 331 00:20:13,548 --> 00:20:17,278 Because, and the reason why it's not that Facebook is being stingy or whatever. 332 00:20:17,278 --> 00:20:21,968 It's just that the competition at that level for that particular objective, 333 00:20:22,018 --> 00:20:25,108 for that audience, the demand is high. 334 00:20:25,168 --> 00:20:27,548 So you have to have a significant amount of money. 335 00:20:28,493 --> 00:20:32,833 And to bid to bid or bid your competitors. 336 00:20:32,873 --> 00:20:33,723 That's the only reason. 337 00:20:34,463 --> 00:20:34,873 Okay. 338 00:20:35,843 --> 00:20:37,283 And number four, I believe it's number four. 339 00:20:37,373 --> 00:20:38,023 I'm starting to lose count. 340 00:20:38,473 --> 00:20:41,263 The learning phase with 50 conversions per week. 341 00:20:42,343 --> 00:20:47,173 Now, apparently this is no longer a thing, but I can attest because even 342 00:20:47,173 --> 00:20:52,033 this past week I run a campaign or even because the learning is at the. 343 00:20:52,313 --> 00:20:53,743 It's actually at the ad set level. 344 00:20:54,283 --> 00:20:59,693 So at the ad set level, and yes, they waited 50 conversions. 345 00:20:59,703 --> 00:21:02,903 They keep saying, people keep saying, Oh, it's not necessarily a thing. 346 00:21:03,423 --> 00:21:05,073 They don't really follow it anymore. 347 00:21:05,553 --> 00:21:09,353 And they don't publicly tell you what is a new thing. 348 00:21:09,623 --> 00:21:13,183 So just as take it at 50, 50 conversions per week is still. 349 00:21:14,663 --> 00:21:15,603 The requirement. 350 00:21:15,633 --> 00:21:20,553 Okay, so figuring out how to run effective Facebook ads can be a daunting 351 00:21:20,553 --> 00:21:24,363 task, and one of the biggest hurdles is getting past that learning phase. 352 00:21:25,148 --> 00:21:28,398 Where you likely spend a lot of money with no return. 353 00:21:29,098 --> 00:21:31,358 Um, right. 354 00:21:31,868 --> 00:21:34,068 Just trying to think if it's a, if it's a good place to talk about a learning 355 00:21:34,218 --> 00:21:38,098 phase real quick, and I've, I believe there is a podcast episode that handles 356 00:21:38,098 --> 00:21:41,568 the learning phase, um, learning phase. 357 00:21:41,608 --> 00:21:41,898 Okay. 358 00:21:41,958 --> 00:21:45,028 Let me just go through this particular section to ensure you 359 00:21:45,028 --> 00:21:48,058 get the Facebook ad campaigns is important to set a tangible goal. 360 00:21:48,408 --> 00:21:50,988 A good place to start is aiming for 50 conversions per week. 361 00:21:51,478 --> 00:21:54,968 This will give you a baseline number to measure your success 362 00:21:55,178 --> 00:21:56,668 and help you get better results. 363 00:21:57,803 --> 00:22:02,083 How much to spend with some trial and error, you'll be able to identify an easy, 364 00:22:02,303 --> 00:22:04,923 easy way to reach 50 conversions per week. 365 00:22:05,053 --> 00:22:09,743 After that scaling up your ad spend to get even more conversions is a 366 00:22:09,743 --> 00:22:14,673 matter of tweaking your ad spend content, content and targeting. 367 00:22:15,243 --> 00:22:18,293 So don't be afraid to take the plunge and reach for those 368 00:22:18,343 --> 00:22:20,073 50 conversions per week goal. 369 00:22:20,513 --> 00:22:22,213 However, keep an eye on your conversion rate. 370 00:22:22,523 --> 00:22:26,393 Also your learning page and ad creatives can have a significant effect. 371 00:22:26,773 --> 00:22:28,983 On your total confusions per week. 372 00:22:30,103 --> 00:22:32,093 Now I can address, now is a good time to address the learning phase. 373 00:22:32,493 --> 00:22:36,813 So Facebook has this thing called a learning phase and basically, um, 374 00:22:37,143 --> 00:22:38,593 let's, let's go with the lead ads. 375 00:22:38,593 --> 00:22:40,113 Conversion is much harder to get. 376 00:22:40,743 --> 00:22:42,173 Let's go to lead ad campaigns. 377 00:22:42,603 --> 00:22:49,063 Um, if it is you're running a lead ad campaign, like using the lead form on 378 00:22:49,073 --> 00:22:55,833 Facebook itself, Facebook will run that campaign for a week to make sure you 379 00:22:55,833 --> 00:23:00,998 get 50 conversions or 50 leads before they take you from that learning phase. 380 00:23:01,258 --> 00:23:07,008 Into just active sometimes in your campaign or in your, in your ad set, you 381 00:23:07,008 --> 00:23:08,928 were going to see, um, living limited. 382 00:23:08,928 --> 00:23:12,888 So that means you didn't actually achieve that goal of 50 conversions a week. 383 00:23:12,898 --> 00:23:16,278 And I know, I know there's big, even Facebook is saying they no longer 384 00:23:16,388 --> 00:23:18,038 have a required of 50 conversions. 385 00:23:18,698 --> 00:23:24,758 Um, per week, but with me, I'm, as I'm recording this, they do, they do. 386 00:23:24,758 --> 00:23:29,728 I've just, I've just literally started a campaign and yep, they waited for 50 387 00:23:29,758 --> 00:23:33,818 conversions and it was taking extremely long for them to say, well, I say, okay, 388 00:23:33,818 --> 00:23:39,518 maybe at 20, maybe at 30, maybe at 40, no, at 50 conversions, my, my, um, I'd said 389 00:23:39,528 --> 00:23:45,638 went out of, um, learning into active, which is a bit strange, but any, um, 390 00:23:45,838 --> 00:23:48,768 and the, the, the goal is to get to 50. 391 00:23:49,658 --> 00:23:54,448 In saying that, and again, this is all explained in the podcast that I did 392 00:23:54,448 --> 00:23:59,118 about lead ad course in saying that it is better for you to run the camp, 393 00:23:59,138 --> 00:24:08,808 the campaign, the ad set, the ad for, um, for, uh, three days, 72 hours. 394 00:24:09,708 --> 00:24:10,478 Exactly. 395 00:24:11,248 --> 00:24:16,108 And if you're not getting any results, and if all of your key

performance indicators, 396 00:24:16,158 --> 00:24:22,138 like your CTR and your CTR all are below average, again, this is explained in 397 00:24:22,148 --> 00:24:25,818 the lead, lead ad course, um, podcasts. 398 00:24:26,183 --> 00:24:31,233 If it's below average or, or the numbers I've given, then pretty 399 00:24:31,233 --> 00:24:34,663 please consider switching off that ad. 400 00:24:36,123 --> 00:24:38,103 When I say below, I mean significantly below. 401 00:24:38,108 --> 00:24:44,343 Say for example, instead of big being 2%, it's 1.1 0.9%, then that's not very low. 402 00:24:44,523 --> 00:24:47,843 You might leave it for another day to see if it'll get up high, or if it's supposed 403 00:24:47,843 --> 00:24:54,323 to be 4% and it's at 3.98% or 3.9%, then it's, it's a little more unusual, but 404 00:24:54,353 --> 00:24:58,698 maybe with another D, and if it's after four days, It still is quite below, then 405 00:24:58,718 --> 00:25:03,038 you need to switch off that ad or make the necessary tweaks as I suggested. 406 00:25:03,078 --> 00:25:03,858 Add a new copy. 407 00:25:04,238 --> 00:25:06,298 The creative or the audience is wrong. 408 00:25:07,058 --> 00:25:10,068 And then go again, put in a new, put in a new creative and 409 00:25:10,108 --> 00:25:11,228 test it again and keep going. 410 00:25:11,938 --> 00:25:12,278 Okay. 411 00:25:12,338 --> 00:25:14,758 This is the reason why people hire Facebook ads manager because 412 00:25:14,918 --> 00:25:16,288 it can be a pain in the butt. 413 00:25:16,758 --> 00:25:21,178 To get all of the things lined up to perform the way you want it to perform. 414 00:25:21,428 --> 00:25:22,838 But this podcast is not about that. 415 00:25:23,168 --> 00:25:24,868 It's all about how much money to spend. 416 00:25:25,048 --> 00:25:25,458 Okay. 417 00:25:25,808 --> 00:25:28,138 So how does scale to 20 per day per ad set? 418 00:25:28,668 --> 00:25:32,348 With the right strategy, you can scale your ad spend 20 a day per ad set. 419 00:25:32,348 --> 00:25:36,628 This means that you could be spending 20 a day on each ad set with 420 00:25:36,688 --> 00:25:39,858 potentially unlimited returns, but don't jump into this too quickly. 421 00:25:39,878 --> 00:25:44,218 You need to have a plan in place to ensure that you are spending money wisely. 422 00:25:45,388 --> 00:25:48,658 To start, you should have a clear understanding of your target 423 00:25:48,688 --> 00:25:51,768 audience and the type of ads that will be most effective. 424 00:25:51,788 --> 00:25:56,518 Once you have that data, you can create a budget and experiment with 425 00:25:57,068 --> 00:25:59,598 different ad sets and spending levels. 426 00:25:59,658 --> 00:26:03,498 You can then adjust your spending levels according to performance. 427 00:26:03,828 --> 00:26:10,068 Now, the rule of thumb is you should increase your budget by 20% every 428 00:26:10,068 --> 00:26:11,608 two or three days, I believe it is. 429 00:26:12,323 --> 00:26:14,413 Don't go from 20 a day. 430 00:26:14,653 --> 00:26:14,923 Do it. 431 00:26:15,093 --> 00:26:15,473 Do it. 432 00:26:15,713 --> 00:26:19,043 Um, that's why it's called scaling ads. 433 00:26:19,493 --> 00:26:23,953 Scaling means you're sliding that scale ever so slightly every couple 434 00:26:23,953 --> 00:26:26,583 of days and you're not doing jumping. 435 00:26:26,583 --> 00:26:29,123 That's why it's not called jumping. 436 00:26:29,363 --> 00:26:30,593 It's called scaling ads. 437 00:26:31,743 --> 00:26:31,983 Okay. 438 00:26:31,983 --> 00:26:32,983 I believe this is number six. 439 00:26:32,983 --> 00:26:35,493 Number six, identify your winning ad set and scale more. 440 00:26:36,463 --> 00:26:37,888 So identify your winning ad set. 441 00:26:38,068 --> 00:26:40,958 Scaling more is essential to success on the platform. 442 00:26:40,968 --> 00:26:41,678 That's the next thing as well. 443 00:26:41,678 --> 00:26:45,638 If you don't scale, then the results can, it can get stagnant. 444 00:26:45,658 --> 00:26:48,968 And if you don't do different ads, you know, there's so many different things. 445 00:26:48,978 --> 00:26:52,888 Anyhow, with a successful ad set, you will be able to get more out 446 00:26:52,888 --> 00:26:56,218 of your ad budget and maximize your, your return on investment. 447 00:26:57,018 --> 00:26:59,828 To identify winning ad sets, you should start by testing with different 448 00:26:59,828 --> 00:27:01,818 creatives and targeting objectives. 449 00:27:02,328 --> 00:27:06,288 Once you find a winner, you can then scale your budget and 450 00:27:06,288 --> 00:27:08,213 increase the reach of your ads. 451 00:27:08,993 --> 00:27:13,463 Play close attention to your Facebook ad campaign metrics and optimize 452 00:27:13,513 --> 00:27:15,183 ad sets that are performing well. 453 00:27:16,713 --> 00:27:18,893 I believe this is number 8, could be 7 or 8. 454 00:27:19,183 --> 00:27:21,393 Always have a return on investment in mind. 455 00:27:21,473 --> 00:27:25,133 Whenever you decide to spend money on marketing, always have 456 00:27:25,133 --> 00:27:26,513 a return on investment in mind. 457 00:27:26,903 --> 00:27:30,823 This means that you should, for every dollar you spend, you should be getting 458 00:27:30,823 --> 00:27:34,203 back X amount of dollars from your sales. 459 00:27:34,533 --> 00:27:36,273 And of course, if it's a lead ad campaign, then you wouldn't 460 00:27:36,273 --> 00:27:38,433 have sales per se straight away. 461 00:27:38,433 --> 00:27:41,893 Like on the one side, you'll have the leads in your email list, and then you 462 00:27:41,893 --> 00:27:46,263 will then have other ways in once you know to them and then get them to buy 463 00:27:46,263 --> 00:27:47,233 whatever it is you want them to buy. 464 00:27:47,923 --> 00:27:50,303 So how much you should spend on Facebook ads should always depend 465 00:27:50,313 --> 00:27:53,243 on the return on investment you expect to get from, from them. 466 00:27:53,793 --> 00:27:59,063

Of course you can run upsells once you, once you have a lead ad campaign 467 00:27:59,063 --> 00:28:02,703 running, you can have upsells that will cover the ad course. 468 00:28:04,008 --> 00:28:09,338 Okay, so the first trick in this whole thing is to find a really good lead magnet 469 00:28:09,628 --> 00:28:11,108 or freebie that you want to give away. 470 00:28:12,088 --> 00:28:15,388 And then after it's up, they've taken the freebie, you need to find something that 471 00:28:15,408 --> 00:28:17,698 really converts in terms of an upsell. 472 00:28:18,968 --> 00:28:21,768 So it's a kind of a staging process when it comes to lead ads. 473 00:28:22,248 --> 00:28:24,898 And then once you find that winning one, then you can run an ad directly 474 00:28:24,918 --> 00:28:27,038 to that, whatever that upsell is. 475 00:28:27,398 --> 00:28:29,278 It could be something small like 7. 476 00:28:29,713 --> 00:28:35,493 9, 27, something small that doesn't require a whole lot of, um, commitment 477 00:28:35,493 --> 00:28:38,583 or thinking on the person's part that they can just quickly just buy it. 478 00:28:39,743 --> 00:28:42,483 So how much you spend on Facebook ads should always depend on the return on 479 00:28:42,483 --> 00:28:43,863 investment you expect to get from them. 480 00:28:43,863 --> 00:28:45,873 Of course, the amount you spend on Facebook ads should 481 00:28:45,913 --> 00:28:46,973 also depend on your budget. 482 00:28:47,433 --> 00:28:49,503 Setting a budget and sticking to it is a must. 483 00:28:49,858 --> 00:28:53,058 When it comes to online advertising, but you should also make sure that the 484 00:28:53,058 --> 00:28:58,478 budget you have set is realistic and achievable that way you can ensure that 485 00:28:58,588 --> 00:29:03,988 you're always getting a good return on investment five things to avoid when 486 00:29:03,988 --> 00:29:08,718 spending money on Facebook, because it can get really, really, really addictive. 487 00:29:10,658 --> 00:29:11,868 Here are the five things you need to do. 488 00:29:12,408 --> 00:29:13,128 You need to. 489 00:29:13,733 --> 00:29:16,633 So, um, consider number one, not spending enough. 490 00:29:17,193 --> 00:29:20,733 So spending enough is one of the biggest things to avoid when spending on ads, the 491 00:29:20,743 --> 00:29:22,703 cost of Facebook ads can quickly add up. 492 00:29:23,013 --> 00:29:25,853 So it's important to budget for your campaign goals, but it's also important 493 00:29:25,863 --> 00:29:27,453 to spend enough to see results. 494 00:29:27,483 --> 00:29:31,273 So if you don't spend enough, your ads may not get the reach or engagement. 495 00:29:31,273 --> 00:29:31,533 They need. 496 00:29:31,533 --> 00:29:37,883 So if you have, if all you have to spend on Facebook ads is 5 in total, then please 497 00:29:37,893 --> 00:29:39,233 do not spend the money on Facebook ads. 498 00:29:39,603 --> 00:29:41,443 If you've got 5 a day, which is about. 499 00:29:41,883 --> 00:29:43,003 150

a month. 500 00:29:43,553 --> 00:29:44,483 150 to 200 a month. 501 00:29:44,843 --> 00:29:46,103 That that is workable. 502 00:29:46,103 --> 00:29:47,733 You can work with that amount of money. 503 00:29:48,703 --> 00:29:57,523 You can probably run, run the ads for 20 days or 10, uh, 30 days consecutively, 504 00:29:58,023 --> 00:30:00,923 10 a day, 300 a day, 300 a month. 505 00:30:00,923 --> 00:30:04,273 So between 150 and 300 a month, it's a good. 506 00:30:04,908 --> 00:30:10,668 Um, a good ballpark in terms of budget too often businesses fail to invest enough 507 00:30:10,698 --> 00:30:14,958 in their facebook ads campaign resulting in Many more returns the key is to set a 508 00:30:14,958 --> 00:30:19,808 realistic budget and adjust it as needed number two quitting too soon Quitting too 509 00:30:19,808 --> 00:30:23,378 soon is one of the biggest things of void when spending on facebook ads It's easy 510 00:30:23,378 --> 00:30:27,443 to become discouraged when you're not seeing results you want right away But 511 00:30:27,443 --> 00:30:30,923 it's important to remember that it takes time and effort to see success before 512 00:30:30,923 --> 00:30:34,993 you give up, make sure you're given, you've given your campaign a fair chance. 513 00:30:35,443 --> 00:30:38,223 You may need to adjust your strategy or tweak your targeting 514 00:30:38,233 --> 00:30:39,383 to get the results you want. 515 00:30:39,863 --> 00:30:41,263 It's also important to be patient. 516 00:30:41,313 --> 00:30:42,643 Results don't come overnight. 517 00:30:42,923 --> 00:30:44,453 Don't be afraid to experiment. 518 00:30:44,933 --> 00:30:47,573 Okay, at number three, I believe it is. 519 00:30:47,573 --> 00:30:48,483 I'm sorry. 520 00:30:48,483 --> 00:30:51,543 I just keep starting to lose count without, um, paying attention. 521 00:30:52,823 --> 00:30:55,383 Number three, choosing the wrong type of campaign or objective. 522 00:30:55,643 --> 00:30:58,423 Biggie, like I was mentioning earlier, one of the most common 523 00:30:58,423 --> 00:31:02,793 mistakes choosing is choosing the wrong type of campaign and objective. 524 00:31:03,103 --> 00:31:06,073 When selecting your campaign type, you should make sure 525 00:31:06,073 --> 00:31:07,993 it aligns with your goals. 526 00:31:08,368 --> 00:31:11,008 For example, if your goal is to increase brand awareness, then a 527 00:31:11,008 --> 00:31:13,838 reach campaign would be appropriate. 528 00:31:13,968 --> 00:31:16,148 If your goal is to generate sales, then a conversion 529 00:31:16,148 --> 00:31:17,508 campaign would be more suitable. 530 00:31:18,078 --> 00:31:23,038 You should choose an objective that is directly related to the action you 531 00:31:23,038 --> 00:31:27,788 want people to take, such as clicking on a link or making a purchase. 532 00:31:28,228 --> 00:31:33,528 Making the wrong choice can result in your ad not being seen by the right people 533 00:31:33,558 --> 00:31:35,198 or not achieving the desired results. 534 00:31:35,288 --> 00:31:39,868 Like I mentioned earlier, freebie seekers are not the people who are buyers. 535 00:31:39,948 --> 00:31:43,058 So when you choose a campaign type of leads and you want people to buy, 536 00:31:43,468 --> 00:31:46,488 that's the wrong campaign type because Facebook will only show your, your, 537 00:31:46,608 --> 00:31:48,768 your thing that they want them to buy. 538 00:31:49,108 --> 00:31:53,288 To, um, freebie seekers and freebie seekers just wouldn't buy your stuff. 539 00:31:54,808 --> 00:31:55,188 Okay. 540 00:31:55,268 --> 00:31:56,578 Not analyzing the data. 541 00:31:56,768 --> 00:32:00,408 So analyzing the data is one of the most important things to do when 542 00:32:00,408 --> 00:32:06,598 spending money on Facebook ads, not just not going, sorry, not doing. 543 00:32:06,598 --> 00:32:09,138 So can result in a huge waste of time and money. 544 00:32:09,738 --> 00:32:12,808 It's essential to understand your data in order to gain insights, 545 00:32:12,838 --> 00:32:16,908 make adjustments and optimize your campaigns without analyzing the data 546 00:32:16,938 --> 00:32:19,618 collected from your ads, you won't know. 547 00:32:20,118 --> 00:32:21,848 What's working and what's not. 548 00:32:22,478 --> 00:32:25,478 You won't be able to identify patterns which can help you 549 00:32:25,478 --> 00:32:27,508 better target your audience. 550 00:32:28,048 --> 00:32:31,668 If you're not analyzing the data, you'd be blindly spending on ads 551 00:32:31,678 --> 00:32:34,618 without any real understanding of what's driving your results. 552 00:32:34,628 --> 00:32:36,488 So it's important to set aside time each day. 553 00:32:37,358 --> 00:32:40,158 Or each week to review your data and make adjustments. 554 00:32:40,178 --> 00:32:45,538 If you're brand new, you do it every day, but if it is you, you're a seasoned, 555 00:32:45,638 --> 00:32:50,728 like not seasoned, but you you've run different campaigns before, then you, you, 556 00:32:50,798 --> 00:32:52,578 you'll every week, you'll set aside time. 557 00:32:53,168 --> 00:32:55,678 To go and analyze all of the different campaigns. 558 00:32:56,738 --> 00:32:57,178 Okay. 559 00:32:57,828 --> 00:33:01,368 Not calculating the marginal, marginal profitability. 560 00:33:02,378 --> 00:33:04,638 Another important thing to avoid when spending money on 561 00:33:04,648 --> 00:33:08,578 Facebook ads is calculating the marginal profit, profitability. 562 00:33:09,288 --> 00:33:12,728 It's easy to get lost in the glitz and glamour of ads and be tempted 563 00:33:12,728 --> 00:33:13,738 to spend more than you need. 564 00:33:14,423 --> 00:33:18,003 But if you don't pay attention to marginal profitability for a few ads, you could 565 00:33:18,003 --> 00:33:21,483 end up overspending and not seeing return on investment that you wanted. 566 00:33:21,983 --> 00:33:25,663 Marginal profitability refers to the rate at which your profits increase 567 00:33:25,723 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00:33:28,913 or decrease with each additional dollar you spend on the campaign. 568 00:33:29,033 --> 00:33:32,413 Calculating it will help you make sure you're spending your money 569 00:33:32,423 --> 00:33:35,183 wisely and not wasting your budget. 570 00:33:35,833 --> 00:33:39,773 So here is a marginal profitability example. 571 00:33:40,583 --> 00:33:44,723 Um, let's say you are running a conversion campaign for a small item 572 00:33:44,723 --> 00:33:46,623 like a digital planner price at 17. 573 00:33:47,793 --> 00:33:51,423 Initially, you were getting conversions when you were spending 20 a day. 574 00:33:51,923 --> 00:33:56,173 However, over time you increased your budget $35 a day, and this is 575 00:33:56,173 --> 00:34:00,113 what has happened at $20 a day, you are getting three sales a day, but 576 00:34:00,393 --> 00:34:04,083 after you increase your budget's $35 a day, you now make four sales a day. 577 00:34:05,583 --> 00:34:10,103 Doing the math, you realize that $20, at $20 a day, you're making 578 00:34:10,653 --> 00:34:17,743 $51 a day, but your budget, but a budget of $35 a day yields, uh, the, 579 00:34:17,743 --> 00:34:20,293 in terms of money spent $68 a day. 580 00:34:20,813 --> 00:34:27,953 So when you do the math in terms of profitability, um, the R o I ON $20 a day. 581 00:34:28,603 --> 00:34:39,173 It's 21 and the ROI and 35 a day when you do the math, it's 31, but when 582 00:34:39,173 --> 00:34:43,233 they look at it from a, like from a 10, 000 foot view, you're better off. 583 00:34:44,198 --> 00:34:49,488 Um, yeah, you're better off spending 37, sorry. 584 00:34:49,798 --> 00:34:53,568 You're better off spending money, lowering your budget back to 20 a day 585 00:34:53,588 --> 00:34:59,628 because profitability margin is much better at 20 a day when you spend 586 00:34:59,628 --> 00:35:02,978 on, when your budget is 20 35 a day. 587 00:35:04,358 --> 00:35:05,638 Okay, does that make sense? 588 00:35:05,918 --> 00:35:13,438 So in other words, 68, I'll do a quick math while I'm on this thing, 68 minus 589 00:35:13,568 --> 00:35:20,993 35 is 33 So you're marginally making 2 extra for a much higher budget compared 590 00:35:20,993 --> 00:35:24,583 to 20 a day, which when you're making 31 a day, so you see the difference. 591 00:35:24,853 --> 00:35:28,003 In other words, you've increased your budget by 15 and you're 592 00:35:28,003 --> 00:35:30,153 only making 2 more a day. 593 00:35:31,913 --> 00:35:35,783 So definitely you need to like, that is why it's so important to look at the ads. 594 00:35:36,368 --> 00:35:41,648 Yes, you're making money, but which one is giving you more profit in 595 00:35:41,728 --> 00:35:43,378 terms of, you know, the breakdown? 596 00:35:44,648 --> 00:35:45,058 Okay. 597 00:35:45,738 --> 00:35:50,478 The other option then, if it is you want to stay at 35 a day, I don't know why 598 00:35:50,478 --> 00:35:54,028 you would, but just in case, let's say for argument's sake, you're probably 599 00:35:54,028 --> 00:35:56,598 getting higher quality leads at 35 a day. 600 00:35:57,148 --> 00:36:00,488 The other option then is a set set up an upsell in the back end. 601 00:36:00,498 --> 00:36:05,348 So for example, when they buy the digital planner for 17 a day, you might want to 602 00:36:05,358 --> 00:36:07,658 sell them something else on the back end. 603 00:36:08,388 --> 00:36:14,688 Um, maybe, um, so someone who buys a planner, maybe an ebook or some other. 604 00:36:15,333 --> 00:36:20,593 Thing some kind of other digital thing stickers to go with, um, to go with 605 00:36:20,593 --> 00:36:24,833 the planner or, you know, something else, um, you fill up a pages. 606 00:36:24,833 --> 00:36:25,743 I don't know something else. 607 00:36:25,743 --> 00:36:28,623 I'm not a professional digital planners, as you can tell, but 608 00:36:28,623 --> 00:36:29,923 something else in the back end. 609 00:36:30,083 --> 00:36:35,383 So in other words, something for 27 or something for 37 that will actually 610 00:36:35,413 --> 00:36:38,703 give you a higher return on investment. 611 00:36:39,288 --> 00:36:40,248 If it is, you want to do that. 612 00:36:40,278 --> 00:36:41,768 You can even do it at 20 a day as well. 613 00:36:41,778 --> 00:36:43,738 You can upsell on the back end at 20 a day. 614 00:36:44,778 --> 00:36:45,188 Okay. 615 00:36:45,218 --> 00:36:46,778 Hopefully that made sense. 616 00:36:47,478 --> 00:36:47,728 Ooh. 617 00:36:48,018 --> 00:36:48,388 Okay. 618 00:36:48,478 --> 00:36:51,498 So how much to actually spend on Facebook ads? 619 00:36:51,508 --> 00:36:54,098 Here is my real life example. 620 00:36:54,718 --> 00:36:57,328 So recently I wanted to test a lead magnet and I created a use, 621 00:36:57,548 --> 00:36:59,488 created and I create and use it. 622 00:36:59,768 --> 00:37:02,448 As a basis for growing my email list, because people do lead 623 00:37:02,448 --> 00:37:03,368 markets for growing an email list. 624 00:37:03,418 --> 00:37:07,378 I've done that for years organically and managed to grow an email list of a 625 00:37:07,378 --> 00:37:11,888 thousand, um, a thousand, over a thousand. 626 00:37:13,028 --> 00:37:14,008 What's the word I'm looking for? 627 00:37:14,018 --> 00:37:14,388 Sorry. 628 00:37:16,248 --> 00:37:18,478 I've literally grown my list over a thousand subscribers. 629 00:37:18,498 --> 00:37:19,188 That's what I'm looking for. 630 00:37:19,338 --> 00:37:20,768 My goodness, I've gone blank. 631 00:37:21,728 --> 00:37:21,738 Anywho. 632 00:37:22,518 --> 00:37:24,848 Um, so that's what I've done organically. 633 00:37:24,868 --> 00:37:27,588 And it takes you a good while to build a list of a thousand 634 00:37:28,878 --> 00:37:29,988 subscribers consistently. 635 00:37:31,268 --> 00:37:31,658 Okay. 636 00:37:31,748 --> 00:37:32,898 So like any entrepreneur. 637 00:37:33,373 --> 00:37:35,013 That's, uh, organically. 638 00:37:35,563 --> 00:37:37,213 So now we're going to look at how I'm going to do it. 639

00:37:39,118 --> 00:37:40,918 using paid sources. 640 00:37:41,828 --> 00:37:44,948 Like any entrepreneur, I have several options to test the effectiveness 641 00:37:44,948 --> 00:37:48,058 of a lead magnet or freebie. 642 00:37:48,538 --> 00:37:52,968 These options include organic marketing, so Pinterest, SEO, all of those things, 643 00:37:53,178 --> 00:37:55,178 social media, and paid marketing. 644 00:37:55,868 --> 00:38:00,028 I did not have a lot of time to use organic marketing, so I opted 645 00:38:00,058 --> 00:38:02,208 in for Facebook lead ads instead. 646 00:38:03,758 --> 00:38:08,658 So with 200 in hand, I decided on a budget of 10 a day for two weeks. 647 00:38:09,198 --> 00:38:10,608 Here are the results that I got. 648 00:38:11,973 --> 00:38:12,463 100. 649 00:38:12,503 --> 00:38:14,243 I actually have a screenshot in the show notes. 650 00:38:14,263 --> 00:38:16,013 You can head over to success on scramble. 651 00:38:16,233 --> 00:38:21,193 com forward slash EP two, six, six, or is it two, two, six? 652 00:38:21,203 --> 00:38:22,313 It's two, two, six, six. 653 00:38:22,553 --> 00:38:23,173 I believe it is. 654 00:38:23,633 --> 00:38:26,163 Um, two, six, six. 655 00:38:26,213 --> 00:38:27,493 I'll tell you in a second. 656 00:38:27,833 --> 00:38:28,913 Yeah, it's two, six, six. 657 00:38:30,303 --> 00:38:31,313 Just wanted to double check. 658 00:38:31,743 --> 00:38:32,153 Okay. 659 00:38:32,693 --> 00:38:33,733 So success on scramble. 660 00:38:33,923 --> 00:38:34,413 com forward slash 661 00:38:40,078 --> 00:38:43,538 I did, I did this, I have actually have a screenshot here, the breakdowns, you 662 00:38:43,538 --> 00:38:45,448 can see that it's a real life example. 663 00:38:45,458 --> 00:38:46,358 I've done this. 664 00:38:46,778 --> 00:38:52,558 Um, I got 159 leads with an average cost per lead at 1. 665 00:38:52,558 --> 00:38:52,988 26. 666 00:38:53,168 --> 00:38:58,428 It means that I now have 150 leads or more people on my email list 667 00:38:58,458 --> 00:38:59,588 or subscribers on my email list. 668 00:39:00,308 --> 00:39:01,028 It might be you. 669 00:39:01,028 --> 00:39:01,518 I don't know. 670 00:39:02,658 --> 00:39:05,918 I'm also running a five day challenge to see if any of these 671 00:39:05,918 --> 00:39:07,698 will convert into a long term client. 672 00:39:09,043 --> 00:39:13,583 That way, if it is, if I get only one long term client from this 673 00:39:15,063 --> 00:39:18,683 campaign, it means I've, I've made back my money on that investment. 674 00:39:19,183 --> 00:39:20,483 Do you see how easy that is? 675 00:39:21,163 --> 00:39:26,333 Whereas if I decided I'm going to do this in a very slow pace, organically, 676 00:39:26,643 --> 00:39:31,473 social media using SEO, using Pinterest, it will take me probably 677 00:39:31,633 --> 00:39:34,173 six months to get the same results. 678 00:39:34,773 --> 00:39:39,063 Do you think for that for a second, I just spent 200 now to get 150 leads. 679 00:39:39,528 --> 00:39:43,658 Or I can do all of these things that take up my time, make up my precious 680 00:39:43,658 --> 00:39:47,138 time to generate that same amount of leads in a six month period. 681 00:39:47,418 --> 00:39:48,938 Think of how much I could be doing in that six months. 682 00:39:49,138 --> 00:39:52,078 You probably have questions like I'm about to share with you here. 683 00:39:52,078 --> 00:39:55,138 Here are some questions people always ask or sometimes ask 684 00:39:55,138 --> 00:39:56,368 when it comes to Facebook ads. 685 00:39:57,168 --> 00:39:59,778 Is 5 a day enough for Facebook ads? 686 00:40:00,128 --> 00:40:01,488 I get that question all the time. 687 00:40:01,498 --> 00:40:02,908 The answer is yes and no. 688 00:40:02,928 --> 00:40:06,708 It depends on what type of ad you're running and what your goals are. 689 00:40:06,978 --> 00:40:09,468 For example, if you're just looking to increase your brand 690 00:40:09,468 --> 00:40:12,688 awareness and reach for people, then 5 a day is probably enough. 691 00:40:12,698 --> 00:40:16,548 However, if it is you're warming up your pixel using video view 692 00:40:16,548 --> 00:40:18,323 campaigns, This is going to be enough. 693 00:40:18,763 --> 00:40:21,393 However, if you're looking to drive more conversions or sales, 694 00:40:21,433 --> 00:40:22,843 you need to spend a bit more. 695 00:40:23,523 --> 00:40:27,283 That said, with 5, you can still test all different strategies 696 00:40:27,283 --> 00:40:28,463 and see what works best. 697 00:40:28,953 --> 00:40:31,453 Keep an eye on the analytics and adjust your campaigns accordingly. 698 00:40:32,283 --> 00:40:36,123 You can slowly increase the budget and get, and get better results. 699 00:40:37,183 --> 00:40:39,993 What is a good daily budget for Facebook ads? 700 00:40:41,363 --> 00:40:42,643 That's another question people ask. 701 00:40:42,923 --> 00:40:45,403 Figuring out your daily budget for Facebook ads can be tricky. 702 00:40:45,443 --> 00:40:48,133 Your total budget will depend on your overall marketing goals, 703 00:40:48,133 --> 00:40:49,003 as well as your cash flow. 704 00:40:49,883 --> 00:40:52,873 If you're getting, if you're just getting started in Facebook ads, a 705 00:40:52,883 --> 00:40:56,043 good rule of thumb is to start with a minimum budget and then bump it up. 706 00:40:56,093 --> 00:40:59,183 The best budget for Facebook ads will depend on your goals. 707 00:40:59,773 --> 00:41:03,023 You can start, like I mentioned before, with my particular campaign. 708 00:41:03,743 --> 00:41:08,368 Um, I did 10 Between 10 and $15 a day. 709 00:41:08,373 --> 00:41:10,258 And I, and sometimes I reduce it down. 710 00:41:11,078 --> 00:41:11,438 Okay. 711 00:41:12,378 --> 00:41:15,798 Uh, another question I didn't normally get are Facebook ads still worded today? 712 00:41:16,888 --> 00:41:20,238 With so many businesses competing for customers, advertising on Facebook 713 00:41:20,238 --> 00:41:23,238 has become an

increasingly popular way to reach potential customers. 714 00:41:23,648 --> 00:41:26,468 But are Facebook ads still worth in 21st century? 715 00:41:27,068 --> 00:41:31,978 The answer is resulting, yes, Facebook ads are or offer powerful targeting 716 00:41:31,978 --> 00:41:36,188 options and can be used to re, to reach a wide range of different audiences. 717 00:41:37,078 --> 00:41:40,358 They are relatively inexpensive and easy to customize. 718 00:41:40,458 --> 00:41:43,578 So with this, with the right strategy, it's possible to get 719 00:41:43,958 --> 00:41:45,118 a good return on investment. 720 00:41:45,138 --> 00:41:45,718 Like I did. 721 00:41:46,148 --> 00:41:47,128 I spent 200. 722 00:41:47,128 --> 00:41:48,298 I got 150 leads. 723 00:41:48,958 --> 00:41:49,378 That's good. 724 00:41:50,898 --> 00:41:54,468 So Facebook ads help to reach new customers and build your brand. 725 00:41:55,168 --> 00:41:57,958 Um, I know I mentioned this in a previous podcast, but think about it. 726 00:41:57,998 --> 00:42:01,528 If it is really side, I'm going to go, especially if you have a local business, 727 00:42:02,698 --> 00:42:04,288 This is even much more powerful. 728 00:42:05,178 --> 00:42:05,678 Think about it. 729 00:42:05,678 --> 00:42:12,638 You decide to go in your car to maybe a network, networking event or a to 730 00:42:12,648 --> 00:42:16,138 go door to door and knocking door to door and businesses in a small town, 731 00:42:16,728 --> 00:42:18,548 seeing if it is they want your services. 732 00:42:18,988 --> 00:42:19,238 Okay. 733 00:42:19,238 --> 00:42:22,538 Think of them when you spend it, the money you spend, the time, first your 734 00:42:22,538 --> 00:42:27,268 time to go out there, the money you spend to put gas in the car and then the 735 00:42:27,268 --> 00:42:29,338 amount of no's you get from doing that. 736 00:42:29,338 --> 00:42:33,138 And you know, you might get one yes and several no's. 737 00:42:33,918 --> 00:42:35,928 But instead of doing that, we decide, okay, I'm going 738 00:42:35,928 --> 00:42:37,358 to run Facebook ads instead. 739 00:42:37,438 --> 00:42:40,868 You're going to sit at the comfort of your home, you open your laptop, computer, you 740 00:42:40,868 --> 00:42:45,178 go in, you set up a Facebook ad campaign, and you run a local legion, I mean local. 741 00:42:45,728 --> 00:42:51,399 Say you're living in London, you only want to put in London postcodes, you're 742 00:42:51,399 --> 00:42:51,943 only targeting a really small area. 743 00:42:52,493 --> 00:42:57,833 And I know this because I, I have local clients as well and I run ads 744 00:42:57,833 --> 00:42:59,683 for them and it's very, very effective. 745 00:43:00,383 --> 00:43:01,033 So easy. 746 00:43:01,173 --> 00:43:04,153 Um, but my, my other clients are not local. 747 00:43:04,233 --> 00:43:05,803 They, you know, they are global. 748 00:43:06,153 --> 00:43:08,983 So people from all over the world, I normally get, but for my 749 00:43:09,023 --> 00:43:12,133 clients who have local clients, super easy for them to get things. 750 00:43:12,143 --> 00:43:14,333 So just remember that, keep that in mind. 751 00:43:14,333 --> 00:43:16,853 You'll 200. 752 00:43:17,638 --> 00:43:22,888 Think of how much time, money, effort, nose, depression that you've saved by 753 00:43:22,888 --> 00:43:28,938 spending 200 and for one month, say, for example, you extend that to 500, like I 754 00:43:28,938 --> 00:43:32,888 say, on average, you should, you should set aside 500 because you'll be testing 755 00:43:33,208 --> 00:43:35,628 differently, add magnets and testing. 756 00:43:35,628 --> 00:43:38,558 So 500 a month is a really good. 757 00:43:39,563 --> 00:43:44,643 Facebook ad budget to test differently, uh, freebies and to see what works. 758 00:43:44,643 --> 00:43:48,563 And then when you find a winning one, Oh my goodness, listen to me, 759 00:43:48,573 --> 00:43:50,403 your whole world is going to change. 760 00:43:51,253 --> 00:43:51,713 Okay. 761 00:43:52,053 --> 00:43:55,253 So it is important to know how much you spend on Facebook ads. 762 00:43:55,263 --> 00:43:58,093 First, you need to set a budget that you can afford to pay. 763 00:43:58,393 --> 00:44:01,693 Once you have a budget, you can determine how much is spent on different types 764 00:44:01,693 --> 00:44:05,943 of ads such as boosting posts, running event campaigns, targeting new years. 765 00:44:06,233 --> 00:44:08,763 Oh, and another trick, another trick I just remembered. 766 00:44:09,668 --> 00:44:14,408 You can, uh, pause campaigns for a couple days. 767 00:44:16,333 --> 00:44:20,033 If it is that you want to sort of maintain a specific budget and then start it 768 00:44:20,093 --> 00:44:23,673 again without losing without having to go back into learning, if that makes sense, 769 00:44:25,003 --> 00:44:28,613 you can also create audiences for each type of ad, analyze how much you should 770 00:44:28,753 --> 00:44:30,453 be spending based on the performance. 771 00:44:30,863 --> 00:44:34,063 This way you can make the most of your Facebook advertising budget and 772 00:44:34,093 --> 00:44:35,603 take your business to the next level. 773 00:44:35,953 --> 00:44:38,753 Improve your return on Facebook ad spending by leaving it to 774 00:44:38,753 --> 00:44:40,513 someone who can help like me. 775 00:44:40,933 --> 00:44:43,013 I've left a link in the show notes, you can book a call in my calendar 776 00:44:43,063 --> 00:44:44,469 and we can discuss your requirements.