How to make money utilizing Facebook ads, where today in this video, I’m gonna be showing you the difference between video views, engagement campaigns, as well as conversion campaigns, the numbers which ones you should be utilizing based on what situation where I’m gonna be showing you exactly behind the scenes, through a campaign where we are actually running and spending about athousand dollars a day on this one funnel.

And by the end of this video, if you stay till the end, it’s gonna save you a ton of frustration, it’s gonna help you avoid the mistakes that most Facebook marketers would make. When I show you exactly what it is that I’m doing and the things that you should be modeling, if you wanna be able to make money off Facebook ads. So let’s begin. First things first, you can see that let me just kind of refresh this, you can see that in the last two weeks, this is literally just a campaign that is still live and just now it was about11,000 plus, now it’s 12,000. We segregate it so that this is one ad and if I were to click on ads over here, you’ll see that it’s this exact same ad so that there’s no variables, you can see all $12,000 is based off this one ad to give you an idea where all these clicks are going to, I was running this same ad one ad to this one funnel.

This one funnel is my million dollar ads funnel, okay, we’ve been running ads to this funnel now for about two plus years, so, people will go to this funnel and after they go to this funnel, they checkout for this book on how to run ads and basically what that’s what the funnel is So, it’s pretty, super straight forward funnel, they come on this page, I’m sending clicks based on this one ad, which is this one over here and basically what this ad is, it was like a semi funny slash informational slash “Game of Thrones” type of ad that you may or may not have seen.

We launched this about two weeks ago, it has reached slightly over 3 million people and with pretty good engagements. How did this happen? I wanna walk you through the numbers, you can see that in the last two weeks, we’re spending about a thousand dollars on it per day, let’s go back to campaign, let’s take a look at how it’s divided. So, right now there are six campaigns in here divided to two main types, either targeting cold audiences, cold audiences meaning people who have no idea who I am never seen my stuff, purely based on targeting, purely based on interest, then there’s warm and hot. Now what is warm and hot, warm and hot is basically people who might’ve been a buyer in the past might have entered their name, email opted in for something, given us a lead, registered for a webinar, watched our videos.

So, that is a mixture of warm and hot, they are problem aware, solution aware, and they know that I exist, okay, so, that’s basically warm and hot. So, after that we split it further into three different type of objectives, okay, so, if you’ve ever ran an ad, you know that Facebook asks you like, what is your main objective? Our main objective here is three things, right? Either to watch the video and show this ad to people who would be interested in watching this video or show this ad to people that’s most likely to engage with me, which is what is an engagement? Engagements are like comment and share, or finally show it to people who is most likely to buy, so, that’s a conversion.

A conversion is when they entered a name, email, phone number, credit card details. These are the three main objectives and today I wanna be able to share with you like the breakdown and why is it that when we run ads, it’s always between these different objectives, so, that you’ll know how to select the right objective whenever you are selling something. So, what we did then is if I were to the click ads, you’ll see that this ad here is called this, this shame ad, is this ad over here, okay? So, I’m not gonna play the sound but basically it’s me telling my boss that I lost $37 running ads, anyway, so if you wanna see it, it’s gonna be somewhere on my page, but basically it was like(laughing) kind of like a funny video with a call to action. And first of all okay, so let me just kind a pause this, let’s go to the whiteboard in a second, and I wanna be able to kind of share what it is that I’m doing so far.

This post over here called the shame ad inspired by “Game of Thrones” and this ad here, we all know that if we posted something on our Facebook page, what happens? Well, nothing happens, nobody watches it, it’s a pay to play game unless you’re posting funny cat, dog videos, prank videos, share-ability usually isn’t high. So, what then we need to do, is we need to run our ad based on campaign objectives, like telling Facebook what it is that we want Facebook to do with this ad. You’ll notice that based on the $12,000 experiment, not an experiment, it’s that actual ad campaign. there were three main objectives, right? What were the objectives? Number one, people to watch the video, so based on video views, it would be based on number two, engagements, engagements would be people who like, comment or share, and same time we want to run it based on conversions. Now, real quick, okay, the gold standard for any Facebook ad campaign objective is usually based on conversions.

If in doubt, it’s always conversions, now, what is a conversion? A conversion would depend on your sales process, so, it could be getting a lead, it could be getting an appointment on a phone call, it would be a sale. So, in my case here, because I am sending this ad to people who will be interested in getting my book on running ads, that would be the sale. And by the way, this funnel has been live for over two years now, is done exceptionally well and right now, all we wanna do as we scale is to target colder and colder audiences. So, in order for us to continue scaling, what we wanna do then, is to start targeting broader.

Now, how do we do that? This is where you want to be able, as you start scaling, not just target based on conversions, which is telling Facebook, please help me find people that’s most likely to buy, but now increase the share-ability the awareness of what it is that you do by telling Facebook please help me show this ad to people that’s most likely to watch, let me explain why. So, in this first campaign where we are targeting cold and hot audiences to people that’s most likely to view, what will happen now is, if I were to go back here, you’ll notice that video views we’ve spent in last two weeks about $1,700 on warm and hot on audiences and about 1,800, so, give or take about 3,500. Now, the reason for that, is to get people to start watching this video, now, why is that the case? This is for scaling, now, you’ll see that over here, we’ve reached about 3.5 million people of which more than 2million people has watched at least three seconds.

So, watch wise over 2 million people, but not everyone three seconds watching a video is nothing, so, ultimately what we wanna do is this, as we start running this ad right now notice the numbers, so far we are about nearly two weeks in. So, 3.5 million people reached out of that ad spent approximately 2 million people, watched at least three seconds, I think it’s like 2.1 million now, but now what I wanna do is I want to go to Facebook and create a custom audience of people that has watched at least 75% of my video, because three seconds, Facebook considers a view as somebody has watched at least three seconds, which is, which is nothing. So, what we wanna do is we wanna go to Facebook and I wanna create a custom audience and tell Facebook, out of these 2 million people has watched at least three seconds, how many people has watched 75% of it? Because when I do that, that is where the magic is, that is when I can create a new campaign where I can now retarget.

So, let’s say Facebook comes back to me and tells me so out of the 2 million people that has watched at least three seconds, there’s about 500,000 people that has watched at least half of your video 50%, if it’s 75%, I can’t remember the number off the top of my head, but it’s slightly less. But now what I can do is I can retarget people who have watched this ad at least 50%, 5,000 of them, that is when I can shoot an ad, now what would my ad say? Okay, let me just step out of frame, one second, one second, so, that is when I can come and create new ad, right? With my phone and that’s when I can say, hey, I hope you enjoyed watching my shame video you know, hopefully you don’t have to go through the mistakes I made and getting humiliated for having a Facebook ad campaign that lost money.”

So, here’s what I discovered after literally spending millions of dollars on Facebook ads. I put down my winning ad in this book right here in this framework and chances are the fact that you watched my entire video tells me that you might be interested in running ads as well. Now, if that’s you, all you need to do is click on this link below to get your copy of this book. So, now guess what? They are a little bit more open towards my message, my ad, why? It is because they know who I am and they have watched something from me in the past, they are now no longer cold audience, but a warm audience and what if I told you that the money is never in targeting but in retargeting, now, what is retargeting? It’s basically you don’t have you never noticed these ads that seems to follow you everywhere no matter where you go? It is because at one point in time, you either watched a video of theirs or you liked, commented or shared, or you visited one of their pages and now when I run an ad to these warm audiences, people as watched my video, my cost to get a sale is going to be significantly lower.

Therefore, you’ll notice that I have a percentage of budget where I just want to increase my reach and tell Facebook, show this to people that might be most interested to view something like this. So, this is when I can run campaigns to people that would be interested in these type of content, right? So, this will be like digital marketers, social media managers, Facebook page admins and I can have a pretty broad interest, why? Because this video here is informational, it’s entertaining, it’s got all these different elements of infotainment, which then fuels this next thing where it gets me engagement. You see, what enables me to just throw money into this ad and spend like a thousand dollars a day on this ad is because of this next thing.

For every $1 we spend, we are also getting organic traffic from this, why? Is because unlike a normal ad where most ads let’s face it, is dry, boring, or cheesy, this ad here is sharable, if you watch the ad, be sure to watch it. If you haven’t, we’ll leave the link somewhere in this description box, but over here, this is when you’ll notice it fuels engagement, it fuels people to want to either comment or tag a friend or share it and when either one of these things happen or even like the post, this enables Facebook to want to show it to more people, because it appears now on their feed because they’re tagging their friend and as a direct result of that, my paid ad now has an organic reach associated to it and also tells Facebook feedback that this is actually good content, even though it is an ad and therefore that’s why we have a budget allocated for engagement, which also acts as great social proof.

Now, this is really important, now, why is this social proof important? It is because now on Facebook, when people go to my Facebook page and when they see this post and they see that it’s nearly two weeks, there’s more than 2 million views on it, over a few thousand shares that acts as social proof to make people who’s new to my content want to watch that video. So, this is how the breakdown of the $10,000 works, let me just kind of cover it, this what we’ve covered so far, you always start off the conversions, you always select your objective as a conversion, because this is the gold standard. You always wanna know how much are you paying to get, acquire sale? So, for us now, it could be $30 could be $50 and at the same time, you wanna know how much is an average customer worth to you, when they go through that sales process.

Now, I know that the average cart value of the people that go through this sales process is approximately $120when I take into account their lifetime value. So, at any given time, if I can pay $40, $50, even $80 to acquire a customer, I would pay for it all day everyday. So, you got to know how much a customer is worth to you and when you know how much the customer’s worth to you, that is when you’ll be able to start paying for conversions, if you can pay $1 to get back $2 in return, then that’s how you continue scaling.

As you start scaling, what you’ll realize is this number will go up your cost to acquire a sale, the cost to get a conversion will go up naturally as your ads start to fatigue out as the same audience starts to see it over and over again. Then the next way of scaling is you can do what I do, run it for video views so that you can create a custom audience to target people that’s watch your stuff and retarget them with an ad that sends them back to the sales process. At the same time, allocate a budget to people that’s most likely to engage with you so that you can continue to build out your custom audience, people who have liked your page watched your videos shared your stuff and that is literally how we spend thousands of dollars a day. And by the way, how many of you here, if you’re enjoying these type of videos, let me know in the comments, if you’ve enjoyed these cover behind the scene videos where I showed, where I won’t just teach you theory but I show you actual campaigns, actual numbers, things that’s actually live and profitable for me right now.

If you enjoyed this video so far, be sure to smash the like button, this’ll help the channel out a little bit and subscribe to the channel for future videos, just like this one. But one really important piece at the end of it all is this, okay, so, you’ll notice that so far right up to this point, this is just one campaign with one ad where we’re spending a thousand dollars a day. So, ultimately, how do you scale and how do you make your campaigns profitable? By understanding your numbers, by understanding how much is a customer worth to you? How much does it cost to acquire a customer? And when you have these two things in place, that is how you build your campaigns at the right foundation and that is how you scale and take things further. If you wanna take this process to a whole new level right now what I’m gonna do is I’m gonna leave other related videos across this box over here, as well as in the link description.

Be sure to check them out, I’ve got a lot of these type of posts, if you want to be able to target better retarget better, create better audiences and better messaging ads, be sure to check out these other related videos.

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