This session provided a comprehensive review and real-world commentary on Alex Hormozi's paid advertising strategies for various business models, including local businesses, e-commerce, and info products.
The discussion included practical advice on targeting, creative optimization, lead generation funnels, and trust-building tactics relevant to the current digital ad ecosystem.
Multiple actionable tactics and nuanced industry insights were shared, particularly regarding ad funnel structuring, audience targeting, and creative variation.
The meeting was led by Justin, founder of PIDadvertising.com, with perspectives based on his agency’s high ad spend and client results.
Action Items
None explicitly mentioned in transcript.
Paid Ad Strategies: Overview and Differences by Business Type
E-commerce, info products, and local businesses all benefit from platform-specific approaches.
Local businesses have an easier time running ads due to inherent market trust; lead generation is typically more straightforward compared to e-commerce and info products, where more effort must be put into building trust and demonstrating value.
For older and B2B demographics (e.g., dentists), Meta (Facebook/Instagram) and YouTube are recommended as primary ad platforms.
Audience Targeting & Campaign Structuring
Modern Meta targeting often works best with broad audiences: reliance on lookalike and interest-based audiences is now less effective due to low match rates and privacy changes.
Effective copy and creative messaging (clear inclusion of audience, e.g., 'dentist' in script/headline) help the algorithm self-select the target market more efficiently than restrictive audience lists.
For local businesses, leveraging the founder and team in video ads can help differentiate and build trust, counteracting the "race to the bottom" in offer-driven markets.
Lead funnels should balance friction: more filters increase lead cost (and potentially quality), while too much friction can depress volume. Optimize form/application steps based on quality vs. quantity needs.
Creative Optimization & Scaling Ad Accounts
Analyze top-performing ads by focusing on the first 3 seconds (the "hook")—iterate or repurpose those hooks across new creatives.
Brands should not only focus on new creative concepts but also create multiple variations of existing winners (e.g., different filters, hooks, calls to action, creators) to maximize ad longevity.
High-performing brands are often hesitant to scale due to fear of reduced ROAS; understanding unit economics is crucial. If profitable at a low ROAS, increased spend (despite a lower ROAS) typically leads to higher overall profits.
Funnel Strategy and Lead Quality
The best funnel is dynamic: add friction (e.g., application step) if too many low-quality leads arise; reduce friction if good lead volume is low. If low friction still results in poor leads, messaging/targeting should be revisited.
Metrics to monitor: outbound or link click-through rate (aim for at least 1–1.5%), opt-in rate (target around 15%).
Building Lifetime Value (LTV) and Offer Bundling
Increasing LTV or ROAS involves either reducing customer acquisition cost (CAC) or increasing order value/LTV.
Bundling is highly effective: sell complementary products as a set (e.g., device plus consumables/subscriptions), drawing on the consumer’s intent at the time of purchase to maximize average order value and recurring revenue.
This bundling/subscription logic applies broadly (e.g., waxing machines + wax pellets and sticks, or printers + ink + paper).
Organic Content and Trust Building
If paid ad performance declines and trust is low, shift focus to organic content. Long-term organic efforts compound audience trust and are essential for brands saturated by paid ads.
Brands experiencing ad fatigue or skepticism should prioritize transparency, user-generated content (UGC), and human-centered testimonials to re-establish credibility.
Decisions
Broad targeting using creative messaging preferred over lookalike audiences on Meta — Based on lower match rates and better results from algorithm-driven broad targeting.
Founder/team videos recommended for local business ads to build trust — Helps escape price-driven competition and increases authenticity.
Prioritize creative iteration over constantly seeking new ad concepts — Extends the life and impact of top-performing ads.
Increase organic investment if ad trust and ROAS decline — To rebuild market trust and audience warmth.