Transcript for:
Mike A - the 42 minute algorithm hacked to seven figure ads

ever wonder why most people's Facebook ads fail to generate profits while a small number Rak in millions me and my team have generated over $100 million in sales from meta ads in the last 7 years and in this time we've uncovered some surprising ways to help a weird mix of businesses scale their ad campaigns to seven figures and Beyond in this video I reveal the hacks tricks and techniques that work for both sales and Lead campaigns Often by doing the exact opposite of what Facebook recommends oh yeah there's also going to be a free bonus section where I reveal a $100 million scaling protocol so make sure you have a pen handy for that bit picture this your sah running an online store that sells luxury products you spend $500 on your first Facebook ad Campaign which brings in $22,000 in sales excited you quickly put the $2,000 back into your ads but you end up with total sales of just $1,500 sound familiar here's the thing Sarah's not alone many think scaling Facebook cards is like turning up the volume on a speaker pump more money in get more sales out but it doesn't work like that for example we have an insurance client who was getting a ton of cheap leads from their ads but no matter what they tried they couldn't turn a profit when we put the scaling techniques you're about to learn into action their lead cost actually went up but they got higher quality leads and the company ended making seven bigger profits see scaling Facebook ads is more like baking a cake than flicking a switch there's a recipe and you're about to learn one of the most important ingredients we see a lot of advertisers leaving underperforming ads running hoping they'll magically turn around but all this really does is make Zuckerberg richer and drain much needed money from their business so how do you know when to pull the plug on an ad well I've got a little secret for you most of the time you can tell if an ad's going to work after as little as 2, to 4,000 Impressions now I can already hear the ad gurus shouting at the screen this isn't enough Impressions but unless your product costs several hundred or more you don't really need to wait weeks to judge your ads now later in the video I'm going to share with you our $ 100 million scaling protocol but before we go deep into the numbers and figures this is what we've learned about Facebook ads if there's no spark early on you your ad is probably not going to get better think of it like um like a first date your ad either clicks or it doesn't so here's what you do set up your ads so they all get a fair shot give each one enough budget to hit that 2K to 4K impression Mark over two to three days then look at your data if an ad isn't showing any signs of Life pause it don't waste more money hoping it'll get better especially if you have other ads bringing in profits or high quality leads by cutting Those underperforming ads quickly you're freeing up more budget for the winners and let me tell you this is crucial if you want to scale to seven figures you've got to be smart with your money but knowing when to kill ads is just the start because unless you know how to create ads that connect with each segment of your audience you're never going to scale you know that feeling when you meet someone for the first time and they just get you that's what we're aiming for with our ads but here's the thing most advertisers think they understand their audience when they're just scratching the surface let me show you how to dig deeper and create what we call Forever ads now you might be thinking forever ads come on Mike nothing lasts forever and you're right but what if I told you there's a way to create ads that keep bringing in sales year after year sound too good to be true well it's not but there is a catch creating these forever ads isn't about being particular clever or creative it's about understanding your audience on a deep level you need to tap into the emotions fears and desires that drive them it's like being a a mindreader but with data let me give you an example imagine you're trying to sell a new kitchen to a work from home MTH most advertisers would throw a list of features at her look at this amazing storage space check out this high-tech oven but what if the real reason she wants to make the switch is because she's hated that old kitchen since the day she moved in suddenly the whole psychology of the ad changes to create forever ads you need to speak your audience's language and address problems they often don't know are important to them you're not guessing what they want you're using cold hard data to understand them better than they understand themselves but it's not just about understanding your audience it's about using that understanding to tell a story that drives them to buy you want to create ads that show a relatable character facing a problem finding a solution and experiencing a positive change this structure engages the audience and makes your product feel essential to their lives now I can already hear you shouting at the screen sounds great but how the heck can I do that well you're in look cuz I'm going to show you all right let's talk about creating those forever ads that'll keep your sales rolling in for months and in many cases years to come even if you think you know your audience inside out you're almost certainly missing some crucial insights remember buyers are liars data is where the truth lies and to get to that data we're going to need to make some ads let's start by making a list of all your audien's possible paining points we want to dig deep here what keeps your customers up at night what are they afraid of what do they dream about use tools like chat GPT to generate ideas about customers challenges and frustrations you might be surprised at what you uncover once you've got your list create a series of ads each focusing on a different different paying Point make 10 or more ads depending on how many possible paying points your audience has each ad should tell a story showing how your product or service solves that specific problem now here's where it maybe gets controversial we're going to test these ads using an Campaign which stands for ad set budget optimization give each ad its own ad set with the same small daily budget so each ad gets a fair shot of delivering profits let those ads run until they hit about 2,000 to 4,000 Impressions over 2 to three days once you hit that Mark look at your data identify your gold mines the ads that are performing well these high performing ads are now the foundation of your Forever ads but we're not done yet once you unearth your audience's pain points repeat this process for benefits objections and identifying names like busy mum or Fitness Enthusiast by systematically uncovering different language that resonates with different segments of the same audience it suddenly becomes easier to generate massive profits month after month year after year now this is the point where we see too many advertisers miss out on easy sales so let's dive into it think of your ad account like a garden you've started planting some of the forever ads we talked about earlier but if you want to hit that seven figure Mark you need a whole variety of ads blooming inside of it so how do we make this happen by bundling your ads into themes when you've got two to five profitable ads that address a similar benefits group them together in the same ad set let Facebook figure out which ads to show which person and when and when you have ads addressing a common objection put them into another group you can even Group ads based on identifiers like business owner or entrepreneur the more segments of your audience you can Target with your ads the easier it becomes to scale up to seven figures and Beyond why because you can now Target the same audience in two three five different ways without the risk of your ads burning out now let's look at where a surprising number of people go wrong they get their ads all nice and profitable but then they use the wrong settings for scaling Advantage Plus audiences there's supposed to be this amazing tool for Facebook ads but I think meta deserves a lot of criticism for pushing these as the default option for your ads don't get me wrong Advantage Plus audiences can be powerful but they're not for most people especially when you're testing it's like taking a Ferrari for a spin when you've just learned to drive it's risky for testing you want control which maybe surprisingly is where broad audiences of one to 20 million people or more come in sound crazy well these aren't just any audiences the interest based audiences that you know with 95% certainty your ideal buyers fit into for example if you're selling tennis rackets a broad obvious interest would be tennis magazine of course this audience contains some people who only enjoy watching tennis but Facebook's algorithm is pretty smart give it a big but targeted audience and it'll work its magic without going off the rails which brings us to what's possibly the most misunderstood of all the scaling tools knowing how fast to increase ad spend without losing a ton of money now I know what you might be thinking just tell me how much I need to spend to hit seven figures with my Facebook ads and it's a great question but tricky to answer that said I've got some solid guidelines that will help you navigate these murky Waters let's start with A good rule of thumb say you've got an ad set with three ads that are making you good profits you want to spend enough to get started with your ad scaling but not so much that you overwhelm the algorithm so what's a good starting point about $50 to $100 per day in most cases now I know it might not sound like much but trust me it's often a smart place to begin and once you start seeing profits you increase your budget slowly now if you're spending less than $100 a day you can be quite aggressive and increase from $40 to $60 and from $60 to $90 per day but once you hit that $100 Mark try increasing about 20% every few days now this is important only increase your daily budget when your profits are steady so you can find that sweet spot between growth and stability if an adset isn't delivering don't keep pumping more money into it see the smartest advertisers in the world know when to stop scaling ads that have reached their limit so start small scale safely and always keep an eye on your profits that's how you'll get closer to that seven figure Mark without losing your shirt in the process which brings us to a very big question how often should you refresh your ads when aiming for $100,000 in sales per month you know how sometimes you hear a song that you love but after a short while you just can't stand it anymore well the same kind of thing can happen to the way your audience feels about your campaigns especially if you haven't made any forever ads yet this then results in Facebook decreasing the number of people who it shows your ads to which means you make less less money Less sales so how do you know if your ads are reaching enough people to generate the profits you need it's something Facebook calls ad frequency this number shows how many times on average each person sees your ad we often find a good frequency over a 30-day period to be two which means on average people are seeing your ads about twice a month but this number is more a guideline than a hard rule the most important thing to keep in mind is if your ad frequency goes above two and your profits start dropping it's time to make some new ads but and here's another cool thing about forever ads you often don't need to start from scratch usually just changing an image or updating one or two words in the headline can be enough think of it like giving your ad a little makeover most of the ad stays the same but a few small tweaks can give it a fresh new feel but frequency isn't the only metric you need to watch let's dive into the numbers that are even more important when it comes to scaling you know it's funny I see so many people get fixated on the cost of their cpms or clicks but here's the thing the only thing that matters is if you're turning a profit roas or return on ad spend is like the scoreboard for your Facebook ads it tells you how much cash you're bringing in for every dollar you spend on ads to calculate the number Facebook takes your revenue and divides it by what you spent so if you drop $100 on ads and make $300 in sales your Ras is three so the next question you're probably asking yourself is how much R Us should I aim for well the bigger you can get this number the better but if you're selling digital content you might be able to turn a decent profit with a Ras as low as 1 or 1.5 if you've got a solid backend offer or some recurring revenue and if you're selling physical products like most e-commerce stores you might need to aim for a row ass of three or more to cover your costs and make some profits now this brings us to something that a lot of people have been asking for I wanted to save this for now because we've covered a lot of the theory of scaling to seven figures and and now it's time to look at the real life numbers in some of my ad accounts in this bonus section we're going to jump into the brain of a 100 million doll Advertiser so you can start your journey to your first million in sales so roll up your sleeves grab a pen and paper and let's do some scaling this is where I'm going to attempt to answer all the questions that I think you're going to have about scaling um forgive me if I miss something if I miss anything out just drop your questions into the comments and I'll do my very best to answer them for you um but we're going to start with how we do our testing our initial ad testing we're going to take you through then to how we um organize our winning ads and take you then to how we scale our ads and are able to generate uh minimum seven figures um per year on the businesses that we that we work with this is a test that I did recently so here we were testing 10 different pain points and each campaign no each ad set contains one ad so you can see here F A1 and I'll move on to the next tab um f A1 just has that that identifier that one pain Point here has one ad inside it so we've got 10 identical ads and the only difference between each one of the ads is the first line of text and the headline um which basically reflect each other so let me show you what that looks like so so here are three ads that we were testing and this is the difference in how they look so they've all got a very similar format in this case I wouldn't recommend this for most people but because we've been working on this account for such a long time we we actually did this test with a video that we know works really really well so I would recommend for 95% of people to not do their ad testing their initial ad testing with video I recommend it with images but in this case we broke our rule um so these three ads all look the same so they've all got more or less the same headline they've all got the same body of text you can see that's all long copy there but what is different is this first line so the three different pain points that we tested here were feeling under threat um being worried about the future and facing uncertainty three very different pain points that can dramatically affect the way people receive your ad that first line of text in combination with this headline here that's your initial point of contact for your ads so you really want to be focusing in your ad testing those very very clear and obvious points of Entry to your ads because if people aren't interested um by that initial text they're not going to click the video they're not going to read the ad so what did we do in this test well let's take it back to day one so all of the ads with the exact same budget so we figured out the the CPM is roughly $50 $40 $50 so we want to get 2,000 Impressions it can be three or 4,000 but let's say 2,000 impressions over a 2 to 3 day period minimum 2 day period 3 days is even better than two in some cases so what do we do we figure out the CPM and we kind of half that when you know the ad account it's really easy to to have an estimate a decent estimate of what your CPM is going to be um if you don't know you kind of just guess it and and take it from there so let's say that our CPM is 50 which it roughly is here the average is 50 uh here then we will set all of these out ads to 20 $25 per day when you're testing all your ads need to be under the exact same conditions okay they all need to have the exact same uh possibility of success so the targeting is the same the audience is the same the budget is the same the ad copy is the same the only variable is one thing and in this case it was paino so we've got our 10 ads and we let them run now this is the data after day one so as you can see here they've got Impressions but not tons that's absolutely fine we want the Impressions to be somewhere around the 700 1,000 Impressions Mark after day one that's fine we're probably not making tons of decisions there but what we will do is we'll just have a little look and see what the engagements like we can see some of the engagements the CT is really really high that could be good but it's not always good it's just something that you make a note of you kind of go okay these guys they're really high CTR all that's basic engagement um but you also want to look at intent Now intent is when they're actually clicking a link to go to your ads the ones with the highest click-through rates were the same ads okay so these have potentially got something interesting about them so we're definitely keeping those you might look at the bottom for these you might look at these and go do any of these ads have shockingly bad engagement so if you're if your average is 9% CTR all which is fairly High um and you've got an ad of say I don't know 3% 5% after a day after say a thousand Impressions like this one here got tons of Impressions not quite sure why maybe low CPM let's have a little look at that no no don't know why that one did but it did and um you might look at that and go what's the CTR all on that 8.7 is close to the average what's the CTR 2.3 close to the average I'm going to let that test run for another day I'm not ready to make any decisions yet so we run it for another day which is what you're about to see now okay we run it for another day and now we've got more Impressions so we're averaging maybe 1 and a half th000 Impressions after day two and we're didn't the same thing we're not overly focused on CTR all and CTR they're important metrics but we're also going to look at things like leads now this is a lead campaign later on we're going to look at sales campaigns the principles don't change okay if you're bringing in leads or bringing in sales the principles of everything that I'm that you're about to see here are exactly the same so we look at things like CTR or we're looking for ads that get very low engagement if they're getting very low engagement that's a bit of a worrying sign okay there's something probably different about that ad maybe it needs to be stopped we look at the the click-through rate the intent not great then we look at the leads um and in your case if you're Ecom then you'd be looking at sales now if you've got a low priced product $20 $30 $50 you may start seeing some sales after your first test that's a sure sign of intent but there's an expression in marketing that says one sale is no sale the same applies to one lead is no lead you will often find that an ad will get a lead but one lead doesn't really tell you very much if I've got a bunch of ads here one's got four one's got three this one lead doesn't really mean anything to me could just be um look could just be Facebook helping trying to help me out with a really bad ad and just delivering one result so I'm going to ignore that lead in most cases when I see that all of the other metrics are not looking great so low engagement low click-through rates so I'm just going to as it has already been I'm going to turn that one off after day two now it looks like we let this ad test run for another couple of days another day sorry so let's run it for one more day see what happens most of these ads ran a little bit further because we weren't happy with the data that we had so now you can see here that you're around about we weren't happy with the volume of data that we had now you're close to 2,000 Impressions so this is good this is when you can start making some decisions so you're going to look at things like the number of leads that you got because at the end of the day if you're spending an equal amount of money to get five leads and one lead there's a pretty good chance that if you're only getting one lead compared to the same compared to another ad that's had the same conditions and delivered five there's a pretty good chance that that one lead ad isn't a keeper there's something off about it there's something about the messaging there's some maybe maybe an unrealistic expectation that people have where they see the headline like there's a big difference between an 11% CT all and a 3% click that's like almost four times the amount of people engage with the ad as they do click the link that's a bad sign okay that means there's something click baity about that particular ad that sets an expectation the people when they actually interact with the ad think uh that's not really what I was hoping it would be so we would definitely 99 times out of 100 kill that one with the code p14 okay so that would go maybe the same for this one here where we've got a similar kind of scenario it's not a particularly High CTR all comparatively it's more or less average the CTR is more or less average so it might be okay but one lead when I've got this guy delivering five this guy delivering four I'm probably going to kill it probably now there's something more important than um if we're talking about leads there's something more important than cost per lead cost per lead is okay like you can't in most cases afford to pay ridiculous amounts of money per lead you want to you know find a happy medium between getting a high quality lead and not paying too much for it so what we do here in our testing whenever possible and this is much easier when it comes to something like Ecom is we want to look at the actual Revenue that's generated so if this were a sales campaign you would have you know revenue generated would be here and you would say something like five sales um $11,000 or $500 and you're like okay well that's really really good sign I'm definitely going to keep that one but in lead gen it's different in lead genen what you need to do is you need tracking so so I'll show you what I mean now all right so here's some identifying data this is a slightly different campaign but the principle is the same so you see how we have a pain point5 pain point5 these two at this one ad I should say with this same identifier generated quite a lot of sales generated 21,000 in sales that's a really good sign okay so the advantage of lead gen can be that you get really really much bigger sales than Ecom which tends to be you know in the in the low hundreds um whereas with with lead gen you know you can generate a lot more a lot more money so if this ad with this code FEG p12 brought in the five leads at a really good cost per lead so you can see there cost per lead is probably about $20 there you go $22 and I've spent $100 and I've generated $11,000 I'm like okay cool well I'm going to keep that ad running okay there's something about that ad that's really really good and I'm going to be judging my initial testing off a few different things I'm going to be judging it off how many leads or sales is it bringing in is it generating a lot of Engagement is it generating a lot of clicks and I'm basically looking for reasons to keep the ads some people might work off the perspective of looking for reasons to lose the ads I'm always trying to find an argument to keep an ad but if I can't find it then I'll kill it so if I see um for example here I've got another five lead ad okay I've got the A1 add here same price per lead $22 as this one here $22 but if I then look in my CRM and I see no well for lead gen I see no nothing in the pipeline so no no calls are booked if I see um there's been no um if there's been a lot of no shows for example on that particular uh code the F A1 if I see there's nothing coming in terms of sales then I'm more likely to stop that ad and keep the other ad because the other AD is already shown intent people are already signing up they're already booking calls they're already showing up for calls and they're already turning into deals it's a huge difference and for uh Ecom the principle is if this here is generating sales then it's good if it's not generating sales then it's bad I don't care about things like like link clicks people get fixated on link clicks I don't care about link clicks I care about sales like if I have 25 link clicks and I have uh $500 in sales that's great and if I then have 50 clicks and $500 in sales that's equally great so I'm going to keep both sets of ads all right so we're in a different account here um I've stuck with Leen for now the next one will be um will be sales so we've got our winning ads we've figured out we've tested pain points we've tested uh benefits we've tested um objections we've tested identifiers and we've got our winning ads whenever possible group your winning ads into one ad set of a similar theme so if this case in this case the theme Here is actually location so sometimes you'll be doing local lead gen um where and the same would apply to Ecom you might be selling in a particular country um we try and group things together whenever possible so you have here five ads that are all proven to generate sales and generate revenue and generate profits so I put them all into the same adsets you can see here uh one adset selected put them all into here and then let Facebook decide how to spend that money now if I'm see seeing weird results like let's have a look at this so what am I seeing here I'm seeing a really high cost per lead there and there but overall I'm seeing for this ad account bearing in mind these guys are selling products that cost easily six figures so they can afford to pay $50 per a lead when it could potentially bring in 10,000 100,000 or more dollars and it's not a problem so if I look at my average treat the ads like the average cost in this case when I'm testing so go back to testing when I'm testing I'm looking at the cost to an extent of the lead more about the profitability profitability but also the cost per lead to an extent um of the individual ads when I'm scaling and I'm putting all of the ads into one uh ad set then I'm looking more at the average as long as the average is good that's fine because what these ads basically do is they serve as retargeting ads so I'm not overly worried about whether or not this ad doesn't get that many leads in a given period of time what I'm really concerned about is how does this ad set behave as a collective as a group now I will still keep an eye on things and if I do see that this is spiraling out of control this one ad I may stop it for a little while and see how that affects things it's really easy just to pause it and come back a week later see how the adset the adset as a whole is behaving has the cost per action gone up has the cost per lead gone up have I've been generating the same amount of sales or better or worse and kind of take action based off the data that I get there so that's pretty much it for organizing the ads into adets CBO or Advantage Plus campaigns are not something that we generally use so we tend to just Bunch things into adsets so the theme of each adset is pretty clear we write that into the the title of the adset and we Chang the targeting in this case it's Geo targeting so different parts are America we will have different adsets just to kind of see that geograph geographical um kind of mix see how that's getting on and um that's pretty much it for organizing the ads you can have lots of different campaigns if you want to so we might have one campaign for the UK one campaign for the USA we might do that uh it really do doesn't change very much it's more a question about how you personally want to organize your ads we'll often have if if the same client is targeting B2B and b2c we'll have a B2B campaign and a b2c campaign it just separates things nicely so for scaling your ads and increasing ad budget the principles for um sales campaigns and Lead campaigns are exactly the same okay so in this case you can see we're in ad account that's um generated sales that's using the purchase objective and basically what we want to do is we've got our different ad sets with our different winning ads in and we just want to gradually increase the budget if we feel that it's appropriate to do so so what have we got here uh let me pull this out so we can see the RAS from hyos whenever possible we uh we use hyos to um for our tracking it is a fairly expensive Sol ution so it's not for everybody um you can see the the data isn't a Million Miles Away here from Facebook um but it is different um we tend to go for hos whenever we can because it saves a lot of manual uh attribution that we have to do sometimes if we haven't got hos so in this case I'm looking and thinking what if any of these can we afford to scale so in this case this ad account is profitable as soon as we hit Ras one Ros one means spend a dollar get a dollar but we've got so much stuff that happens after the sale that within 14 days 30 days that rows one can be some become row as 2 Row 3 row as 4 so and that's all we're tracking here in this ad account is just that initial sale the initial money made from that sale so in this case I might be thinking thinking 1.42 is pretty good Ras um for this account so what I'm going to do here is potentially move increase the budget but first what I'm going to do is I'm going to look at my um frequency so let's just go along to here so the frequency here 1.58 isn't very high i' would be quite comfortable increasing that budget by about 20% % maybe 10% let's have a look and see what the what the budget is so the daily budget here is 330 I would probably take that up to about 390 maybe 360 390 depending on how the ads have behaved every time that I've scaled them in the past so again you're feeling your way into this I would go 360 390 let's say 390 and then I would wait for several days and I would look at this i' come back to this after say two three days and I'd be looking at everything I'm not going to let it sway my perspective too much but I'm still going to look at it I'm going to look at the CTR all I'm going to look at the CTR over that new period I'm going to compare the two periods the before I scaled and the after I scaled and I'm going to see if anything looks weird you're just looking for weird goodness like if everything looks pretty much the same then and the RASS stays the same I can do it again but I'm looking for Clues and the big Clues the ones that I find are the most important are CTR all which is your basic overall engagement and CTR which is the click on your link which shows intent so basically if that stays the same then after two three four days again depends on the account I'll go from 390 I mean I might be a little bit more aggressive but I probably go to something like 450 a day and it's roughly 20% you know you could be conservative and do 10 or 15% it's not wrong um you might find that if you go closer to 10% that you can scale a bit more frequently but we tend to do 20% 2 3 4 days make sure it's stabilized make sure you know all of the the numbers look good not just just the RAS and um and then and then kind of think about doing it again all the time keeping an eye on the frequency now I mentioned this earlier in the video we recommend around about two in most accounts but it really really depends on your account you kind of have to figure this out for yourself I've seen some accounts work fine on frequencies of three and four I've heard of some people running successful accounts with insanely high frequencies so there's always exceptions to the rule I'm always trying to provide you with the rule but there are exceptions it's great that you got through that section because really that shows me how serious you are about scaling your ads to seven figures and Beyond and now you have it the the blueprint for scaling Facebook ads to seven figures from creating forever ads to focusing on the right metrics you now have the tools to take your campaigns to the next level next up you may want to learn how to copy Facebook ads that make millions where I'll show you how to swipe ads from Top advertisers and avoid the mistakes that cause 70% of all ad campaigns to fail click here to watch it now