11 Years of Facebook Ads Advice in 1hr 21mins

if there is just one thing I'm really good at it's making tons of money running Facebook ads I've been in this game since 2012 and in that time I've run ads for some of the biggest companies in the world like Vayner media Gary V's company and huge direct consumer Brands like BarkBox that won from $150 million to over half a billion dollars in revenue and went public during the time that I was running their ads over the last decade I have seen breathed and literally learned everything you need to know about paid advertising and I've

been able to scale brands from 6 7 8 even nine figures like Young Nails went from $180,000 in advertising Revenue to over a million in advertising Revenue per month and I've done this exact same thing for dozens of brands people come to me week after week looking for one-on-one mentorship to try to give them the keys to success for what I've learned and apply it to their business but if I'm completely realistic there is no way that I could scale that there's no way I could build the business that I'm building and help every single

person one-on-one so today I'm going to be giving you everything that I know about Facebook ads completely for free for you to scale from zero all the way to the $10 million per month mark this is based on the experience that I individually have and that we've learned from scaling dozens of different advertising campaigns and look if this is a bad time and you're going to click off this video in 5 minutes then save it for later this is something you need to take complete notes on and follow from start to finish it's the only

way you're going to understand all of the little nuances because the basic fundamentals you already know you could watch the basic fundamentals from thousands of other videos but what I'm giving you today is the true Secret Sauce this is the actual detail that you need to understand to actually scale not how to exactly set up the campaign or that one setting I'm talking individual nuances to actually grow and scale your business today in this video I'm going to be covering things like how to keep up with Facebook's everchanging algorithm the best setups and structures that

you have to run in your ad account especially for direct consumer e-commerce businesses how to actually Target the right people at the right time that's a huge difference than just targeting the right people how to save loads of money on wasted asent and avoid making the most common mistakes that nearly everyone is making in the market today and the five biggest secrets that I've learned when managing Facebook ads over the last 11 years and specifically how every single one of these secrets have helped me improve my return on ad spent on average for every single

client that I've ever managed so if you stick through this video and watch to the end you're going to be able to mentally download the last 11 years of Facebook knowledge that I have gathered and you're going to be able to apply it to your ad accounts through step-by-step guidance to increase your return on ad spend increase your ad profit and of course grow your business now before we dive into anything complicated I want to talk to you about the fundamentals now what even are the fundamentals because everyone seems to have a little bit of

a different setup a little bit of a different way that they approach Facebook I'm going to give you my fundamentals the most important things that you need to know right off the top that are going to set you up for Success over the years I've seen dozens and dozens of Facebook advertisers or just marketers in general go into the Facebook ads manager and really not know where to start they kind of click on random things they have random columns set up they've tested a 100 different campaigns they don't know what to actually go to that

has driven results historically for hundreds and hundreds of businesses so it's kind of like they're going to the grocery store without a list they're literally going to the grocery store walking down every single aisle and along the way what happens is they find that cereal that sounds good they find that next thing that sounds good by the time they get to the checkout they've not only doubled their cost which is literally a direct reference to Facebook ads but they've also added things that they don't even want and they've probably missed the most important things that

they said they were going to get on their way there right you forget the lettuce that you were going to make your salads with for the week and you wind up eating cereal for dinner or something crappy I think you get the point the key here is that if you don't know the fundamentals you're going to miss a whole lot and you're going to waste a ton of spend on things that don't really matter and that you actually don't want to run anyway so in real life in the Facebook ads manager you've probably seen new

tools new developments new pixels conversions API iOS 14.5 you've seen so many things change over the years in fact they've just added new features last month you have to be on top of all of this stuff because some of it works and some of it totally does not work so let me take you inside my ads manager show you exactly what works and how I set things up so when we go into our Facebook ads manager one of the most important things to just set the foundation is setting up the correct columns so what I

want you to do is literally pause and write down every single one of these columns that I have set because these should be the columns that you have now keep in mind you may need to add to these if you're doing something different but these are the fundamental these are the basics these are the foundation for your ad account so what we have here is in the very first column we have the campaign of course next we have budget amount spent this is guiding your entire account you need to know how much you're spending every

single day every single hour then we have purchases and cost per purchase so cost per purchase is literally how much it costs to get one single purchase it is not new customer acquisition it is just the cost to acquire a purchase next is purchase conversion value AKA Revenue make sure you set this up as total sales in Shopify not your gross sales cuz that's going to mess things up when you do some discounts next piece is purchase return on ad spend Ras one of the most common most popular metrics even though roaz gets a little

bit of hate really just gives you a good idea of overall performance which is why I like to have it in every single account that we run next here you're going to notice some secondary metrics so we have cost per outbound click which is just the cost to actually get someone to your site we don't care about all CPC all CPC or all cost per click is literally anyone who clicks on your ad in any way sh you perform they can go to Instagram page they could just click the like button that counts as a

CPC we don't like that we like outbound clicks that's to your site next is conversion rate conversion rate of course is a huge guiding force we need to understand how does each campaign How does each ad set and how does each ad actually convert over long periods of time we then have outbound clicks which really should be going before cost per outbound click but doesn't matter frequency is a huge metric for everyone to understand all frequency is is the average amount of times someone saw your ad now people get freaked out by a fre frequency

frequency sometimes can get really really high especially during sale periods or when you're spending a lot of money but what you need to understand is how your frequency balances out with your return on ad spend so if you see a super high frequency and a very low return on ad spend you need to be careful of those relationships but for this exercise only just get frequency in there and then after frequency reach Impressions and CPM CPM is the guiding force now this is just a little trick of mine something that I like to include in

videos like this CPM I put all the way on the right side of my entire account the reason I do this is because when I'm in the actual ad account it's really easy to scroll and see a bunch of numbers and get lost you get lost very very quickly especially as I add more columns and I'm looking at some in-depth stuff but what's really easy to do is flick to the right and see my cpms all the way on the right side it's something I always like to have all the way on the right so

I could flick real quick understand my CPM your CPM by the way is your cost per 1,000 Impressions that is essentially your cost of advertising so you could think about this as a relationship game now let me take to the Whiteboard for a second think about it like this your CPM is your cost per 1,000 Impressions so equals 1,000 Impressions your CPC is your cost per click your CTR is your clickthrough rate we'll just say click rate and your CVR is your conversion rate now what you really need to understand here is that each of

these have a massive impact on one another this is the most important thing that you need to really understand from these four metrics because you could technically calculate everything else in your ad using these four metrics just about everything else as long as you had average order value in here you'd be able to actually derive purchase value Revenue row as there's so much you can grab from here but what I really want you to understand is that there's relationships between each of these four and this is something that I don't normally talk about cuz it's

a little more advanced but I really really want this video to really hit home for you because it's supposed to be a value bomb I'll be honest so now that we know four of our most important metrics these are technically secondary metrics but they actually relate to what's more important the return on ad spend the actual purchase value the revenue the conversion rate Etc they all relate so what I really want everyone to understand is how do these secondary metrics bring us up to scale and actually allow us to drive more revenue for the business

using Facebook ads so really where it starts is your CPM or your cost of advertising your CPM if it is too high it's too high you're going to have to figure out a way to get your CPC and your CTR down the problem often is that if CPC is high CTR is usually low so the way that you can resolve all three of these is by improving your clickthrough rate if you improve click through rate your cpcs are going to go down and then your CPM is going to go down because what this shows is

your relevance is higher so if you have high click theough rate and you have low CPC and low CPM your relevance is high because you're basically showing ads to the right people at the right time and you're showing them a relevant good product that's key here too now how does this all tie into you making money right here on your conversion rate so if you have high CPM High CPC and low CTR and low conversion rate you're not going to make it you need to iterate on every single piece of this you need to figure

out a way to make your ads stickier and you need to figure out a way to make your products convert better on your website that is the only way you're going to be successful in Facebook ads in fact if all those metricks are shot for you right now you need to go start there that is the very first place that you need to completely take care of after that once we figure out can we get conversion rate to be let's say somewhere in between or can we get conversion rate up right if conversion rate starts

to get above 1% 2% then we need to focus on click the rate CPC and CPM because if you have a high conversion rate a high click through rate that will result in a low CPC and a low CPM overall what does this mean it means a whole lot of money really simply put if you have high conversion rate high CTR low CPC low CPM you're going to be putting yourself in a bracket where you can scale that is the goal of all the secondary metrics so as we head back into the ad account look

very very closely at your secondary metrics really start to understand where are my cpms different do you have 1 2 3 4 five ads that are actually way higher in CPM and way lower in click toate if so you have to slice those out so you always want to understand those relationships because Raz is not a magic number return on ad spend and revenue are not magic numbers they don't just get spit out back to us by Facebook the reality is it's purely a relationship in those four metrics that we just went through CPM CPC

CTR and CVR all of those together equate to purchases the next layer on top of that is average order value so if we add average order value to the mix here if our average order value is high of course we could start adding dollar signs right if our average order value goes up then excellent we are going to start making more money however be very careful if you increase your prices or if your average order value is too high then you're going to need to understand the relationship between aov and conversion rate and a and

CPM because if your average order value gets too high if you start charging way too much for your products what's going to happen is your conversion rate is going to go down as your conversion rate goes down naturally your CTR your CPC and your CPM are going to go down as well it's going to make your advertising cost significantly higher okay so we are still in fundamentals here so just keep in mind there is so much more to come in this video now to start off here we've got through our column set the next thing

you need to do is go into the Le hand side of your Facebook ads manager and click Advertiser settings your Advertiser settings this entire Suite is new as of the last year really there used to be nothing you would modify in here it used to just be a place for billing beneficiaries and stuff like that now what you need to do now is actually set up nearly every single part of this so I'm going to take you through it in light speed so you can copy and paste this into your ad account so first comes

first is account controls account controls apply to your entire ad account so if you can only show up in one part of the entire country or wherever you're showing ads or there's placements that you can't deliver on for certain reasons this is the place to edit it cuz you don't need to edit it again however be very very careful this is where listening closely is going to pay off for you so my business advertisers age restricted goods or services a lot of people I've seen this so many times a lot of people click this button

they set things to 21 or 25 under the assumption that they will get just targeting people who are 25 plus or whatever age range they're aiming for the real reality of this is this one adjustment puts a little Mark on your account in the back end so you can't even see it and it says oh this is a restricted account we can't show this to everyone when you can't show to everyone your cpms go up your cpcs go up your click-through rates go down and your cost of advertising significantly goes up that's all bad news

so unless you are truly restricted like you're selling alcohol or really truly age restricted goods and services do not select this ever the next piece is my business can only advertise in specific locations if you're running something like local leg gen or you're a local store or you just service a specific part of the country or the world of course select this not a problem the next piece is my business restricts advertising to some audience to protect its brand don't select this I'm just going to keep it real with you we do not want to

select this in 99% of cases and then the last one my business doesn't show ads to its own employees show your ads to your own employees don't worry about the5 or $10 it's going to cost you over the course of the month just seeing your ads in the wild like when you're scrolling Instagram or when your team or your employees are scrolling Instagram is going to be huge for you cuz you're going to catch errors everyone makes small little tweaks and errors in their ad account now we just want to make sure that we kind

of have quality control automatically cuz we're all surfing Instagram we're all surfing Facebook puts us in a place where we can kind of do our checkw workk without actually having to quadruple check every single thing next here is placement controls do not set this placement controls is where you can limit feeds apps and sites we do not want to select this there's almost no case for you're selecting this so go ahead and click cancel on that next is metav verified so you're going to see a metav verified opportunity here now in this case I'm showing

you a dummy account so there is no verification however you should always try to get verified the steps to get verified are not that complicated you literally just need to identify yourself show that you're a real business get enhanced support you get more features that come soon you get more betas and free money into your account like ad credits and most importantly you get a little blue check mark that shows advertisers and customers that you are legit so get metav verified very very easy next piece and this is the hottest topic of it all is

Advantage Plus creative now I'm going to make some adjustments here because I think this is great so we wanted to test this out very very expansively across just a few of our clients and as we tested this out we recognized that a it doesn't work as well as we wish it did and B we're going to not test it anymore so Advantage Plus creatives is basically the opportunity for Facebook to make changes to your ad account without you knowing about it on enhancements that may roll out in the future so what we've done is we've

tested new enhancements I'm telling you now do not test new enhancements these only happen to about 5% of your total ad Impressions and it's truly just not worth it so unselect test to enhancements and then for AI generation features in most cases you are unselecting all of these so we can click save here these are very small beta tested features you might not even have them available to you but if you do you don't need to be a test dummy here when these roll out and are finally up to speed that they need to be

go ahead and select them next piece here is audience segments this is going to be the most impactful for actually evaluating audiences which we're going to get to next coming very very soon for the best audiences that you need to run to scale when you're in this audience section you have engage audiences existing customers and then building audience URL parameters what we care about is engage audiences and existing customers this is going to let us see very clearly in the Facebook ads manager which I'll show you in two seconds it's going to show us who's

engaged who's existing and who's new so you can actually see how much money you're spending on new customers existing customers and people who have already engaged with you so for your engaged audience you're going to open this up I really want you to put your Instagram followers your Facebook followers and anyone who's been to your site over the last 30 days so 30-day IG 30-day Facebook and 30-day site visitors for existing customers this should be anyone who's ever made a purchase from you for existing customers you want to have your Facebook pixel purchasers and you

want to have anyone from your CRM so if you're using clavo if you're using MailChimp whatever just get your CRM imported through the native integration into the existing customers list now let me actually show you what this means so this is something that everyone needs to understand that I would say 9 out of 10 people don't even know this exists when you go into your Facebook ads manager and you click breakdown there is an option here that says audience segments you're not going to see it if you haven't used it before so you need to

type it in type in audience you'll see audience segments right here this is going to allow us to view our data by new existing and engaged customers so when we click this you could see the breakdowns right here we could see through this ad account right here on this very first campaign that we're looking at that $73,000 was spent on new customers existing customers $15,000 spent engaged audiences $27,000 spent so while we had a 4.46 return on ad spent which is very solid for this brand we did so with a 3.68 on new customers we

got a 5.97 on existing customers and a 5.68 on engaged customers this is so critical because it allows me to see the distribution in my ad account because one thing that people are starting to stry away from is clear swim lades we don't really have as many exclusions as we used to in ad accounts which is fine this is a feature that allows us to see what's working and what's not working based on audience cohort now the next fundamental I want to break down for you is what kinds of ads to run now we're going

to have a whole section on Creative so I'm going to get to that in just a few minutes here but what I want to show you right now is just get you the Bare Bones I want to get you the most critical part of this because this is going to set the foundation for the rest of this video where I go through all the little details so I want to show you this ad account right here it's the same ad account we were just looking at so as you can see from our naming convention here

we have static static video static static static static video we have a mix right it's very clear we have a mix of Statics and a mix of videos the key of this mix is that we're now able to show up on so many different placements that is something that people get so confused about for some reason people get so caught up in just running videos or just running images or just running stories or just running reals the key is to have diversity of creative across your entire ad account so know that take one thing away

from this section just know that if you have a diversity of creatives different kinds of Statics different kinds of images different kinds of carousels different kinds of videos etc etc that is going to provide the maximum efficiency in your ad account so the main reason for the need for Creative diversity is because there's different ways to consume on each of these platforms so think about both Facebook and Instagram there's currently a few ways you can consume media in general first is the classic Facebook feed that's where things come in a square format so we're going

to call this feed next is stories so these are mostly vertical videos and these are stories then we have reals which are mostly vertical but not full screen vertical so they're a little little bit different and then after that we have the horizontal format which is mostly underused but this is going to be used on like display assets so think about this there's three main formats that work the best and then there's also this horizontal format number four we don't care as much about it to be completely honest with you but the key is that

people consume the feed at a certain percent we're going to call it 33% they consume stories a little bit less than 33% but we'll call it 33% and they consume reels at around 33% as well it's actually gearing more and more towards reels and specifically video reels but the key for right now is that it's almost an even split and a lot of the value is still coming from feeds so what I want to think about here is if we just ran feed if we just ran a bunch of square assets we're toast because we're

only available to 33% of the people if we limit ourselves to just 33% of the people our cpms are going to go up our click the rates are going to go down our cost per clicks are going to go up and then of course cost of advertising is going to be brutal it's going to be really really hard for us to compete so what you need to do is you need to have creative diversity for every single format so that you could actually show up everywhere you could show up on more eyeballs right if you

said there was three ad platforms imagine if there was Facebook number one Facebook number two and Facebook number three and each of those had the same amount of people you would for sure make creative for every single ad format hands down so you need to gear your creative to have different cuts for different formats it's critical okay we just hit a lot now that was the fundamentals these are some of just the early early tips and you can see I'm trying not to go too advanced too early but let's keep it real I always do

I always get a little bit too far into the weeds so now we're going to get more and more and more advanced as this video goes on I'm going to give you as much detail as possible on literally everything time and time again I audit dozens of AD accounts and I see the same thing over and over one of the most controversial topics is how to Target the Right audience at the right time the Hot Topic of targeting so listen up here because even if you feel like you know everything about targeting and audiences I

promise you there there's no way you walk away with zero value with what I'm about to share with you if anytime over the last year you've tried to do individual interest targeting or just any sort of targeting in audiences you probably feel like you're playing darts with a blindfold on and that's not your fault because ever since iOS 14.5 we kind of went from Sharpshooter to literally blindfold there was no transition it was a hard swap essentially overnight every single ad account in the world that was targeting audiences saw a decline now I'm not here

to tell you that I could hit a bullseye every single time because i' be completely lying to you the reality is is that if you have that blindfold on and you're playing a game of darts there's a good chance you're not even coming close to the dart board you might be hitting the dart board on the other side of the entire building what you really want to make sure you're doing is at least hitting the dart board that you're aiming for and that's why targeting is still so important because even if it's not perfect like

it used to be it is still the best targeting platform of all time Facebook is still the best it is still the king so here's how we do it so in order to Target properly the very first thing we need to do is set up the right campaign so click create in your campaign click sales as your campaign objective click continue and then here is the big change Advantage Plus shopping campaign also known as ASC that is something that we will not be able to Target anyone it's going to be 100% broad it's going to

Target the entire United States or whatever geographic region you're targeting now what we want to select is manual sales campaign once we do this we're actually going to be able to set up audiences at the adset level so at the campaign level first things first is we just need to make sure we're targeting the right people our pixels are set up properly we need to get the fundamentals right so for this right away I'm noticing that it's set up for Advantage Plus catalog ads so this is not what we actually want to run here we

want to run traditional creative so we are not running catalog ads we're running traditional creative next piece is Advantage campaign budget this is formerly known as CBO or so we want to select this on Advantage campaign budget is going to distribute our budget across adsets that we run so we actually get the best cost per result so in this case set your advantage campaign budget set your daily budget to whatever you feel like you could set make sure it's at least once your average order value campaign bid strategy for this case is going to be

highest volume or value and then there's going to be no other significant changes we're going to move to the adset level which is where targeting is actually going to begin if you have a Facebook shop setup website and Shop click this if not just select website when you scroll down just a little bit more here the performance goal is going to be either maximize number of conver iions or maximize value of conversions there's a really big important Nuance between these if you set for maximize value of conversions you'll notice down here in your attribution setting

you're not able to set any view through so for this example I really want you to set maximize number of conversions this is going to get you the most amount of conversions for your ad spend this way you're going to see click through and view through which we actually do want this is going to give us the most data to inform the pixel to inform the campaign and the adset to actually make a Target the right people at the right time mov moving down Dynamic creative most dynamic creative is completely gone by now if you

see this option just make sure it is off and then as we go down to budget and schedule no changes should be made here this is set to run every single day the same amount of money should technically be spent per day we're going to get into that later in this video on one of my secrets and then as we go to audience controls and Advantage Plus audience this is where things have changed so much in the last year so first off for audience controls you most likely don't need to do anything here however there's

a huge difference between the Advantage Plus audience now so what you might want to do is you see this you click audience suggestion optional and you go ahead and you put in a detailed targeting audience so in this case I'll just give the example of Nike right let's just say we want to Target Nike for some reason and we want to find the interest for Nike excellent now once we do that the really really key thing here is that if you're running an Advantage Plus audience read this our ad technology automatically finds your audience if

you share an audience suggestion this is the key word here we'll prioritize audience matching this profile before searching more widely so it basically says we're going to take your suggestion and then we're going to move beyond that what we actually want to do is say no we don't like that switch to original audience now this is the biggest red flag for me using Advantage Plus audience May improve performance so it wants us to do this it wants us to Target basically everyone and Facebook is basically telling us you will get an up to 33% lower

cost for result AKA 33% better return based on experiment however look at the details this experiment ran in May of 2023 with 16 advertisers for what is that 8 weeks come on let's keep it real here Facebook has thousands and hundreds of thousands of advertisers spending millions of dollars they should have run this test 50 times over with dozens and dozens and dozens of different advertisers and said they're still using an experiment for 8 weeks on 16 advertisers to me they haven't been able to reproduce this result therefore use the original audience it's not working

how I personally view it right now that might change 2 years from now might be completely different but we're not test dummies we want to do what actually works because a 5 10 20% difference in your ad performance could literally be the difference between you making hundreds of thousands of dollars for your business profitably or not so it's really really really important once we select that original audience couple things change here you're going to notice that that section before on location targeting has actually merged into this audience section here now don't be a victim do

not not worry about selecting this don't select it just keep on scrolling down what you need to check here is your locations are set properly your ages are set properly your genders are most likely set to all genders unless you have a very very very specific product and then for the advantage detailed targeting which is AKA you're targeting your interest targeting here's the key take away one thing from this part one interest at a time Don't Run Nike Adidas and Reebok run just Nike if you want to test each of those interests test them on

their own in individual interest groups here here's why there's going to be a massive overlap in those audiences but there's going to be small differences and we're not setting targets to get Triple the amount of Revenue we're not doing these little changes here this is a waterfall effect you don't set a single Target to you know completely transform your eye performance what you do is you set your target plus you set the right creatus plus you do all the other things that we're talking about throughout this entire very long video that's what gets you the

doubling of performance those things all add up this is a stack you don't do one of these things one time and hope that everything fixes for you because it doesn't this is hard work my job wouldn't exist if this was super easy if you could watch one tutorial and be done forever my my job wouldn't exist but the real reality of this is It's a stack each of these optimizations add on top of each other so set your individual Nike audience and if it works 3% better than your rebok audience excellent you have a winner

you have 3% more Improvement imagine you do that 5 times you have 15% Improvement in your ad account that could literally be the difference for a lot of brand scaling between mass profitability and a loss on their profit and loss statement so set Nike as your individual interest and then you could ignore this cuz we can't get rid of it anymore and then down to placements set and leave Advantage Plus placements be careful on this one thing here in your inventory filter section make sure moderate inventory is selected the most important part is just make

sure limited inventory is not selected if you have expanded inventory you're technically fine just be careful we don't want limited inventory that's going to increase our cost so you understand now that we have to set single interest audiences and that actually applies Beyond interest that applies to all of your custom audiences as well so what I'm going to do now is I'm going to show you the exact audiences across our entire Facebook account set up so let's go right into the platform so our Facebook account the primary structure that we use involves four different campaigns

the very first campaign at the top is a prospecting CBO campaign the purpose of this campaign is to test and to scale within the same campaign the core idea of this campaign is that it completely revolves around adding new adsets with new creatives that is something you really need to understand here so we're going to click into this campaign I'm going to show you a look around in a live demo so in this example sorting by spend we spent $131,000 to drive $525,000 is at exactly 4.00 return on ad spend very very very solid Matrix

here now what you're going to notice is that there's a mix of different audiences I know you can't see the second half of these names cuz they are client specific and they're client confidential but what I want you to understand is that some of these are duplicates and I'm going to break down how all of it works so essentially what we do is every single time we launch a new pack of creative so a pack of creative is anywhere between two and 20 different creatives that we launch at the same time those launches go into

a brand new ad set every single time I want to repeat that every single time they go into a new ad set so what you need to do is you launch a new asset every time you have new creatives when you do this you launch it 100% broad that's key it has to be 100% broad so here's an example broad ad set we can see all of our settings are completely normal and what you're going to notice here is that we do not set Advantage Plus audiences just like we talked about in the interest which

is why I set the stage with how to set up our audiences so we set it up as an original audience that's just what we went through in the last section here and that's why you keep this 100% broad it's going to be a little bit different than if we just like that use Advantage Plus audience it's just a little different we have seen this work just a touch better which is what we care about small changes to Waterfall down to huge huge impact every time we launch the creative it gets launched within this adet

then what we do is on a weekly to bi-weekly basis depending on how much money you're spending so you know in this case in this account when we're spending $131,000 over the course of a month this particular campaign great we want to really like move this quickly every week every even four to 5 days we want to use and start the graduation process which I'm going to break down shortly however if you're just starting out if you're spending $3,000 a month $5,000 a month even $10,000 a month you get a little slower every 2 weeks

to even every 3 weeks you want to do the graduation process so what is the graduation process this is a key part and it's essentially the most important part to scaling now before I tell you about it I need to show you the campaign that you actually graduate into so the graduation campaign is known as the ASC scale campaign it is a scale in mechanism so as you can see through this example here our prospecting CBO campaign spent $131,000 our scale campaign actually spent a little bit less than the prospecting CBO campaign but it drove

a higher return on that spent so in this case it actually was more of like close to a 50/50 split but in many cases it'll actually favor the ASC scale campaign usually around 70% of the total budget will wind up there it's not a foolproof number it's just where it usually winds up so what do you do you take the top 10% of ads from your broad ad sets your 100% broad testing ad sets and you duplicate Those ads into the scale campaign let me show you exactly what I mean the way that we determine

what is actually working and what we need to scale is by amount spent and return on ad spend we are not Cherry Pickers we do not go to the very bottom of the account and look for ridiculous return on ad spend so for example you would think this ad right here with $36 in spend and a 17.2 return on ad spend a lot of people are going to take this ad and say I'm going to scale this I'm going to scale this the reality of this ad is it doesn't actually work it doesn't scale Facebook

would scale this ad if it was working better so what we want to do is we want to take our top spending ads plus good return on ads bed for example this ad right here 3700 spend it's a good portion of the total spend and a 5.59 return on ad spend excellent that is one of the many it's the only in this case that we're actually going to graduate so instead of what most people do which is they quickly duplicate or they copy what we're going to do instead is we're going to click the normal

duplicate button here there is a reason for this this is where the details matter and we're going to select the other Campaign which is going to be our ASC campaign as you can see right there we're not going to have any adside because it's an ASC so just select the same ad set as the campaign title number of copies is one and here's the key show existing reaction comments and shares on new ads what this does as you can see here from literally the message from Facebook you can see the engagement that you got on

your previous ad in the testing campaign that's without setting a post ID that's without doing anything fancy sketchy or behind the scenes it's literally just the duplicate button and straight up the key is if you quickly duplicate or if you copy or quickly duplicate it doesn't always save that engagement so what we need to do is do the exact way I said you click this duplicate button and then you follow these steps and very very very important you make sure you show existing reactions comments and shares on new ads so that's how we graduate we

take the top 10% and we always push them in to the scale campaign over and over and over again that's a very important distinction now the next place we graduate is actually into interest audiences so we built an interest audience before and we kind of understand the general idea of audience targeting but the key is you test at a broad level and then you graduate into ASC scale campaign and interest based campaign and I mentioned before that this prospecting CBL underspent the ASC campaign the reason it underspent the ASC campaign is because the interest crushed

here they did so so well as you can see our top two adets were interest based adsets their return on ad spend was about 10 to 20% higher than the average huge wins in that case and they spent the most amount of money so they drove the most purchases most Revenue they were interest based but what's the key they only contained the top performing ads I want to really hit that home these were graduated ads only so we took the top 10% from our broad ad sets and we graduated those into the interest adsets I

hope that's clear as day the graduation process creating that scaling mechanism in your account is one of the single most important things and changes that you can do to create a systemized approach to scaling okay so we now clearly understand the purpose of the scale campaign and the purpose of the prospecting CBO campaign the one Nuance to this is you never ever ever pause anything you duplicate if it's working you never pause it I don't care if there's one ad left in an entire ad set or even an entire campaign if it's working if it's

above your target kpi just let it go let it go we don't have egos here we're not trying to make everything perfect and fancy what we care about is results so if you have a specific ad campaign or ad set that is truly hitting your target desired kpi excellent keep it running after we set off our prospecting and our scale campaigns there's two more campaigns that we really need to focus on and I'm going to give you a bonus campaign that we're just starting to roll out but isn't 100% necessary but just keep it in

mind here cuz it is pretty important so the next campaign is a retargeting campaign the retargeting campaign needs to focus very very clearly and talking creative here needs to focus very much on hitting your main objections of your product if you sell one product this is really easy because you need to just focus on what's the main three to five objections that I most often get and we need to make ads very specific to those objections on the flip side if you sell dozens of products you can't really do that as well it's really hard

to object every single product in fact you probably shouldn't so what we like to do and this is an example of a multi-product store they have about 50 plus products s here so I'm going to show you the exact breakdowns that we hit and you can modify these based on the size of your store so first things first we have a visitors 180-day audience it's anyone who's been to our site over the last 180 days this is a really really large audience and keep in mind you could reduce this in fact in many cases I

like bringing this down to 30 days next we have an add to cart 180 days again reduce this down it should always be a little bit bigger than your visitor audience but it could be something like add to cart 60 days or add to cart 90 days next we have engagers 990 days this is anyone who's been to your Instagram or your Facebook page over the last 90 days I would highly suggest bringing this down to 30 days and if you have a big account bring this down to 14 days and lastly we have all

clavio or all CRM so wherever you're hosting all of your customer information it's probably somewhere like clavo MailChimp sendlane there's a whole lot of other platforms out there make sure you're importing all of those customer IDs and those customer emails into the Facebook platform to feed this algorithm better and Target get all of them as you can see in this case it was actually our number one spender it didn't convert the best but it was our top spender where engagers and add to carts really converted well it's six plus return on ad spend okay the

next and final campaign is a retention campaign retention campaign is just focus on existing customers what we like to do here is keep it simple we like to Target anyone over all time and anyone in the last 180 days so if you purchase in the last 180 days you are one group if you purchased over all time you are the next group very very very simple now I did promise you a little secret that we're seeing work super well right now that fills some of the cracks with this strategy probably gives you in the range

of a 5 to 10% bump in your retargeting effort so this is getting people who have been to your site across the line and this is only going to apply to multis skew stores so people who have 20 30 products plus this is very specific to you what you want to do is create a new campaign setting a manual sales campaign we are changing the Advantage Plus catalogs from off to on so we are selecting this on making sure we select our product catalog keeping Advantage campaign Budget on and then what we're doing here is

we're selecting our product set of all products and we're going to audience type and we're selecting retarget ads to people who interact with your products on and off Facebook do not click this and then we are selecting viewed or added to cart but not purchased over the last 14 days and we need to go down to add exclusions here and exclude any purchasers over the last 14 days so this you want to specifically set 14-day purchasers as you can see I have this list already so anyone who has purchased over the last 14 days we

are excluded the reason for this setup is this fills the cracks if I went to your site and I visited 20 of your 500 products I'm going to continue to see those products over and over and over again on my Facebook on my Instagram this is exactly what we want to create we want it to feel personalized the extra on this this is the bonus I'd say is excluding 14-day purchasers because what many people don't know is this statement actually doesn't exclude them once they've made a purchase it only excludes them from the products that

they purchased so if I viewed 20 products and I only purchased one I'm still going to see ads for the other 19 that's a huge amount of ads that I'm seeing in wasting money you could see a theme Here is we don't want to waste we don't want to waste want to leverage every dollar to its maximum efficiency let me take a step back so look when we think about targeting the targeting and the setups that we have are the engine of your car the vehicle the actual outside the body of the car that's the

creative the driver is who's running you're at and the road is actually the targeting so think about it like that think about every time you target is the path it's the way that you are choosing to run your ads the setup destructure all of that is the engine that's how fast you're physically going to get there but if you take the really long route no matter how fast your car is you're not going to get there is if you take the most efficient fastest route so you need to combine both elements that's what's key the

next thing we're going to talk about is the body of the car this is what gets people turning their heads ultimately not only do you have to get there quick and do it in the shortest route but you also kind of want to turn turns some heads and that's how all of your other metrics are going to complement each other and you're going to see substantially improved return on adad so at this point you're probably saying all right Sam I know how to use Facebook ad manager I know the basics I know your columns I

know the audience setup I know your structure I've watched 20 other videos what about creatives what do you do for creatives how do you manage creatives how do you figure out what creatives worked and why and how do you scale that process let me just tell you it all you may have heard a 100 times over creative is King now you're kind of right we talked about that body of the car just a few seconds ago the body of the car is a creative if you're not traveling on the right Road you're toast you need

to have all of these elements all firing it is critically important imagine you're targeting the completely wrong audience and trying to squeeze in this exact product or this exact kind of AD it's not going to work right you need to talk to different audiences in slightly different ways and most importantly you need to know what's actually relevant now because people get sick of ads ads fatigue you have seen changes in your ad account i' almost guarantee everyone that's run ads before has seen an had work really well for 2 3 4 5 weeks and then

right down to the gutter and from what I can tell you every single campaign that I've ever run that's been successful has visual elements that match the product that match the brand and ultimately tie everything together now it could be really really hard to create good visuals year after year month after month for different niches across different product lines across different brands and branding guidelines there's so many different elements to it and it's even harder to just keep up with what are other people doing what's trending right now what's hot right now what's working right

now so in just a few minutes I'm going to be giving you my entire swipe file for the last year of the best ads that we've seen across the board and the best part is that this updates every single day so don't worry if you're seeing this video a year later 5 years later whatever this is something that we always are updating so just be on the lookout for new ads added to this and I'll tell you how you can get it in just a few seconds so first off we want to talk about static

images static images need to be combined with videos and vice versa in order to have success in an ad account I've very very very rarely seen an account that's able to just run videos or just run Statics you typically have to run both especially in e-commerce to be successful so first we're going to go through Statics what even makes a good static the problem with that question is it's too broad there's so many different categories so what I'm going to do is I have put together this board with dozens and dozens of ads here from

what we've seen work the best from some of our clients and some of our competitors for how we actually find inspiration to create ads on on our side so here's another key every single ad you're seeing here has run for over 100 days and like I said before you can get this entire file down in the description below it's completely for free just click down in the description you'll get the file now I'm going to break down a bunch of different types of ads why I think they're particularly good it's going to be your job

to actually figure out what you want to apply to your business based on your specific Niche every ad here is really strong a lot of these ads have run for well over 100 days so first and foremost anchor and you're going to notice this is very similar to a lot of ads we're going to see a lot of these ads share similar elements in a static image one of the things we're seeing most common we were seeing huge text on top of the image you can see here just in this one screenshot we have anchor

doing it here we have another bag doing it here no way that's a baby bag right really really clean we have honey law doing it right here very clean just big text we have Ridge doing it another big text Big product in we have 1 2 3 4 5 6 78 of the 12 or so ads on my screen are running with large text on top of image that's what I want you to focus on for the first key takeaway the second key takeway is all of that large text is either bolded or so big

that you can't miss it right so in this case for eight sleep increase your daytime energy levels by up to 34% it captures your attention in a quarter of a second next piece here brunch footware Next Generation waterproofing each of these ads hits one very specific Target for what their product solves so think about it like that anchor six devices one place that's a huge sell these days I mean look at my desk right here I got like 36 devices plugged in I need stuff like that this is a great ad for me it's probably

why I saved it and then think about some of these other ones down here best butt ever this is the state that good American the genan company wants you to be in they want you to feel like you have the best butt ever brunch Footwear does a great job of highlighting water waterproofing Ridge the toughest wallet that will last a lifetime they're hitting something that they know their consumer wants daytime energy levels for eight sleep very very very clear Ali real clean food for dogs very very clear call to actions all of these are hitting

a cord they are striking something that your customer or in this case their customers very much want and very much talk about so think about what your customers want and put that smack on the middle of the ad I have a bunch more here and I'm just just go through a few of these really really quickly this is from a sales perspective restock don't miss out bestselling two pack for first timers our sale page is the real deal big bold text in your face this is what we want there's a lot more down here too

and same idea we have everything hitting the most key fundamental what is the Difference Maker for their product right so again if you want this file for all the Statics down in the description below next piece is video so when we think about ad videos there are are literally dozens of different kinds that we can run there's meme videos there's founder videos there's long form short form There's real stories etc etc etc you get the point there's literally dozens of different kinds from beautiful to ugly to short to everything in between to very long right

so keep in mind that what I'm going to give you is what we have seen work the best across dozens and dozens of e-commerce Brands across the last two years very specifically for Ecom now something might work a little bit different different for you but I just want to give you the keys to what we've seen work definitively now the very first ad format is called the founder story so the founder story in short is when the founder or someone who represents your brand gets right in front of the camera and specifically talks about the

brand there are hundreds and thousands of examples of this out in the market I want to show you one from viori which actually takes a slightly different approach this is not the founder of Yori but it's someone who speaks as if they are representing the brand it just goes to show that you don't need to be the person in charge you don't need to be the CEO you could just be the marketing manager you could be the person that runs the ad that actually creates this ad and it doesn't need to be as polished as

this example so what I'm going to do is Show You full screen a great example that we have here hi I'm Darren am Men's Designer here at viori we right away start in the first two seconds hi I'm so and so from viori and he gives his title it's super simple it doesn't have to be too complicated and this is the Strat Tech te the Strat te is he immediately then introd reduces the product and then it cuts to b-roll so in this section right here we start to see models wearing the product actually using

the product exact very close up examples of the product but it always returns back to the marketing manager or creative director I can't remember his position but it doesn't matter because I remember him and I remember the brand that he's introducing he is talking to me directly and that's exactly the purpose of this so a Founder video really has three main elements to it first is the the intro the intro really needs to focus on you who are you and what are you selling so this would literally be hi I am so and so and

I am the owner or founder or CEO or marketing manager of XYZ brand that's your hook right here the second part of the founder story really hits in the body right the body of the ad this is where all of the information is given the body of the ad is where you give away all the keys is basically where you just spill the beans on why your brand is better and what you're specifically solving for so this would be hi I'm the owner of XYZ and we sell t-shirts that do this better or we sell

shoes that are better than all the other brands because so this follows up with a direct segement so we do this because that's the key the because body we do this because after the body keep in mind the body could be anywhere from 20 seconds to even 2 minutes 3 minutes right after the body is your hook close and guarantee so this here is your hook close guarantee and the core of the hook close guarantee is that you tell them you want them to buy you have to have a direct call to action you have

some sort of close related to what they want to buy and then you have a guarantee for you will love this purchase if you don't love it will give you your money back 99% of the time people will not act on it except that you get a 1% return rate for a ton more people willing to purchase because of that guarantee this is the founder story this is one of the best ways that you could set up your ads that you could literally take your camera right now put it in front of your screen and

talk like you're the founder show a product really really simple and before we even get to different ad formats I want to show you different variations of the founder store now the first example I showed you someone who is the marketing manager a creative director of viori here's an actual founder ad from hex cly this ad has been running for a total of 46 days it is still active right now I'd imagine this ad is going to run for hundreds and hundreds of days because it is so clean also note there's no fancy production there's

no big lights and shiny cameras or anything it's literally this guy behind his desk with a decent microphone I'm the guy who thought what if cookwar didn't suck boom right off the bat I'm the guy who thought what if Cooke didn't suck he takes the problem he solves that problem in two seconds and he keeps you curious in the first 3 seconds of the ad and then the next section he introduces himself and then made it happen hi I'm Danny Wier I'm the co-founder and CEO of hexclad cook bam introduces the product introduces who he

is and then throughout the rest of the body they go really really deep into everything that the product is and why it's better than the rest of the market one of the most straightforward founder ads you could find and guess what it follows the same composition that we have here intro hi I'm so and so body we do this because hook close guarantee really straightforward some other really really great video ads just to give you some inspiration of things that actually work work we have first off from s bird here comparing the state that you

actually want to be in and giving a good offer this ad has been running for 587 days so alert alert alert steal it Monster ad and the next few ads I'm going to show you 587 441 302 312 271 these ads don't die they're killer so scent bird here we have a very straightforward ad again what I paid for the real cologne versus what I pay with sent bird $847 value is instantly shown product is instantly shown we have 2 seconds to completely capture attention and keep in mind look how Native everything looks regular emojis

overlay what feels like on an Instagram photo it's not over the top right we don't have everything super fancy everything's super simple and straightforward next here we have finesse so this is a very different kind of AD it's not something I would necessarily copy right off the bat unless you had this level of model photos so if you do this is something I would do right away literally all this is doing is shuffling through a ton of different styles so you can get a quick look on one person what a bunch of different dresses look

like really easy and captivating it's like this is one of the only ad fors where I can see 20 30 different styles in a Flash and our minds are so incredible at capturing and seeing so many different things at once that in this ad even though it's way too quick to really understand you could know if this style fits for you so if you're a woman and you want to buy these dresses boom you can know red away all right this is my style click shop now next here from Honey Love honey love are some

of my favorite ads cuz they do such a good job at clearly addressing an issue and the solve they have for that issue so in this case we have a very unique ad from honey but it's been running for 302 days we have an ad that uses an AI voice generation pays for itself our average customer puts this on three times a week and just clearly shows off their product plus calls out some of the average things that customers do with their products honey lava again all the on the right side here 271 days this

is a ugc style ad something I would highly recommend running if you can it's really straightforward you are achieving the dream state that the customer wants with this product one of the main things you should think about when you're selling especially if you are in Fashion Beauty or Wellness you should really really really be thinking about what is the dream state that your product achieves right the dream state of hexclad is no more bad dishes and sticky pans the dream state of scent bird is value and in a variety of different sents and we can

kind of just go down the list of getting to all of these dream states that is one of the things you should consider every single time you make an ad so if I can give you the second ad format that works it's thinking of it in a dream state format it's not necessarily a format but just think about that when you create your ad and then the third thing is the ad that doesn't look like an ad the ugly ad the ugly ad is a term that's used all over the industry it was kind of

pioneered by a few people when one guy named Barry and to be honest they're great they're a fantastic format ugly ads don't need to be completely ugly they just need to feel native it's basically a more catchy way of saying native ads and you can see here I want to give you this example this is so good this ad acts as if it's not an ad at all have to go to our website to get it okay you go tell almost as if they're recording behind the scenes you have to go to our website to

get it just a little bit of that trickery sometimes goes a really long way it makes you feel unique it's not the only ad format you should have but it's one of the many that you could have in Your Arsenal so those are the three video formats that we've seen to be most successful this year so far now look keep in mind when you go to launch your new creatives as I just told you before you're not going to launch them into your existing adsets and you're not going to create new campaigns for them what

you are going to do is you're going to use existing ad sets and in those existing adets you are very specifically going to enter your new creative into those and only the top 10% of those ads so we're literally duplicate the existing ad set only the top 10% of those ads actually get graduated now let's say you found your winning ad you used some of these templates you created your own ads you figured out what works for you what do you do next because let's just use one of these examples here let's say this here

was your ad you figured out that this exact ad works for you what do you do now so what you do in the ad account is very straightforward right you graduate that winning ad but what do you actually do to create more creative that looks like that winning ad you want to look at metrics and you want to actually go off a little bit of a feel here here so when you create a winning ad you basically have to think about each element each part of the ad and how it plays a part in converting

a customer so let's think about an ad in multiple phases so the ad itself has a beginning a middle and an end it sounds really simple but the beginning is actually the first 3 seconds the middle could be anywhere from second number four all the way to 5 plus minutes and the end is usually the last 5 to 10 seconds so 5 to 10 right the key here is that the body is huge the intro is really small and the end hooks very particularly and is also short so what are we actually looking at in

the ads manager so when we go into the ads manager the thing that you want to do is go to that number one winning ad so for this example let's just grab one of our top performing ads okay great so this video right here just to put this into perspective this video spent $113,000 5x return on ad spent $65,000 in Revenue what we're going to do is we're going to click view charts here and when we view these charts we're going to scroll down to video performance and in this video performance this is very key

we're going to be able to see the different milestones and a lot of video information and how we can modify against it so what we're looking for what we expect is in the first 3 seconds somewhere in the range of 70 to 80% of total people drop off of the ad now you can compare this to your actual account average to evaluate the the very beginning what we're looking at is cost per 3 second that's a column set in Facebook you can compare that to all your other ads the next piece that we want to

look at is want to look at the percentage of people that reach 25% and 50% think about the length of your video as well 50% of a 5 to 10 minute video is much harder to achieve than 50% of a 10-second video obviously so keep those benchmarks in mind and the real Benchmark we care about is video average play time so that here here is the body video average play time so in this case we only had 4 seconds here but video average play time is how we could optimize the body the next section here

and the final is the hook that hook is actually not measured through video plays because there's such a small percentage of people that actually make it to the very end that hook is actually evaluated by cost per click or outbound click through rate both of those so compare that to your averages if you see any of these metrics lacking compared to your other ads know that there's an opportunity for example this is a very very good example because what we can see here is our cost BR bound click is below our average that indicates we're

doing a very good job of getting people to click however when we start to look at different metrics like actual view time is only 4 seconds I know the average on this account is actually more in the 6 to 7 second range because they're such a high engaging content account and to me that tells me that a we probably have to hook people in better and B our body could be a little bit stronger so we're doing really good on the hook the intro is okay but we're not holding people on some transition so what

I can do is I can look at this graph and understand where are people dropping off the most and is there an opportunity for me to shorten things adjust things or move things around completely where I potentially put the hook earlier maybe because intro hook body even though that sounds crazy these are the things you can start to play with you make modifications of little micro adjustments on winning ads only you don't do this for your losers you just do this for your winning ads cuz you found something there's something here we just got to

make it better 5% 10% 20% better harnessing the power of winning creatives is one of the most important parts of running Facebook ads we keep talking about the body of the car creatives are literally the body you can have a Ferrari engine in a Honda Civic but when you're driving 60 70 80 mph on the highway no one's looking at you you just look like any other normal car but when you have that Ferrari body that creative that looks so good plus the Ferrari engine you turn heads you get people to come to your site

you get people to convert they trust the entire process so again if you have spent hours struggling to find what ads actually work you've watched dozens of videos you've tried to download things you've tried to look at Facebook ads Library cool that's fine but you could download that entire swipe file that I just went through with all my favorite videos all my favorite images and this is also used across our team our clients our competitors and brands that we frankly just like brands that we are inspired by it's down below it's one of the first

or second links in the description and it is 100% free and by the way I'm giving away free things I'm trying to give away a ton of value here so if you like this video subscribe most people who watch this are not subscribed and everyone who is subscribed that leaves a comment gets a reply so hit the Subscribe button below it means a whole lot to Growing this channel so now that you know my approach to Facebook ads you know how we set up accounts you know how we run creative you know how we test

different audiences you know how we try to figure out what creative works we have the body of the car we have the engine of the car now it's time to get into the driver's seat and this actually comes through the lens of growth marketing specifically through budgeting how much to spend when to spend why you're even spending that much in the first place and for most people this is one of the most nerve-wracking parts of marketing in general they don't actually know how much to spend and why they're spending so much and even worse sometimes

people feel like they're doing really really good with their marketing they're getting a high return on ad spend but when they look in their bank account at the end of the month there's a negative we don't ever want want that we want to make sure that everything works out purely Through Math there's no feel here this is just crunching the right numbers what I'm going to do right now is keep this as straightforward for you as possible so you can copy this into your business keep in mind I am not a financial adviser and you

should always always always always double check your numbers because what I'm providing is the barebones this is the Tactical stuff that you could apply today every business is different so one of the main things you need to understand is what does your return on ad spend need to be for you to break even so this is all going to be focused on Raz at a break even or CPA at a break even and the way that we're going to calculate these is actually not that complicated at all all you need to do is understand what's

your average order value in this example we're going to pretend that our average order value is $100 keep it really really simple for us then we're going to take our cost of goods sold this is how much your products Cost Plus any other little fees that might be involved in the process for this example again we're just going to assume cost of goods are about 30 30% so 30% of 100 bucks is $30 that's going to then already bring us down to 70 plus we're going to add in extra fees and different costs that might

not be completely all there that we're not 100% sure of so I'm just going to say miscellaneous and we're just going to mark this at 5% so 5% of $100 is going to be five what that's going to put us is 100 - 30 - 5 is obviously going to be$ 65 that means that when we sell a product for $100 it turns into $6 $5 in profit for us so at a very simple fundamental level our cost per acquisition to break even is 65 bucks if we acquire a customer for $65 we'll make $0

in profit $0 in loss now where this gets a little bit trickier is what does our return on ad spend need to be our return on ad spend is actually a pretty simple formula so we know that our profit per sale based on their $100 average order value 65 bucks all we then need to do is take $100 divided by 65 which gets us to our return on ad spend Target to break even in this case that return on ad spend Target to break even is going to be ger roll please 100 divided by 65

1.54 so we now know that our break even row as is 1.54 so what does this actually mean for us this means that if we could achieve a 1.54 return on ad spend or a cost per acquisition of $65 so if CPA equals our profit or if our return on as is 1.54 we make Z profit zero loss we just break even but we acquire a customer that customer is very likely to repeat and come back and come back over and over again the break even strategy is one of the most complex one of the

most risky but one of the most rewarding strategies because customers come back over and over and over again what you do is you acquire customers rapidly and it's one of the fastest ways to grow but let's just pull back because you need to know your target the 1.54 that I'm giving in this example you need to understand what is your breake even rise what is your break even cost per acquisition without those have no idea where to set your goals you need to know your red light your yellow light and your green light red light

should be the situation where you're just braking even yellow light should be just above that brake even and green light should be well above we're talking 20 to 30% above that break even so if I had a 1.54 break even Target I would treat my green light around a 1.75 I would treat my red light right around a 1.4 to 1.5 because I'm I'm losing money on that and then I would treat my yellow right at the target of 1.54 because I'm okay I'm acquire customers I'm not taking up loss I'm still growing my business

and understanding these is really really important even if you're starting out today literally if you've made zero sales ever these are still the most important things to know going into your business before you set up a product and start sourcing overseas and do all of these fancy complicated long- winded timec consuming things that are going to eat so much time effort money and if you can't figure out what your break even is or if that break even is a ridiculous 4567 return on that Spen well I have news this is not 2005 anymore this is

not 2010 Facebook ads right Facebook ads used to be easy Facebook ads is hard now Facebook ads Google ad Tik Tok ads all ads are competitive and much harder so getting at eight or nine or 10 return on ad spend on your very first product that you've not proven yet is going to be really hard so make sure these numbers Crunch and work for you so you know your targets you understand what you need to do you know your goals you know your kpis one of the most complicated things that gets asked to me all

the time even though it sounds like such a simple question is how much should I spend on ads where do I even start or how do I scale Those ads so I'm going to answer the first which is how to spend when you're starting the easiest way to figure out your very first budget is set your budget equal to your average order value if you set your budget equal to your average order value what this is going to create is you could at least set yourself up where you are spending the amount that requires one

purchase to occur it's not going to completely break you if you blow through your budget for 3 or 4 days but it's going to at least put you in a little bit of an aggressive state where you could at bare minimum get some sales coming in that's the point the point of starting is not to immediately get the best return on ad spend you need to iterate as I've been explaining for multiple multiple hours at this point this is an iterative process right this is a timec consuming this is hard work so the average order

value setting to your first initial budget is the easiest way to do it in this example I'm going to show you if I had an average order value of $100 and therefore my starting budget was just $100 in Facebook now I mentioned a complicated setup but as you start you can't have a huge complicated setup all broken out all these divisions so what I would do if I was just starting with $100 is I would start off with literally one advantage plus shopping campaign in this shopping campaign I'd put all my ads in there and

then what I would do is as I start to find Winners in that ad set I would graduate those so keep in mind here $100 in the ASC camp P the thing that comes next is scaling there is a madeup 20% rule I wish I had a genie hat on or something I don't know who made this up I don't know why they made it up but I could tell you it's kind of made up because Facebook doesn't want to scare you they don't want you to go from $100 to $500 and then all of

a sudden you go from 500 and your row ass tanks from three or four all the way down to 0.5 or one that makes people pause ads that makes people stop advertising what makes people continue to advertise is they go from 100 to 120 to 140 to 180 and so on however that takes a lot of time to scale now I'll tell you from experience I have scaled accounts literally from $10,000 per day to $100,000 per day overnight in fact beyond that of being very straightforward we have quadrupled we have 10x budgets overnight there is

not a rule the reason that this rule exists is because when you run ads at a $100 budget you get a certain number of Impressions let's say these impressions are represented as these dots and that's how many Impressions you get for a $100 ad budget when you move up to a $120 ad budget you then get a couple more Impressions right so instead of these five dots I have now we have six dots these Impressions take multiple days to convert so this guy right here might take 5 days to convert this one might only take

one this one might take 14 so what's going to happen is if we just keep this same budget this guy this 14-day impression that's going to take 14 days to actually make a purchase is going to convert and it's going to look very positive to a return on ad spend so we build this pool of Impressions and slowly over time these Impressions eventually begin to purchase and what happens if you scale slowly so you go to 120 as I'm showing you here then the impression pool doesn't take a big hit so it only increases a

small percent 10 20% and therefore you don't feel the impact in the ad account you don't freak out however here's what happens when you move from 100 to 1,000 so 10x in your budget so you have these 100 Impressions these five impressions for $100 and some of these take a few different days to convert when you move to a whopping $11,000 you then 10x potentially your total Impressions so I'm going to keep this quick here but we just build out all of our Impressions let's just for the sake of this pretend that that's 10 times

more than I had here the key of this and why this is so important why this works so well and also not just why it works well but why it creates so much Fe in the market some of these Impressions take 7 Days 14 days 20 days to actually convert so if this guy takes 20 days to convert and this one takes another 15 to convert and so on and all of these are taking massive amounts of time to convert then what's going to happen for the first one to potentially 10 days or 5 days

or 15 days what's going to happen here is you're going to have a period where impressions are still learning about your brand take that away if you take one thing away and you scale people are learning about you it's a good thing people need learn about you they need to see your ads multiple times they need to see different ads they need to see multiple product offerings they need to maybe check you out on Instagram right they're learning about you they're not just going to see your ad for the first time and instantly buy 2

seconds later right that doesn't really happen too much so that learning process isn't learning in the ad account it's people learning so just understand that it takes some time for people to learn now you might want to know when do I know I can scale the easiest way you know you can scale is if you're hitting your target return on that spend and your Shopify metrics a line if you have a return on ad spend Target of let's say two and you're hitting a three and your Shopify return on investment is three or greater in

many cases scale just simply scale up the thing that you can know how much you can scale and how aggressively you can scale is by looking at your conversion rate in Shopify so I want to give you an example here this is the Shopify sales over time dashboard broken out hourly and during this period we scaled orders 130% and we scaled total sales 121% the key of this all of this data here is how why did we do this what happened what happened was we noticed right early in the morning right around 6 or 7

in the morning we noticed that our conversion rate was trending much higher than the previous day so we can see it was just above which is the dark blue line it was just above the previous day which is the dotted line and then around 6:00 or 7 in the morning it started to take a spike so instead of just letting this go and just letting it continue to do its thing we wanted to widen the Gap so we increased spend we doubled spend literally doubled spend and in this period we saw almost every single hour

after except for this odd hour here we saw the Gap widen widen widen widen look how big the Gap was by 1000 p.m. that night the previous day made $400 $400 $466 we were making $2,296 per hour right think about doing this when you're scaling your business you should see a direct impact to your sales the next thing that you could look at here which is the same thing that we're always going to be looking at is your conversion rate on the store for that day compared to the previous day what we're noticing here is

this is exactly the same thing we noticed an improvement in conversion rate on this day a big Improvement in conversion rate so all we wanted to do was get conversion rate to get closer we actually wanted conversion rate to get a little bit lower because we didn't want to leave any money on the table so we were scaling into a conversion rate that we knew was acceptable these are two reports you could look at they're free they're in your Shopify and I highly recommend you get very comfortable with them and really important to know here

you always need to track how much you're spending and your core kpis I always recommend you have some sort of budget tracker what we do for all our clients at the moonlighters is we set up a very simple report people get really complicated have all these complex reports let me just give you a little peek onto what some of our reports actually look like just so you can kind of maybe copy this for yourself so the key of this report is that we could see every single Channel every single day that's all we really need

we we have other breakdowns we have deep dies monthly breakdowns weekly breakdowns a daily pacing tracker all this fancy stuff but to be completely honest all you need is this you need a Tracker that shows you how much you're spending in total per day how much revenue your Shopify store is driving and your Roi and your me your marketing efficiency ratio knowing these metrics every single day gives you a pulse on your business it lets you know was yesterday good is this week good is this month good are we tracking to the goal and the

kpi that were set that allow us to be profitable that's what's most important now sadly I've seen dozens of brands that I've personally audited trying to follow individual pieces of videos just like this or videos that might provide a little bit of value or a strategy that worked three or four or five years ago unfortunately 99% of these Brands fail not because they don't have a good product not because they don't have a good website but because they can't create a predictable and scalable system so I promised you at the beginning Secrets now I'm going

to give you five secrets that are also five of the most common mistakes that Brands make avoid these mistakes at all costs the very first secret the most important thing you need to understand is to actually optimize on a click based metric you don't set your account on a click-based metric but you do actually look at the data in click-based attribution so what does that actually mean when we go into our ad account the actual setting in the campaign is 7-Day click 1day view but what you can do is go into your column set and

scroll down to compare attribution settings once you're here click one day click 7-Day click and one day view this is going to allow you to see the breakdown between view based conversions click base conversions and 7-Day click conversions what you always want to do is you want to optimize on the click data and avoid looking at the view data this will tell you over time this will literally reveal to you that certain ads and certain campaigns just do a really good job of hitting people who may have purchased from you already so you always optimize

and make informed decisions on the click data but you allow Facebook to learn from the view data and the click data really important next most people are targeting all of their products they are literally advertising everything that they sell all the time be sure not to be one of these people advertise the top 20% of products that drive 80% of your sales so what we do at the moonlighters is we do what's called an 8020 analysis I'm going to just show you this in a very very rough format because I think it's so important so

what we do is we pull a Shopify product analysis and a Google and a meta product analysis so as you can see from this example right here we get to our 80% of Revenue on a total product count of 42 now I would guess that this product count for this brand is huge and guess what you're right the actual skew count for this brand is over 1,000 products 40 products for zero drive over 80% of the total revenue for this business so I have no business driving ads to over a th000 products when I could

really focus on 40 that drive nearly all of the revenue the only one exception to this is that you still need to prioritize your new arrivals so really focus on your best sellers and know what those best sellers are from the actual cash in the business and not just what you think is selling the most look at what drives 80% of the revenue for your business you could do this in your Shopify reports you can do this in your Facebook reports and you can do this in your Google reports it's really really important the next

piece here is to do the same exact thing for day of week day of week is one of the most underrated analyses that you can possibly do so what we do on our side in the Deep dive is we break down by day of week you you could pivot out all this data yourself this is a complex report but what you need to understand is that different days of the week convert better or worse for every single brand in the entire world so what we can see here is that for some reason for this brand

on Wednesdays they Crush 15.15 return on asent on Wednesdays where the rest of the days are much lower in fact 15.45 is the peak and then we see Thursday Friday Saturday do really really well and we see a drop off Sunday Monday Tuesday so what do we want to do we want to take this information and we want to spend more on the days of the week that convert better it might not be an 8020 rule but generally speaking increase budgets on days when you're having more and higher conversion rates you could also do the

same exact analysis in your Shopify store just go into your Shopify Store look at conversion rate by day of week and really just spend more money when conversion rates are higher it's going to create a good balance for your business the next thing here and I have no data to show you on this one but I want to give you a really big bomb a good really positive note here spend heavy into the holidays whether it's a Labor Day Sale a Memorial Day sale a summer sale Black Friday Cyber Monday don't be afraid to Discount

heavy and the other note here is that when that holiday rolls around when next November next December rolls around hit it full speed don't be afraid to Discount your brand I have news for most people watching this video you're probably not Nike you're probably not Lululemon you're probably not Range Rover or apple and if you are incredible and let's keep it real those Brands didn't get there cuz they didn't discount they got there cuz they offer incredible high-end products they didn't perceive the customer that they're a high-end brand no they offered topnotch products you could

discount a top-notch product it doesn't devalue your brand at the stage that you are when you're Nike Lululemon Range Rover and apple of course discounting 30% looks like the Brand's on fire at this point but if you're doing 5 10 20 even $50 million which yes is a lot of money but discount doesn't hurt your brand reputation it just gets you to collect cash if you're just starting out don't be afraid of discounts right just generally people have a very bad taste in their mouth when they think about high discounts in general discounts equal cash

so hit the holidays hard start early it's usually better to promote early get ahead of when most people are going to advertise for example if it was Black Friday go two three even four weeks ahead start as early as you feel comfortable and as early as your business will allow and number five secret number five the thing that I see the most problems with brands do something good they get that return on ad SP number they get that kpi and then they stop they sit back they say these ads work we're just going to keep

running them always be adding always add new ads to your ad account always be testing always try new things and when things work Double Down push hard when things work that is my final piece of advice I really sincerely hope that you received a boatload of value out of this video I mentioned before that there's a swipe file down below with all the cves I have if this video was super valuable hit the Subscribe button and let me know any question or comment below I reply to every single subscri rber now I just did something

crazy I just gave you 11 years of my Facebook ad experience for managing some of the biggest brands in the direct consumer World completely for free but it could still be confusing to implement all of this strategy all of this advice into your ad account all at once so if you happen to own an e-commerce brand or you're a CMO or a director of marketing and you're spending around $30,000 plus per month in advertising and you're looking for a team to come in and help there's a link down in the description below to apply and

if not this info is still completely for free because I want to train every single person that's watching videos just like this to come back to us to three even 10 years down the road when ultimately you build that successful brand there's a whole lot more information here hit the Subscribe button and let me know if you have any comments down below I will see you all in the next one