Ad Process: Micro Ad Set Theory

UPDATE: Manual Bidding Strategy added at bottom!

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BIGGEST MISTAKES People Make:

targeting too broadly (in the beginning)

-use precise interests stacking and behavior layering
-placement by device (ipads, wifi, iphones, android)
-geographic location (ny, ca, fl, ma, tx)*****

selling process (Sales funnel) is not congruent all the way through
-use same images
-cartoon plus human face works well
-ad is supposed to get the click
-ad tip: rhyming, asking questions

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Facebook Ads Breakdown: 3 Parts
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1. Campaign - Marketing Objective

Name: Product + Objective + Country

-You always want to split the Mobile - Desktop Placement at the campaign
level

2. Ad Set - Targeting, Budget, and Schedule

Name: Main Audience + Age Group + Location (if applicable)

3. Ad - Display ad that people see

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PHASE 1: Testing, Data, and Conversions
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1. Launch a Engagement (Page Post Engagement) Campaign with targeted interests at

$5/day
-$5/day to 18-54
-$5/day to 18-54 (is running many ads at once and want to control budget)
-Prove the product, get some sales, social proof, collect data (PIXEL)
-Desktop and Mobile Placement
-NO Instagram, NO Audience Network

2. Start small, work bigger based on success

-Target precise interests
-You want to focus on the most likely group of people who would buy your
product/service, which are the most precise interests
-You can test more than one audience with different ad sets in the same
campaign
-Leave the broad interests for later, after you have proven your product
and already collected data on your pixel
-Targeting this way in the beginning makes it easier for Facebook to find
your buyers, and you will be more optimized for sales as you scale later
-My ideal audience size when testing (of one or multiple interestes
combined) is around 250K-500K
3. Winners will usually show conversions in first $10-$15
-Why? Because we are targeting precise in the beginning
-Doesn't mean we won't let an ad continue past $15, but there needs to be
compelling evidence if no conversions
-Two major stats to look for:

CPE: This is your Cost Per Engagement. It is how Facebook will report
your Engagement stats for a Page Post Engagment (PPE) ad
-Engagement counts as all likes, comments, and shares on your post
-This is great because it shows if your product is a fit for your
audience, or in other words, if you are targeted properly
+Lots of engagement means people like it. No engagement means
they don't.
-You want your CPE to be about .10 or under by the time you get to
$5 total ad spend
+Anything under .10 CPE is great. Anything at .10 is okay.
Anything .15 is kinda high, but may drop more over more ad spend
-Your CPE will drop as you spend more, because Facebook
is continuing to optimize your ad based on results
-You want to see not only likes, but comments and shares. Likes are
easy, comments and shares are much better.
+Especially comments that say things like "I want this", "I
have to have this", or tagging people
-CPE shows that you are targeted in your ad, but does not
necessarily show buying intent from the audience
+This is why our CPC (Link) is also important

CPC (Link): This is your Cost Per Click on your Link. It is a specific
stat that Facebook measures in your ad
-You want your CPC (Link) to be about $1-$3 or under by the time
you reach $5 in total ad spend
+Having a CPC (Link) of .50 and under is excellent. Anything
in between .50-$1 is really good.
-Note: Higher margin products can have higer CPC (Link)
because more profit built into item
-CPC (Link)is important because it shows that your audience is not
only engaged, but interested in BUYING/CONVERTING
+High CPC (Link) means people are not that interested in
buying
+If you have no Link Clicks by the time you reach $3-$4 ad
spend, you should probably kill that ad because people are shoing no buying
interest

4. When you find a winning PPE ad, you also want to create a WC ad to the SAME
exact audience
-WC ads are the money maker in our advertising arsenal
-Different objective than a PPE ad so it targets a different portion of
that audience
-I always start my WC ads by optimizing for Add To Cart (ATC) if ecommerce
-Or optimize for View Content for Leads
-Create your WC campaign, use the same targeting in the Ad Set, and set
the ad to the "Exisiting Post" you already have for your PPE campaign

5. If you lauch a PPE ad to a precise audience and it doesn't work on the first
try, do you believe in that product?
-Do you have evidence that product can get sales?
+Then try different targeting
+Maybe skip right to the WC ad and see if that works
 +I will usually try a max of 3 times on an ad before quitting
-Definitely try a WC ad to the audience before
quitting, if I believe in that product

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PHASE 2: Initial Scaling and Custom Audiences
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6. Once you start getting sales or conversions, you want to look at your Cost Per
Conversion (Purchase or Lead)
-This number will help you determine whether to scale, keep the ad the
same, or eventually kill the ad
+CPP (Cost Per Purchase)- CPP that leaves you enough profit to scale
+CPL (Cost Per Lead)
-THE MAGIC NUMBER: Know what your acquisition cost for scaling or stopping
a campaign

7. Scaling also depends on audience size

-We start with small audiences of 250K-500K, so sometimes you don't want
to scale that too quickly or you will burn through your audience too fast
-I usually go $10-$15 max on an audience this size, because that equals
consistent money
-Scale $5 every 2-3 days based on consistency, until 20% of total daily
budget is greater than $5. Then scale 20% every 3-5 days.

8. Start building your custom audience for that product

-Setup an audience for people who viewed or engaged with your ad
-Setup an audience for people who viewed content or took specific actions
-Setup aduience for conversion objectives like purchase or lead
-We'll use these audiences later for scaling with Lookalikes, and
retargeting

9. Once you ad has reached the end of its cycle (usually when your results start to
rise in cost because you've reached everyone available in that audience)
-You can go back and find the winning demographics
+Age (Facebook brackets about every 10 years)
+Gender
-Create new ad sets targeting only those best performing demographics
-Shut off original ad set

10. 2017 MANUAL BIDDING UPDATE

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Tested WC (Website Conversions) ad -$5/$10 daily budget
If winner (conversions and stats)
Split Mobile and Desktop
Duplicate ad set
-Conversion ad
-Optimized for Purchase/Lead
-Daily budget $100
-Set To Manual Bidding
+Maximum Bid
+Start at $40 (lower when traffic starts coming if MAGIC NUMBER cost too high)
+Start at 2.5X your most recent results

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PHASE 3: Next Level Scaling and Lookalike Audiences
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11. To reach Phase 3 on a product, you should definitely have at least 100 sales on
your initial audiences and ads

12. Next step is to make sure you have targeted all the precise interests for your
audience (scaling horizontally)
-Create new ad sets within the same campaign
-At this point now that you have sales and are getting optimized, no need
for a PPE ad unless you want to. Just create WC ads
+Still optimizing them for ATC at this level. But you can
test optimizing them for Purchase and see which performs better

13. Let your WC ads continue to run. Based on audience size, scale them into the
$10-$20/day range (auto bid)
-Don't be in a hurry to burn through your audience
-This is a great way to keep consistent money coming in on autopilot,
allowing you to go back and start testing new products out of your profits

14. Once you have started to reach the end of your WC ad lifecycles, it's time to
create Lookalike Audiences
-This is done from the Custom Audiences you set up earlier on your product
+Custom audience needs to be at least 100 in size to create
a Lookalike (LLA). Ideal if its several hundred in size or more
-You can create LLA's based on percentage of relevance to the original
custom audience
+Best percentage and most targeted is going to be 1% and 2%.
Start there.

15. Use your Lookalike Audiences and create a new WC campaign

-Use the 1% LLA and then Layer (flex targeting) with the MAIN BROAD
interests for that product/service
-This will narrow your LLA down and make it much more targeted
-You can use the LLA by itself and test that first. If results aren't
great, try layering it with the broad interests
-I still optimize for ATC here. Again though, you can split test with
Purchase if you want

16A. At this point you are getting a decent amount of traffic, you should also make
sure you have a HIGHLY RELEVANT collection of related items around your main
product
-Building collections with help increase sales
-Custom merchandise is a great way to build a collection
+If main product is already custom merchandise, try finding
related items like jewelry you can use
-Upsell, crossell, email

16B. For lead generation, you want to make sure you have a HIGH CONVERTING follow
up process (email, phone)
-Optimizing your website or landing page for higher conversions

17. If you want to, you can now go back and create Desktop campaigns that are to
the SAME audiences you ran the Mobile campaigns to
-Nothing different here, just a way to make sure you reach the entire
audience
-Set this in your placements

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PHASE 4: High Level Scaling - PIXEL
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18. This is the highest level of scaling, where you are simply going to target the
broad interests of your product

19. To scale that this level, you should alreayd have hundreds of conversions
recorded across all your previous ads on that product

20. No reason to scale at this level until all your previous ads start to die out

21. Create a new WC campaign optimized for Purchase, and target at the broadest
interest level
-To break it into more manageable sections, you can split that ad set
into age brackets or age/gender brackets
-Test everything equally, then kill the losing ad sets quickly and scale
the winners

22. Based on your Conversion Cost, scale at $5 a day in the beginning every few
days. Once you reach $30, start scaling at about 20% every few days.
-Always watch your CPP. If yuo scale too quickly, you will start to lose
your ROI
-Remember, this is a marathon not a sprint. A good product can make you
consistent money for months when scaled correctly

23. Manual Bidding Strategy and start at $100-$1000

24. Once you have gone through your largest audiences, consider going back and
scaling into the broadest LLA's
-These are the high percentage LLA's at anything above 5%
-This may not work. Really depends on how universal your product is to
that niche.
+But if you have over 1000 conversions on your pixel, it's
worth a try.
+Optimize for Purchase

25. Global Scaling

-Seperate countries at the CAMPAIGN level
-Make ad sets the same
-Don't forget to translate interests into country's language
-Don't forget to make your site/store/page language and currency friendly