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Why Most Fail But You Won't: Crush it with Online Ads- Presented at San Francisco Small Business Week


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Are you running Facebook advertising, but nothing seems to work? Does it ever feel like you're just throwing ads out there and hoping that something sticks? Compared to other PPC platforms like AdWords, Facebook can seem difficult to conquer at first. That's because most businesses focus on the wrong things. In this class, we'll break down Facebook ads strategy, which if followed, will help you build a foundation for success. This includes:

Audiences: Where to focus and prioritize and in what order.

Ads: Ad types and what your ad content should be focused around.

Solutions: If your ad isn’t performing like you want, how to fix it.

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Why Most Fail But You Won't: Crush it with Online Ads- Presented at San Francisco Small Business Week

  2. 2. You Have a Great Product or Service
  3. 3. BUT it doesn’t seem like any one can find it
  5. 5. WHY ???? | Does Facebook think I’m a LOSER?
  6. 6. NO!
  10. 10. What is the hardest part about running Online Ads?
  11. 11. Why are you excited about this class?
  12. 12. My Promise to You 1. What makes a successful Facebook ad 2. Loads of ideas to try out 3. Tips to make your life easier! In about 3 hours you’re going to learn:
  13. 13. Meet Molly Social Media & Marketing Consultant for San Francisco Small Business Development Center With over a decade of starting new programs from scratch, speaking, and most importantly, real-life, in-the-trenches business experience. I started helping small business owners over three years ago deal with the sometimes overwhelming marketing, advertising & social media aspects of starting a new business.
  14. 14. Why Do we Need Online Ads?
  15. 15. Close your eyes and think the last time you bought a product online
  16. 16. 1.86
  17. 17. 79 32 31 29 24 0 10 20 30 40 50 60 70 80 90 100 Facebook Instagram Pinterest Linkedin Twitter 79% of Adults are on Facebook % of Adult Internet Users Pew research July 2016
  18. 18. 8 28 21 16 13 13 0 5 10 15 20 25 30 13-19 20-29 30-39 40-49 50-59 60 and older Facebook Users in the United States Percentage of Users Users Spend 20+ minutes per day on Facebook
  19. 19. 300 Visible Posts 5000 Pages 5000 Friends 6000 Groups
  20. 20. How People Use Facebook • To pass the time, • Connect with friends & family members or • To be entertained by the content they encounter. • People aren’t searching for anything in particular.
  21. 21. Facebook Ad vs. Google Ads • Google is great for demand fulfillment: Search -> Buy • Facebook is great for demand generation: Discovery • Complex to get it right. Lower conversion rate. Bigger opportunity. • • Google’s lifecycle: Setup, Test, Fine-tune, Forget • Facebook’s lifecycle: Setup, Test, Fine-tune, Repeat… You constantly need to test different ad designs and audiences to target
  22. 22. Just like any good meal it starts with Ingredients
  23. 23. Facebook Pixel Before Running Any Ads: 1. Add your Facebook Pixel to your website 2. Test Using Chrome Extension Facebook Pixel Helper
  24. 24. Place Code in Website Shopify Instructions: analytics/google-analytics/google-analytics-setup WordPress Instructions: install-google-analytics-in-wordpress/ Squarespace Instructions: us/articles/205815608-Using-Google-Analytics-with- Squarespace WIX Instructions: analytics-code-to-your-site
  25. 25. Check Google Analytics Tracking Code Installation: GA Checker GA Debugger google-analytics-debugger Tag Assistant tag-assistant-by-google
  26. 26. Customer Stages
  27. 27.
  28. 28. Customer Stages In the village a beautiful young girl feels lonely and misunderstood, because she reads books, and seems to be the only one. She daydreams about getting out, getting a better life, meeting a prince. Strangers
  29. 29. Customer Stages Acquaintance Belle, the girl, goes looking for him, finds him there and pleads to let her father go, in return for her staying there with the beast. It's a done deal and Belle is now trapped in the castle with the beast and his staff.
  30. 30. Customer Stages Causal Friend After Gaston failed, Belle was reunited with the Beast.
  31. 31. Customer Stages Intimate Friend Belle did in fact fall in love with the Beast, thus breaking his spell.
  32. 32. Customer Stages Marriage Belle did in fact fall in love with the Beast, thus breaking his spell. Marriage
  33. 33. Let’s Play a Little Game: New Product Line Launch Order the customer stages from most effective to least effective targeting Most Effective Least Effective
  34. 34. Let’s Play a Little Game: New Product Line Launch Most Effective Least Effective Marriage Intimate Friend Casual Friend Stranger Acquaintance
  35. 35. Now Let’s Translate this to Facebook Audiences Marriage Intimate Friend Casual Friend Acquaintance Stranger Custom Audience Look A Like Audience Core Audience
  36. 36. Some estimates put the cost of attracting a new customer at 5x more expensive than selling again to an existing client. Custom Audiences perform better than other types of ads; reach people who already have a relationship with your brand.
  37. 37. Custom Audience 1. Create Custom Audiences off of existing customer data, including emails and phone numbers 2. Build Custom Audiences off of retargeting data, including website visitors and app users 3. Create Custom Audiences off of Facebook engagement data
  38. 38. Lookalike Audience • From your customer data Custom Audiences • From your retargeting data Custom Audiences • From your engagement data Custom Audiences
  39. 39. Lookalike Audience • Start at 1% match • Increase your percentage points from there as needed • (making sure to exclude your previous audience from your next campaign • Expect that your conversion rates may go down as your audience grows larger & their specificity diminishes
  40. 40. Core Audience • Use any demographic data you have, narrowing your target audience as much as possible • Location • Demographics • Interests • Behaviors • Connections
  41. 41. Core Audience • Least effective type of targeting. • Why: you’re targeting by characteristics – not necessarily actions or intent. Exceptions to this rule • Targeting based on hobbies, sports fanaticism or passions where users are particularly interested in specific topics may be enough to convert them right away. somebody likes running, not necessarily interested in purchasing running shoes at the time.
  42. 42. Audience Size When starting a campaign Start by targeting anywhere from 500,000 to 3,000,000 people. Exception Local Businesses
  43. 43. Audience Ideas
  44. 44. Google Search • To get list • Top leaders • Top magazines • Top Blogs • Top Websites • Tools use • Associations • Conferences • Schools • Organizations • tradeshows
  45. 45. • Exclude anything that would be too broad • Example: targeting Rock Climbs; • REI also attracts people with other interests (Too Broad) Is this Too Broad?
  46. 46. • Interests • Look at Page likes • 4-5 interests • Ideas for other interests • What is too Broad?
  47. 47. Excluding Audience Exclusions let you better target your ads and can ultimately help: • Lower your cost per action or cost per click • Reduce money spent on wasted clicks • Reach people who are more likely to buy or convert
  48. 48. Here’s How: • First create a Custom Audience list from your existing customer list • Then, as you're creating your ad, target a relevant interest and exclude the Custom Audience list you've just created Exclude an existing customer list to avoid targeting them twice
  49. 49. • Here’s How: • First, create a Custom Audience from your website and include those who added running shoes to their cart • Then, exclude people who completed a purchase (visited a /thank-you page, for example) to target only those who added running shoes to their cart but did not buy Exclude people who've converted to remarket (made purchase)
  50. 50. 1. Figuring out your sequence • Does your offer follow a flow of a healthy relationship? • Multistep • Remember Belle • Offer is a relationship person to person (12 stages or intimacy Desmond Morris)
  51. 51. Now Let’s Translate this to Customer Journey Marriage Intimate Friend Casual Friend Acquaintance Stranger 7) Advocate 8) Promote 5) Get excited 6) Ascend 3) Subscribe 4) Convert 1) Awareness 2) Engage
  52. 52. Steps (Customer Journey) Stage Example Awareness Really Great Content Engage Compelling Content Subscribe opt In Convert Stranger to Friend; low commitment offer small purchase or sign up for demo Get excited Deliver on promise Ascend Can I take you out to dinner Advocate When asked Recommend Promote Affiliate or Ambassador (Actively telling others about)
  53. 53. ADs Forced Friendship It's a done deal and Belle is now trapped in the castle with the beast and his staff.
  54. 54. Skipping to Many Steps Forced Marriage In the village the ignorant and manly Gaston is upset that Belle isn't interested in him. When her father claims she is trapped with a beast, Gaston sees the opportunity to have him committed to a mental hospital, thereby forcing Belle to marry him.
  55. 55. Pick Two:
  56. 56. 2. Offer Messaging • Does your copy speak to a specific desired end result of your customer? Talk to their specific pain point • Ideal Customer in some state of discontent, that’s why we buy
  57. 57. Offer • Hooks • Once they bought, what does their after state look like? Before After Have Feel Average Day Status Proof & Results Speed & Automation (Quicker for someone)
  58. 58. Offer Copy • Call out your audience (not by personal attributes) • Use question to poke at pain points • Solution to pain point=your offer or Call to Action • Be personable • No need to yell “FREE” • Use bullets, asterisks, emojis
  59. 59. 3. Build commitment & micro commitment • Small purchase prior to big purchase • Commitment of time ex. Webinar • Think Promise Ring before a Wedding Ring
  60. 60. 4. Little Victory • Overcome self-doubt Ex. Constant Contact Step 1: design email template upload logo, Step 2: pick colors, Step 3: congrats you crafted first email, Step 4: now upload list.
  61. 61. Software-as-a-Service (SaaS) Companies Lead-Gen Businesses A lead-gen business is any service-oriented business that’s using Facebook Ads to find new clients. E-Commerce Sellers
  62. 62. Upsells to higher packages or tiers of service Pushes for referral program participation Requests for feedback, reviews or testimonials Referral marketing incentives (or better referral marketing terms for top advocates) Access to private Facebook groups or forums Recognition of their “top user” status Upsells to higher packages or tiers of service Pushes for referral program participation Requests for feedback, reviews or testimonials Invitations to in-person events Special referral marketing bonuses Extra services not available to the general public Upsells or cross-sells to related products Pushes for referral program participation Requests for feedback, reviews or testimonials Special VIP-only coupon codes Special referral marketing incentives Invitations to in-person events, such as product launches, tradeshows, etc. Advocacy/Promote: Custom Audiences (top 20% customers)
  63. 63. Free trials Paid trials Paid subscriptions Pushes to lead-gen landing pages Pushes to webinars Product-specific dynamic retargeting ads Product sales Re-purchase ads (for products that run out) Coupon codes Get Excited/Ascend: Custom Audiences (past purchasers, several visits to website, email engagement above norm, high lead score) Make the Sale
  64. 64. “10X” content Marketing videos Case studies Lead magnets “10X” content Marketing videos Case studies Lead magnets Product reviews Product comparisons Subscribe/Convert : Custom Audiences (email List, Website Visits, Facebook Engagement, Past Customer purchases, app use) & Lookalike Promote Benefits
  65. 65. “10X” content Marketing videos Ungated blog posts Past positive customer reviews and/or testimonials Media mentions on major news outlets “10X” content Marketing videos Ungated blog posts Ungated white papers or case studies Past positive customer reviews and/or testimonials Product introductions Positive reviews and/or testimonials from past customers Product reviews 10X content Influencer/experiential content Awareness/Engage: Core Audience & Lookalike Value, Value, Value
  66. 66. Offer- Should You Show Pricing? Hotel AdsTravel Ads Tip: Check out Competition & analyze their ads to understand why they might be working
  67. 67. Choose Images to Convey Hook or marketing message • Tell story • It catches attention of the reader without being flashy or off-brand. • It reflects the brand and customer journey. • Display Product • Play off emotions already associated with imagery
  68. 68. Better ads • Use smiling people • Use high contrast & colorful photos • Use photos that show the benefit of the product/service, not spammy call-to-action • Address an emotion • Use symbolic images • No more than 20% text on image • Use the image to catch their attention & “sell” them on clicking the ad NOT convince them to buy. You’ll use your sales funnel for that.
  69. 69. Less 20% Text
  70. 70. Get Image Ideas Use Google images, Dreamstime or Creative Common (Flickr)
  71. 71. Choose 2 Facebook Success Stories Continue
  72. 72. Carousel Ad: Charge Cords Audience: • Custom Audience (based on website Traffic) English-speaking • Aged 22–65+ living in either the Oceanic or European region. • Excluded people who had made a purchase from the Charge Cords website in the last 180 days. Event: “Purchase” Call-to-action: “Shop Now” Campaign Results: • 4X increase in sales from Oceanic and European countries • 4X return on ad spend Back
  73. 73. Collection ad format,(hero video + a shoppable experience) MeUndies Audience: • lookalike audience based on a Custom Audience of its past purchasers Campaign Results (10 days): • 40% increase in conversion rate • 47% increase in new subscriptions from the mobile campaign • 44% boost in new customers from the mobile campaign • 1.5 million people reached Back
  74. 74. Video Ad: Series Wander Beauty • application videos • products being applied on different models with different skin tones Audience: • Custom Audience existing customers, & segmented this list based on interests, such as beauty products and accessories, cosmetics and online buyers • Multiple lookalike audiences • Women in the US aged 25–50, with interests in digital retailers, beauty and beauty accessories, fashion, and health and wellness Campaign Results (2 Months): • 4.4X increase in sales • 59% decrease in cost per sale • 2.3X increase in conversion rate Back
  75. 75. Video Ad: Manscaped Tested a variety of video thumbnails, ad copy and headlines. Audience: • Custom Audience of past buyers • lookalike audience • general audience of men aged 21–45 Event: “purchase” Campaign Results (2 Months): • 3.4X return on ad spend • 67% decrease in cost per acquisition (compared to the baseline Facebook campaign cost per acquisition) • 53% increase in conversion rate (compared to the baseline Facebook conversion rate on Shopify)
  76. 76. Video Ad: Bombas Inspiring Storytelling Audience: • lookalike audience based on people who watched the video • retargeted people who saw the video and visited its site but did not purchase any socks, showing them dynamic ads. Call To Action: “Shop Now” Campaign Results (3 Months): • 30% increase in return on ad spend • 50% increase in click-through rate Back
  77. 77. Carousel Ad: Precision Nutrition Audience: • website visitors from last 90 days who didn’t already like Facebook Page • interests similar to Precision Nutrition’s current Page audience Call To Action: “sign up” Campaign Results (4 Months): • 6,000 new newsletter signups or email downloads • 50% lower cost per lead than standard link ads • 50% higher click-through rate than standard link ads • Over 2 million people reached • $0.07 or lower cost per click Back
  78. 78. Offer Ad: Chicago lash “Bombshell Look Lash” package—marked down from $300 to $99. The ad linked to the company website and encouraged people to call the salon to book an appointment. Audience: • 20-mile radius around his business location. • women 24–55 years old • women interested in beauty, makeup, spa, Kim Kardashian and Oprah Winfrey Call To Action: “Book Now” Campaign Results (7 Months): • 50% increase in overall sales • 2X more daily appointment bookings • 3X more lash refills per day • $0.45 per website click from Facebook Ads Back
  79. 79. Store Visits Ad: Cupcakin’ Bake Shop ran in the late afternoon Audience: • people aged 18–55, • living within 5 miles of the shop • who were interested in weddings, flowers and, of course, cupcakes. Call To Action: “Get Directions” Campaign Results (12 Months): • 25% increase in foot traffic since the campaign launch • 30% increase in website traffic since the campaign launch • 4.5X more sales compared to results from print advertising
  80. 80. Ad Formats
  81. 81. Collections ideal for e-commerce companies Promoting new products and cross- selling with complementary items, aiding increase in conversion rates Mobile Facebook Feed Only Need Product Catalog or Canvas
  82. 82. Canvas • Canvas is a full screen experience for mobile devices. • 3 Tips for Using Canvas • Know the story you want to tell about your brand, and use short videos, clear messaging and powerful images • Use high-quality images and video that take advantage of the full screen experience • Mark clear paths through your Canvas with simple steps and actions to take (like descriptive text for buttons and links) You should use a collection with Canvas when: • You don't have a product catalog. • You want to drive traffic or conversions to your website or app. • You want your customers to learn more about your business in a fast-loading, full screen experience.
  83. 83. Creating a Product Catalog Needed for Collections & Dynamic Ads (retargeting) For a How To Go to these resources: usiness/help/1397294963910 848 or 2017/04/05/facebook-ad- collection/
  84. 84. Facebook Video Ads Video Story about who you are. Story can be related to how you solve this problem, then a product demo, and then customer testimonial, and finish call to action Examples: • “Hey here’s our story, here’s how we got into this thing, this is the problem we solved, this is a demonstration of our product, here’s a happy customer, check us out” • Customer Testimonial • Top 5 Top 10 lists • Before and after articles • Instructions & how tos Acquaintance Stranger
  85. 85. Facebook Video Ads • Causal Friend→ Intimate Friend • Pitching • Product Demos, new product announcements Marriage Intimate Friend Casual Friend
  86. 86. Example of a video Ad Funnel
  87. 87. Customer Testimonial Tips • share a review where the customer tells a personal story • consider which stage in the buying cycle your customers are in • use product reviews to target first-time visitors and site reviews for people who already know your store • keep your text short and don’t refer to the review in your copy • find stories and reviews that use words like “I,” “my” or “we.”
  88. 88.
  89. 89. Messenger as a destination Ad in your newsfeed that looks like a regular link but once click it opens in a message with that brand or Facebook page • 1 in 2 people say more likely to shop with a business they can message • Use at the Subscribe/Convert stages Facebook Messenger Ads •11% higher booking rate through Sephora Assistant •3 steps with Sephora Assistant versus 8 to book
  90. 90. • Sponsored messages, sent to Facebook messenger inbox • Send promotions to people you are already talking with messenger bot. Use for Reengagement Facebook Messenger Ads
  91. 91. Abandon Shopping Cart Custom Audiences from your website /a/online-sales/custom-audiences- website?campaign_id=648959365201 614&placement=broad&creative=682 61306412&keyword=+facebook++re marketing&extra_1=5823d0dc-ab6d- 4f88-a4fc-ee84016fbdb7
  92. 92. How Long to Run Facebook Ads Start with 3-5 days • 10,000 impressions • Or allow each ad to receive at least 20 conversions • Every change needs another 3- 5 days
  93. 93. Where will You Take People?
  94. 94. Make Small Changes Facebook Ads $50 → $200 → $600 $50 → $60 → $72 Don’t Increase Budget more than 20% at a time & let go for 48 hours
  95. 95. General Goals Amy Poterfield Podcast #127 with Rick Mulready Facebook Ads Measuring Costs Every Niche is Different less than $1Less than $8 Cost per lead Cost per click (CPC)
  96. 96. Advertising Benchmarks 2015 Click-Through Rate: The percentage of users that click your ad. The higher, the better.
  97. 97. 50-75% OF ALL ADS FAIL EVEN THE EXPERTS Get Your Mad Scientist on & EXPERIMENT
  98. 98. What to Test? • At least 2-3 different images & ad copy variations including headlines • Test different landing page/optin variations- headlines, images, bullet points • Different Ad placement: desktop, mobile, devices • Break down ad sets down into age ranges & genders Image from Adespresso
  99. 99. Facebook Ad: Start by picking campaign objective Sweet Spot is 50 conversions within 7 day period
  100. 100. Facebook Placements
  101. 101. Placement Facebook Ads • Pro tip: always edit placement • Remove audience network
  102. 102. • Use a lead magnet ad for audience that already has interest in the content & solution you offer • 97-99% people will not be ready to purchase • Goal: Increase email subscribers • Measure: Email sign ups (Website Conversion) Cost per Lead/Sign Up How to Generates Leads
  103. 103. • Use ads to increase reach • Use copy to promote sharing of your content • Goal : Generate more traffic to website & blog • Measure: Clicks to Website-CPC & CTR (traffic) What if I have Small List or Low Traffic To Site
  104. 104. Let’s Not Forget Growing Your email List Thru Ads Why? Lowers the Cost of Acquiring a Customer
  105. 105. Is a Positive Return On Investment
  106. 106. 6 Steps to measuring 1. Set Conversion Goal 2. Track Conversions(Reach, Leads, Conversion Rate, Traffic, Customers) 3. Assign monetary value to each conversion 4. Measure Total Benefits by Channel 5. Determine Costs 6. Analyze Results & Improve Facebook Ads Measuring ROI
  107. 107. Warning Math Ahead…. Take a deep breath
  108. 108. Generally Speaking $5 should get you 5-30 clicks Here’s how it looks; 100 Website Clicks 40 Optins – (40% Conversion) 2 sales – (5% Conversion) = $100 Revenue – (2 sales @ $50) To break even on this campaign you would need to ensure your cost per website click was $1.00 or less. $1 x 100 visitors = $100 Cost per lead/conversion< sale of product Facebook Ads Measuring ROI
  109. 109. Facebook Ads- Pro Tip check relevancy, after 100 interactions, get it over 7 closer the 10 the better Why? lowers ad cost
  110. 110. General Stat Goals • Cost per lead less than $8 • Cost per click less than $1 • Click thru (CTR) Cold Audience- Rate more than 1% • Retargeting (CTR) 3% • Lead Magnet opt In 20% • Relevancy score 7 & above • Frequency Rate 1-3 Amy Poterfield Podcast #127 with Rick Mulready Cat Howell Facebook Ads Measuring Costs Every Niche is Different
  111. 111. • Your Offer • Your Targeting • Your Ad Copy/Creative • Your Ad Scent Troubleshooting Ads Four likely culprits:
  112. 112. Everyone stand up & power pose 30 seconds
  113. 113. What We Learned Today All About Online Ads • How to create awesome Facebook Audiences • Customer Stages • Perfecting the Offer • Setting up an Ad Campaign
  114. 114. AND IF YOU DO ALL THESE THINGS (You know, as in get all your ducks in a row)
  115. 115. Your Sales just might REACH NEW HEIGHTS
  116. 116. If you loved the class, I would love to hear about how you will use what you learned Before you leave write a review @Bloggerithm on Facebook P.S. If you review with 24 hours I will send you a link to Troubleshooting your Facebook Ads
  117. 117. Contact Info: Molly O’Kane Visit:
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