You know what it is. That's right. It's time to talk money with your money nerd and financial coach. Now, tighten those purse strings and open those ears. It's the money talk with Tiff podcast. Hey, everyone. I'm super excited because I have Zaida Mari on the line, and he's here to talk to us about something that we haven't talked about on the podcast yet and 300 something episodes, but that is using ads for your small business, and particularly Google Ads and Facebook ads. So. Hey. Hey. How are
you? I'm great. Thanks for having me, Tiffany. I appreciate it. Yeah, thank you for coming on and talking about this important topic. So let's just hop right in for the audience. Let's just set the groundwork here. What are Google Ads and what are Facebook ads? Google Ads are ads that you see when you go onto Google search or Google shopping. YouTube's also part of the Google network, so video ads are also part of Google Ads.
Facebook ads are some of the promoted posts that you see in your feed, and then they also appear on the right hand side whenever you're on Facebook or even Instagram. Perfect. Perfect. Okay, so Facebook ads covers Facebook and Instagram, and then Google Ads covers YouTube, Google search, Google shopping, things like that, right? Correct. You can even do Google local ads, which is somewhat new for contractors and lawyers and things like that. And you can also advertise
on Google Maps. So pretty much any Google property. Gotcha. Gotcha. Okay, so now that we have that out the way, if a business owner is like, oh, this sounds interesting, or maybe they've thought about doing ads before, but they're like, I don't know if this is right for me or my business. What are some things you think that they should consider when they're thinking about. Getting into ads, the first thing is definitely their margin.
So when you're doing ads, you're going to have to pay, whether it be per click or per view or whatever, you're going to have to pay Google or Facebook for that ad. So you want to kind of look at your margins and see if your margins are good enough for you to be. To be
even profitable doing ads. So, for example, if you're selling a shoe, let's say, and your margin is around 40%, and say you're making $150 per sale, you could do some math and figure out, okay, how much should I pay per click for me to even be profitable. So you could do some math before you even start and then figure out if it's even feasible for you. To do it. And after that, you would just need
to plan ahead for it. A lot of business owners, you know, they're juggling a lot of different things all the time, so they kind of wing it. So they'd be like, okay, well, I want to spend like $2,000 or $3,000, but they don't have a timeline in mind. So it's easier if you just plan ahead for at least six months and have a budget that you're going to spend in that six months, assuming that you are, you're gonna make profit and your margin is good. Okay, so let's pause there for a minute.
Cause there's some questions that I have for you. All right, so with the first point, when we're trying to figure out the numbers, what numbers do we need to look at in order for this to make sense? So, I know you said something about looking at your margins and looking at how much pay per click and things like that, but if a business owner is listening and they're like, okay, I have a marketing budget, how do I know if this is worth it for. Me, that's
a great question. So I can send you a spreadsheet that I use to do some calculations, and you can share it with your audience if you want to. But basically, the first thing you want to do is look at what your current conversion rate is. So if you're selling a product or if you're in a service or doing a service, what is your conversion rate? And by conversion rate, I mean, how many purchases do you get or how many leads do you get from the visitors that come to your website?
So if you're getting a thousand visitors and ten of them, you know, convert, that's, that's, you know, that's like a 1% conversion rate, you know, so you take that into consideration, and then you look at, you know, how much are you making per sale, right? And you look at the expected cost per click, and that one's a little tricky for business owners
because they don't know what to expect. But in my spreadsheet, for example, if you're selling a product and you're running shopping ads, usually the cost per click is less than a dollar. So just to be safe, I usually use like $0.60 or sixty five cents per click. For service businesses, it's a little harder to figure out the cost per click. So you could use Google's free tool. It's called the Google
Keyword Planner. And if you type in your keywords, they will tell you what your estimated cost per click is. So once you plug all these three metrics in with your projected monthly budget, you'll get your estimated number of clicks, you'll get the estimated number of sales, the cost per sale, and then you could from that you can deduce the expected revenue and the expected profit. Very cool, very cool. And especially that point
about the keyword planner. I had no idea that was out there. So I'm like, I want to play around with that myself. Yeah, so just so you know, it's not 100% accurate. It's just estimates. That's still good information. Yeah, it's good information. But just saying that so that you could add like a percentage on top of it just to be safe when you're doing estimations. So let's say we have our numbers down. We're like, yeah, this makes sense for my business.
What do we do to start? Like, is it something as simple as a click of a button or do they need to fill out something? What does that process look like when we're looking at Google or Facebook ads? I wish it was very simple. It's a little simple, but it could get complicated if you get into the weeds of it. For example, for Google, you could sign up for a Google Ads account. It's pretty easy. You just
fill out a form and you just log in. But then you would have to set up your campaigns, set up tracking, make sure that you're tracking your leads so that you know how much money you're making from what keywords and what ads are doing better. You have to figure out where you're going to send the traffic to. When you're paying for ads, you want to send the traffic straight to the page that you want that person to land on. So you could skip the homepage
where an organic traffic, obviously you can't control where they go. So that's kind of like the benefit of paid ads. So signing up is easy. Setting up an account could be a little difficult, especially if you're not very code savvy and you don't know how to set up tracking and all that stuff. But if you want to start, if you have time to do it yourself, you could definitely watch a couple of YouTube videos and
learn how to set up campaigns on your own and then go from there. But if you are to do that, I would definitely start slow and learn as you go. So start off with a small budget and just build up slowly if that's the route you want to go. I know firsthand just from doing Facebook ads and stuff. It can get very, very complicated as far as the things that you can target for and all the parameters you can put
in. So for the audience, though, what are some things that they can target when they're looking for their particular audience? What are some options they have? So if you're just starting out with ads, I would definitely recommend starting off with Google Ads. It's an easier learning curve. And the intent of the person on Google is much higher than that on Facebook, because when someone goes to Google, they're typing in what they're looking for in the search
bar. So they're telling you, like, I'm looking for this thing. And so if you have it, show it to me, you know, and I'll click on it and then hopefully I'll purchase it. When they're on Facebook, they're kind of, like, scrolling through the feed. They might be distracted. Maybe they're just reading, like, what their friends or family are doing. So it's a little bit different mindset.
So on Google, you could do keyword targeting, or you can just upload your products to Google Merchant center and they will do the heavy lifting for you. If you're doing products on Facebook, you have to kind of narrow down your audience to, if you're selling something gender specific like women's clothing, you can go down to women, you can, you can go so
deep with Facebook, it's crazy. So the biggest, I think the biggest mistake people do when they do Facebook ads is they set up either too, too many campaigns because they go so specific with the targeting, or they set up too broad of a campaigns. Like, they'll set up either, like, two campaigns targeting a lot of people, or they'll set up like 50 campaigns targeting a very
small segment of people. So what ends up happening is you either spend too much money on the two big campaigns targeting a lot of people, or you spend no money dividing all your budget on 50, that it takes you forever to collect the data and figure out what's working and what's not working. That's a really good point. And as business owners, we cannot waste money. We cannot waste money. And speaking or time. Right. Or
time. Because it sounds like it's quite a bit to set up and to go through all of that and it's not set up correctly, or you setting up too many things at once and not getting the return on investment, it just sounds like it could be a mess. Yes. So, but with that said, going back to the money piece, because of course, that's where my brain always goes. I always get questions about budget.
So sorry, I want to go back to budget real quick when it comes to ads, like what will make it worth, like what budget would make it worth running ads? Like, I know, for instance, to give you an example, I've done like $20 in Facebook and didn't really get much return on investment. But you know, I'm the type where I'm like, like, oh, I don't really want to spend money. Let me try to be cheap. But of course, cheap is not always the way to go. So what budget makes sense if we're talking about
Google Ads or Facebook ads? That is a great question and hopefully I will not butcher it because there's so many nuances to it. It depends on like how much money you're making at the end of the day. So if you're selling products, it's easier to track that when you're doing a marketing because you know exactly the sale value, you know, your expenses and all that
stuff. So when, when you want to spend budget, you have to think, okay, well, if I'm not spending money, I'm losing value by not attracting new customers to my website. That's, that's number one. So you could be losing on the potential of making money. The second thing is you have to think about it. Like if you're spending a dollar in as you should be getting back
$5. So if you think like that and your account is pretty optimized, why not spend 5000 and make 25,000 back, you know, so if you're spending and you're making money money like your return on ad spend return on investment, there's no reason why you shouldn't be spending more to get more clients. And then later on, once a lot of people recognize your brand, you wouldn't have to spend that much money. You could diversify and go into like SEO, social media,
all that other stuff. Now, if you're in the service industry, it's a little harder to track how much money you're going to make from the ads because you're going to get a lead first. Then you're going to have to close the lead depending on how much time it takes for that lead to pay you. You know, it's just a little harder to figure out like, okay, this keyword got me $10,000 in sales or, you know,
$5,000 in sales. So at the end of the day, it really depends on how much money you're making from your business and if your account has potential to get a return on ad spend or a return on investment that should determine your budget. But it's also important for business owners to budget for, like, at least six months so that they don't spread themselves thin and they'll, you know, sleep good at night. Because if you're tripping about your budget and like, oh, my God,
Google Ads is like, eating up my. Eating up my account. They just debited me $500, like, yesterday. Now they're debited me another $500. Like, what's going on? I, like, just don't do it, you know, like, sleep well at night. A budget for the long term, just do some calculations in the beginning, and then just do a budget that you're comfortable with. And speaking of budget, like, do these platforms have the ability to
put in, like, this is how much I want to spend per day. So a business owner could budget for it, or is it just they serve the ads and then they bill you later? So with Facebook, you can do daily budget, and with Google Ads, you can do a daily budget, or at least they call it a daily budget. But in reality, in Google Ads, the way they do it is, let's say you want to spend dollar 20 a day, so you put in your daily budget as
$20. The way they do it is they basically take that budget and they multiply it over the month. They would try to spend. So the total would be $600 a month. So they'll try to spend that $600 in 30 days because they're just trying to maximize the amount or the chances that you get a sale. So on one day you could spend $30, on another day you could spend $15, but in 30 days, you'll spend $600. That's kind of how they do it. They do call it a daily budget, but
in reality, it's not really like a daily. So you might go a little bit over, you might go a little bit under, but they calculate it on a 30 day basis. Well, that's good to know. And, you know, all of this sounds like a lot, and I know we can't go over all of it here on the podcast. I'm sorry. So if people are interested in learning more about ads or learning more about you, how could they find you? You can find me on ppcmasterminds.com, and I'll be happy to do
a free audit. If you do have a Google Ads account set up already, I'll do a free audit and I'll send you a video of what exactly you need to fix in your account. Or you can find me on LinkedIn. Zaid Amari Perfect, perfect. So I'll make sure that I have that spreadsheet available that you mentioned earlier in the episode and all of the links to where people can find you in the show notes as well. So if you're listening and you
didn't catch everything, make sure you check the show notes. That's where I put all of that pertinent information. And thank you so much for coming on the podcast to talk about this. I know we could go on and on and on because honestly, I have so many more questions, but we can't give it all to the people right now. So I appreciate you coming on talking about this topic because honestly, I get these questions a lot. No problem. Thank you for having me and happy to jump on another episode if
you have any more questions for me. Perfect. Well, thank you so much. Have a good day. Bye. Thank you for listening, joining and being a part of the Money Talk with TIFF podcast this week. You can check TifF out every Thursday for a new Money Talk
podcast. But if you just can't wait until next week, you can listen to previous podcast [email protected] or follow tiff on all social media platforms at Moneytalk with t. Until next time, spend wise by spending less than you make a word to the money wise is always sufficient.