Avoid wasting money. Scale Facebook Ads Like I do. - podcast episode cover

Avoid wasting money. Scale Facebook Ads Like I do.

Jan 19, 202420 minEp. 759
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Episode description

In this episode, I share my strategies for effectively scaling Facebook ads in lead generation and sales campaigns. I emphasize the need to stabilize lead costs before scaling and provide insights on managing ad sets during launches.
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Transcript

Scaling Facebook Ads for Lead Generation

Speaker 0

Hey , welcome back to another episode of the Art of Online Business podcast , and this time we're going to talk about well , I'm going to talk about how I like to scale Facebook ads when I'm managing them for my clients , lead gen campaigns and launch campaigns . I get this question a lot , like Kwejo how much can I scale my ads in a day ?

And also , though I won't name any names , as I'm doing coaching , consulting with like DIY Facebook ads , online course creators , membership owners and coaches , I frequently see some of the mistakes , even though I tell them not to make the mistakes that I'm going to outline here for you . So consider this your scaling manual for your Facebook ads .

And also , if my voice is new to you , hi , I'm Kwejo . I'm the new host of the Art of Online Business podcast and if you slip down to the show notes below , you can look at episode and a link to episode 746 , where Rick talks about passing the baton to me and his new direction , and also episode 720 , where you can get to know me .

So why are recording solo episodes so difficult ? I think just talking to myself is distracting and I overthink things . How do you know when to scale an ad set ? How do you . Well , there's two campaigns I love to run . Those are lead gen campaigns and sales campaigns .

And for a lead generation campaign , where the goal is to drive business growth through growing your email list , whether or not you have a welcome map offer , aka tripwire offer , on the back end of that lead magnet on the thank you page , or you have some other offer that you're selling throughout a nurture sequence in sales funnel , you decide to scale that

campaign when your lead costs have stabilized , and what is stabilized mean it means they're as low as they can go and you're getting quality leads . You know they're as low as they can go because you've tested all the combinations between your ad copy , your headline and your graphics or videos or even images .

Sometime I just am on the last day of a launch for a client and actually the best performing ad creative is just an image of her . She just has such a good presence . No text on that image or anything . But the goal is you've stabilized the lead cost .

There's low as they can go , and you also know that you have good quality lead cost still because you spent some time writing good ad copy and testing other audiences .

So that's when you can start to scale your lead campaign , your lead gen campaign , bonus points , if you have taken the time and the work to guesstimate how much a lead is worth to your business just in that initial funnel , looking at initial sales of the welcome offer or initial sales , maybe in the 30 day period of new leads through that funnel and the email

sequence . So the other situation where you would scale like pretty much right away is , if you're welcome , that offer plus the upsells or the order bump or the upsells equal revenue that's greater than your ad spend then absolutely start scaling all day , every day . So what about when you're running a sales campaign ? Well , you're looking for profit .

You're always looking for profit . Is the revenue greater than your ad spend if it is time to scale ? But you also want to pay attention to like how close are you to having people in an ad set see an ad too many times ?

Because if ad burnout happens because in one day somebody in your ad set is seeing your ad 14 times , well then you know that scaling of that ad is not going to necessarily help you long term . So you want to track this somewhere and you want to know your go as your return on ad spend . And let me give you an example from a client super happy .

I'm looking at this email I sent to him this morning and from January 11 , at the time I'm recording this episode it's January 15 , by the way so from January 11 . To January 14th I just sent him this little report he had 19 sales . Okay , I spent $713 in ad spend for him , but his total revenue was $1,622.92 .

That means revenue minus ad spend equals profit , right ? So he had a profit . From January 11th to January 14th Let me count the days here One , two , three , four full days he had a profit of $909.86 . That's good , that's very good . So how do we know the ROAS , the return on ad spend ?

Well , you would divide the revenue attributed to your ad campaign by the cost of that campaign and if we do that , then it's taking the revenue $1,622.92 and dividing that by the ad spend $713.06 , which gives you a grand total of having done that math , the ROAS is 2.28 . And that is good ROAS , that is very good ROAS . So congrats for him .

Now I'm pretty conservative when it comes to scaling a campaign . I don't like to scale faster than 15% a day for a client , and that's because I'm responsible for clients , ad spends .

And if you do scale too quickly , you run the risk of quote unquote upsetting the algorithm , meaning that what you'll see as a result of that is that your ad costs will start to creep up , or creep up dramatically . So I like to scale nice and slow .

15% per day increase means like if you have $10 ad spend a current day , you might scale that up to $11.15% , because 10 times 1.15 are $11.50 . So that's what I do , and you can scale ads like that back to back every day and not worry about your ads going awry because you scaled too quickly .

A little bit later on in this episode I'm going to mention the difference between the two types of budgets you can do . One is ABO I still call it that . That would refer to managing your ad budget at the ad set level .

And another way to manage your ad set would be CBO campaign budget level optimization , taking out the L for level , but actually inside of Facebook ads manager CBO though I refer to it as that they call it advantage campaign budget , with this little weird star next to it , even though I don't like to use that at all . But I'll tell you more about that .

So let me walk you through step by step Now what I do for a launch . Because those of you that launch you know that managing your ads is a little more difficult , quite a bit more difficult , during a launch because you're doing a lot more in a compressed time , right around 10 to 14 days . It will get back to the episode in a moment .

If you are running your own ads and you want to be able to set up your ads with the same checklist like I use , that my team uses , so they can do it like me and you can get better results on your lead generation ads , head down to the show notes below and there's a link for my Facebook lead generation ad set up checklist .

I know it's not a sexy name , but that thing works pretty well . All right back to the episode . So in a launch generally , I'm starting out with and this isn't launch planning , but I'm just giving you a quick overview I'm starting out with one warm audience and four to five cold audiences , let's say five cold audiences .

Doing that because in the launch you got two weeks and you don't have time to just you need to test all of your cold audiences and if you're going to test like seven to nine cold audiences , you know , sometimes you test as little as five . If you get really good performance and for efficiency , you don't want to continue testing . But you know , let's call it .

Let's call it six to nine cold audiences , let's say five for this example . So we start all of them off at their whatever ad set , ad spend you want . And on day two , what I do is first I shut off the lower performing ads and then are the lower performing ad sets .

So I look at all the ad sets , whichever one is getting me the highest cost per registration for the launch , shut that one off . Then I go into those ad sets and add in new ads because I'm testing new variations of ad copy along with ad graphics , right .

And then I make sure , because I want to add the social proof and make sure that I'm using an original ad Replicated throughout various ad sets , so that all the social proof is just stacking and stacking on those original ads , thus Driving my lead costs lower .

So I added new ads and then I go ahead and I scale the remaining ad sets let's call it the winning ad sets by 15% .

And then I sit and on day three , I do the same thing that I did on day two prune , the losing prune , maybe one or two of the losing ad sets , right , I also scale the winning ad sets , and before that I have put in new ads into all of the currently running ad sets .

I do schedule new ad sets to go live on day four , but , but I'm day four and five , and so I scale . That means , on day two and three I'm still scaling Another 15% every day on the currently running ad sets .

That way , my winners are building up in ad spin , daily ad spin , and Whenever I bring in a brand new ad set , I don't start that on , like , the highest ad spin . I start that on the initial ad spin that I started everyone out with .

So it's like the new ad Sets have to earn their keep , so to speak , and earn their right Definitely to have a higher ad spend . Now , what I'm doing on day four and five , though , and then on into the launch , is I'm making a decision About my cold audiences .

This assumes that the warm audience has the lowest lead cost , which it does , but you know you want to bring in leads from a warm audience , but you also want to bring in leads from a cold audience to help build that email list and Bring in new people to the launch that aren't just quite familiar with your business , just to see how well those cold leads

convert . So I'm looking at my lead cost and I'm wondering whether or not I should begin , like you know , continue to test other cold audiences , or or if these two to three winning cold audiences and my warm audience are the one , are the ones that I'm going to just go With for the rest of the launch . But that's a snapshot at how I handle a launch .

I definitely think there are other ways to manage a launch , but you know I'm conservative . I manage it like this . You can you can scale more quickly , by the way , than 15% , but I just don't want to scale too fast , so I don't now .

One of those other strategies that I've seen during the launch is you can test Inside of your ABO campaign I eat where every ad set budget you can manage yourself . And , by the way , when I use the word ad set , it's synonymous with the word audience .

So when I have different cold ad sets or different cold audiences , that means that each one of those ad sets targets a different cold audience . Could be an interest-based audience , could be a different lookalike audience , like a lookalike of your purchasers or a lookalike of your website visitors . That's what I mean by ad set in the audience .

I use those interchangeably . So one other strategy I've seen is where an ad manager will do what you can . You can test Inside of your ABO campaign , your ad set budget level optimization Campaign , where you're optimizing budget at the ad set level per ad set right .

Test there and then take your winning ads and grab those post IDs and duplicate or replicate them into a CBO campaign , campaign budget level optimization , a campaign budget Optimization campaign , the ones that's called advantage campaign budget inside of Facebook ad manager .

And so the cool thing about doing that is , while you may conservatively if you're like me be limited to scaling 15% a day Inside of your ABO campaign , put the ads in the CBO campaign , the advantage campaign budget campaign , and then you can scale those up to 50% , 5 , 0% per day .

So it's like you're scaling up your winners altogether and testing in the ABO campaign . Now what is the difference between advantage campaign budget star as you see it in Facebook ad manager ? You can tell I love that name .

I'll go with campaign budget optimization CBO , where you're controlling the budget from the campaign level , or ABO , where you're controlling the budget from the ad set level . Other than the scaling differences , there's another crucial one . You test , I test . I test always inside of ABO .

I don't ever test inside of a CBO campaign , because if you are managing your ad spend at the campaign level , then you rely on the algorithm to you might still have five

Understanding and Optimizing Facebook Ad Budgets

. Let's say you have five ad sets in each campaign , in your ABO campaign , in your CBO campaign . If you're managing your budget at the campaign level , the Facebook algorithm is going to take that budget and allot it between the five different ad sets as it chooses , not randomly but as it sees fit right .

And that means on a given day one ad set might get zero ad spend and another ad set might get half of the ad spend and another ad set might get 25% and another ad set might get 25% . I think that means two ad sets got zero right and then on another day that completely the weight or the allocation of the ad spend completely varies .

Again , that means you can't do consistent testing , whereas inside of an ad set , like an ad set level , budget , campaign , abo . Sorry , I just had to close my door . My son is asleep but my daughter just got home from ballet those of you parents recording podcasts , you know what's up .

So inside of an ABO campaign , you can take , say , $30 , I'm just giving you a random number per day , per ad set . So five ad sets equals $150 of ad spend total , but $30 per ad set . Right , and you can know and trust that each ad set will spend that $30 , let's say plus or minus 50 cents each in every day .

And thus that allows you to compare apples to apples , ie , since the ad sets are spending the same amount , then you can look at the leads coming from each of those ad sets and very objectively say this ad set , ad set A , is performing better than ad set C and ad sets D and E ABCDE 12345 Yep , d and E were performing horribly , so those get shut off .

So I always test , always inside of an ABO campaign , as an , I turn off that campaign level budget and use ad set level budget . So you might be asking or asking yourself well , how do I know then , kwejo , like how can I scale quicker ?

Maybe you just are like me and you want to scale your ads inside of an ABO campaign and ad set budget level optimization campaign . Well , what I do then is , let's say I see a winning ad set and the next day I want to scale that ad set by like 100% . But I don't want to take it into a campaign budget optimization , optimized campaign man . These were .

I need to get some new names for this . If you got some new names for what you call these , can you DM me on Instagram and just tell me like , go ahead , it's Q , u , a , y , j , o and it's I'm on Instagram . I like to receive DMs from you , so you tell me what you call these , but I'll just refer to them CBO and ABO .

But what I just like to test . I don't use CBO too often and so what I would do is , if I wanted to triple my ad spend on day two , I would just take an ad set , duplicate that ad set , schedule the new ad set to go live on the next day , provided the next day is a week day and then I would remember to . I would set .

So I'd set the new budget instead of $30 a day , I would triple the new budget for $90 a day and then that new ad set would go live at $90 a day . My previous ad set since it was a winner because I'm duplicating it would also be at $30 a day . You know , maybe I increased it by another 15% .

So 30 times 1.15 is $34 a second day and that's how I would greatly increase , you know , over 100% , or let's call it over 15% , in ad sets , ad spend by duplicating that ad set . By the way . By the way , remember , if you duplicate an ad set , facebook will automatically like use the same original ad in the new ad set .

If you tick that box that says show existing reactions and comments and shares , it says show existing reactions , comments and shares on new ads . So just tick that box . But but I don't like doing that .

I like doing a different thing , because when you just tick that box and you look at an ad , it looks almost the same as just an ad that you created from scratch . So when you're in a launch and you have like five ad sets , that can actually get complicated .

Remembering and seeing visually which ads in other ad sets are actually replicated , you know , or actually the same original ad that you started with . That's stacking up a bunch of social proof .

And again , how I get around this is I manually grab the post ID from a winning original ad and then I put that post ID , I use the existing post option and I put that post ID in there .

And , by the way , if you can't see the screenshot because you're just listening to this podcast , when you get a moment , go on down to the show notes , click on that link that subscribes you or takes you over to the art of online business as a YouTube channel and subscribe there . Why do you want to do that ?

Because you want to see what I'm talking about , but , even more importantly , because an episode like this . It's basically talking ahead . I'm just talking to you with , I think , four screenshots total , but I keep getting amazing feedback on Funnel Fix Friday episodes where I review visually .

I go through the top of a funnel , the opt-in page , the thank you page , maybe several emails talking about what I would change to increase conversions based on , like the three years of experience I have Coaching experienced , let's call them established . You know , low end 250,000 a year .

High end $900,000 a year in gross annual revenue , those kind of online course creators , and so you'll benefit a lot from being able to see what I'm looking at . If you subscribe and watch on the YouTube channel . Well , yes , you can just watch without subscribing , but I'm vain . I like to see those subscription , subscriber numbers . So thank you for that .

And so , coming back to what I said , yes , take your original post IDs and in other ad sets , replicate those IDs by using the existing post option instead of the create an ad option . I'm clicking on my computer to see that you can choose existing post or create ad and I'm looking at the ad setup box at the ad level inside of an ad campaign .

And why I do that is because a winning ad will win a lot better if you use that ad , same ad , and then stack up the social proof , all the likes , all the shares , all the comments , right ? Otherwise you might have five ad sets that have five identical looking ads , but they're actually separate ads and so then social proof is stacking up on those separately .

So why have , let's call it , 10 raving comments spread out equally across five ads that are the same ad so it's two comments per ad when you could have one ad that gets all 10 of those comments and that same ad is just replicated into the different ad sets . I see , no , no , there is no downside to doing what I'm telling you to do .

And , by the way , you don't have to worry about reducing ad spend in either a campaign budget campaign or an ad set budget level campaign . Oh man , that is just awkward naming . You can cut ad spend as much as you want . Cutting it by half , cutting ads and by 60% does not reduce or does not affect ad performance , so you don't have to worry there .

That's it for this episode . Thank you for listening and until the next time you hear me or see me , be blessed , take care and goodbye .

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