Why Worldwide Facebook Ad Targeting Will Waste All Your Money

So in this episode I'm going to tell you what those are , how they are different and how you can achieve having a wide , open audience and letting the Facebook algorithm optimize on your behalf , but not burn through and waste your money .

So I got this email from a cool lady and here's what she said she's like Kwejo , I've got nearly 2000 new leads at 22 cents a lead . The CPM , as in cost per meal , is like 73 cents and the click through rate is 6.22% . She didn't say what click through rate .

Is it click through rate all like anywhere on the ad , or is it just click through rate link as in on the link in the ad copy ? But right away I was alarmed when I saw this and she confirmed my suspicion by saying I think that's a pretty good result .

No idea if they're good quality leads , but at least I've got another couple thousand people on my email list and I'm like oh , but what does it matter if another couple thousand people are on your email list if they're not good quality leads . And immediately my ads manager brain goes what 22 cents lead ? That's way too low , way too low .

I mean like low is good , but too low is suspicious . So I read further down and she said she recently discovered the worldwide setting on Facebook ads , and she is not the first one to tell me about this setting . Don't make this mistake , friend , as you're listening .

This will hurt your business because you're going to have a lot of leads on your list who just aren't the right kind of leads . So , like she was just delighted when she discovered it and she said she started getting hundreds of leads and she spent nearly $500 and got about 2000 leads . Now you're going to want to know the mistake that you need to avoid .

And who am I to be telling you this mistake ? Well , my name's Kwejo . Hello , and if you're like , where did Rick go ? Well , first of all , I'm the new host Hi of the art of online business podcast .

Rick is going to be bringing you AI strategy to make your business more efficient and more profitable , and you can find out more about that in the link in the description below in episode 746 . It's called . It's time for Rick to say farewell and pass the baton to me . To moi , hello . And also episode 720 , where I introduced myself .

Rick interviews me and you get to learn a lot about me and how this fun , loving black guy who lives in Mexico and speaks fluent Mandarin , went from teaching Mandarin to expats in China , living there for over 12 years , to getting stuck in Mexico with his wife , my life and two kids and one check in language right at the beginning of the pandemic back in

January 13th , 2020 , all the way through coaching with Rick during the pandemic and , you know , learning tons about how to coach online high earning course creators and membership owners and coaches and manage Facebook ads , because I used to work inside of a Facebook ads agency up until I started my own business about a year and a half ago at the time of the

recording of this video to now . So , hello , let's make sure you're not making this ads mistake , shall we ? I think we shall . Let's continue , then . So I get it . First of all , what is this whole wide , open audience and why does it work so well ?

And then I'll tell you the exact thing that you want to avoid , ie , worldwide targeting , and why that doesn't work so well , and I'll finish up by letting you know what the specific settings are .

So , when you have a wide , open audience , the reason Facebook , the algorithm , can find your leads for you , people who would best be suitable for you to do business with or market to , and hopes that you could convert them into clients and then help them with your main offer , is because , quite frankly , the algorithm is just super advanced .

I mean , think about it how many thousands , hundreds of thousands of people have been running ads on Facebook ? How many course creators , online membership owners and coaches do you think have been running ads since Facebook ads began ? What was that ? 2000 and 2007 , says Google . That's a lot of data . And think about all the data that Facebook collects on you .

I mean , there was that whole Cambridge Analytica scandal , right , because they were using the data the wrong way . So that is to say that the algorithm actually knows a ton about you and a ton about what Facebook ads work and what does it work . Now the logic here and it's not just theory .

This works for my clients sometimes , and more and more as I test the open-ended audience , the open audience , the wide , open audience against other , let's say , lookalike audiences for cold traffic or interest based audiences for cold traffic .

The wide open audience does perform better , but you can't just have it completely wide open , ie worldwide targeting and some other things I'll tell you not to do . You need to limit it .

So the algorithm is way more advanced than you think it is , even though sometimes , because your ads are set up wrong , quite frankly , you might feel like Facebook algorithm is not actually doing what it should do for you . It is and it's quite advanced . You need to put limitations on it . One limitation you need to put on it is age .

How let the age range of the people who you usually work and you should know from the research that you're doing . But when clients on board with my Facebook ads management business , we have them fill out onboarding questionnaire and one of the questions is is what is the age of your typical customer ?

And then when we are running ads , we run ads to that age range . We also add in a few more years on , like the bottom end and the high end . But let's , let's , let's give you one specific example . I see a mistake in age where a client maybe has has their ads running to people who are age 22 up through 65 plus .

Well , ok , but if you're selling something can ? Somebody who's 22 by that I mean they're like barely done with college ?

Certainly , somebody who's 18 years old has just graduated high school , at least in the US of a , but they haven't quite gone to college yet , or maybe they're in a gap here if they're from the UK , you know , traveling the world , having a blast in China Well , that's what I was doing way back in the day .

So does it make sense to target somebody that young ? Pick your age range . The next thing is hey , don't do worldwide , as in any country . Now what do I mean ? Oh , before this , also pick the gender that you want to target . If most of the people you do business with are women , then target women . That's fine . And vice versa .

If you work with men , or if you want both genders , cool , do that . Select that inside of Facebook manager . Ok , just think about it , though . Put some thinking into this targeting . Now for location . If you're going to have a wide , open audience , don't leave it worldwide .

By the way , you're welcome to send me a DM on Instagram that's at QAYJO and tell me what you are struggling with in Facebook ads . I like to read . I'm not offering you a free consultation so much , as I just like to meet people . Now , what is worldwide ?

When you set up a new campaign and at the ad level , where you can see ad set name , then conversion , and then you scroll down to countries that you target worldwide , is targeting the whole wide world . So that's where you click here .

Normally you would type in a country in this field , but you go to browse and you hover over countries and click select all and that gives you worldwide , targeting everyone in the world . Is that a good thing ?

No , here's why it's bad because the Facebook algorithm is optimizing for you know who's going to interact with your ad the most , who's most likely to opt in , and when I used to be super into world politics , they had this abbreviation Mina M E . N A stands for Middle East , north Africa , and that was a region that I was really interested in .

So here's the thing about worldwide ads . Have you noticed that if you don't control the country that your ads go to , you get a lot of people interacting with your ads , let's say , from India , from the Philippines , from Pakistan , and I want to be very clear that somebody interacting with your ads is a good thing .

However , I want to point out something that is bad , which is that when people from those countries interact with your ads , they tend to give a lot of interaction and they even will opt in , but because of the relative purchasing power of , like , the average person in one of those countries , they're very much not likely to buy your offer , and that's just because

your offer could be as much as an annual salary . Google just tells me the average annual house income per capita in Pakistan is around USD $587 . In India , google is telling me that's higher . It's around $387 per month . In 2022 , that was $2140 , approximately US dollars per year .

In Nigeria and in the Philippines , the average monthly salary was $330 per month or US dollars . Obviously , they're making that in Filipino pesos , but still I want to make sure it's very clear I'm not being discriminatory in saying that you don't want to show ads to countries from that region

. What I'm saying is is , if your program is almost somebody's yearly salary and that would be gross salary , by the way , before taxes come out , before , like you know , food comes out , before their rent comes out of their salary then what's the point of showing ads to those countries ?

Again , you might get super cheap opt-ins and you're definitely going to get , like , lots of interaction , but that's not going to convert to sales in your business . So what should you do then ?

You should target what I like to call the big five or big four countries , and I just casually say that those countries are the biggest countries in purchasing power and they got the highest purchasing power and they buy the most online . Now , that is just a very blanket statement .

I actually asked chatGPT what are the five countries with the highest purchasing power and that do the most online shopping ? And chatGPT told me the United States , china , the United Kingdom , japan and South Korea , and I was like well , why is it then that we show ads typically to the United States and Canada and the UK and Australia and sometimes New Zealand ?

Well , I'll break it down for you . First of all , like we're not showing ads to China ? I used to live in China for 12 years . Social media is blocked in China and Chinese folks can access it if they have something like a virtual private network .

Software like VPN , software like that digs a tunnel under the great firewall , which is the thing that the Chinese government uses to block all of let's call it the Western Internet , to borrow a politically neutral term , and so we're not generally targeting ads at China .

Also , though , many Chinese can speak English , it's probably just their market is different , you know , and they're probably not going to make the best clients in your course , because English is not their native language and also their interests are just quite different from somebody who's from the West .

There we go , and there's books and books , and books , and books and books about this . But the UK comes in at number three . Japan does have , let's say , open internet , but again , many Japanese folks are not speaking English , and you could say the same for South Korea .

So , if you look at the top 10 countries known for their high purchasing power and significant online shopping activity , then the US shows up there , the UK shows up number three , and then you got like South Korea , germany , france , canada , australia and Russia coming in at number 10 .

And so then you , as a course creator or online membership owner I mean you're probably going to serve someone who speaks English really well and who is similar to you and most of you well , mostly other people like you listening to this podcast or watching me are going to be from the US , from Canada , from the UK and from Australia , and that's why we show ads

to those countries . So when you're making and sometimes New Zealand and when you're making actually have a really cool client , had a really cool client from New Zealand . Her name is Judy Woods . Shout out to Judy Woods she's no longer my client because , well , the strong dollar at the time meant that . What did she say ?

Well , basically , she needed to find somebody in New Zealand who could work with her in New Zealand dollars because it makes sense Like she had to pay a lot more to work with me as an ad manager who's in the States and that's . I guess it's international business and some of the issues there . But anyway , she's a cool client .

She teaches people how to do abstract painting and her business is quite successful . I remember coaching her when she was having launches that were like below 30 K and then in coaching with her because she was inside of Rick's accelerator and then working with her in ads . I mean she was getting to launches that were over 100 K US dollars in revenue .

It was really cool working with her anyway . So we target New Zealand and even sometimes Ireland .

So if you're going to do a wide , open audience so that the algorithm can just work on your behalf and find the best leads for your business , then make sure to choose the age that you're working with , that you would like to work with , that your typical customer is , and the gender and those five countries , again US , canada , uk and Australia .

But you don't always choose those five Like I have another client . Her name's Karen Carr . She's a realtor . You've probably heard her in another Funnel Fix Friday episode because she had an evergreen webinar that was converting at 11X , as in you put one dollar in an ad spend and it gives you $11 out .

And you may have heard me talk about how , in our most recent live launch , I think , I was able to get her a Facebook ads . I think like $168 earnings per lead . Let's call it conservatively 148 , because her launch debrief is not in front of me . But how would you like to have make $148 per lead after ads management fees after ad spend ?

Yeah , we did that for her . She is a licensed real estate agent who teaches real estate agents how to attract leads to them via YouTube videos , and she's really good at what she does . Now , why did I bring her up ?

Because if she is an American real estate agent , she's probably going to jive more , or clients who are from the US practicing or being realtors in the US are probably going to be better served by her course than , say , someone who's a realtor in , I don't know , ireland or New Zealand .

So just put some thought into the countries you're targeting Target countries but don't do worldwide targeting . The algorithm is not that sophisticated yet .

If you do worldwide targeting , you will get plenty of leads from the continent of Africa , from the Middle East , from Southeast Asia and again like that's fine and they will get value from your email list .

But if your program is selling for more than somebody's gross annual income that's , you know , gross annual income then are they the right person like for you to work with ?

No , they're not and that is why when I saw the email that I talked about at the beginning of this episode and she was like she's getting 22 cents a lead and she was trying worldwide targeting , I was like , oh , so this launch , at least from her Facebook ads lead , is going to be a bust and she'll hopefully get a good number of sales and find a great

number of people to work with . Because , by the way , from her organic leads , because it's like her membership is about sobriety , it's about helping people who need to kick the alcohol addiction , find the community and gets over in a community and then also kind of get purpose behind their path to sobriety .

That kind of membership Wow , I mean every membership is good , but there's just some that seem like just better . You know , social want good leads . You'll want good leads for your business . Please don't make this mistake . So I hope that helped you and until the next time you see me or hear me , be blessed , take care and goodbye .