Facebook Ads Conversion and Optimization Breakdown Q4 2017
Published on: December 7 2022 by Nick Peroni
Facebook Ads Conversion and Optimization Breakdown Q4 2017
Table of Contents About Facebook Ads Conversion and Optimization Breakdown Q4 2017
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| 00:00:01 | 00:00:07 | hey what's up econ vampires Nick here |
| 00:00:04 | 00:00:10 | and I'm making a video today I have my |
| 00:00:07 | 00:00:11 | whiteboard out it's not actually hanging |
| 00:00:10 | 00:00:12 | up on the wall I just moved into this |
| 00:00:11 | 00:00:15 | apartment but I wanted to get the |
| 00:00:12 | 00:00:17 | whiteboard out and just go over a few |
| 00:00:15 | 00:00:19 | things it's been a little bit since I've |
| 00:00:17 | 00:00:22 | done like a new type of training on |
| 00:00:19 | 00:00:24 | Facebook ads or anything like that and a |
| 00:00:22 | 00:00:27 | lot of times I do the screencast for |
| 00:00:24 | 00:00:28 | horde videos but for this one I really |
| 00:00:27 | 00:00:31 | want to tok about some of the new |
| 00:00:28 | 00:00:33 | conversion objectives and the learning |
| 00:00:31 | 00:00:35 | phase and optimization of Facebook Ads |
| 00:00:33 | 00:00:37 | and I thought that using the whiteboard |
| 00:00:35 | 00:00:39 | is a really good way that I could draw |
| 00:00:37 | 00:00:41 | some of this out and kind of go over |
| 00:00:39 | 00:00:43 | some of these new processes that I know |
| 00:00:41 | 00:00:46 | people are curious about wondering about |
| 00:00:43 | 00:00:48 | how does it affect my ads how does it |
| 00:00:46 | 00:00:50 | affect testing you know these types of |
| 00:00:48 | 00:00:52 | things and so I find this information to |
| 00:00:50 | 00:00:55 | be the most important a lot of times for |
| 00:00:52 | 00:00:57 | new people getting into the group and so |
| 00:00:55 | 00:00:59 | I just want to walk through this and |
| 00:00:57 | 00:01:01 | kind of start with you know when you're |
| 00:00:59 | 00:01:05 | looking at your ads and you're getting |
| 00:01:01 | 00:01:08 | ready to test ads so you have a new ad |
| 00:01:05 | 00:01:12 | right and when you start testing ads |
| 00:01:08 | 00:01:18 | Facebook now has something called the |
| 00:01:12 | 00:01:21 | learning phase right all right now this |
| 00:01:18 | 00:01:22 | is actually not new it's new in the |
| 00:01:21 | 00:01:24 | sense that we can see it now |
| 00:01:22 | 00:01:26 | Facebook is letting us know hey your ad |
| 00:01:24 | 00:01:29 | is in the learning phase but it's not |
| 00:01:26 | 00:01:31 | new in the sense that it's not it's |
| 00:01:29 | 00:01:33 | always been part of the algorithm right |
| 00:01:31 | 00:01:36 | Facebook when you have when you have |
| 00:01:33 | 00:01:37 | your ad and your ad is going to start |
| 00:01:36 | 00:01:39 | getting served to people here's |
| 00:01:37 | 00:01:40 | basically what the learning phase means |
| 00:01:39 | 00:01:45 | right |
| 00:01:40 | 00:01:47 | you have your audience okay so this is |
| 00:01:45 | 00:01:50 | why targeting is so important because |
| 00:01:47 | 00:01:52 | when you go to whatever product you have |
| 00:01:50 | 00:01:54 | remember everything everything in |
| 00:01:52 | 00:01:56 | e-commerce comes down to your product |
| 00:01:54 | 00:02:01 | audience match okay so |
| 00:01:56 | 00:02:04 | when you're looking at this ad right |
| 00:02:01 | 00:02:05 | here this ad is all about product |
| 00:02:04 | 00:02:08 | audience match that's everything that's |
| 00:02:05 | 00:02:10 | your most important job before you run |
| 00:02:08 | 00:02:12 | an ad is doing the research to find a |
| 00:02:10 | 00:02:14 | good product that matches an audience or |
| 00:02:12 | 00:02:16 | even we've toked about that we toked |
| 00:02:14 | 00:02:18 | about points that you can focus on in |
| 00:02:16 | 00:02:19 | your offer and things that you can |
| 00:02:18 | 00:02:22 | choose and maybe I'll circle back to |
| 00:02:19 | 00:02:24 | this at the end but right now I'm going |
| 00:02:22 | 00:02:26 | to tok about what happens when you set |
| 00:02:24 | 00:02:27 | this ad up and it's going through the |
| 00:02:26 | 00:02:30 | learning phase right you have your |
| 00:02:27 | 00:02:40 | audience that you picked with Facebook |
| 00:02:30 | 00:02:43 | so okay so you have the audience that |
| 00:02:40 | 00:02:45 | you selected when you went through and |
| 00:02:43 | 00:02:47 | you started doing your targeting so |
| 00:02:45 | 00:02:49 | based on whatever your product the |
| 00:02:47 | 00:02:51 | audience matches here you take that |
| 00:02:49 | 00:02:53 | audience and that's what you're using in |
| 00:02:51 | 00:02:55 | your targeting now Facebook is going in |
| 00:02:53 | 00:02:58 | the learning phase what facebook is |
| 00:02:55 | 00:03:00 | going to do is whatever you know these |
| 00:02:58 | 00:03:02 | brackets that you're giving it basically |
| 00:03:00 | 00:03:04 | how does the entire Facebook you know |
| 00:03:02 | 00:03:06 | billions of people you're giving you the |
| 00:03:04 | 00:03:08 | bracket of people to look at right here |
| 00:03:06 | 00:03:10 | based on the targeting that you did so |
| 00:03:08 | 00:03:13 | Facebook now depending on how large your |
| 00:03:10 | 00:03:15 | audience is or how targeted or how good |
| 00:03:13 | 00:03:16 | a product the audience match is all |
| 00:03:15 | 00:03:19 | going to kind of affect the learning |
| 00:03:16 | 00:03:21 | phase right because now Facebook has to |
| 00:03:19 | 00:03:25 | do is it has to take the the targeting |
| 00:03:21 | 00:03:29 | that you gave it and has to go start |
| 00:03:25 | 00:03:31 | looking for those people within that |
| 00:03:29 | 00:03:33 | audience that things are going to need |
| 00:03:31 | 00:03:35 | to convert based on your objective here |
| 00:03:33 | 00:03:37 | so another thing that's really important |
| 00:03:35 | 00:03:39 | here is whatever your conversion |
| 00:03:37 | 00:03:41 | objective is right we're toking about |
| 00:03:39 | 00:03:44 | conversion so learning phase matters for |
| 00:03:41 | 00:03:50 | conversions so whatever your conversion |
| 00:03:44 | 00:03:52 | objective is it's also going to feed |
| 00:03:50 | 00:03:55 | into the learning phase as Facebook goes |
| 00:03:52 | 00:03:57 | out with its algorithm and tries to find |
| 00:03:55 | 00:04:00 | the people that convert okay now an |
| 00:03:57 | 00:04:01 | important principle number one |
| 00:04:00 | 00:04:03 | one of the first principles that we need |
| 00:04:01 | 00:04:07 | to understand here is when it comes to |
| 00:04:03 | 00:04:07 | finding conversions okay |
| 00:04:09 | 00:04:13 | Facebook is always going to go out and |
| 00:04:11 | 00:04:14 | try to find the cheapest conversions |
| 00:04:13 | 00:04:16 | first all right |
| 00:04:14 | 00:04:19 | regardless of whatever your bid is so |
| 00:04:16 | 00:04:21 | whether you were spending you know five |
| 00:04:19 | 00:04:23 | dollars a day here all the way up to |
| 00:04:21 | 00:04:24 | anything it doesn't matter one hundred |
| 00:04:23 | 00:04:25 | dollars a day we're toking about |
| 00:04:24 | 00:04:27 | testing right so when you're spending |
| 00:04:25 | 00:04:29 | five dollars a day all the way up to |
| 00:04:27 | 00:04:31 | hundred dollars a day when you go up |
| 00:04:29 | 00:04:37 | here Facebook is always going to find |
| 00:04:31 | 00:04:40 | the cheapest conversions based on your |
| 00:04:37 | 00:04:42 | bid to audience okay cheapest |
| 00:04:40 | 00:04:47 | conversions because what Facebook does |
| 00:04:42 | 00:04:49 | is this is so it has a 24-hour every day |
| 00:04:47 | 00:04:51 | right 24-hour period every day based on |
| 00:04:49 | 00:04:54 | your time zone so what it's going to do |
| 00:04:51 | 00:04:55 | is at the beginning of that 24 hours |
| 00:04:54 | 00:04:57 | it's going to look at whatever your |
| 00:04:55 | 00:05:00 | budget is right here and it's going to |
| 00:04:57 | 00:05:03 | determine how many conversions it should |
| 00:05:00 | 00:05:05 | go out and try to find that day based on |
| 00:05:03 | 00:05:07 | your budget and then it resets over 24 |
| 00:05:05 | 00:05:11 | hours which is why a lot of times you |
| 00:05:07 | 00:05:13 | hear starting your ads or you know at |
| 00:05:11 | 00:05:15 | the 12 a.m. or can be the best because |
| 00:05:13 | 00:05:18 | that's at the beginning of the 24-hour |
| 00:05:15 | 00:05:21 | period and so Facebook resets and gets a |
| 00:05:18 | 00:05:23 | chance to go and try to find how many of |
| 00:05:21 | 00:05:25 | the cheapest conversions can I get for |
| 00:05:23 | 00:05:28 | this budget with this audience in this |
| 00:05:25 | 00:05:29 | 24 hour period okay so it's always going |
| 00:05:28 | 00:05:31 | to go out and try to find those cheap |
| 00:05:29 | 00:05:34 | conversions and it's always going to do |
| 00:05:31 | 00:05:37 | it based on your 24 hour period |
| 00:05:34 | 00:05:39 | now what happens from there is the |
| 00:05:37 | 00:05:43 | learning phase is going to keep going |
| 00:05:39 | 00:05:46 | until you get enough conversions based |
| 00:05:43 | 00:05:47 | on your objective right here right so if |
| 00:05:46 | 00:05:50 | your conversion objective is purchased |
| 00:05:47 | 00:05:52 | and you're spending the money that what |
| 00:05:50 | 00:05:54 | Facebook has told us now is it needs 50 |
| 00:05:52 | 00:05:58 | conversions a week right so the next |
| 00:05:54 | 00:06:00 | stage of all this is basically |
| 00:05:58 | 00:06:06 | optimization for the learning phase to |
| 00:06:00 | 00:06:06 | end you need to get to optimization |
| 00:06:06 | 00:06:13 | this is what monks hate when that |
| 00:06:10 | 00:06:16 | happens this is what marks the end of |
| 00:06:13 | 00:06:18 | the learning phase okay so this ends |
| 00:06:16 | 00:06:24 | when you hit this right here and this |
| 00:06:18 | 00:06:28 | requires this requires 50 conversions |
| 00:06:24 | 00:06:30 | based on your objective here so what I'm |
| 00:06:28 | 00:06:31 | going to subjective it is purchase and |
| 00:06:30 | 00:06:34 | you got to get 50 purchased conversions |
| 00:06:31 | 00:06:37 | all right and now that Facebook at that |
| 00:06:34 | 00:06:41 | if you do this within 50 conversions |
| 00:06:37 | 00:06:44 | within one week all right |
| 00:06:41 | 00:06:47 | that marks Facebook has optimized now |
| 00:06:44 | 00:06:49 | and so your ad set is now optimized for |
| 00:06:47 | 00:06:51 | being able to scale for being able to |
| 00:06:49 | 00:06:53 | basically here's what happens when you |
| 00:06:51 | 00:06:54 | get optimized and your conversions are |
| 00:06:53 | 00:06:58 | optimized there's two things that are |
| 00:06:54 | 00:07:00 | gonna happen okay number one is it's |
| 00:06:58 | 00:07:02 | gonna allow you to be able to scale and |
| 00:07:00 | 00:07:04 | number two what's going to happen is |
| 00:07:02 | 00:07:06 | that you're going to normalize right |
| 00:07:04 | 00:07:07 | basically so during the learning phase |
| 00:07:06 | 00:07:10 | you can expect some fluctuation in your |
| 00:07:07 | 00:07:12 | cost per purchase or your cost per |
| 00:07:10 | 00:07:13 | action whatever your objective is here |
| 00:07:12 | 00:07:16 | that you're trying to go off low cost |
| 00:07:13 | 00:07:18 | per lead so you know you're you're gonna |
| 00:07:16 | 00:07:19 | have some fluctuation here while it's in |
| 00:07:18 | 00:07:21 | the learning phase there's going to be a |
| 00:07:19 | 00:07:24 | little bit of this trying to figure out |
| 00:07:21 | 00:07:26 | as Facebook of the school and looks for |
| 00:07:24 | 00:07:28 | your audience but once you get here and |
| 00:07:26 | 00:07:30 | your optimized you should get a much |
| 00:07:28 | 00:07:32 | more about the thing okay so you should |
| 00:07:30 | 00:07:34 | be ready for scale at this point because |
| 00:07:32 | 00:07:36 | you're getting up enough conversions in |
| 00:07:34 | 00:07:38 | a week for Facebook to understand |
| 00:07:36 | 00:07:43 | exactly through your audiences and at |
| 00:07:38 | 00:07:45 | the same time you are will call your CPA |
| 00:07:43 | 00:07:48 | because I don't know what your your |
| 00:07:45 | 00:07:52 | objective is here right so your cost per |
| 00:07:48 | 00:07:54 | actually here should normalize right it |
| 00:07:52 | 00:07:55 | should it should be able to go down that |
| 00:07:54 | 00:07:57 | way you can start scaling because |
| 00:07:55 | 00:07:58 | obviously the as you scale into a larger |
| 00:07:57 | 00:08:00 | audience |
| 00:07:58 | 00:08:02 | this is naturally going to go up because |
| 00:08:00 | 00:08:04 | of audience burnout but in the beginning |
| 00:08:02 | 00:08:06 | you should be looking for that cost |
| 00:08:04 | 00:08:07 | fraction to normalize or drop a little |
| 00:08:06 | 00:08:09 | bit |
| 00:08:07 | 00:08:10 | level for your CPM to maybe drop a |
| 00:08:09 | 00:08:13 | little bit once you're optimizing |
| 00:08:10 | 00:08:17 | Facebook knows exactly who it's going |
| 00:08:13 | 00:08:20 | after so this is this is what is going |
| 00:08:17 | 00:08:21 | on now with the learning phase so here's |
| 00:08:20 | 00:08:24 | what happens right now this brings up |
| 00:08:21 | 00:08:26 | some questions what happens first of all |
| 00:08:24 | 00:08:29 | with the conversion attribution window |
| 00:08:26 | 00:08:31 | right because well we when we look at |
| 00:08:29 | 00:08:41 | this another thing that affects this is |
| 00:08:31 | 00:08:43 | the conversion attribution window sorry |
| 00:08:41 | 00:08:45 | this markers dying so conversion |
| 00:08:43 | 00:08:47 | attribution window basically there's two |
| 00:08:45 | 00:08:50 | the two that really matter in my opinion |
| 00:08:47 | 00:08:54 | there's the one-day click and then |
| 00:08:50 | 00:08:56 | there's the seven-day click or view |
| 00:08:54 | 00:09:04 | right it's the one-day click one-day |
| 00:08:56 | 00:09:08 | view 17 clip 1 debut ok so here's what |
| 00:09:04 | 00:09:10 | this means basically if you said I think |
| 00:09:08 | 00:09:12 | most times with retargeting and stuff |
| 00:09:10 | 00:09:13 | unless you're running bigger budgets if |
| 00:09:12 | 00:09:15 | you're running smaller budgets you |
| 00:09:13 | 00:09:16 | probably want to be here because what |
| 00:09:15 | 00:09:19 | these mean these are conversion |
| 00:09:16 | 00:09:21 | attribution windows right windows is |
| 00:09:19 | 00:09:23 | like the aqua aqua bull word here |
| 00:09:21 | 00:09:25 | because what happens is this is giving |
| 00:09:23 | 00:09:27 | you excuse me |
| 00:09:25 | 00:09:30 | this is giving you a window on which to |
| 00:09:27 | 00:09:32 | optimize in the learning phase right so |
| 00:09:30 | 00:09:34 | understanding this it looks at this ok |
| 00:09:32 | 00:09:37 | when you look at a one-day click that |
| 00:09:34 | 00:09:40 | means once somebody clicks your ad one |
| 00:09:37 | 00:09:43 | day after okay |
| 00:09:40 | 00:09:46 | once somebody clicks your ad one day |
| 00:09:43 | 00:09:49 | after Facebook is using this time period |
| 00:09:46 | 00:09:51 | for your conversion attribution window |
| 00:09:49 | 00:09:53 | so basically that would mean if you're |
| 00:09:51 | 00:09:55 | setting it like this within this time |
| 00:09:53 | 00:09:58 | period here is where you're giving your |
| 00:09:55 | 00:09:59 | 50 conversions right and that's how |
| 00:09:58 | 00:10:01 | you're telling Facebook to optimize |
| 00:09:59 | 00:10:02 | based on those 50 conversions you're |
| 00:10:01 | 00:10:05 | getting within the |
| 00:10:02 | 00:10:07 | they click window here if it's a 7-day |
| 00:10:05 | 00:10:11 | click then basically after the click you |
| 00:10:07 | 00:10:16 | have 7 days for the 50 conversions |
| 00:10:11 | 00:10:19 | window hopefully that makes sense |
| 00:10:16 | 00:10:21 | ok so the way I look at it is like what |
| 00:10:19 | 00:10:24 | is your natural sales cycle going to be |
| 00:10:21 | 00:10:25 | well most of our sales a lot of times we |
| 00:10:24 | 00:10:28 | all know there's a big drop-off rate |
| 00:10:25 | 00:10:30 | from when people are going right before |
| 00:10:28 | 00:10:36 | going out of the store so they're going |
| 00:10:30 | 00:10:40 | at the product page and then to checkout |
| 00:10:36 | 00:10:42 | ok and so we know already that even on a |
| 00:10:40 | 00:10:45 | really great store you might be getting |
| 00:10:42 | 00:10:48 | maybe on a fantastik store you could be |
| 00:10:45 | 00:10:50 | getting at the highest let's just say my |
| 00:10:48 | 00:10:52 | capacity would be a 10 percent checkout |
| 00:10:50 | 00:10:53 | conversion rate that's that's fantastik |
| 00:10:52 | 00:10:55 | right and that's a really big number |
| 00:10:53 | 00:10:57 | most people are hovering down around |
| 00:10:55 | 00:11:00 | maybe 1 to 2 percent okay but either way |
| 00:10:57 | 00:11:03 | there's a massive drop-off here of |
| 00:11:00 | 00:11:05 | abandoned carts so you know you're just |
| 00:11:03 | 00:11:06 | going one day quick you better be |
| 00:11:05 | 00:11:09 | driving enough front-end traffic that |
| 00:11:06 | 00:11:11 | you're 1 to 2 percent here is getting |
| 00:11:09 | 00:11:14 | you the 50 conversions that you need |
| 00:11:11 | 00:11:16 | right so that all comes down to we'll |
| 00:11:14 | 00:11:17 | look at some numbers in a minute here |
| 00:11:16 | 00:11:20 | but that just comes down to numbers |
| 00:11:17 | 00:11:22 | right if you're getting a conversion at |
| 00:11:20 | 00:11:24 | $8 say your conversion for your cost per |
| 00:11:22 | 00:11:25 | purchase their conversion objective is |
| 00:11:24 | 00:11:28 | purchased and you're getting a |
| 00:11:25 | 00:11:30 | conversion at $8 right well what that |
| 00:11:28 | 00:11:33 | means that if you need 50 conversions |
| 00:11:30 | 00:11:36 | you know that 50 times 8 is 400 right so |
| 00:11:33 | 00:11:40 | $400 a day is basically what you would |
| 00:11:36 | 00:11:42 | be needing to spend to be getting enough |
| 00:11:40 | 00:11:44 | conversions here but that's not even |
| 00:11:42 | 00:11:48 | factoring in okay so that's factoring in |
| 00:11:44 | 00:11:51 | 50 conversions is gonna cost you $400 |
| 00:11:48 | 00:11:53 | right at $8 a conversion but then you |
| 00:11:51 | 00:11:54 | need to figure out 50 conversions is |
| 00:11:53 | 00:11:57 | only going to be one that 2% of your |
| 00:11:54 | 00:11:59 | traffic right so say 50 50 conversions |
| 00:11:57 | 00:12:01 | is one percent of your traffic let's |
| 00:11:59 | 00:12:03 | just look at this say 50 conversions |
| 00:12:01 | 00:12:07 | this is backwards algebra formula right |
| 00:12:03 | 00:12:10 | so say one percent equals 50 conversions |
| 00:12:07 | 00:12:13 | and you want to figure out what that |
| 00:12:10 | 00:12:13 | means for total traffic right so one |
| 00:12:13 | 00:12:16 | person |
| 00:12:13 | 00:12:18 | 50 conversions well you just reversed it |
| 00:12:16 | 00:12:21 | basically that means 50 is one percent |
| 00:12:18 | 00:12:23 | of a total 100 percent number right so |
| 00:12:21 | 00:12:26 | in order for that to make sense you just |
| 00:12:23 | 00:12:28 | add zeros so 10 percent will be five |
| 00:12:26 | 00:12:30 | hundred and a hundred percent would be |
| 00:12:28 | 00:12:35 | five thousand so that means you're |
| 00:12:30 | 00:12:37 | getting five thousand visitors a day to |
| 00:12:35 | 00:12:41 | equal one percent conversion rate of 50 |
| 00:12:37 | 00:12:43 | conversions to get your you know that's |
| 00:12:41 | 00:12:45 | what you're spending right so that would |
| 00:12:43 | 00:12:47 | be what you would be kind of reverse |
| 00:12:45 | 00:12:49 | engineering you figure out okay one day |
| 00:12:47 | 00:12:50 | click window if I've been running long |
| 00:12:49 | 00:12:52 | enough to know I'm giving a dollar cost |
| 00:12:50 | 00:12:54 | per purchase and I need to get 50 |
| 00:12:52 | 00:12:56 | conversions to optimize on this one day |
| 00:12:54 | 00:12:58 | click I know that I need and I'm only |
| 00:12:56 | 00:12:59 | getting a one percent conversion rate on |
| 00:12:58 | 00:13:01 | my store I know that I need to be |
| 00:12:59 | 00:13:04 | getting five thousand visitors a day |
| 00:13:01 | 00:13:06 | right and so how much are you spending |
| 00:13:04 | 00:13:08 | cost per click to get those five |
| 00:13:06 | 00:13:10 | thousand visitors right so like you want |
| 00:13:08 | 00:13:14 | to make sure that it makes sense the |
| 00:13:10 | 00:13:16 | whole way through because I mean your |
| 00:13:14 | 00:13:18 | cost per click is got to be really low |
| 00:13:16 | 00:13:19 | to make it work at that number right in |
| 00:13:18 | 00:13:22 | to be able to drive that kind of traffic |
| 00:13:19 | 00:13:23 | to get that kind of conversion rate but |
| 00:13:22 | 00:13:25 | of course then if you look at the |
| 00:13:23 | 00:13:27 | seven-day conversion window right now |
| 00:13:25 | 00:13:29 | you're looking at something a little bit |
| 00:13:27 | 00:13:31 | different because if you're looking at |
| 00:13:29 | 00:13:34 | seven days now you don't necessarily |
| 00:13:31 | 00:13:36 | have to be capitalizing just on you know |
| 00:13:34 | 00:13:39 | that only that one percent conversion on |
| 00:13:36 | 00:13:41 | your store because you can be |
| 00:13:39 | 00:13:43 | capitalizing on the retargeting and |
| 00:13:41 | 00:13:45 | possibly email marketing that you're |
| 00:13:43 | 00:13:47 | doing is bringing people back over a |
| 00:13:45 | 00:13:50 | seven day period to increase your |
| 00:13:47 | 00:13:53 | conversion rate and therefore less |
| 00:13:50 | 00:13:55 | visitors to be able to get the same |
| 00:13:53 | 00:13:57 | attribution of seven days but again |
| 00:13:55 | 00:13:58 | that's going to come down to how fast |
| 00:13:57 | 00:14:00 | you want scale how much money you want |
| 00:13:58 | 00:14:01 | to spend how hard you want to push I |
| 00:14:00 | 00:14:04 | hope that makes sense because that's |
| 00:14:01 | 00:14:05 | just really kind of reverse engineering |
| 00:14:04 | 00:14:06 | and looking at what these conversion |
| 00:14:05 | 00:14:09 | attributes |
| 00:14:06 | 00:14:12 | windows mean in terms of optimizing and |
| 00:14:09 | 00:14:13 | skimming for the ads that you were |
| 00:14:12 | 00:14:18 | running all right |
| 00:14:13 | 00:14:20 | so when you're looking at optimization |
| 00:14:18 | 00:14:23 | the other question this brings up now is |
| 00:14:20 | 00:14:25 | what if you're running an ad and over |
| 00:14:23 | 00:14:26 | the course of that one week you're |
| 00:14:25 | 00:14:28 | running so let's just say where most |
| 00:14:26 | 00:14:30 | people are probably going to fall right |
| 00:14:28 | 00:14:32 | I do you guys know the e comment hires |
| 00:14:30 | 00:14:35 | to me is mostly about helping the people |
| 00:14:32 | 00:14:37 | who are new who are figuring it out or |
| 00:14:35 | 00:14:39 | struggling getting started helping you |
| 00:14:37 | 00:14:41 | understand exactly how it works right so |
| 00:14:39 | 00:14:43 | for the seven-day click is probably |
| 00:14:41 | 00:14:45 | where most people want to be at unless |
| 00:14:43 | 00:14:47 | you're already pushing big budgets right |
| 00:14:45 | 00:14:50 | and so if you're running the seven-day |
| 00:14:47 | 00:14:52 | quick conversion window on an ad and you |
| 00:14:50 | 00:14:54 | get to the end of a week right and you |
| 00:14:52 | 00:14:56 | haven't hit your 50 conversions yet so |
| 00:14:54 | 00:15:00 | what does that mean well it means that |
| 00:14:56 | 00:15:02 | Facebook has not optimized then if you |
| 00:15:00 | 00:15:04 | got to the end of that week and you |
| 00:15:02 | 00:15:06 | didn't get 50 conversions right you're |
| 00:15:04 | 00:15:09 | you're less than 50 conversions here |
| 00:15:06 | 00:15:17 | which would be this sign right less than |
| 00:15:09 | 00:15:20 | 50 in the week then you're not optimized |
| 00:15:17 | 00:15:23 | right so what does this mean if if this |
| 00:15:20 | 00:15:26 | is where you fall into it |
| 00:15:23 | 00:15:28 | couple things okay number one it means |
| 00:15:26 | 00:15:30 | the learning days is going to end okay |
| 00:15:28 | 00:15:32 | so the learning pace is still going to |
| 00:15:30 | 00:15:33 | be over either way it's just you are |
| 00:15:32 | 00:15:37 | going to be over in your favor |
| 00:15:33 | 00:15:39 | or if this happens here then what's |
| 00:15:37 | 00:15:42 | going to happen basically is it's just |
| 00:15:39 | 00:15:43 | going to restart the learning phase back |
| 00:15:42 | 00:15:45 | here so you're just going to fall back |
| 00:15:43 | 00:15:46 | into the learning phase it's going to |
| 00:15:45 | 00:15:48 | restart at the end of that one week |
| 00:15:46 | 00:15:50 | period because that's the given that |
| 00:15:48 | 00:15:52 | Facebook has given us it needs 50 |
| 00:15:50 | 00:15:54 | conversions in a week to you know to do |
| 00:15:52 | 00:15:56 | that so what happens here if you didn't |
| 00:15:54 | 00:15:58 | get that 50 conversions in a week well |
| 00:15:56 | 00:16:00 | you need to figure out what was it a |
| 00:15:58 | 00:16:02 | matter of happening right was it a |
| 00:16:00 | 00:16:06 | matter of the budget okay that could be |
| 00:16:02 | 00:16:07 | the first thing maybe you've got a lot |
| 00:16:06 | 00:16:09 | of conversions but you just |
| 00:16:07 | 00:16:11 | get the full 50 right maybe you got 30 |
| 00:16:09 | 00:16:14 | conversions a week maybe you're only |
| 00:16:11 | 00:16:16 | spending let's say you're spending $10 a |
| 00:16:14 | 00:16:19 | day right which is $70 a week and let's |
| 00:16:16 | 00:16:22 | say you're getting conversions at $6 a |
| 00:16:19 | 00:16:26 | cost per purchase right so 70 divided by |
| 00:16:22 | 00:16:30 | six I mean that's really not even it's |
| 00:16:26 | 00:16:34 | almost 12 its 11 right so say you got 11 |
| 00:16:30 | 00:16:35 | conversions on that on your budget so |
| 00:16:34 | 00:16:37 | that's even lower than I was saying |
| 00:16:35 | 00:16:40 | that's waiting lower than 50 that's only |
| 00:16:37 | 00:16:42 | 1/5 of the way there but you're getting |
| 00:16:40 | 00:16:44 | conversions at a profitable cost right |
| 00:16:42 | 00:16:45 | so Facebook hasn't been able this goes |
| 00:16:44 | 00:16:47 | back to the microwave set theory I |
| 00:16:45 | 00:16:50 | toked about this in my video they spoke |
| 00:16:47 | 00:16:52 | at 5.8 $5 a day right so you're running |
| 00:16:50 | 00:16:55 | you had $5 a day and you're getting cost |
| 00:16:52 | 00:16:57 | per purchase at $7 so you're only |
| 00:16:55 | 00:17:00 | getting a purchase basically every other |
| 00:16:57 | 00:17:03 | day and over the course of a week you've |
| 00:17:00 | 00:17:05 | spent $35 and you're getting it for 7 |
| 00:17:03 | 00:17:07 | seed had 5 conversions right that's |
| 00:17:05 | 00:17:08 | still a good cost per conversion no |
| 00:17:07 | 00:17:09 | matter what your budget remember |
| 00:17:08 | 00:17:11 | Facebook's good cool I'll try to find |
| 00:17:09 | 00:17:13 | the cheapest conversions for you however |
| 00:17:11 | 00:17:15 | the point being here is that you're not |
| 00:17:13 | 00:17:17 | going to be it would optimized for scale |
| 00:17:15 | 00:17:19 | right and you're probably going to have |
| 00:17:17 | 00:17:20 | fluctuations in your cost per purchase |
| 00:17:19 | 00:17:22 | if you keep running at that level |
| 00:17:20 | 00:17:25 | because Facebook is not optimized where |
| 00:17:22 | 00:17:27 | it needs to be here in the learning |
| 00:17:25 | 00:17:29 | phase to be able to really hit direct |
| 00:17:27 | 00:17:31 | with what you want to do so what that |
| 00:17:29 | 00:17:33 | means is you need to figure out where |
| 00:17:31 | 00:17:38 | you need to be spending that right so |
| 00:17:33 | 00:17:40 | you need to look at your cost per |
| 00:17:38 | 00:17:42 | purchase and if it's profitable and if |
| 00:17:40 | 00:17:44 | it's working then what you do is you |
| 00:17:42 | 00:17:46 | take your cost per purchase like in that |
| 00:17:44 | 00:17:49 | situation for example you're getting a |
| 00:17:46 | 00:17:52 | cost per purchase of $7 and so what do |
| 00:17:49 | 00:17:53 | you need to do to figure out 50 |
| 00:17:52 | 00:17:55 | conversions a week to be able to |
| 00:17:53 | 00:17:57 | optimize and scale and break through |
| 00:17:55 | 00:17:59 | that learning phase well if you're |
| 00:17:57 | 00:18:01 | getting them for $7 and you need 50 |
| 00:17:59 | 00:18:03 | conversions and you just take the cost |
| 00:18:01 | 00:18:08 | per purchase right times its the |
| 00:18:03 | 00:18:10 | conversions and so in this case it's $7 |
| 00:18:08 | 00:18:11 | times 50 that means it's three hundred |
| 00:18:10 | 00:18:14 | and fifty dollars that's what we need to |
| 00:18:11 | 00:18:15 | be spending in a week to hit our 50 |
| 00:18:14 | 00:18:18 | conversions goal and so once we |
| 00:18:15 | 00:18:21 | this number here we take it and we |
| 00:18:18 | 00:18:23 | divided by seven days right and this |
| 00:18:21 | 00:18:25 | number is going to give you what you |
| 00:18:23 | 00:18:28 | should be spending a day so when you |
| 00:18:25 | 00:18:30 | take that $7 cost for purchase times 50 |
| 00:18:28 | 00:18:32 | is three hundred and fifty dollars right |
| 00:18:30 | 00:18:37 | divided by seven days means that you're |
| 00:18:32 | 00:18:40 | spending $50 a day to optimize where you |
| 00:18:37 | 00:18:42 | need to optimize for being able to scale |
| 00:18:40 | 00:18:43 | right it doesn't mean look there's |
| 00:18:42 | 00:18:45 | there's two different things here it |
| 00:18:43 | 00:18:47 | doesn't mean that you can't still test |
| 00:18:45 | 00:18:50 | the way that you want to test in here |
| 00:18:47 | 00:18:51 | right when it comes to your testing you |
| 00:18:50 | 00:18:53 | can this is a big misconception here |
| 00:18:51 | 00:18:55 | people are like oh the death of the five |
| 00:18:53 | 00:18:57 | to ten dollar ad set well you can still |
| 00:18:55 | 00:18:59 | test it five to ten dollars a day if you |
| 00:18:57 | 00:19:01 | want to it's just you were a couple |
| 00:18:59 | 00:19:03 | things that we toked about right like |
| 00:19:01 | 00:19:06 | when you're testing and you're looking |
| 00:19:03 | 00:19:10 | at testing right if you're testing at |
| 00:19:06 | 00:19:12 | five dollars a day then add an average |
| 00:19:10 | 00:19:14 | cost per purchase of eight dollars right |
| 00:19:12 | 00:19:16 | which is this kind of fair was standard |
| 00:19:14 | 00:19:18 | across you know marketing seven dollars |
| 00:19:16 | 00:19:19 | just say seven dollars right so at an |
| 00:19:18 | 00:19:21 | average cost of purchase of seven |
| 00:19:19 | 00:19:23 | dollars you're not going to be anywhere |
| 00:19:21 | 00:19:25 | near your 50 conversions a week that's |
| 00:19:23 | 00:19:30 | just what you need to understand at five |
| 00:19:25 | 00:19:33 | dollars a day times seven days you're |
| 00:19:30 | 00:19:35 | only spending $35 a week right you're |
| 00:19:33 | 00:19:38 | spending $35 a week so the only way you |
| 00:19:35 | 00:19:40 | get 50 conversions in a week now long |
| 00:19:38 | 00:19:42 | wait ahead right again this is this is |
| 00:19:40 | 00:19:44 | still testing we're not even assuming |
| 00:19:42 | 00:19:44 | winners yet but the only way on a |
| 00:19:44 | 00:19:47 | winning ad |
| 00:19:44 | 00:19:50 | you can get that is if you took 30 |
| 00:19:47 | 00:19:53 | divided 35 divided by 50 which is going |
| 00:19:50 | 00:19:56 | to be less than one right it's going to |
| 00:19:53 | 00:19:58 | be odd now it's going to be it would be |
| 00:19:56 | 00:19:59 | one point something it would be really |
| 00:19:58 | 00:20:02 | low though basically you'd be getting |
| 00:19:59 | 00:20:03 | conversions for like a dollar right or |
| 00:20:02 | 00:20:04 | less it would have to be less than a |
| 00:20:03 | 00:20:07 | dollar right |
| 00:20:04 | 00:20:09 | so it'd be conversions about 70 cents so |
| 00:20:07 | 00:20:11 | anyway so you just need to understand |
| 00:20:09 | 00:20:13 | that that's your feedback loop right the |
| 00:20:11 | 00:20:16 | amount of time it's gonna take for you |
| 00:20:13 | 00:20:18 | to get the feedback is a whole week but |
| 00:20:16 | 00:20:20 | keep it in a whole week your feedback |
| 00:20:18 | 00:20:22 | may only be like five to seven |
| 00:20:20 | 00:20:24 | conversions five to ten conversions |
| 00:20:22 | 00:20:25 | would be good and so you're not going to |
| 00:20:24 | 00:20:28 | be there yet you're gonna have to |
| 00:20:25 | 00:20:30 | increase the budget just to be able to |
| 00:20:28 | 00:20:31 | get to a feedback loop that's going to |
| 00:20:30 | 00:20:33 | allow you to start seeing if you can |
| 00:20:31 | 00:20:38 | reach this 50 conversions right even at |
| 00:20:33 | 00:20:41 | ten dollars a day times seven days |
| 00:20:38 | 00:20:44 | you're now at seventy dollars a week |
| 00:20:41 | 00:20:46 | right so we're getting better on a |
| 00:20:44 | 00:20:48 | feedback loop here because we have more |
| 00:20:46 | 00:20:50 | money that we're spending within a week |
| 00:20:48 | 00:20:53 | to see what happens but still even this |
| 00:20:50 | 00:20:56 | right you're you're still going to need |
| 00:20:53 | 00:20:57 | fifty divided by 70 you're still going |
| 00:20:56 | 00:20:59 | to be getting super low conversions I |
| 00:20:57 | 00:21:01 | mean you'd be getting conversions for |
| 00:20:59 | 00:21:03 | like a dollar twenty-five at this point |
| 00:21:01 | 00:21:05 | to be able to hit this number so still |
| 00:21:03 | 00:21:07 | then we're only still not even practikal |
| 00:21:05 | 00:21:09 | all right so you just need to understand |
| 00:21:07 | 00:21:12 | with testing you can still test these |
| 00:21:09 | 00:21:14 | variables it's just it you're testing |
| 00:21:12 | 00:21:17 | you think you're out what your average |
| 00:21:14 | 00:21:19 | cost per purchases here on your feedback |
| 00:21:17 | 00:21:22 | loop to see what's my cost per purchase |
| 00:21:19 | 00:21:24 | and then to determine what I need to |
| 00:21:22 | 00:21:27 | raise my budget to to be able to fit |
| 00:21:24 | 00:21:29 | Facebook's optimization and scale all |
| 00:21:27 | 00:21:30 | right now another thing that you have to |
| 00:21:29 | 00:21:33 | here that's if you're getting |
| 00:21:30 | 00:21:36 | conversions and you're your ad is |
| 00:21:33 | 00:21:38 | working it's just not falling within the |
| 00:21:36 | 00:21:43 | optimization phase of what Facebook |
| 00:21:38 | 00:21:44 | needs okay if you're not getting |
| 00:21:43 | 00:21:46 | conversion if you're testing is not |
| 00:21:44 | 00:21:49 | working and things are just right it's |
| 00:21:46 | 00:21:52 | just not working for you that another |
| 00:21:49 | 00:21:55 | thing to consider here of course is just |
| 00:21:52 | 00:21:56 | changing the ad creative or like these |
| 00:21:55 | 00:21:59 | are things that you |
| 00:21:56 | 00:22:01 | consider based on and added somewhat |
| 00:21:59 | 00:22:02 | working but just not quite there yet for |
| 00:22:01 | 00:22:05 | you alright |
| 00:22:02 | 00:22:13 | the I creative or the targeting right |
| 00:22:05 | 00:22:15 | broader targeting these are all things |
| 00:22:13 | 00:22:17 | that just go back to the same thing of |
| 00:22:15 | 00:22:18 | is your product really women right are |
| 00:22:17 | 00:22:20 | you getting prevents the biggest |
| 00:22:18 | 00:22:22 | question number one are you getting |
| 00:22:20 | 00:22:23 | convergence and just not enough of that |
| 00:22:22 | 00:22:25 | or are you really not even getting |
| 00:22:23 | 00:22:27 | conversions okay because then if you're |
| 00:22:25 | 00:22:30 | really not even getting convergent this |
| 00:22:27 | 00:22:31 | becomes just a matter of your product |
| 00:22:30 | 00:22:33 | right your ad creative your target |
| 00:22:31 | 00:22:36 | anymore or something along those lines |
| 00:22:33 | 00:22:38 | that you are not getting the conversions |
| 00:22:36 | 00:22:40 | that you need all right now another |
| 00:22:38 | 00:22:43 | thing that you could do though is say |
| 00:22:40 | 00:22:45 | you're getting the conversions or say |
| 00:22:43 | 00:22:46 | you're getting converts if you're |
| 00:22:45 | 00:22:48 | getting really good traffic or you're |
| 00:22:46 | 00:22:50 | getting conversions but again you're |
| 00:22:48 | 00:22:51 | just not here and maybe you don't have |
| 00:22:50 | 00:22:54 | the money or maybe you're not willing to |
| 00:22:51 | 00:22:56 | take the risk top your budget another |
| 00:22:54 | 00:22:58 | thing you could try doing is changing |
| 00:22:56 | 00:23:01 | the conversion objective all right so |
| 00:22:58 | 00:23:03 | that's another thing because some |
| 00:23:01 | 00:23:05 | conversion objectives are easier to hit |
| 00:23:03 | 00:23:11 | than others right like instead of |
| 00:23:05 | 00:23:14 | purchase maybe you test add the cart and |
| 00:23:11 | 00:23:16 | maybe the Add to Cart conversion maybe |
| 00:23:14 | 00:23:17 | you were getting purchases for seven |
| 00:23:16 | 00:23:19 | dollars which you're getting you had the |
| 00:23:17 | 00:23:21 | carts for like two dollars and so you |
| 00:23:19 | 00:23:23 | can run a budget on add the carts and |
| 00:23:21 | 00:23:25 | you can still be profitable and still |
| 00:23:23 | 00:23:26 | set up your retargeting and so like |
| 00:23:25 | 00:23:29 | these are other ways that you can look |
| 00:23:26 | 00:23:31 | at changing to try to fit the |
| 00:23:29 | 00:23:33 | optimization window that Facebook is |
| 00:23:31 | 00:23:37 | toking about all right so this is just |
| 00:23:33 | 00:23:39 | some some kind of kind of some basic |
| 00:23:37 | 00:23:42 | math stuff that I wanted to go over and |
| 00:23:39 | 00:23:44 | make sure that everybody in the group |
| 00:23:42 | 00:23:46 | has a very clear understanding because |
| 00:23:44 | 00:23:47 | there's been so many things like oh does |
| 00:23:46 | 00:23:49 | you know the microwave set theory still |
| 00:23:47 | 00:23:51 | work yes but yes of course of course it |
| 00:23:49 | 00:23:53 | still works because at the end of the |
| 00:23:51 | 00:23:55 | day what we're looking at here in the |
| 00:23:53 | 00:23:57 | learning phase is no different Facebook |
| 00:23:55 | 00:23:58 | has always had a learning phase it's |
| 00:23:57 | 00:24:01 | always been there basically |
| 00:23:58 | 00:24:02 | algorithm needs to learn within the |
| 00:24:01 | 00:24:05 | windows it gives you they start its |
| 00:24:02 | 00:24:07 | targeting to optimize the difference is |
| 00:24:05 | 00:24:09 | that the conversion window went up to 50 |
| 00:24:07 | 00:24:12 | conversions within one week it used to |
| 00:24:09 | 00:24:14 | be 25 and the other thing is that now |
| 00:24:12 | 00:24:16 | Facebook is letting you know where you |
| 00:24:14 | 00:24:18 | are in the learning phase and letting |
| 00:24:16 | 00:24:20 | you know exactly what you need to do to |
| 00:24:18 | 00:24:23 | try to fit it but at the end of the day |
| 00:24:20 | 00:24:25 | it still comes down to the same metrics |
| 00:24:23 | 00:24:27 | that we're looking at right we're |
| 00:24:25 | 00:24:29 | testing our ads the same way or testing |
| 00:24:27 | 00:24:31 | products and we're looking for the |
| 00:24:29 | 00:24:34 | winners based on things like your |
| 00:24:31 | 00:24:37 | engagement right people tok about one |
| 00:24:34 | 00:24:38 | low CPMs if you want most CPM so you |
| 00:24:37 | 00:24:39 | want high engagement high engagement |
| 00:24:38 | 00:24:42 | equals low CPM |
| 00:24:39 | 00:24:44 | right so you're looking at you or |
| 00:24:42 | 00:24:49 | engagement that you're getting you are |
| 00:24:44 | 00:24:51 | also looking at your cost per click |
| 00:24:49 | 00:24:53 | right I toked about I toked about this |
| 00:24:51 | 00:24:55 | all the time your cost per click link is |
| 00:24:53 | 00:24:57 | determining you know what type of |
| 00:24:55 | 00:24:58 | audience you have are they interested in |
| 00:24:57 | 00:25:01 | buying your product are they clicking |
| 00:24:58 | 00:25:02 | are they going writing because this gets |
| 00:25:01 | 00:25:05 | you to your funnel right this gets you |
| 00:25:02 | 00:25:07 | from you know you have ADD and then you |
| 00:25:05 | 00:25:09 | have product page and then you have Add |
| 00:25:07 | 00:25:12 | to Cart and then you have checked out |
| 00:25:09 | 00:25:14 | right my marker is dying but you know |
| 00:25:12 | 00:25:15 | what I mean so your cost per click this |
| 00:25:14 | 00:25:17 | is the first one are you getting clicks |
| 00:25:15 | 00:25:19 | right here and if you're getting clicks |
| 00:25:17 | 00:25:21 | then you work down the funnel when you |
| 00:25:19 | 00:25:23 | keep working to make it profitable but |
| 00:25:21 | 00:25:24 | your cost per click is an important |
| 00:25:23 | 00:25:27 | metric leading up to getting purchases |
| 00:25:24 | 00:25:28 | all right so you're still looking at the |
| 00:25:27 | 00:25:30 | same metrics like I toked about in the |
| 00:25:28 | 00:25:32 | micro asset theory all that still holds |
| 00:25:30 | 00:25:34 | up and then once you're getting |
| 00:25:32 | 00:25:37 | purchases you're looking at your cost |
| 00:25:34 | 00:25:39 | per purchase to your ROI and determining |
| 00:25:37 | 00:25:41 | is this really profitable for me or not |
| 00:25:39 | 00:25:42 | is it something that's in the scaling |
| 00:25:41 | 00:25:44 | phase is it something that's in the |
| 00:25:42 | 00:25:45 | learning phase is it something that I |
| 00:25:44 | 00:25:47 | need to figure out and make more |
| 00:25:45 | 00:25:49 | profitable right do I need to increase |
| 00:25:47 | 00:25:52 | my average order value do I need to |
| 00:25:49 | 00:25:53 | increase my customer lifetime value like |
| 00:25:52 | 00:25:55 | these are the types of things to help |
| 00:25:53 | 00:25:57 | you figure out in your funnel once you |
| 00:25:55 | 00:25:58 | get to the purchase do you have a |
| 00:25:57 | 00:26:00 | profitable econ |
| 00:25:58 | 00:26:02 | that you can keep running right most |
| 00:26:00 | 00:26:04 | people base it just off of front-end |
| 00:26:02 | 00:26:06 | money right my costs per purchase to my |
| 00:26:04 | 00:26:08 | direct return on investment for money |
| 00:26:06 | 00:26:10 | pit was ads and that's something that |
| 00:26:08 | 00:26:12 | you can absolutely do down the funnel to |
| 00:26:10 | 00:26:13 | figure out if you're making money right |
| 00:26:12 | 00:26:16 | and then once you get through the |
| 00:26:13 | 00:26:18 | learning phase if you're here in |
| 00:26:16 | 00:26:21 | optimization and your cost per purchase |
| 00:26:18 | 00:26:23 | on your conversions is bringing you back |
| 00:26:21 | 00:26:25 | a profitable return on investment like |
| 00:26:23 | 00:26:28 | that three times are higher usually in |
| 00:26:25 | 00:26:30 | my opinion then you're good to just keep |
| 00:26:28 | 00:26:32 | stealing right and scale and scale and |
| 00:26:30 | 00:26:35 | your cost per action should stay pretty |
| 00:26:32 | 00:26:36 | steady as you scale as long as you keep |
| 00:26:35 | 00:26:39 | getting these 50 conversions a week |
| 00:26:36 | 00:26:43 | based on your conversion objective here |
| 00:26:39 | 00:26:44 | right so that's everything in this video |
| 00:26:43 | 00:26:46 | I hope you guys stone is helpful if you |
| 00:26:44 | 00:26:49 | have any questions please let me know |
| 00:26:46 | 00:26:51 | I'm gonna try to continue putting some |
| 00:26:49 | 00:26:53 | more of this stuff out this video gets a |
| 00:26:51 | 00:26:54 | good reaction I'll probably just put it |
| 00:26:53 | 00:26:56 | right into the Facebook masterclass |
| 00:26:54 | 00:26:59 | because I think this is really important |
| 00:26:56 | 00:27:00 | information in understanding what we're |
| 00:26:59 | 00:27:02 | doing when we're testing we're still |
| 00:27:00 | 00:27:03 | testing the same right we're still |
| 00:27:02 | 00:27:05 | testing based on the same metrics |
| 00:27:03 | 00:27:08 | it's just now we want to understand our |
| 00:27:05 | 00:27:10 | learning phase our conversion objective |
| 00:27:08 | 00:27:12 | attribution window and then how all that |
| 00:27:10 | 00:27:15 | works for optimization and then you know |
| 00:27:12 | 00:27:17 | once you optimize right that's when |
| 00:27:15 | 00:27:19 | scaling takes over and looking at your |
| 00:27:17 | 00:27:20 | cost per purchase to your ROI and |
| 00:27:19 | 00:27:23 | knowing your numbers and other things |
| 00:27:20 | 00:27:24 | that we've toked about so thanks for |
| 00:27:23 | 00:27:27 | watching |
| 00:27:24 | 00:27:29 | use this definitely use this and |
| 00:27:27 | 00:27:32 | understand this going in and q4 because |
| 00:27:29 | 00:27:34 | when you are when you're looking to |
| 00:27:32 | 00:27:36 | scale quickly you need to understand |
| 00:27:34 | 00:27:37 | this part here how quickly are you |
| 00:27:36 | 00:27:39 | getting into those conversions so if |
| 00:27:37 | 00:27:41 | you're testing into five ten fifteen |
| 00:27:39 | 00:27:43 | dollars a day which most people are |
| 00:27:41 | 00:27:45 | right then you just need to understand |
| 00:27:43 | 00:27:48 | the process that you're still trying to |
| 00:27:45 | 00:27:49 | get to to be able to optimize and scale |
| 00:27:48 | 00:27:51 | right and that's where we going to help |
| 00:27:49 | 00:27:53 | you in q4 with when you need to know |
| 00:27:51 | 00:27:54 | your numbers and you need to understand |
| 00:27:53 | 00:27:56 | your |
| 00:27:54 | 00:27:58 | and you know CPMs are going up because a |
| 00:27:56 | 00:28:01 | lot of competition big marketers dumping |
| 00:27:58 | 00:28:04 | their budget but remember your CPM is |
| 00:28:01 | 00:28:06 | just that's your you're paying for |
| 00:28:04 | 00:28:08 | impressions right so your CPM on your ad |
| 00:28:06 | 00:28:10 | definitely is an important metric |
| 00:28:08 | 00:28:12 | because you're paying for impressions |
| 00:28:10 | 00:28:14 | but your conversion objective is what |
| 00:28:12 | 00:28:16 | really matters that's what facebook is |
| 00:28:14 | 00:28:18 | learning that's what it's optimizing off |
| 00:28:16 | 00:28:20 | of and you can be profitable at a |
| 00:28:18 | 00:28:22 | conversion objective regardless of what |
| 00:28:20 | 00:28:25 | your CPM is so this is like stealing |
| 00:28:22 | 00:28:27 | your most important thing how are you |
| 00:28:25 | 00:28:29 | what is your cost per action right your |
| 00:28:27 | 00:28:30 | cost per action is still your most |
| 00:28:29 | 00:28:32 | important thing because that's what |
| 00:28:30 | 00:28:34 | you're optimizing and learning based off |
| 00:28:32 | 00:28:38 | of and your cost per impressions is just |
| 00:28:34 | 00:28:40 | how you're paying facebook right so yeah |
| 00:28:38 | 00:28:41 | let me know if you have any questions |
| 00:28:40 | 00:28:44 | hope you guys found this video valuable |
| 00:28:41 | 00:28:46 | take this stuff apply it hopefully |
| 00:28:44 | 00:28:48 | everybody crushes it and does amazing in |
| 00:28:46 | 00:28:51 | q4 with their ads using this type of |
| 00:28:48 | 00:28:54 | information tok to you later also hard |
| 00:28:51 | 00:28:54 | I'm afraid |
