There aren’t many things that you can learn in 5 minutes that will both save you a fortune and make you a fortune… but this is one of those rare occasions…. so please read this all the way through.
I see it everyday…
People trying to promote their businesses and products on Facebook and they lose a ton of money because they don’t understand one simple way that Facebook Ads work.
Here it is:
“The More Mature a Good Facebook Ad is, The Less You Pay”
Every single day I hear from someone that tells me that they are getting a good click through rate on their ad, and they are getting good results on their landing pages and sales pages… but the ad is just too expensive to keep running.
This kind of thinking has cost people millions of dollars and it shows a fundamental misunderstanding of how Facebook Ads Work.
So… Let me Give You a Simple Strategy that is going to change your “Facebook Ad Game” Forever.
How the Facebook Ad Algorithm Works
The more engagement your ad gets, the cheaper Facebook will make your ad over time, even if you’re being outbid for the same audience by other people.
Let me explain…
Check Out This First Scenario:
- We have a $25 Product for sale.
- We setup a new Facebook Ad and send our target audience to the sales page.
- On day 1 we decide to spend $100 per day.
- That first day it costs us 65 cents per click.
- We get a click through rate of 3% (not too shabby on Facebook)
- We spend all $100 and get… 154 clicks (because it cost the .65 per click)
- We make 1 stinking sale and are $75 in the hole.
This is what kills most people because they lose too much money early on in an ad campaign and they panic and kill the ad and start a new one from scratch.
Let’s Make a Few Tiny Changes to the above and watch what happens:
- We Still have our $25 Product for Sale.
- We setup that same ad from above.
- On Day 1 we only spend $20.
- That first day still costs us 65 cents per click.
- We get a click through rate of 3%.
- We Spend all $20 and get 31 clicks (because of .65 per click)
- We make 0 sales and are $20 in the hole.
You may say that this is still bad because we are in the hole, but this is where the magic starts to happen.
The Power of “Engagement” on FB Ads
Because we had a strong clickthrough rate and got engagement with our ad, Facebook will start to reward us and take our cost per click down. So… Each day, your cost per click goes down and you start getting more clicks every day for that same $20.
On many occasions we’ve had an ad that started at .65 per click down to .15 per click because it was a good ad.
So… after 5 days, we’ve gotten way more clicks, nailed down sales, and we now have an ad that is running at a much cheaper per click rate and….
We’ve spent the same $100 to get there (we just gamed the ad algorithm so that our ad spend went way farther).
Now… think about what happens when we continue to let this ad run over time.
The Secret to Profitable Facebook Ads is This:
- Start with a Low Daily Budget and Let your ad mature.
- An ad that gets good clicks, even at a low daily budget, gets cheaper fast.
- Only ramp up your ad spend when you have achieved that cheaper clickthrough.
- Only ramp up your ad spend when your ad is making sales at that cheaper clickthrough.
- Be okay with not making money the first few days an ad is live. It will start to make money once your ad matures (as long as sales are coming through).
The 7 Things that Matter in Creating an Ad that gets Engagement
1) The Ad Image
Most people mess this up because they don’t understand the simple psychological principles that you should use to pick ad images.
There are a ton of things that you can do to make your ad image stand out on Facebook, but I thought I’d give you a ad image rules that work for us every time.
Use Ad Images that:
- Have Eyes Looking Back at your Audience.
- Have Colors that Contrast to FB but don’t seem to try (no big gaudy red arrows).
- Tell a Story without an Words.
- Congruent with the Ad Copy that you will include.
- Have something a bit off about them (notice the image above where my people have no noses… and that giant hand)
2) The Brand Image
Make your Page Image (the one where you’re running your ad from) look like a personal profile picture instead of a brand… seriously.
Most people don’t even think about this, but the “brand image” is something that people check without even realizing it (and it can make or break your ad).
When your ad catches someone attention on Facebook they are going to do a quick “bullshit” test. This involves them quickly checking to see if the post is coming from a friend or a company that is trying to sell them something. By making your brand image look like a person (you can use your marketing director’s beautiful face) you have effectively made your ad more digestible for the average person. This subtle but powerful trick is enough to get someone to put more stock into whatever is actually in your ad because it looks like a friend shared it (we all have Facebook Friends who we can’t remember adding.).
3) The Ad Post Text
Almost everyone overdoes this and it cost them the click (and totally screws up the ad maturing process)
A Normal person rarely writes a book in their post when they share something. They simply share it and make a small comment about it. We want to mimic that by keeping the text short and sweet.
4) The Ad Headline
There is a simple headline formula that I stumbled onto a little while back that helps me absolutely skyrocket clicks to our optin and sales pages.
The secret behind it is to make your ad headline seem like its leading to a real life case study (no one wants hypotheticals).
In the ad above, we could have easily said “5 Hires that will take your company to 7 Figures”. If we had done that, it wouldn’t have seemed real. Instead we used the headline above to show that the ad leads to a real life case study that worked for a real business.
5) The Comments/Likes/Shares
If you understand this, you’ll have people commenting on and sharing your ads with their friends. This is overlooked by 99% of FB Advertisers but completely changes everything once you “get it”.
So what is the secret to getting more comments, likes, and shares on your ad (so that FB is sent a signal to the ads importance and rewards you with cheaper clicks)?
Number 1: Don’t ask for them in your ad (this is bad)
Number 2: Create Ads that People will share and comment on because they fit into their “narrative of themselves”.
In the ad above, someone who is a recruiter or a head hunter might share this because it helps them show their peers that they are smart and share great things. People share things on Facebook as a way to say “I’m right and this backs it up” or to show their friends that they are hip, cool, or smart. If your ad can play into that, you’ll get a ton of engagement.
To Sum it All Up
You get more clicks for less money as the ad gets older and seen by more people.
Would you Like a Full Walkthrough of this in Action using an Actual Ad that we Use in Our Business (as well as how we do our ad targeting for every client and campaign)? Sign Up for Adlab Premium by clicking the image below!