Return on Investment Timeline
Many advertisers have a business where they create Facebook ads campaigns and then INSTANTLY start generating results from their ads right off the bat, while others may need a little time dialing it in!
The main concern, many people have is...
How fast can I get my Return on Investment?
Look At Your Numbers
Lets use an example. If you have a business that caters a specific service to customers. And the value of your service is let's say $500/month. Then it all comes down to spending up to $500 to break even on the investment and then making a profit the next month. The following is a great example to go by:
1. How Much Am I Acquiring a Click For? $1
2. How Much Am I Acquiring a Lead For? $4
3. How Much Am I Acquiring a Client For? $200
So that means:
I am making a $300 profit on the first month and then $500 on the second month ($800 lifetime value) and another $500 the month after and so on if they stay!
Based on the information below, it appears that we should make a decision. That decision should entice us to adjust our marketing budget towards the men campaigns and reduce it towards the women. Perhaps the women we need to change up a few things or maybe even run an AIDA Campaign to warm up the audience.
Reason is it appears we got 1000 clicks from both campaigns each, however we got more leads from the men campaign and more sales also from the men campaign.
I would increase budget by 25% to the men campaign and then reduce budget by 25% to the women's campaign.
I know you're wondering "why don't you just pause the women's campaign and run full budget to men?" Or... Increase budget by 100%!!!
The main reason you don't want to do that is called: Smart Budget Optimization.
Due to past experiences, if we increase the budget too much on the men's campaigns we could start to acquire more expensive cost per leads. Therefore, we may get less sales but spend more money to get them!
The reason this happens is because, when we are targeting on Facebook, Facebook takes our information and shoots our ads out to people who they believe will likely sign up! If for some reason we give them too much budget per their optimization strategies they will shoot our ads to people who they think will sign up and also random people just so that they can spend our cap daily!
Remember, Facebook's number one objective is to make money from you, and if you give them $100/day to spend they will try to spend all of that money regardless!!!
Smart Budget Optimization works well because you set a cap and increase the budget per 25% everytime the data looks good and your Cost Per Results are not going up. When they slightly start to go up (and they will in time) you can readjust budget to have that happy medium of getting the best results at the lowest cost possible within the ad set level!
FB Showing Your Ads To the WRONG People
Why some people go right out the bat with success and some people not is often due to two reasons!
1. Your Targeting
2. Your Offer
Facebook is going to show your ads to random people at first! Just to see who bits! Then once people start bitting (exactly 25-50 conversions, it may change again soon) then it helps show your ads to people who are lookalikes just like the people who are taking action. Once that happens impressions are restricted only to a certain market and certain ad within the ad set level!
If your targeting is set up and it starts bitting right off the bat with a good audience, then you are likely to get the campaign off to a good start! If not, then the Cost Per Clicks are already starting off expensive and it will take some time to bring that back down after it "learns" about who is taking action on your offer!
This is common sense. But most marketers jack this up. Your market has an itch that they need to scratch. This itch is something that is a need. It could be a solution to a problem or just a benefit in general.
Your offer is that solution, or that promise! The offer needs to be very enticing and also it needs to be fluid. (Fluid means it needs to have a good name that people can trust!)
So for example, I am going to show you two ads below. One ad SUCKED, and the other one was a success!
You can find the one that has the floating house worked really well! But the offer was slightly different than the other ad?
The other ad was boring it says: "Would you like to blah blah blah" and nobody said yes.
The successful ad says something else. It PROVED something to the audience. "The value of your home could be worth much more" so what happens is the audience was more willing to click the ad to see what their value of their home was because it shows them that it could be worth more than what they were trying to sell it for.
It also targeted an audience using a Marketing Call Out. It calls the audience out for people who are already trying to sell their homes, vs the people who are considering doing so!
Every Audience, Every Location is Different
Every audience is different. What works for Sam's Pete in Houston, Texas using the same ad, same copy, same landing page does not always work for Johnathan in Augusta, Georgia! The main reason we see this is because of two things:
1. How Warm The Audience Is To It's Familiar Brand?
2. How Warm The Audience Is To It's Familiar Offer?
Audiences (or people) are not stupid. They see the same promise, over and over again and they won't bite!
They see the same ad over and over again and they won't bite!
They don't trust you yet! They don't know you yet enough to believe you can help them...
This is a common issue many marketers have. Too soon to sell something without building trust. I want to introduce to you my AIDA formula that way it will help teach you how to build trust with your audience so that you can grow your business socially organically the right way!