Q & A part 1 | Chidi Erike

After this presentation.

Are ads cheaper in other languages? Like if I run a local ad but I have to do it in Spanish, is that any cheaper? Is that relatively the same?

Yeah, so the simple answer would be yes, they're cheaper in other languages, but not because it's a different language. Language is naturally correlated with region. So because there's so many major languages outside of English being spoken around the world, oftentimes those regions have lower CPMs and lower costs.

Yeah, so I guess my question is if I want to a local ad, are you going to charge me for the location? Are you going to charge me for the language? Or do you guys factor some balance between those?

So it depends on what you're trying to do. So for example, if you're running a local ad in Spanish here in California where you have a lot of Spanish speakers, you could arguably pay more for that because there's going to be a lot of other advertisers trying to do the same thing, right? However, if you're doing it in an area that's not as competitive for Spanish-speaking people, then you will actually pay less. So it kind of depends on the supply and demand curve.

And then, sorry, in general, is it cheaper, like, South America? Is South America really cheap right now? Having to run some ads in South America, is that like cheaper than the US, California, just in general?

It's cheaper for multiple reasons. So South America obviously is not Spanish-speaking, it's primarily Portuguese-speaking. So because of that, it's doubly cheaper. So that's actually a big— we're spending a lot of time in South America right now because their mobile use is all the way up. And in terms of advertisers trying to get to those populations, it's relatively So if you're trying to move into those markets, this is a great time to do it.

When you look at target audience size, what's the optimal size? Because I've heard different things, like a million is a good size, up to a million and a half. I've heard there's a point where it gets kind of too big and you're not really maximizing.

Yeah, so I think it's better to err on the side of being aggressive with your audience because what happens is Let's just say I'm trying to reach everybody in this room. Facebook can do a really good job reaching half of this room, right? But once you try to tell us to reach the other half of the room outside of, let's say, all the people in San Francisco, then you're making us work a lot harder to reach that individual person. So it's better to actually have the largest audience possible and let us actually figure out who's likely to convert. Now there's a caveat to that. If you're doing brand awareness, right, then you don't care as much about who's actually receiving your impressions or your ads. Advertisement because you just want to make sure you're hitting as many people as possible and that they're actually learning what's going on, right? So I would say if you're doing direct response, which is the lower funnel conversion level, you want to make sure that you have as many people as possible because you don't care. You're just trying to get conversions everywhere, right? So if that answers your question, it kind of depends on your business model, but if you're selling something that's relatively expensive, I would say you want to make sure you have at least a million people in your target audience.

Okay, and then second question, you know, in my experience, whenever I start a new campaign, it seems like click-through rates and cost per lead are at their best at the very beginning.

Yeah.

Like, what is that attrition rate or time, you know?

Sure. So it's gonna be the best at the beginning because the beginning is almost the same thing as saying you've reached the low-hanging fruit, right? So what a lot of people do is a lot of people have huge followings, and a lot of people that follow certain individuals, they're real simple. similar in nature, they have the same interests, maybe they're your friends, family members, etc., they're more likely to convert on certain things. But as you start to get all those people, soon you reach the person who's not— that doesn't resemble you at all, let's say, right? But you're still trying to get them to purchase your product. As you go further and further along the lines, it's going to get more and more expensive incrementally as time goes on, right? So the way to mitigate that cost is to make sure that you have one good creative, and one, you're changing your creative every so once in a while. I'll give you an example. I was doing some work with Equinox recently. Equinox does a really good job of showing creatives to pretty aggressive people, people that love to go to the gym. Love to go to the gym. That's a different person than someone who loves to work out because they just want to stay in shape, right? 2 totally different people, 2 totally different creatives. Equinox ran out of the aggressive people that just love Equinox. So now they have to change their creative and try to get the people that they just love to stay in shape, right?

Totally different people.

Different, let's say, marketing campaigns, but they understand that prices will keep going up if they keep looking for that aggressive person because they've already reached them all, right? So that's a consideration that you have to have. Let's go here. John?

You go and then I'll circle back to the topic. Yeah, sure.

So my question is, I recently have started a campaign in Europe, and what I did before in America was I uploaded an email list and Facebook matched to certain profiles, but I noticed that The match rate to Europe was way lower, so I was thinking, okay, maybe there's some sort of law around data usage. Is there a way to know in advance which countries are easier to upload lists and do things like match data on Facebook? And if not, what are some workarounds that you might say if you can't upload an email list and track it that way?

Yeah, that's a good question. So John is referring to uploading his own personal email list, which we consider to be customized audiences, right? It's basically saying, I know that these are the customers who typically buy things from me. Now I want to match those email addresses to Facebook profiles and make sure that I keep continuing to show ads to them, right? So unfortunately, there's not a sure way to be— so in Europe, we don't have quite as much information as we do here in the States, right, in terms of variables. But there is something called lookalike audiences for those of you guys who are interested in learning more about custom audiences. Lookalike audiences basically says, we'll take the people that you gave us, right? These are the people who add the most value to whatever it is that you're trying to do, and we'll make different subgroups of them and try to match those people up to other people that are likely to buy your stuff. So we're essentially finding people that look a lot like the people who actually purchased your product in the first place, right? That's an extremely valuable way to sell your product because now you, you know, you're giving us information. You know your company better than anybody. You're basically telling us telling me, hey, these are the people who are likely to convert. And I'm basically telling you, okay, well, these are the people who are similar on Facebook's platform of those individuals that you gave me, right? So likely most people experience much better results once they understand how to put together lookalike audiences. And was there a second question?

Uh, no, it's just if, if you can't match it, what's the workaround?

So I guess— so the work— yeah, definitely.

Yeah.

Thank you. There was a question over here.

So I started my first Facebook ad back in— for Black Friday, and you're right, that was the highest sales that I got last year, and so I can definitely attest to the fact that it's working. I have a question around just peeking around, you know, the curtain a little bit in terms of what makes a winning ad in your opinion.

Okay.

From your perspective. So I've heard a lot about, you know, video versus still images. I've heard about, you know, mobile only, as you said, not running both Facebook and Instagram at the same time. So I just wanted to get some of your perspective in terms of what do you view as, you know, getting that high quality score that you talked about earlier?

Yeah, so that's a really good question. So I'll talk about some of the things that prevent an ad from being a winning ad, right? So one of those things is not having a product-forward ad. So an ad that somebody watches but they have no idea what the purpose of that ad was. And you'd be surprised how many times that happens because there's a lot of creative people that obviously create ads. They do a great job on the creative side, but in terms of actually presenting a message, a message that's actually going to stick, there's a little bit of a disconnect, right? So one thing would be product-forward. I would say the second thing is making sure your ad is trying to tell the story you're trying to tell. So there's a dog company that I'm working with. Everybody loves dogs, so people naturally like to engage with dog ads. They're driving— they're not getting any benefit from it though, right? Because people click on the ad, they don't know what it's for. They just see a dog, they click, and then they close, right? So for them, they have to focus more on brand. They have to make sure that people understand, like, okay, there's a reason why there's a dog in that ad, right? And they have a dog walking company, right? A dog walking company that's focused on professionals who don't have time to walk their dog. So maybe they should be speaking to those professionals a little bit more versus the dog lovers, if that makes sense. Right.