The Best 4 Ways to Turn It from an Unprofitable to a Profitable Campaign
Hernan Vazquez, who has worked with Frank Kern and Grant Cardone, explains why Facebook ad campaigns have become unprofitable. Apple's privacy changes and algorithm updates raised CPMs, but the real problem is chasing lower acquisition costs. Instead, focus on increasing what each customer spends: raise Average Order Value and Lifetime Value.
Marketing and advertising can be complicated. What's most important? What should I focus on? Direct marketing? Email campaigns? Social media? Cold calling? With Marketing Atlas, you'll have a clear guide to get more leads, close more sales, and take your business to the next level. Welcome to Marketing Atlas. Marketing Atlas. With your host, Hernan Vazquez.
Stop losing money with your Facebook ad campaigns. Here are my top 4 things that you can do right now to turn an unprofitable campaign into a profitable one. Hey everybody, my name is Hernan Vazquez and I've been in the digital marketing space for the past 12, 13 years now, and I work with guys like Frank Kern, Grant Cardone, Tony Robbins, Patrick Bet-David, AgoraPulse, Paul Getter, Dan Henry, many, many others. And on this video, I want to share with you how you can turn an unprofitable campaign, a campaign that is a money pit, into a profitable one by following 4 simple things that you can apply right now to your campaign. The first thing that you can do right now to turn things around is stop battling with the platform. Stop trying to fight your way into profits. What do I mean? I mean that most people that come our way, they were having, again, great results 2, 3 years ago, but then Facebook changed the rules. Then Apple came in with the iOS privacy. So Facebook is not talking to Apple. And then we saw an increase in CPMs and we saw an increase in cost to advertise. And the reality is that people that were crushing it back in the day, they're now really struggling. And the main reason behind it is because they haven't updated the math on their funnel. A lot of these people that are struggling, they focus too much on how much they're paying to acquire a customer through Facebook advertising. And that's a real thing to optimize for. You can optimize your ads, you can optimize your targeting, you can optimize your funnel to actually decrease the cost to acquire a customer. But the reality is that's the hardest thing to do. Think about it. When you're advertising, you're competing against millions of others of advertisers targeting the same demographic that you might be targeting. And it's not just your direct competitors, but also your indirect competitors as well. Let's say that you're targeting stay-at-home moms, 35+, in the US that they like to do yoga, right? Of course, you will be competing against everyone else targeting stay-at-home moms, 35+, that like to do yoga because they're selling a yoga course, right? You're competing against everyone else selling a yoga course. But not only that, you're competing against big companies selling women products. You're competing against big companies selling household products. You're competing against universities advertising for their K- or schools advertising for their kids. So you're competing against a lot of people, not only your direct competitors, but also everyone else targeting that stay-at-home mom that likes to do yoga, right? The first thing that you kind of need to switch your mentality around is instead of focusing that much on lowering your cost to acquire a customer, which is the hardest thing to do, and that has a bottom, like you cannot go lower than that bottom because that bottom is set by the market, It's not set by you. It's not set by myself. It's not set by Facebook. It's set by the marketplace, right? Offer and demand. How much you're paying to acquire a customer, of course, you can lower it, but it will have a bottom that you cannot break through. So what you need to focus on, instead of focusing on your cost to acquire a customer, you need to turn around and focus on increasing the value of each customer, increasing your average order value, increasing your lifetime value. And that is a million times easier to do.
Why?
Because you're only competing against yourself, your promotions, your offers, and all of that. So if you can get somebody to spend, let's say, from spending $100 in your first transaction to spending $200, the cost of a customer can stay the same, but you just doubled your revenue and potentially you doubled your profit depending on your business model. And it's much easier to do. Because what you need to do is to tweak your funnel, split test, test new offers, send more emails. That's what you need to do. That's the reality why a lot of advertisers are struggling right now is because they focus on the wrong things. They focus on, oh man, it's too expensive to acquire a customer on Facebook, versus, hey, how can I make this customer more valuable for my company? Hearing Dan Kennedy speaking on stage 1, and he was saying that the cost to acquire customers on social media ads right now, it's getting closer to real-world cost to acquire customers. Dan Kennedy is kind of the mack daddy of direct response. He's coming from infomercial circles, so there's a lot to learn from him, and he was jokingly saying that now we're paying kind of close to reality cost to acquire customers because the reality is that for the longest time we haven't. We haven't paid the reality of acquiring customers, but now we are, so you need to update your math in your funnel to make sense for this new updated cost to acquire customers. It's much easier to do. Step number 2 to actually turn a non-profitable Facebook campaign into a profitable one, and that is to increase your CTRs, to increase how effective your ads are in attracting those clicks. When we're placing an ad, it doesn't matter what platform we are in, we can be placing it on Facebook or YouTube, what we're trying to do is not to sell the product, okay? This is a lot of— this is another misconception or mistake that I see a lot of advertisers do, which is, I'm trying to sell the product on my ad. Uh-uh. That's not what you're trying to do. What you're trying to do is to get someone to click on the ad, right? Let me say that again. The job of your ad is to get someone to click on the ad. Of course, you can do this by teasing the product, by sharing the benefits, but what you're trying to do is to connect emotionally with your audience and entice the click. That's what you're trying to do, all right? So why? Because the job of selling the thing is the landing page job. So it's not your ads. Your ads are not supposed to sell the thing. They're supposed to sell the click. Now your landing pages or your sales pages are supposed to sell the thing that you want to sell, all right? So big distinction there. So what you want to do is you want to increase your click-through rate. That means how many people are seeing the ad versus how many people are clicking on it. We pay attention to a single metric. It's called unique outbound CTR. You can find it in your columns. You can add it, and anything below 1% is not good. If you're getting less than 1% unique outbound CTRs, you need to work on your ads, and this can be by adding better images, writing better copy, having better targeting, right? You want to tweak your ads until you're above 1% unique outbound CTR. If you're above 1% unique outbound CTR, perfect. People are seeing your ads, they're clicking on it, you might have another problem which might be in your funnel, but it's probably not the ads. Number 3, try short video ads. Right now they're crushing. We're talking about 5-second long, 10-second long little looping video ads, and you can make them with pretty much any type of online video ad creating platform. Right now all the rage is AI, so AI video creating platform can help you do this, and you can go out and find some really cheap. And these short video ads, they have 3 benefits. Number one is that they usually have a high CTR. People want to see what's behind that video that you have going on. Number 2 is that they have a lot of inventory. They can be served on video feeds, they can be served on mobile phones, they can be served on desktop computers, they can be served on iPad, they can be served pretty much anywhere that Facebook can serve ads on. Facebook, Instagram, right? So that means that your cost to advertise those video ads tend to go down. All right, because you have more inventory, that means that you have more offer, that means that you're paying less per click and less per CPM. And number 3, since people are watching your videos, you can create custom audiences out of video views. And that is pretty neat because if you're trusting just on website visitors or leads or something like that, then you're missing out on a big pie, a big pot of people that have engaged with your ads, that have seen those little videos, looping videos, and you can retarget them with more offers. So try short, square, up to 7 seconds, 10 seconds long video ads with your offer because they are working. And number 4, that has nothing to do with Facebook ads but everything to do with advertising, is focus on your follow-up. Listen, if you have a great funnel, let's say that you have a book funnel or an acquisition funnel and that funnel is converting at 10% of whoever visits your funnel. That means that for every 100 visits, you get 10 buyers. That is great conversion rate, but that also means that 90% of people are not buying. If you have great conversion rates, that means that most people are not taking action, and guess what? That is normal. We human beings, we, you know, we take time to do things. If you have a really engaged email list with a lot of people clicking on your emails, you might have, what, 40% open rate, 50% open rate? That means that half of your list is not even opening your emails. You have a great click rate on your emails, 20%, 30% click rate, which is sky high. That means that 70% of people are not clicking on those links. The same happens with Facebook and the same happens with funnels. How do you fix that? With follow-up. You follow up via emails, via SMS, you follow up with retargeting because that can increase and can turn around an unprofitable campaign into a profitable campaign. I remember when I was running ads for Dan Henry, we used to run a lot of carousel testimonial type of ads, right? He would have a $997 webinar offer. People will come in, they will watch, I think it was like a 2-hour webinar, and then they will pitch a $997 offer at the end, right? And that worked really well. But guess what? Most people wouldn't buy. So what did we do? We ran a retargeting campaign for people to go back and buy. With a carousel of testimonials. They still work really well, by the way. If you have an offer, you want to try little square images with a picture of the person and a testimonial and some stars. They work really, really well. Carousel testimonials. But the main point is follow-up. If you deploy a powerful follow-up system, your campaigns will perform better, you will make more money and more profit, your business will grow like crazy. Trust me. So I hope that these 4 strategies can help you turn a non-profitable or unprofitable Facebook campaign into a profitable one, really help you out. If you think that this is helpful, feel free to share, leave us a comment, subscribe, rate us, because this really helps us grow and it allows us to get the message out to more people so that more entrepreneurs can be effective and can be successful. I truly believe that entrepreneurs are the good guys. Of this battle, if you would, or if this were the good guys. So help me help more good guys by sharing this message with people that need to see it. And if you have any questions, if you want us to touch base on any type of content, feel free to comment below, leave us a comment, send us a DM. We pay attention to everything, and I hope that this was helpful. I'll see you guys soon.
