THESE LIES Are Hurting Your Facebook Ads Results...

0:00facebook ads experts have lied to you they've told you things about facebook ads that simply aren't true in this video i'm going to explain what those lies are and what the truth actually is and what you should be doing with your facebook ads based on correct information so let's start with the first lie and that's what you need to spend a lot of money on facebook ads and instagram ads to see great results there's this myth out there that once you just reach a certain spend amount your cost per result your cost per conversion will all of a sudden plummet facebook will reward you for that and

0:27that's just simply not true in fact you often see your best cost per result best cost per conversion at lower budget levels as you scale your costs are likely to increase on a per conversion per result whatever it is you're optimizing for basis and we can see this right meta provide this information this is a facebook ad account here and we can see this is actually a engagement campaign and it's got a straight line graph so the more you spend the more engagements you get but it's proportional so your cost per engagement is likely to be relatively similar if this was actually a conversions campaign we would see that the more you spend the

1:00higher your cost per conversion is likely to be now of course the more you spend the more results you will get but in terms of your actual cost per sale cost per lead whatever happens to be that's not going to improve if you just spend enough it's not how it works at all forget about that it's very important that your campaigns can produce a profitable cost per lead a profitable cost per sale at lower budget levels before you go and scale don't think that scaling is going to help you achieve that it's just not going to happen that way the next facebook ads lie they want to cover is around

1:30targeting a lot of people trying to sell you courses on targeting or software that helps you find great targeting options those people often say or make out that there is this magical almost mystical targeting audience out there and you just need to find them and once you find the right people your campaigns will perform incredibly well you won't believe the results but you can't find them with the regular ads manager set up and being able to find targeting options through their suggestions things like that you need this special way of doing it and it's just not true targeting is actually one of the more simple elements of a

2:05facebook ad campaign if you at least know what you're doing to some extent if you've been through my videos on targeting your targeting is almost certainly fine the thing that separates average advertisers from great advertisers is far more likely to be ad creative and your offer those are far more important income in terms of reaching those higher levels now it's not to say that you don't need to use the right targeting and that you should never test targeting options you should but it's just not that hard to work out and it's very unlikely that if you've been through a few rounds of testing you've tested out lookalike audience

2:35various interests and things like that that you haven't found the best possible audiences for your campaigns if you've put a bit of time and effort into that and gone through a month or so of testing different targeting options you've probably got that part worked out and you should be focusing elsewhere and be very skeptical of the people that tell you that there's these magical audiences out there you just need to find them we hear it it's so pervasive in this community we hear it from our clients even where they will say things like i feel like we're just not reaching the right people if we could reach the

3:00right people everything would just take off it's a lie i can see why people have said it and they've used that to help market their own stuff it's unfortunate but it's just not true facebook advertising lie number three is that unless you have high quality video ads to use there's no point running ads on the platform and that's simply not true yes video ads work best for some businesses but not all and not even most there's lots of scenarios where you want to use different ad formats where you want to use image ads carousel ads collection ads and i've got facebook support doc up here around the different ad formats if

3:32you click through these tabs you can see that meta are telling us you want to use this type of ad in this scenario this type of ad in this scenario video ads for example tend to work best for ads that are advertising something a little bit more complex it needs a bit more explaining perhaps you need a relationship really building between you and the person this would be b2b services for example or anything high-end and technical and complicated but for lots of other businesses where you want your audience to be able to glance at your ad very quickly and easily understand what it's for in those

4:02scenarios image ads simple carousel ads can work very well and often work better than video it's a much smaller ask of your audience so very very important for you to test different facebook ad formats find out which works best for you and your business and don't become disheartened if you don't have the capability yourself or the budget to be able to produce high quality video ads it can be difficult it can be expensive but it's not a barrier to entry video ads is not the be all end all of facebook and instagram advertising you can see great results with other ad formats it's really important thing for

4:36people to know the fourth facebook ads live that i want to tell you about is that facebook and instagram advertising is only suitable for e-commerce businesses only people that are selling physical products often quite simple easy to purchase products it doesn't work for anything any service-based businesses any local businesses anything that's more complex and that's absolutely not the case and to demonstrate why and actually it may even be the reverse i've got some examples i'm going to show in terms of numbers and partic specific return on ad spend numbers that we often see with the two different business types so let's assume we've got an ecommerce business we're running a

5:10facebook and instagram ad campaign and we're coming out with a cost per purchase of say 20 pounds that's not unusual and let's say that our average order value how much each person is then going on to spend is about 80 pounds well that obviously means that we're going to be looking if i divide this by this at a 4x return on ad spend which would be pretty good for most ecommerce would be pretty happy with the four return ad spend even once you factor in the cost of the goods themselves you're still gonna likely be nicely profitable on that campaign but for every 20 pound we spend you know once you factor in

5:40let's say a 40 pound cost of of goods on the actual product you might be looking at 20 pound profit so you're doubling your money which would be great but that's typical for e-commerce now when it comes to a service-based business we might be looking at something a bit more like this now let's assume again it's a 20 pound cost per leave often leads a bit cheaper than purchases but let's assume it's 25 cost per lead and let's assume that you convert one intense you've got a 10 conversion rate which again is pretty low we'd like to think that most people generating leads on facebook instagram would then go on to

6:08convert leads at a higher percentage rate than 10 but let's let's go with the pessimistic side of things now let's assume that the average order value is 5 000 pounds again not unrealistic in the slightest there are lots of service providers we work with lots that um offer services that cost significantly more than that some of course cost less but anything to do with people's home anything to do with a lot of b2b services all going to be relatively expensive okay what does our roast number come out at now so if we divide this by that and then times by that we get a number of 25 so it's costing us 20 pound

6:46cost per lead we only convert one in 10 so it's effectively 200 pounds per new customer required but we're generating 5 000 pounds when we do so so our roast number comes out at 25. of course there's going to be some costs associated with delivering that service just like there are with selling the product but it is not uncommon in the slightest to see ros numbers for a service based business of 25 30 even higher because the average order value tends to be much much higher but in terms of this front end generating a lead doesn't cost much more than say generating a sale so i absolutely want

7:21to dispel the myth that facebook and instagram advertising only works for e-commerce businesses the businesses that see the best results have the highest average customer value they're often service-based businesses so if you have a service business local business anything more expensive more complex don't think that you can only sell simple pieces of clothing or jewelry or whatever you typically see on the platform that's a big lie and one that costs a lot of businesses operating in the service space out on a big opportunity facebook ads line number five is that you need to use complex sales funnels with multiple steps in obviously great results with facebook

7:55ads and instagram ads and that's not true a lot of the clients that we're currently running campaigns for we use very simple sales funnel structures where it might even be a direct offer structure so directly from a facebook instagram campaign to a landing page or a sales page and people convert there and it's absolutely fine to start there that's where i'd recommend most facebook advertisers start when you use more complex sales funnels which we do there are certain times where that's appropriate i'll explain more about that in a minute and you add in a lot of complexity you add in a lot of extra steps and you add in a lot of potential

8:27points of failure there are much many more chances for things to go wrong if you've got a seven step sales funnel unless you know what you're doing at each stage just one of them could be wrong and that could take down the whole thing so it's absolutely fine to start with the simple sales funnel once you want to move on to more complexity which i'll explain about in a second then you can do so and before we get into that you want to quickly let you know about my company lead guru which is a specialist facebook instagram ad agency we create manage and optimize facebook instagram ad campaigns for our clients

8:53in a full done for you service package if that's not something you'd be interested in you can click on a link in the video description below that'll take you to a page on our website you can book in a call with one of my team members find out more about our service see if we'd be a good fit to work together and if you do feel ready to use a more sophisticated facebook ad sales funnel i check out this video here in it i demonstrate my omnipresence content strategy in detail it's the best youtube video i've created and i think you're gonna find it really helpful