NEW Meta Ads Setting That You Can't Afford To Get Wrong!

0:00There is a new Facebook ad performance gold option that you have to use if you want to make more money from your meta ad campaigns. Most Facebook advertisers aren't even aware this option exists, but it can make a massive difference to your ad campaign performance. Let me show you what I'm talking about. So, to demonstrate this, I'm in one of our Meta ad accounts. I'm in Ads Manager, and I'm going to go ahead and create a quick example sales campaign. I'm also going to be talking about uh this performance goal in a leads capacity because it does apply there too, although in a different

0:26way. So, we'll get to that in a minute. If I just go ahead and click sales for now, not going to worry about any of the other settings at the campaign or adset level. What we're going to do is focus in on the performance goal. Now, one of the reasons why a lot of meta advertisers aren't even aware that the option about to demonstrate exists is because um in order for it to come up as an option, you need to first change your conversion location. You can see that the default within this account for conversion location is website and calls. And that gives us a performance

0:53goal, which is maximize number of conversions, which cannot be changed. But if we go ahead and change this from multiple uh to single, your default, by the way, for your conversion location might be different, but I think most businesses running sales campaigns, the option they want to go with will be website, and that's what they'll be

1:07going with for the conversion location. Once I do that, you can see we now have options at the performance goal level. Now, if I click into here, we can take a look at the options. So, I'm going to talk about these two up up top here in a second because they're really important, but just wanted to quickly say, don't use any of these four options down here

1:22for your leads or your sales campaigns. If you optimize for as many landing page views or link links possible, that's basically just traffic campaign. If you optimize for as much unique reach um or impressions as possible, those are variations on an awareness campaign. So, most better advertisers understand that the campaign objective is really important. But I think there's a bit of a lag in terms of the space and awareness around the performance goal

1:45being just as, if not more important. All the campaign objective really does is narrow down the options. It's the performance goal that tictates how your meta ad campaign is going to be optimized. And we know that that optimization process should not be underestimated. It is incredibly important. If you run a traffic campaign optimizing for link clicks and you run a sales campaign optimizing for sales, the sales campaign optimizing for sales will almost certainly generate many more sales at a much lower cost per sale than the traffic campaign will. Even if the traffic campaign sends more traffic to

2:19your website, which it probably will. So, we know the power of of optimization. I think that level of understanding is is broadly understood. But we can now be more sophisticated with our performance goals because the platform has become more sophisticated. So, let's talk about these two options here. Like I just said, before we change the conversion uh location, the default was maximize number of conversions. And what would that look like, right? So, we select maximize number of conversions and then the conversion event would most likely be purchase on a um for a salesbased campaign. What we're basically saying to Meta is optimize this campaign to get me as many sales as

2:51possible. Sounds like that's what you'd want to go with, but it's not. Because if you go with this option instead, maximize value of conversions, then what Meta will do is they will favor advertising to those people that Meta predicts not only are going to buy from you, but will spend more when they do. So that might actually mean you generate less sales, but the overall value of those sales will be greater. So, so let me sort of explain the the detail on it and give some examples. If someone comes through your website and buys $20 worth of stuff and someone else comes through your website and buys $200 worth of

3:27stuff, that person who buys $200 worth of stuff is obviously worth a lot more to your business. You would be willing to pay as an advertiser significantly more for a purchase from the $200 person versus the $20 person. Well, with maximized value, you can factor that in. You can say that to Meta. So, what you're not optimizing for is as many perks as possible. you're optimizing for as much value. So, the overall revenue generated from the campaign, the return

3:53on ad spend to be as good as possible. And certainly for e-commerce businesses where you can not only track the conversions that are taking place via your website, but the value of each one of those conversions and that data could be fed back into your uh into your meta ad account, then maximize value of conversions is a really simple switch to make uh but can make a huge difference to the profitability of your ad campaigns, which is the most important

4:15thing. That's what allows you to scale. That's what allows you to reinvest and achieve the goals that you have not only for your marketing campaigns but your business more broadly. Now, this performance goal has been available in some meta ad accounts for a little while now. Um, in others, it's relatively new. I don't hear much talk about it amongst meta advertisers. I don't think the word has gotten out yet. It's part of the reason for creating this video, but it's definitely something that you want to switch over to. Like I said, if you're an e-commerce business, um, you're running sales campaigns, it's an absolute no-brainer. I'll talk more

4:45about leads in a second. I also want to emphasize the importance of making this switch if you have wildly differing customer values. So, I gave the example a minute ago of $20 versus $200. Some businesses have a lot of that. They have some customers worth $100 and some customers worth $2,000. Really, really important that you use this and basically train Meta to get you more of the high value um sales. If you're just selling the one thing, everyone only buys it once. it's always the same price. There's not much value in switching over. But not many businesses are like that. In fact, if I ever work

5:17with a business that is like that, one of the first workons is going to be let's have an upsell or something significantly more expensive where we can massively increase um your customer value. So, if you do have varying values, like significantly varying values, extra important that you make this change. Okay, I'll show you how this applies to lead campaigns in a second, but first I want to quickly let you know about Hyros. Hyros is the best tracking and attribution software for meta ads. It's a software all the big players in this industry use, including myself. I use it to track results for my own ads as well as all my organic

5:44results as well. So, if someone books a call for our done for you services, for example, I can see exactly where that person came from with a lot of accuracy. That allows me to make better decisions for my marketing and my business. Hyro has been able to track that from our ad spend in this campaign, we've generated £96,000, but £58,000 of that was not reported by Meta. So if I was just looking at my data within my meta ad account, I might come to the conclusion that this campaign is doing okay, but in reality

6:10this campaign is doing a lot lot better. Now this is a relatively extreme example because of the nature of our business. So most of our products services have recurring billing elements. Meta might be able to see what we make initially from our ad spend on that initial transaction but not those subsequent payments. And that's why it it shows the importance here of being able to accurately see what we actually get from our ad spend in order to be able to make

6:32better decisions and optimize correctly. So if you want to improve the performance of your ad campaigns without having to touch your ads, go ahead and sign up to Hyros. There is a link in the video description. So let me show you how this works for a leads campaign. It is a bit more complicated and a little bit less obvious than how you do it with a with a sales campaign for an e-commerce business for example. But let's jump back into our example ad accounts. Close that down. go to the campaign level and create a quick leads campaign. Once again, not going to worry about anything else. Just going to jump

6:58to the adset level. Um the default conversion location again here is website and calls. Like I said, the defaults might be different. It's going to be um ad account specific to some extent. And we've got this fixed uh performance goal of number of conversions. But let's say I was going to run this lead campaign just to my website, which I appreciate is probably less common for leads than it is for sales, but still a lot of businesses will send people through to a landing page or a website and generate their leads there. If we change that over to website um we can switch this from maximize number of conversions to

7:26maximize value of conversions. So that leads you obvious question well how do you actually set that up right because I appreciate I know I understand that when I generate sales from my Shopify store that value is then passed back fairly easy for meta to be able to distinguish between different customer values. This customer spent this customer spent this. This one's more valuable. Please advertise to more people like them. How does that work with leads? Well, this requires more effort and work on your end. But what you basically need to do is distinguish between different lead values so that you can estimate how much a lead is worth at the point at which it

8:01became a lead and then feed that information back. Because you might be thinking, well, some leads don't convert. Other leads do convert, but I'm optimizing for leads. I'm not optimizing for the eventual sale. That might be a month later. It's too long. It's too complicated. We don't generate enough volume to to optimize for those things. So, for example, let's say you're a roofing business running meta ads to generate leads. How would you calculate differing lead values? Well, you might have different services. So, you might have full roof replacement as one service. You might have roof repairs as another service. And they could have separate uh landing pages where people

8:32can acquire and they go to different thank you pages. You could have different conversion events that feed back at differing values, I should say, uh for each one of those services. and you make a calculation cuz you don't know at that point which each lead is actually worth, but you can estimate it. So, let's say a full roof repair is $20,000 and you convert one in five leads. Therefore, each lead generated is worth $4,000 on average, right? That's how you would make that calculation. But let's say roof repair is significantly less. The average job is $2,000 and maybe you convert a higher rate. So, you convert 50% of those. um therefore each

9:11lead is worth $1,000. Meta can see that information generated. They're like, "Right, these leads are worth 4K. These leads are worth a,000. Let's be willing to pay more to acquire more of the of the more valuable leads." Right? So, that might be something that that might be the sort of way you calculate it with different services. If you just sell the one service, you might be thinking, well, how do I go about doing this? One clever way that I've seen this implemented is that you have and you have to set this up technically on your website or whatever sort of inquiry form, lead generation based form you're

9:40using where you have questions that people have to ask and their answers dictate where they end up. So for example, when they're filling out the form to see if they want to work with you, you have a drop-own list with multiple options for budget. And if they're under a certain number budget-wise, they go through to a page where we say, "Sorry, we might not be able to work with you or we'd actually recommend you use this option that we have instead, this service, because it's less expensive." And then other people that select a higher budget option go through to a different thank you page that says, "Yeah, great. We'll proceed,

10:11expect a call from us, whatever it is that your next steps are, right?" Well, because that form has um filtered people according in that case to budget, you can have different conversion values assigned to those different thank you pages. And just like with the different services, that's how you would send differing customer values back to Meta for the same service, but people have just self- selected as some having higher budget and some having lower budget. And that can be a way that you can then feed that information back to Meta. and you will train meta to put your ads in front of people that are more likely to be the higher value

10:43option if you have the maximized value of conversions. So definitely requires some more effort to do on a lead basis. Easier to separate out from different services. Little bit more complicated but still very doable to separate out the one service into high value lowv value customers using the the setup that I just described. But well worth it because especially if you have if you can segment it and say to meta look these leads are worth like five grand to my company. these leads are worth like $200. You absolutely want Meta to prioritize those five grand value worth of leads. They're so much more valuable to your business. You are willing to

11:17probably pay 10, 20, 30 times as much to get that conversion as opposed to the other one if you go with maximized number of conversions. Meta is just going to optimize for those lower quality uh inexpensive leads because they're less expensive and Meta's algorithm is very literal. How do we get as many conversions as possible? Well, these are cheap and easy and quick to get. Let's go with more of those when you as a business actually want these ones that are much more valuable. And in order to use this performance goal properly, you are going to need to have the meta pixel installed and set up

11:45correctly and conversions API. We want the best possible data going back so that Meta can know these are high value, these are low value and then optimize for the higher value customers accordingly. And just a quick reminder that we offer both done for you meta ad services. So we can create, manage and optimize your ad campaigns for you. We also teach people how to get fantastic results with meta ads. If either of those sound interesting, there are links

12:05to both in the video description below. And if you've been hearing a lot of noise about the Andromeda update and you're wondering, how does this impact things? What changes do I need to make? Go ahead and check out this video. There is so much misinformation around about there around Andromeda. It's not as complicated as people think. There are however some changes you need to make and I detail it all in this video