Facebook Ads: Reduce Cost Per Conversion By 74%!

0:00hi guys is Ben Heath from lead guru in in this video I'm going to show you how to get better results from Facebook Ads and specifically I'm going to show you how to reduce your cost per conversion by 74% with just one tip and that sounds too good to be true that you could just make one change to your Facebook ad campaigns and see a 74 percent decrease in your cost per conversion but it isn't going to show exactly how in just a minute now before I get into that just want to quickly ask for you to smash a like on this video hit that like button and of

0:29course subscribe to my youtube channel if you are new and haven't done so already that really helps me out okay so how we gonna get the 74 percent reduction in cost per conversion by making just one change right that's we're gonna show you how to do in this video so I'm in an example and Facebook ad account right now I'm going to create an example account and get to the point of which you can make this this one change and if you aren't familiar with how to get into ads manager how to get into a Facebook ad account just when you're in your Facebook profile there be

0:58a little black downwards arrow in the top right hand side click on that in the drop down menu they'll be manage adverts creat adverts manage ads create ads something like that click on that you should be brought through to something looks very very similar to what I'm looking at right now which is Facebook's ads manager okay so there are no campaigns in here yet as I said because it's an example Facebook ad account so let's go ahead and call this example Facebook campaign and now I'm not gonna focus on any of the other details because this video is about one specific change one tip that can make all the

1:33difference to how your Facebook ad campaigns perform and as I said reduce your cost per conversion by an enormous amount and that is your campaign objective now you see that when you create an example Facebook ad campaign the default objective is traffic and traffic is designed to get as much traffic as possible you know what it's the name of the objective really gives away what it's designed to do so if you run a Facebook ad campaign with the traffic objective Facebook will put your ads in front of the clicky esteem people that are most likely to click on your ads on Facebook Instagram come through to your website your landing page

2:07wherever it is that you're sending people okay if you were to change that camp objective from the default from traffic to conversions which if you know my you know if you've been following my stuff for a while you know that I'm a huge fan of using the conversions objective this can have an absolutely enormous difference in the results that you see when you're in your facebook ad campaigns so by changing to conversions and you need to have the Facebook pixel installed on your website your landing page in order to use the conversions objective and you need to set up event code to let Facebook know exactly what a

2:43conversion looks like as in when someone reaches the Thank You page their a conversion and and I've got a video that shows you exactly how to set up the Facebook pixel all that stuff so check out the video description for this video you watching right now there will be a link in there to another video showing you exactly how to set up the face of pixel if you haven't done so already but if you change your campaign objective to conversions Facebook will optimize your campaign for conversions so instead of with the traffic objective Facebook putting your ads in front of the people that are most likely to click which you

3:13know is useful we all want more website traffic but probably what you really want at the end of the day is a conversion it's a lead it's a purchase it's the the action that generates revenue for your business or for your clients business if you're running ad campaigns for clients and that is to get them to convert so instead of Facebook finding the click is people like to do with traffic they will find the people that are most likely to convert so lessen your advertisers into an audience of a million people well there may be 50,000 people in that audience that are most likely to convert by using the

3:42conversions objective Facebook is able to work out exactly who those people are and they're able to optimize for those people and it's not just you know the conversion objective a lot of people will say things like well if I'm what if I'm retargeting should I use reaches that are conversions because I know they're the people I want to be advertising to and I want to reach as many of those possible I would say no I would say go with conversions still because there's more to the conversions objective than just working out who within your target audience is most likely to purchase or become a lead but

4:11basically most likely to convert it also does things like and what time of day they most like to convert you know people might click on your ads a lot if you use a trackage active in let's say the morning before work perhaps they don't convert gonna go through the whole process because they're busy rushing around they just looked at their phone was having breakfast except researcher maybe they're much more likely to convert let's say 6:00 p.m. to 9:00 p.m. when they've got more time in their at home okay well if you use the conversion objective Facebook is going to work that out and deliver your ads during times a day that

4:43you are more likely to see conversions they were also gonna optimize for things like placements so if you're seeing you know within your ad account you can see that there are more conversions coming from Instagram stories or from Facebook feeds Facebook is going to direct your budget so that they spend more of your budget and deliver more of your ad impressions on placement options that are converting well so the conversion objective and helps Facebook optimize your campaigns on so many different levels to get you conversions and that is why on average and I spoke to my facebook rep and very very recently about this and I knew this was the case

5:20I knew the conversions produce much better results than traffic but I had no idea the extent to which it did this but on on average conversions reduces cost per conversion by 74% in comparison to traffic so if you run two identical campaigns whether it's you know campaign is designed to sell products for your ecommerce store or as the campaign designed to generate leads for you know service based business if you run a traffic campaign alongside a conversions campaign then you will see a 74% reduction in cost per conversion with the conversions campaign versus of traffic campaign I mean that is absolutely enormous that's talking about taking your cost per lead from let's say

5:58$20 to $5 you know all your cost per purchase from $100 to $20 know from $100 to $26 and we talked about enormous differences absolutely enormous differences so when I see a lot of people say postings in my group or answer you know my facebook group or answer post questions comments on my youtube channel they would say things like I'm generating tons of clicks but people aren't purchasing and nearly always I would say to them you're using the traffic objective on you using the traffic objective you need to be using the conversions objective okay now there's lots of people and I'm sure as we're watching this video will be aware

6:34that the converge objective is the better option they probably weren't aware that it can produce a 74% reduction in cost per conversion on average which is just absolutely phenomenal I ran this experiment it must have been two two and a half years ago and I think we saw a 40% reduction in cost per purchase from the conversion objective versus traffic now the average is up to 74 percent and that's because Facebook's platform is improving all the time there's tons of very very smart engineers at Facebook that are trying to improve their machine learning process and get it to be more efficient and more effective because they know that's gonna make our

7:09campaigns as Facebook advertisers more effective and that's gonna convince us to spend more money on the platforms they're very much incentivized to get us the best results possible and that's what they're doing by improving their machine learning and that's why the difference we're seeing between traffic and conversions is so huge but anyway my original point was where I was going with that was that a lot of people are aware that the convergence objective is more important than traffic and where you want to be but they are under the misconception that you cannot run a conversions campaign with a brand new ad account or if you're going to be

7:39generating less than 50 conversions a week now if there's anything I achieve in the facebook advertising space it's that I want to convince people that you can run a conversions campaign with a brand new ad account with a brand new pixel and you can also run a conversions campaign very successfully if you're generating less than 50 conversions a week yes Facebook would like more than 50 conversions a week in order to be able to optimize the campaign fully but here's the thing a partially optimized conversions campaign that's generating say 1015 conversions a week is going to outperform a traffic campaign that is fully optimized because as we said the

8:16difference between traffic and conversions is 74% and absolutely enormous difference between the two and so you know let's say you're partially optimized conversion campaign doesn't quite generate a 74% reduction in cost per conversion versus traffic perhaps it's a 50% or a 45% reduction in cost per conversion versus traffic but that's still absolutely huge a 50% reduction means you're paying half as much in terms of your cost per purchase cost per lead etc so with brand new ad accounts with no pixel history no campaigns running even with small budgets if you want conversions if that's what you really want go ahead and use the conversions objective we do it all the time and then

8:55when you're optimizing for a conversion event go for the conversion event you want don't go for Add to Cart or initiate checkout or view content or one of the high-level ones because you think you need more conversions just go for purchase or go for lead or go for the end conversion the action you want people to take Facebook's machine learning is getting more and more and more sophisticated to the point where you really want to benefit from putting Facebook on your side and just telling them hey Facebook this is exactly what I want one conversions this is what a conversion looks like please go out and

9:25get me some conversions so and really I mean you know this whole video has been around this this one tip and I sort of thought about it cuz talking to my facebook rep the other day and thinking you know isn't this insane that 74 percent reduction in cost per conversion I mean that could be the difference between you not being able to run a Facebook ad campaign profitably and you being able to spend a million dollars a year on Facebook Ads very profitably and scale a multi-million dollar a year business I mean that is actually true so please please please use the conversion objective the only extra step you need

9:54to take is to install the Facebook pixel I said I've got a video for that it'll be in the video description so go ahead and check that out now before you go a couple of free Facebook advertising related resources but I want to quickly talk about the first is my Facebook group so I've got a Facebook group called Facebook Ads mastermind group and it's one of the biggest groups on Facebook in the world to do with Facebook advertising there's currently 38,000 members and this group is just an absolutely fantastic community full of Facebook advertisers people like yourself they're looking to get better results from their Facebook Instagram

10:23advertising there are literally hundreds of questions asked hundreds of questions answered every single day so if you've got questions you want to connect with like-minded people and it'd be great to have you become a part of my Facebook Ads mastermind group there will be a link in the description completely free to join and we moderate it very closer so it's my group it's moderated closely so no one's allowed to spam you or put up any sort of annoying posts or anything like that they get removed from the group it's very much an environment that is designed for people to get better results when a Facebook appetizing and I also I'm involved in

10:55the group as well I do a free training every single Wednesday in the group so if that sounds like the sort of thing you want be involved in then go ahead and join links in the description I think I want to quickly mention is our it's a free webinar I've created it's called three killer Facebook advertising strategies to double or more your revenue now in this webinar I've broken down basically three sales funnels that we use for our clients all the time it generated millions of dollars using these sales funnels they're very much tried and tested and and I've broken these down into their component parts and I sort of

11:23explained right if you've got this type of business you want to use this sales funnel and this house autumn has these three steps here's how you implement them if you've got this uh business you want to use this sales funnel this one's got two steps and this how you implement them so no matter what sort of business you have you know ecommerce service digital etc etc I strongly recommend you check out this webinar again completely free there'd be another link to it in the video description it's about 17 minutes long which so strongly recommend you go through this I think one of the biggest mistakes I see people make when

11:50it comes to Facebook advertising other of course then using the traffic objective or the engagement objective or something like that instead of conversions which we now know is a huge mistake but other than that it's using the wrong sales funnel you know if you use a sales funnel that works really well for thousand-dollar courses but you sell a $20 ecommerce product or you sell a $50,000 service it's not going to work you need the right sounds funnel for your business so that's what this webinars all about people free check it out VIP link is in the video description if you enjoyed this video please give it a

12:20thumbs up smash it smash that like button that'd be much appreciated really helps me out comment below to let me know if you've got any questions if you agree with me disagree etc and I'd love to hear it also comment below to let me know if this was useful if this sort of contents useful don't forget subscribe to my youtube channel if you haven't already make sure you turn on notifications when you do so you are notified when I publish new facebook advertising related videos which i do multiple times per week and yeah I will talk to you guys soon best of luck with everything guys use

12:47the conversions objective-c your insults your results improve as a result and I will talk to you soon thanks bye