Scaling A Business With Adwords, Facebook, and Instagram Video Ads. Part 1

Scaling A Business With Adwords, Facebook, and Instagram Video Ads. Part 1

I am excited to finally get this project going. Are you ready to start scaling your business? We are going to show you guys how to scale up your business using Facebook, Adwords, and Instagram Ads. Especially Video Ads.

When I say scale, I mean increase ad spend which will, in turn, increase your leads.

More leads equal more sales for you business.

This is part 1 of a 4 part series so keep an eye out for the other blog posts. This could turn into a 10 part series. I will keep going as long as you guys keep reading. Feel free to ask questions, make comments, and share this article. There are businesses that need it!

A lot of people have a problem with scaling. It can be really nerve racking and it takes a leap of faith: Faith that you have the right offer, faith that your product brings value, faith your funnel is set up correctly, and faith your message will bring conversion.

The reality is, you could bomb and lose money.


That should not stop you from trying. You have to take a risk!  If you want to grow your business, scaling is a great way to get rapid growth. It may take testing and tweaking. So make sure you are ready mentally to do this.

We know this first hand. Case and point!

Many of you know, Yinc does marketing for all types of businesses. We like to focus on video marketing but many of our clients need a lot more then just video ads.

We are currently working with a business that is ripe for scaling. Our cost per lead is around $1 and our cost per customer is around $9.

Their average customer spends around $70 on their first order, which puts us at a $61 gross profit.

On the surface this looks amazing. The numbers above are definitely scalable, but the company is basically breaking even. They have a net profit margin that is so tight that we have not convinced them to scale yet. This is where the Lifetime Value of a customer comes into play. If their customers order more product, instant profit. But they have to be willing to break even on that first order.

Like I said…it’s not easy.

During this process, you will learn about your product and offer. Take what you learn and make adjustments. It’s also important that your adjustments are made quickly. If you have a web guy that takes weeks to make a correction, you have problems. If you can’t create a Facebook audience in a hour, you need help. If you have no idea how to create an Instagram ad, you better educate yourself or get someone who knows what they are doing.

This is not a game for beginners. You will lose money and quite before you become profitable. I see this all the time!

This is not to scare you. I just want to make sure you have the little things adjusted before you decide to scale.

The History Of Scaling Ydraw

We’ve come to the conclusion that we want to scale our Animation Company Ydraw.

Over the last couple of years we have been content with the growth and profits but we want to add another 100k a month in revenue.

One of the biggest limitations of Ydraw is that each video is customized. It takes a lot of creativity and human capital to create a Whiteboard Animation Video. It’s even worse with 2D and 3D animation videos. For us to scale perfectly, we would need to have a turnkey video in place or we have to find a lot of new talent.

We don’t know if we want to do this yet.

So once we increase our sales another 100K a month we will put a freeze on our ad spend and decide if we want to go on another hiring spree.

Where We Currently Stand

When I talk numbers, I will only cover Adwords, Facebook, and Instagram. The numbers do not include referrals, SEO, repeat business, referral partners, etc.

We’ll be discussing Ads and Video Ads only. All the leads are coming from Ad spend.

October 2015 Ad Spend (not a good month)

Spend: $8,083
Leads: 81
Cost per lead $99.79
Click To Conversion Rate was 3% to 9%

Facebook and Instagram (Zero)

Last October we were running the following:

Keywords Search Ads (Adwords) : These are just simple keyword targeted ads.


Gmail Sponsored Ads (Adwords): These are Gmail ads that pop up on the Gmail promotion tab

Video keywords Ads (Trueview adwords): These are YouTube display ads for specific keywords

YouTube In-Display ads


Video Placement Ads (Adwords): Hand picked YouTube videos that allow ads

YouTube In-Stream Ads

Retargeting (Adwords): Banner ads and video ads for visitors

Although we had great success with running Facebook ads, last October we had turned them off. We felt we needed to make some changes first.

Step 1: Scaling your online business. Online Marketing Assets

Do you have everything necessary to run an effective online marketing campaign?

You are going to need the following:

  • Website
  • Videos (30 second ad and a full length explainer video)
  • Banner Ads
  • Email Campaign
  • Website Forms
  • Adwords Account
  • Facebook Account
  • Instagram Account
  • YouTube Account
  • Conversion Pixels
  • Analytics Goals
  • Facebook Pixel

**you can click here for our full online marketing checklist**

Everything should be branded correctly and have links out to your landing pages. I have created plenty of video tutorials to help you. Just visit my YouTube Channel.

When scaling, everything works together. Traffic we get from Facebook becomes part of our Remarketing campaign in Adwords. Our Search traffic on Adwords becomes part of our Lookalike audiences on Facebook and Instagram. The likes and shares on Instagram become part of our Remarketing group on YouTube. The point it…It’s a full system.

The Assets above are the foundation. Do not go any further until you have everything in place.

For those who have everything, I would suggest revamping or double-checking your work or go down the full checklist which I provided above.

Ydraw’s Adjustments

After looking over our numbers I realized we needed to make some adjustments to the website. I knew this for some time, but I’m busy and I didn’t make time to for the necessary adjustments.

I know…STUPID!

This seems to happen a lot with business owners. We get caught up in so many different things that we neglect making necessary adjustments; especially if things are going great and you’re making good money. It’s human nature to keep the status quo when all is well.

Our number 1 goal for the website is to collect a lead. We want their email address or we want them to pick up the phone and call. Calls have a much higher closing rate, but a lot of people are in research mode and will only leave their email.

That is ok.

Once we collect an email address they enter our Email Campaign.

Our website was ok at the time, but was random and lacked a clear call to action.

Plus, there were a couple of issues on Mobile that needed to be fixed.

Over Thanksgiving break we went to work on the website. The updated version would have a clearer CTA and would eliminate a lot of the clutter.

Basically, we simplified.

Our website contains:

Below I will give you the results.

But first, I want to go over the numbers.

Numbers You Should Know:

-Cost Per Leads
-Cost Per Customer
-Closing Percentage
-Profit Per Sale
-Life Time Value Of A Customer

If you are losing money every month, one of the numbers above is messed up.

Cost Per Lead is different for everyone.

If your industry is highly competitive you could be spending $50 dollars a click which could turn into a $500 cost per lead. This is not uncommon (Attorneys are known to spend this type of money on leads).

At Ydraw we can afford to spend $150 to $300 per lead or $2500 a customer, and still come out on top. You may only be able to spend $3 a lead.

Just make sure know your numbers.

Obviously, the name of the game is to get the lowest cost per lead.

We will get into this later but if you can only spend a couple of dollars to generate a lead, Adwords might not be the best place start. I would look at Facebook or Instagram. You will have difficulty reaching your goals with Adwords unless you find a way to increase your prices and profits per customer.

Either way, you have to test it.

Dan Kennedy says, “He who can spend the most per lead wins.”

Russell Brunson is always preaching that it’s ok to break even to obtain a customer. He will even lose money because he knows profit’s are made further down the funnel.

The Lifetime Value of a customer is important.

Fast forward to Jan 2016

It was time to start scaling up. The new website was up, Instagram ads were working and our Facebook strategy was in place.


Spend: $8,185.35
Number of Leads: 117
Cost Per Lead: $84.62
Click to Conversion: 5.69% to 10.53%

Facebook and Instagram

Spend: $4665
Number of Leads 446
Cost Per Leads: $10.45

As you can see, the website adjustments made a big impact on our conversions. We saw a 35% decrease in Cost Per Lead and close to 87% increase in Click to Conversion.

You will also notice that Facebook and Instagram campaigns really added to the number of leads.

Our Cost Per Lead is way lower on Facebook and Instagram, but those leads are not as high of quality as Adwords.

There is a difference between people who are actively searching and people you interrupt. Facebook and Instagram are interruption techniques. Meaning they are not actively searching for our product or service.

There is a longer sales cycle, but the ROI is still big.

What I love about Facebook and Instragram ads are the shares, likes, and comments. Here is the Instagram video ad we are running.



Take note of the comments and shares. This is powerful because we are getting free customers. When one person sees our ad and thinks their friend needs it, they share the ad.

This is like an instant endorsement.

These are factors that are extremely hard to measure. All I know is that things are working.

For example…

In one day Wes, our sales VP, had $18,000 in sales from Instagram Ads.

We spent around $150 on ads that day. The whole month of January we spent $4665 on ads for both Facebook and Instagram.

I do not have the exact amount of sales that came in from Facebook and Instagram, but it was a lot (still trying to track them more effectively).

These are exciting numbers.

The Plan Moving Forward:

Over the coming weeks I plan to increase ad spend by $3000 and make some more adjustments.

The goal is to lower or maintain the same Cost Per Lead.

Here are some key factors that contributed to our success in the month of January.

  • New Website Design
  • New Facebook and Instagram Video Ads
  • Lookalike Audience Created from Conversion
  • Increase Ad Spend

I will create a separate blog post about Lookalike Audiences because I think Facebook changed their algorithm a few weeks back. It was a good change because their effectiveness increased dramatically (more to come).

In the meantime, good luck scaling your ad spend. If you have questions, feel free to reach out to me. I would be happy to discuss your business.

I am excited for what 2016 holds.

Happy Scaling…

Thanks for reading.

Scaling A Business With Adwords, Facebook, and Instagram Video Ads. Part 1

Top 5 YouTube Ads and 7 Concepts We Learn From Them

Top 5 YouTube Ads and 7 Concepts We Learn From Them

Do you know what are considered to be the Best YouTube ads in 2015? Google asked ad makers, brand shapers, copywriters, and coders to vote on their favorite YouTube Video Ads.

Let’s start from the top. We will dissect these later on.

This one is still one of the best commercials I have seen. Love It!

I want you to pay attention to these ads. There’s lot we can learn from these winners. This is consumers voting on what they like to see and share. Ever since YouTube came out, consumers have been screaming to advertisers. They have been telling us to change our ways and produce videos that move them.

Think about it…Consumers now have the power to engage, comment, share, and click. Here are some trends from some of the top YouTube video ads.

1. Tell The Truth!

Dollar Shave Club is the perfect example. Mike was able to share everything from the brand’s persona to its value proposition all while oozing authenticity. It worked…launching his business into millions.

2. Entertain them First.

YouTube is a place where people are looking to be entertained. Here is a great example of a video ad that we produced. Our first job was to grab their attention and the second was to keep it. This was a video created specifically for YouTube ads. We interacted with the “skip” button. How do we know this worked? By reading the comments. How often do you have people like your YouTube ads?

3. Be Interactive.

Old spice is a perfect example of how to interacts with your audience. It’s brilliant and the whole campaign has to be the absolute best on YouTube. Millions of views, subscribers and publicity.

By the way…

A very powerful way to engage your audience is by creating an interactive video. It’s like a choose your own adventure. You can go here to read more about it.

4. Take All The Time You Need.

This is one of the powerful aspect of running ads on YouTube. You’re not restricted by time. It kills me when companies use 15 second TV commercials and think they will perform on YouTube. Video ads are about having a conversation with your audience. This is hard to do in 30 seconds. Now, don’t go out and create a 20 minute video. (2 to 3 minutes is plenty).

“It’s time to break free of the 30-second spot. Nike’s “Winner Stays” video, which has more than 115 million views, is more than four minutes long. Your story doesn’t have to fit into a timeframe of 15 or 30 seconds anymore; it just has to be a story viewers want to watch.”

5. Tell A Story.

This is pretty difficult because you have to shift you mind set from an ad maker to a story teller. This takes a lot of thought and energy. “The Scarecrow,” has to be one of the best videos for telling a story. I have written about it before, but I just can’t stop bringing it up. If you are going to take the time to create a video ad…Why Not Make It Epic?

6. Have Fun!

Have a bit of fun with your audience, play with the skip button, or pull some pranks. Our company is going to come out with a couple of funny ads in the coming weeks. We are going to interact with the skip button. Look for it.

7. Don’t quit.

YouTube video ads needs to be an on going process. You will most likely bomb your first time, but that does not mean you should quit. Keep creating and keep entertaining. Eventually you will fail enough to succeed.

Gone are the days when ads lived in one medium and are constantly being restricted. You can see that businesses can really change the paradigm with YouTube ads. You can now tell your story for practically free and if that doesn’t work we suggest you start running YouTube ads.

YouTube video ads (also known as Pre-roll ads) are a great way to get your message in front of your target audience. There are so many things you can do with YouTube. It really needs to be a part of your Marketing plan in 2015.

If you need help with running YouTube Pre-roll ads please let us know. We have a couple of tips and trick that will help you dominate.

4 Simple Steps To Create The Best YouTube Pre-Roll Ads

4 Simple Steps To Create The Best YouTube Pre-Roll Ads

Don’t we all love the exciting pre-roll ads that take up 30 seconds of our Youtube watching experience. They are annoying, but for advertisers they can become very handy. Here are 4 simple steps to create amazing Pre-Roll Ads.

1. Don’t do boring pre-roll ads

Nobody wants to see your ad and the reality is you are interrupting their precious Youtube time. The same goes with TV commercials. We tend to turn off our brains when advertising comes on. But is doesn’t have to be this way. Just put in a little extra effort and create something that will grab their attention and entertain the audience.

Back of the Brain; Front of the Brain

Although people do not like advertising, they still have needs and wants. The front of the brain is always running and tends to control most things, but the back of the brain may have a serious problem that needs to be solved, e.g. a boss who needs an explainer video, or a presentation that she is worried about. A viewer may jump onto YouTube thinking of a music video, how to cook tutorial, basketball tutorial, or for entertainment. But without even knowing it they end up on Ydraw’s website looking at explainer videos. The same happens with Linkedin, Facebook, Twitter, and most news channels.

Here is the secret of a successful YouTube Pre-roll Ad: interrupting what’s going on in the front of a viewers brain to fulfill the need in the back of the brain. The video will seize upon a lurking fear or desire, and exploit it. It interrupts and keeps on interrupting until action is taken. Here are some great examples:

2. Don’t repurpose your video…

What do I mean by this? Many first time YouTubers believe they can get away with a video that was created for a TV commercial. This has to be the worst idea ever (says everyone). The audience has the choice to watch your ad or not. It has to capture the prospect’s attention within 5 seconds and maintain that attention for 30 seconds.

You want to communicate with an audience that suffers from ADHD. You have five seconds to hook their interest, and 30 seconds until they decide they’re done with you. How do you do it?

I am sure you have all heard about how humans now have the attention span of a Goldfish. This rumor is spread by marketers, because they get get people to sit down and watch their ads. The reality is we know what we want and we do not have to pay attention to things we do not like.



3.  Your Pre-Roll Ad should be 30 seconds or longer

There is some logic behind this rule. 15 second pre-roll ads can end up costing you fortune. Google will charge you per 30 second view or until the end of the video. By creating a 15 second video you will be charged at 15 seconds. By creating a 30 second video you are going to get more qualified leads and not pay as much.

4. Send Viewers To A Landing Page With A Strong Call To Action

YouTube now allows you to associate your website with your YouTube videos. You are able to build YouTube cards, annotations, and call to action slides. You need to create a strong call to action and tell the audience exactly what you want them to do. Drive them away from YouTube.

If you can’t link video marketing to leads, sales, customers and revenue…you’re doing it all wrong!

So there you have it.

If you need help creating YouTube video ads, just contact us.