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.
But…
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.
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)
Adwords
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
Video Placement Ads (Adwords): Hand picked YouTube videos that allow 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)
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.
-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.
Adwords
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.
A video posted by Whiteboard Animation (@ydraw) on
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
Facebook is unmatched in their social media presence.
As of January 2016, 1.591 billion people login every month and 1.038 billion login every single day.
In fact Facebook calculated in 2012 that 5 new profiles were created every second. People all over the globe are jumping on board every day, and Facebook’s users are of a wide age demographic ranging from tweens to octogenarians.
According to SproutSocial, the average American spends 40 minutes on Facebook a day. Not surprisingly 50 percent of 18-24 year olds log onto FB as soon as they wake up.
With a growing user population and no loss of popularity in sight, Facebook has now achieved superstar status and from a marketing stand point cannot be ignored.
Thats just one reason why you need to be using Facebook Video Marketing.
Obviously social media marketing’s unique advertising niche has many benefits, and creating a Facebook page is a no brainer. But how can you as a brand maximize your audience reach effectively?
It doesn’t matter if you you’re a pet shop in Hoboken New Jersey, Nike, or even Metamucil your audience is on FB and they are watching videos. There are around 8 billion video views on Facebook daily.
With an ever changing platform format, understanding the Facebook’s video distribution is key.
If you share a video that is already up on the internet, say for example a video from your YouTube channel, the audience reach is actually quite low.
Research conducted by SocialBakers tells us that the organic reach of a video post is only 8.7 percent which means only about 9 out of 100 fans get to see said video post.
Sounds low right?
Simply uploading the content directly to Facebook can make all the difference. Doing a direct video post (also known as posting a native video) has risen to some of the top viewed online video content.
SocialBakers’ analysis also shows us that native video uploads to Facebook have surpassed YouTube links and embeds in user news feeds.
This is due in large part to the auto play feature on FB. Auto play on Facebook automatically plays a native video silently while the user scrolls through their news feed.
Another added bonus of posting native videos to Facebook is the call to action.
Use Facebook Video Marketing today.
When the video is done playing, the viewer has two options, to replay or click the call to action button. A CTA is an instruction to the consumer that provokes an immediate response.
Often times a call to action is something along the lines of “learn more” or “buy now”. Further engaging the audience is so important because it drives brand awareness and in turn leads to sales.
A Cisco study projects that by 2019, 80 percent of the world’s internet traffic will be video. Combined with Facebook’s skyrocketing statistics, the marketing path for brands to take is quite clear.
Constant compelling video content is necessary in order to reach the target audience.
Facebook is the leading social media platform, and now is the time to fortify your brand’s online presence with video marketing.
[Start of video Need more leads? This is The Best 10 Minute Online Marketing Webinar. Join Us!]
[Beginning of recorded material]
Jace: Hey guys Jace over here at Ymarketing. Today we’re going to do a ten-minute presentation to just kind a show you guys, what I like to call the 10 minute Webinar, we’re going to show you guys exactly what we do. I got Wes here, Wes say hi.
Wes: How are you doing?
Jace: Wes is kind of going to go over study we just did for a client. Mainly this webinar is to show you guys a little bit about what we do, how we do it, why it’s effective, and like I said I want this to be about 10 minutes. So, here is a slide.
I did this presentation a couple of weeks ago for a speaking gig. So first of, main thing about most businesses is they have a hard time getting their message out there, they struggle with getting leads, they struggle with getting traffic. And how it all started is basically, let me go to the next, next slide, I can kind of explain. How it all started… So I’m going to explain a little bit about myself. I am obviously a father of four. I started a company called Ydraw while back. Ydraw started the whiteboard animation field. Why from Ydraw we kind of broke Yinc? We noticed there was a lot of people struggling with video ads, video marketing, running traffic, and so we started Ymarketing.
It’s been around a couple of years now. Wes, he is the CMO. He does the kind of, the chief marketing officer, and I basically run the company. Okay, so that’s a little bit about myself. And we will jump right in, keeps coming up on the slides. Okay, so how does everything work? So when we come on board with a company we focus on four main things. Our job is to get your message in front of your audience. If you don’t have a message, that’s where Ydraw comes in place. They will go out there and create your message and tell your story. We like you to show up everywhere. We love YouTube. There is ways you guys could go out there and put your videos in front of your competitors videos, you can go out there and put your message in front of audience who is looking for your product and service. Let’s say they go on YouTube and they search how to change, like a plumber, how to do plumbing on my house? Well if you’re a plumber, if you create video you can run ads there. So we love YouTube marketing, we love Facebook marketing. What we do on Facebook marketing is, we do the same thing. We take your message, we find the target audience, you are going after it and then we will run them ads. Well with that comes PPC pay-per-click. Same idea once again, when people are searching for your product or service we want to pop up. Now a lot of times people aren’t doing YouTube ads. They aren’t doing Facebook ads. They aren’t doing PPC. We kind of have the philosophy that you need to be doing all of it. Now, you might not want to spend as much money on YouTube, as you do PPC or the other way around, it just depends all on your ROI. That’s what we focus on this return on investment. So those are our four core why gave you three, our last one is e-mail marketing. So, when we come on board we like to create e-mail campaigns. So, you want to communicate with your audience that suffers from ADHD. Whenever we create ads, videos, we realize you only have 5 seconds to hook somebody’s interest and 30 seconds till they decide if they’re going to do business with you. So everything we create is engaging, especially on YouTube, especially on Facebook. We want it to grab attention. And if you want you can jump over to our website. We do have our website. I put a link over on the side of this, hanging out where you guys are able to go and up along the top you are going to see a YouTube tab, you are going to see a Facebook tab, you are going to see our e-mail tab, then the PPC, and other things explained, exactly how we do it. There’s a few write-ups, we have blogs, we have, you know, the Yinc University, where you can educate yourself. If you don’t want us to do it, you guys can turn around and do it yourself with our education. Budget killers, I did want to do a word of warning. Most companies fail, because they don’t watch certain things. Budget killers, like I’ve had a lot of clients that come to us and say ‘Hey, we’ve already done YouTube ads. They didn’t work for us.’ Well, I can go through these and realize, hey they’ve messed up. They didn’t watch their budget. They let their ads run on the wrong videos. Same goes with PPC. Same goes with Facebook ads. The reason most people fail is because they don’t pay attention to it, or they don’t know what they’re doing. Okay, if you want to check your ads often, make sure you’re not playing on kids’ videos, make sure you’re shown up in the right spot. Don’t have too broad of an audience, especially on Facebook you can have 20,000,000 if you’d like. You need to be 2,000,000; 200,000; sometimes 15,000. That’s kind of the size you want to look at doing. That’s it. So, here is what I want to do. I want to have Wes, I’m going to bring up his slides. So, main reason for this is to show you a little case study we did for a client. Let me take this out.
Wes: So, as Jace has pulled that up, some of you if you read Jace’s e-mails in the past, some of you might recognize me from the proofreader that got fired. Actually, I am no longer proofreading Jace’s e-mails, but basically what I want to walk you guys through is our last experience with one of our clients. And it was a unique experience in a few ways. And Jace has pulled that up now, but I got a call from this client and they told me ‘Okay, we have a conference in Brazil and we have two weeks to get sign ups. We need help filling the seats.’ So, we said great, we hadn’t advertised in Brazil before, but we knew that YouTube would… Brazil was the second biggest platform for YouTube and Facebook was very popular there. So we could use their same systems, we already had in place. They gave us a $20,000 budget to spend and by the time we worked everything out and got the contract signed, we had about eight days to spend it. So, we were trying to figure out, okay how can we effectively spend this budget in a small amount of time and make sure we are getting called by the leads. What also made this challenging is a qualified lead, meant these people were able to invest about $500,000 into the service. So, it made it, we had to make sure we’re very targeted, well and then to add to it. The first two days we were running ads. Facebook had some issues and we didn’t get it running till about a day and a half in. So that cut our time to six days to generate enough leads to fill all the seats for this conference. Now Jace if you go to the next slide. Basically what we did, we started out, we created 11 campaigns. And the reason we created Olympic campaigns is because we needed to test images, headlines, and as many audiences as we could in a very short amount of time. So, we build them all out at once and started running them. We saw a lot of thing happen, initially we set our budget about $1,000 a day, and we were spending about 300. Facebook would spend as much as it could and stop about 300. And so, it took about three days for us to start hitting our full budget, but as the budget increased we saw better conversion rates and better click rates to the website. In this next slide you are seeing, basically, our most influential ad, where we had just over 14,000 clicks. Our clicks per to the website were 18 cents and this one was interesting thou. Because we went a little bit broader on this, but we did target. Obviously the demographic would really turn the corner for us, because as we are creating these ads we saw, we are obviously seeing a lot of numbers, but we have spent a lot of money and stayed targeted. So, if you go to the next slide would really turn the corner for us. We knew we needed to get to the wealthiest in Saint Paul. So we actually searched the most expensive neighborhoods in Saint Paul and read a few articles and hopped on a few real estate sites to make sure we were finding the most expensive places to live. And then we actually went into Facebook and hit the location from the latitude the longitude and then we’re able to target multiple neighborhoods, multiple wealthy neighborhoods, to generate these high quality leads. We didn’t get as many clicks on those, but the clicks that did come were already high quality in turn to our most qualified leads. The other thing, so Facebook worked out really well for us, once the Facebook allowed us to run our ads. The second thing we did was YouTube. We obviously wanted to hit as many people as we could, but we had a mixture of mattered. So, initially we set our targeting budget at 2 cents a view. So, our first 3,500 views we were getting for 1 cent. Once we’d run out for a day and a half the campaign stopped. So, we bumped up our targeting a little bit higher and then, in the end we ended up giving up just under 80,000 views at 3 cents per view. Our reach was very strong on YouTube and we got really targeted with some placement and different things like that. So, a lot went right, we had some issues, but in the end we ended up generating enough leads to force them to move their conference to, basically they had to move their conference because we generated too many qualified leads for them, to make sure everyone fit.
Jace: And Wes you tell them the number, how many leads did we get? So we got in the 300, what was it?
Wes: We ended up only spending $10,000 of their budget, we got 368 leads and about 100 of them were qualified to invest that much. And so it was huge numbers. We were only hoping to generate about fifty, so we doubled our goal. And what’s great for this client is if they close one of those cells, they made their money back. So, yeah it was a great campaign.
Jace: Yeah like, they’ll make it back five, six, seven, eight times, so that is a good thing. So, and I noticed some of this numbers, I mean 3 cents a view. It’s pretty typical and this is for Brazil. So you do get a little less if you are over in the United States, it’s going to be a little more than 3 cents a view. The biggest thing was, this client came to us. We were on a big crunch, but that’s exactly what we do. We took his message, we ran Facebook ads, we ran YouTube ads and we got him leads. So Yinc, if you guys want to check us out go over to yinc.com, marketinghy.com, just read about what we do. And our whole goal is, we want you guys to get an ROI, we want to run your Facebook ads, we want to run your YouTube ads, and there is all these little things that we know and understand that a lot of other companies don’t. So, if you have questions were around, you can contact Wes. His e-mail is wes@marketinghy.com. You can always e-mail me at jace@marketinghy.com. Or just go over marketinghy.com and fill out our contact form. That is it. We will be around. Talk to you later. Bye Wes.
Instead of telling you what to do, I am going to show you what I did and how you can do it too.
It all began this last week when I attended the Start SLC conference up in Salt Lake City. The Conference was a jewel. In fact, it was so good I plan on going for years to come or at least until they let me be the keynote speaker.
I’ll invite you when that happens… 🙂
While sitting in the audience being inspired, I came up with a simple solution to land those big clients.
I have to admit that I am not much of a networker. When they have those networking parties, I will usually go grab a sprite and head back to the hotel.
I know…
It’s bad, but for some reason I never have liked the whole networking thing.
So…
While sitting in the audience listening to a speaker from Domo I came up with a couple of ideas on how to target a specific company or a specific person with a customized ad. I decided to target all the executives.
Why do you want this?
Imagine if you are a finance company looking to land that multi million-dollar client. If you could run a particular ad to that individual, don’t you think that would have an impact on their decision? Meaning you run a custom ad designed to land that one company.
You can also use it to set up a lunch appointment or speak with a company’s executives. It’s just a great way to get attention.
For this to work, you will need the following:
Facebook ads (a Facebook account)
YouTube Channel linked to your website
Landing Page
Adwords Account
Remarketing pixels
Here are the Step To Become An Amazing Marketer A.K.A Stalker:
You get the target’s info
Build a customized ad
The target sees the ad
Goes to the landing page
We cookie his machine
Run him video ads on YouTube banner ads on other sites in the Google network
Step 1: Collect The Targets Info
For this to work you need to get the Target’s email address. You will upload the email address into Facebook. Facebook will then locate the Target’s Facebook Page.
I found the executives of Domo on LinkedIn, became their friends, and then exported my contact list.
You can also get them to like your Facebook page and start running ads to those who like your page.
Not a perfect system, but it worked.
Step 2: Build the Assets
1. Build a Facebook ad, a landing page, and a video.
2. Place a Remarketing pixel on the landing page. You can place a Facebook remarketing pixel and a Google remarketing pixel.
3. Embed the YouTube Video on the landing page. This is will be used for YouTube retargeting.
Step 3: Create The Ad
Jump onto your Facebook account and create the ad. Under custom audiences you we be able to upload the contact list.
Warning! You have to have a minimum of 20 people on this list. Facebook changed its guidelines a while back, but it’s really not a big deal. If your target is a male you can fill the rest of the list with females and select “Only Market to Male.”
Make sense?
I hope so because it’s not an easy task to pull this stuff out of my brain, but I do it anyway all in the name of sharing…☺
I actually uploaded all 2000+ Linkedin contact because I wanted to see if other people would click on the ad out of curiosity.
Like I said…not a perfect system but it works. You might have to have a broader audience, but we are paying such a small amount per click that it won’t matter if you run the ad to thousands of people. That’s what I did.
Step 4: Run It
Once the ad has been created it is time to let it fly.
Step 5: Generate a YouTube ad that is customized.
Picture this…
You’re on YouTube and you’re about watch your favorite One Direction Video. I say One Direction because just last night I found out my wife dropped $1300 for the whole family to go see them in concert.
It’s been a rough night…
Since your target has watched the video that was sitting on your landing page, you now can run custom pre-roll ads.
(If you do not know what those are, I will direct you over to another article. YouTube Pre-Roll Ads. http://marketinghy.com/youtube-preroll-ads-work-company-run-video-ads/ )
Once your target clicks on the play he gets a customized YouTube ad that speaks directly to him.
“Hey Don… We need to do business and I would like to take you out to lunch. What day works best for you? Click here to set up a time…I’m waiting Don!”
Creepy? Yes.
Funny? Absolutely!
Effective? Who could turn that down?!
Here is a good example of a YouTube video that is customized.
Quick Recap
1. Find the target and get ahold of his email address 2. Create a landing page and place your retargeting pixels on the page 3. Create an ad that speaks directly to the target 4. Turn on the ads and drive him to your landing page 5. Run a YouTube pre-roll ad that is customized for him
Questions?
I hope that helps and make sure to let me know if you try this out. There are a lot of people that would like to hear about your successful campaigns.
The Results…
So far I have had a good number of clicks and I have received a phone call from a guy that works with Domo. He tried to sell me on his product…
I have some fine-tuning to do, but I know I will get some results.
Have a great day and I look forward to hearing about your success
Hope you enjoyed
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Alot of times people we find they are too busy or they just do not have the technical skills to implement our strategies. If you can not implement this strategy, we would love to do it for you. Everything we do is based off of ROI and will help your business. Sign Up and we will get you started right away. We will manager your Video Ads Campaigns, Email Campaigns and Autocomplete Services. They Work and we use them. Sign Up and see if we are a good fit. We may not be…but it’s worth seeing. This could change your business.
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How To Create a Creepy Marketing Campaign. Some Call It Stalking We Call It Amazing Marketing.
Facebook Ads Can Make You Money Or Break The Bank. What is it going to be?
Yep it’s an important blog day in Jace Vernon’s land of marketing. I have been running more tests to see if Facebook Ads really can produce quality leads at a lower cost than Adwords, YouTube and Bing.
