I know there’s a lot of panic about rising ad costs. And I have some good news about that and some bad news.
The bad news is there isn’t some quick trick or hack to fix this.
The good news is there is a proven SYSTEM that any entrepreneur can use to get costs DOWN.
A system that you can learn TODAY!
Check out this episode and get the skinny on…
- The proven system that we use every day to lower ad costs.
- How to adjust your budget allocation and what percentage you should spend on what kinds of ads, when!
- How to test your creative and make sure you are creating enough angles to gather the correct data
- A full breakdown of the case study where we lowered a client’s cost-per-lead from $60 to $6!
- And more!
We wouldn’t be in business if Facebook ads were too expensive. All those prominent entrepreneurs and corporations wouldn’t use Facebook ads if they didn’t work.
The bottom line is they work.
You just need to switch up your strategy.
I’d love to know your biggest takeaway from today’s episode! DM them @EmilyHirsh after you listen!
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READ THE EPISODE TRANSCRIPT
Intro: I want you to go look and tell me any business that you look up to that is doing well and is succeeding, and is in your industry. Are they running ads? Unless you have an industry that is very behind the times, you’re likely going to see that they are. Has Russell stopped running ads? Has Digital Marketer stopped running ads? Have all of these big brands stopped running ads? No, because they still work. And so that should be one of your indications.
You are listening to the Not For Lazy Marketers Podcast Episode number 398.
Emily: Hello, everybody. Welcome back to the podcast. Happy day, happy week. Happy May, all the things spring, although I will say, in Texas, we don’t have a spring. It lasts for like two weeks, and now it’s already like 85, 90 degrees every day. It has been a really hot spring already. I’m very worried about the summer. Like, what does this mean for the summer? If it’s already 90 degrees every day in May and April, it was really hot. I’m such a baby with the heat. I just can’t, I like to be outside. And I don’t like to feel that stuffy air, but I live in Austin. I love Austin all the other times, but like six months out of the year, it’s too hot. So I want to leave back to California or the mountains is my preference. So it has been really hot. I think that is a bad line for our summer here.
Anyways, today I am talking about how we took a lead cost from $60 down to $6 cost per lead. Ad costs are a big concern for people today. I see it a lot. I get asked this question all the time. I see people who are very concerned about the cost of ads and the fact that they’ve gone up and can ads still be successful and what do I do? Andmy cost really is so high that I can’t afford it anymore.
So I want to address that.
And starting next week on Monday, we’re going to be doing a live challenge that is focused on getting your first ad live. And the promise is that with that ad, we’re going to launch it on day two out of five of the challenge. You’ll actually have an ad live by that day. And the promise is that you’ll attract a thousand plus new clients or customers, and also cut your ad costs down using this system. So if you want to join in on that challenge and actually push yourself to get an ad live, everyone can do it. It is Hirshmarketing.com/challenge. Even if you’ve never run ads before, or you have run ads, I’m really teaching a very specific system and way to look at ads and then actually implementing that in your business. So hirshmarketing.com/challenge. One of the things in this challenge, we ran it before in February, we got amazing feedback from it. I have 50 screenshots of people who are sharing the results they got from this challenge in five days. I still get messages from people, even recently, who are making money off of the original ad they set up in the last challenge, so literally don’t miss this.
The reason why I’m doing it again is I’m adding a little bit more depth to it, around how to utilize the system to decrease your ad cost because the system is exactly how we achieved this result (I’m talking about it in this podcast) taking a $60 lead down to $6. I recently did a podcast on Are Facebook Ads Too Expensive, and you can go listen to that podcast, it was a couple weeks ago. My answer is yes, Facebook Ads are more expensive, but they’re not too expensive. So there’s a way to still make them work for your business and you have to start thinking that way. You cannot operate from this really scared place of, everybody saying Facebook Ads are too expensive, should I even do them? I want you to go look and tell me any business that you look up to is doing well, is succeeding and is in your industry. Are they running ads? Unless you have an industry that is very behind the times, you’re likely going to see that they are. Has Russell stopped running ads? Has Digital Marketer stopped running ads? Have all of these big brands stopped running ads? No, because they still work, so that should be one of your indications. I would not have clients if ads don’t work and we have clients that are crushing it. So I want to talk about how to get that cost down. A lot of you wish there was like, here’s these magic audiences go load these and you’ll have really inexpensive ads or here’s this like ninja ad hack. That’s going to cut your cost down, but it’s really not about that. It’s not about a secret audience or a ninja ad hack that you can go and execute, it’s about the system and the way that you look at your ads. So I’m going to talk about that here. This is how we took this combination of things and got lead costs that were at $60 down to $6, and it was only in two weeks that we were able to do that. So it didn’t take that long and then we can scale the ad spend from there.
I’m not going to give the whole system away because that’s what I’m doing in the challenge next week. So if you’re there, you’ll see the whole system put together. But one of the things that I teach with ads is to leverage different types of ads. So basically with marketing, there’s three goals that you’re trying to accomplish.
- You’re trying to grow an audience of your ideal customer.
- Then you’re trying to generate leads, email leads on your list
- Then you’re trying to generate sales.
So with each layer of this, you should have specific ads to do those things. One of the places people miss out on the most is ads that can be leveraged to grow their audience. Those are called Visibility Ads. That’s the type of ad we’re going to actually get live next week. The way I show you this, you’re able to take these visibility ads to increase the audience and the people paying attention to your brand, increase the amount of people doing that. Then you are able to retarget those down the line.
So with the more expensive ad costs, here’s what’s changed in some cases, not every case, but in some cases running ads directly to your webinar, like you may be used to, isn’t working anymore. Now that doesn’t mean just stop running ads. It might mean you put a lead magnet on the front end and you run ads to a lead magnet, then you send all of those leads to your webinar. Now you have an affordable cost per lead that you can now send all of those to your webinar. It might mean that you increase the amount of ad spend to your content, your visibility ads to grow these audiences that you then send to your webinar campaign. One of the ways that we got this cost down from 60 to $6 is we increased the percentage of the monthly budget that was going to this client’s content. So it was going to actual podcast episodes for this client. It was building an audience of people who went to those podcast episodes and also who watched their videos in their ads, we did some content videos. Then we took those audiences and we sent them to their lead magnet. So ads that were costing $60 cost per lead one of the ways that we got it down to $6 was we were building this audience of people consuming content, valuable content, and then sending that quality audience to the lead magnet. We adjusted the percentages each month that were being spent to do that. So instead of spending maybe a really small amount, like 2 to 3% of the monthly budget, we changed 10% of the monthly budget to visibility ads so we could grow the audience faster. So that’s one of the ways. So instead just like looking at ads as if they’re black and white looking at them as if you can say, ‘how do I make this affordable? I need to run ads because I need to generate an audience. I need to generate leads in sales. So how do I make this affordable? How do I adjust my strategy? That’s what this system does.
Now I want to move on and talk about this big piece of it, which is how you’re using ads. Are you layering them? Are you building all three of those components? Are you leveraging them in your strategy? Should you adjust the percentage of your ad spend that’s going to one of those components? Then there’s the actual ads themselves, the actual management of the ad creative and the ad audiences. So what I notice most of the time in people who have really expensive ad costs and they can’t get them down is just a lack of overall testing and proactiveness in launching new things. The reality is that in today’s market and marketing in general, the frequency at which you have to launch new ad creative and new audiences has really increased. Plus, Facebook, the machine, the algorithm wants you to constantly feed it new things, innovative new creative, new videos, new copy. It used to be that you could just let you know an ad sit for months and it would convert. Now a month is a pretty average lifespan for an ad so when things aren’t working, the pace at which you need to refresh is usually higher than what most people and most agencies are doing. This is why I have the proactiveness mentality in my team because we need to be spotting problems before they even happen and already have the new creative and already have the new audiences.
So first of all, testing ample creative is key and really getting specific with angles. Something that I’ve improved on our end internally and with our clients and teaching Market Like A Pro members is that you have to be really intentional when you want to run ads, let’s say you want to launch a webinar. We’re coming up with specific angles that we can leverage like 4 or 5, it really depends on the budget, sometimes up to 10 to 12 angles that we can leverage. Then with that, we create specific creative and copy for those angles. Now we know we’re testing, not just random, let me try to write a good version of ad copy, but I’m testing specific angles that maybe focus on things like pain and fear, then others focus on solving this problem or addressing this specific frustration, while others focus maybe more on the positive side and the dream come true side of things for your ideal customer. So creating all these different angles and all these different versions of creative just allows you to be a little bit more aggressive at trying to get that ad cost down. Then also going really deep on it, not just writing surface level copy or having a basic piece of creative. You really have to take it to the next level in order to stand out and in order to keep the ad cost down. I do feel like the increase in the ad cost has really pushed businesses on the creative side because in order to have your ad cost go down and be affordable, a big indication is the copy and creative. So if that’s not happening, the blunt truth is your copy and creative isn’t good enough, it’s not standing out enough, it’s not going deep enough, it’s not resonating with the people who are looking at it enough.
I know on my end, I’ve had to invest a lot of resources, internally I have a full-time Creative Lead for my own marketing, that I never had before, it was enough to just have a contract designer. We have a full time Creative Manager on the agency side and I’ve added two full-time copywriters and designers to that team in the last 30 days just because the volume of creative and the quality of creative and copy has increased so much. So if I’m doing that, that’s an indication that you need to do the same, investing the time and resources in your business in order to get that ad cost down.
The next piece of this is testing ample audiences. So testing enough audiences, you shouldn’t have like 4 audiences and be like, well, my ad costs are too expensive, you know, or 5 audiences. We typically say it’s $5 to $10 a day per audience, like per ad set. So of course, depending on your budget, you can’t test 50 audiences if you’re spending $20 a day on your ads. Each ad set is an audience or an audience group, like a theme of audiences and that needs at least $5 to $10 a day of budget. You can have more, but you can’t have less. So based on that, that kind of tells you how many audiences you need to test, but don’t be afraid, you know, three or four days down the line to launch new ones, to launch a new campaign, to test something new, to test something different and to be aggressive with this and not, you know, try to think outside the box and see are looking or working.
So how, in this situation, how we took cost per lead, and this was going to a lead magnet, not even a webinar, $60 cost per lead is insanely high, going to a lead magnet that then led to a webinar, then it was to a high ticket sales funnel, which it doesn’t really matter that it was to a high ticket sales funnel. This is relevant for anybody with a lead magnet or a webinar, or who are trying to get your cost per lead down. So they came in, it was $60 when we took over the ads, it had been $60 for the last, like 30, 45 days and they couldn’t get it down. This individual, I think, was not able to put the time that needed to go into testing a lot of different things and so their ads were suffering. So they brought us in. We initially weren’t able to get the ad cost down like below $45 for a couple weeks and then all of a sudden things just started working. What we did was we had over like 15 versions of copy and creative that we mass put out to a bunch of different audiences. I think they initially used like 20 audiences, because the budget was more like $400 a day. It was a higher budget. They used like 20 audiences. Then as soon as one was clearly not a winner they could put another one in or they could put the budget to another one. The thing with optimizing ads is, I feel like you have to pair this like aggression with it of not being afraid to just test new things and test new creative and be really aggressive with also not being afraid to fail. I really feel like so many of you get stuck in the place of, ‘oh my gosh, I don’t know what to do. Should I add an audience? Should I add new creative? What should I do?’ One of those things, you should do one or both of those things and you can’t really mess it up because you’re just going to see if it works or not. So don’t be afraid because there isn’t a rule that says, ‘When the audience does this, then you turn it off and you put a new audience in’. It’s not, if this, then that or the same every time because every account, every audience is different and you have to be able to move with that and be flexible with that. So really the key is tying that aggression. We had so many different variations of creative and audiences and we were aggressive with it paired with the other piece of, we’re not really afraid of completely failing. For this, the cost per lead was already ridiculous so it couldn’t really get worse from there, but we’re not afraid of failing.
You know, this audience may totally fail, we’ll know in a couple days let’s try it.
This creative may totally not work, we’ll know soon let’s try it.
It boils down to kind of having that like a bit to not be paralyzed in those decisions is really key.
So those are the major things we did on top of leveraging visibility ads, leveraging an audience that we retargeted, that brought in those really quality leads for really inexpensive. It only took about two weeks and we saw massive, massive drops in the cost per lead and the client was like, ‘let’s scale, let’s double our budget next month, this is crazy’. So that was a recent, like last month result that we were able to do.
The last thing I’ll say is, because I asked my team, what was it that we did? The other piece of this was making sure that the lookalike audiences they used were really high quality. A lot of people, sometimes I think they use look-alike audiences that are really old, like the source of them is from a really old list or from really old web traffic and it’s not even really their audience anymore. I’ve gone through this where we’ve changed our audience a little bit so my email list has got like a mix of people in it and not all of them are my ideal customer. So we’ve had to weed people out and that impacts your lookalike audiences. So you don’t want to be using poor quality lookalike audiences. It’s a good idea to freshen those with your most up to date traffic, so your most up to date email list, people who have recently engaged with your profile Because you can put up to a year, maybe you put the last 60 days, like that’s a higher quality audience of people who have engaged with your Facebook or Instagram profile or watched recent content or videos. I feel like accounts that have been around for a long time and maybe you ran ads like a long time ago, you stopped or whatever the situation is. You might have some old, stale data in there that you’re creating local likes from and it’s just poor quality and you don’t want to mix that into campaigns that you’re trying to get really quality leads.
So that’s another thing is our team noticed these kinds of poor quality lookalike audiences and removed them and replaced them with fresher, higher quality ones and that made a really big difference in the cost as well. So that’s how we took the cost per lead from $60 to $6 then doubled the client’s budget, we should add that in and make sure that’s clear too, because it’s not like we did that and it wasn’t stable, it’s maintained. It’s about $6 to $10 now average from a $60 average cost per lead, this is recently, like in the last month, this is a result so it’s absolutely possible. I’m going to show you how to do this, how to implement this system in your business next week in our live challenge, it is going to be epic. I promise that you’ll attract a thousand plus ideal customers in those 5 days if you get that ad live, we’re getting the ad live on day two and see how this is going to help you cut your cost per lead, your ad cost down a fraction of what they are now or what they maybe were in the past and you freaked out and turn them off.
So save your spot Hirshmarketing.com/challenge we kick it off Monday. I am so excited and I’ll see you guys then.
Thanks for listening to the Not For Lazy Marketers Podcast. If you love this episode and want deeper support with your marketing head over to helpmystrategy.com to see how Hirsh Marketing can help take your marketing to the next level, no matter where you’re at today. We help our clients scale faster than ever, find hidden leaks in their funnelS, experiment with new creative marketing strategies and help their business explode and be more profitable than they ever dreamed possible. Head to helpmystrategy.com and see if you qualify for a free strategy audit with team Hirsh