Gurus HATE This, But Creatives Matter


Facebook advertising is simple, get the right ads in front of the right people.


Now before you think that’s an oversimplification of the advertising platform, consider the following equation–


Visitors * Average Order Value * Conversion Rate = $$$


With ad spend being fixed, this equation assumes the following:


  1. If we can increase the visitors, while everything else stays the same, then we make more money.
  2. If we can drive up Average Order Value, while everything else stays the same, then we make more money.
  3. If we can drive up Conversion Rate, while everything else stays the same, then we make more money.
  4. We can’t make more $$$ if none of these variables change. Money doesn’t grow on trees.

In the case of Facebook, the number of outbound clicks to your site is essentially your visitors. So taking the equation above and applying it to Facebook, if you can drive down your CPC(meaning more clicks for less) and increase your conversion rate, then you’re one step closer to hitting your target.


Let’s take the following scenario and break down how we approach a project:


Product: Forged Japanese Chef’s Knife

Cost Per Click: $1.00

Retail Price (AOV): $150

Conversion Rate: 1.3%

Ad Investment (month): $10,000

Targeting: Kitchen Knife Interest, Competitors, 1% Lookalike

Success ROAS: 2.5x


I’ll skip the math here, but this works out to be a $19,500 return, at a ROAS of 1.95x and we are about 28% away from our target. Bringing the equation back, this means we either need to drop our CPC to $0.78 or increase conversion rate to 1.66%. How do we that, you ask? By getting the right ads to the right people!


Ignoring all of the random bids and tweaks you can make in Facebook, your ad performance boils down to the creatives you serve and the people you serve them to AKA your audience targeting. As a result of that, you can choose from one of the three options to decrease your CPC and potentially drive up your CR–


  1. New ads with existing audiences
  2. Existing ads with new audiences
  3. New ads with new audiences

Assuming my audience targeting is on point, I’d start with trying new ads in my existing audiences.  Here’s the order in which you should test ad variations in–

  1. Creative
  2. Headline
  3. Body Text
  4. CTA

Start by testing the actual creative because that’s where users get their attention drawn to first. Once you find a good creative (as in something that’s close or at your success metric), then you can work down the list and make small tweaks to see if you can get incrementally better. Check out this example–

 

  • https://www.facebook.com/613958365368983/posts/1700151976778101
  • Video leads with a quick unboxing transitioning into a testimonial.

    CPC: $4.26

    CR: 2.15%

    ROAS: 0.7x

  • https://www.facebook.com/613958365368983/posts/278784889398800
  • Video leads with actual product being used with a clear text overlay of “Wanna Know How To Get Celebrity White Teeth”

    CPC: $3.62

    CR: 3.70%

    ROAS: 1.7x

    When you think about testing ads, think about swinging bigger. If you practice the wrong golf swing every day, you will still be swinging poorly two months from now. Same goes for ads. If something isn’t working, changing a few characters in the body isn’t going to do the trick. In this case, we have found that pointing out that the variables celebrity, and showing product in action in the first 5 seconds of the video made a significant impact, despite the copy being equal. Make big changes for big impacts.


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