Facebook Ads 2020 | Optimization & Scaling Ads for eCommerce

Key Takeaways

you want access remote access when you look at the amount spent you look at the campaign ad set and ad level all three levels okay so then what should my goal be like like my marketing goal should i cuz even though the products are about like $35 for the small brush worth $40 for the large brush but then after shipping and manufacturing and everything each product is technically I really get a profit of like $12 per product but then if if like it costs where is the like if it costs then I get the ROI that's good like 28 X 9 X 9 X 5 X right but then this one was six dollars and 92 cents spent for that product so technically I'm just making like five dollars back but I was confused with that email you sent like Oh usually the amount spent was less than fifteen but then I was like if my my profit is twelve like I don't get it like should it should I because you're because one purchase might be fifteen dollars but they bought three products see okay does that make sense no no they might purchase ones but it's three products they've only only ever this is all like just one product purchased yeah but it's an example I'm saying an example would be somebody could purchase and it costs you $15 to get them to purchase but they bought three of them so they brought one for them and there are two brothers okay so grants for it might be a cost per purchase at fifteen but now you have three of them that have been purchased so there's gonna be scenarios like that as well so it's important to focus on the return on adspend not on the amount spent no you you can look at ammount spent but the main one is gonna be your return on adspend so you're gonna want to find out what your break-even row as is a braid so mordant is yeah sorry so once you find out what the break-even roses I've heard it's one point three five in extremely good cases and averaged in really good cases this one point five in an average cases at one point seven for e-commerce anything one point seven is usually not common so it should be good above 1.7 X that's usually most e-commerce stores about 90% of all you commerce stores break even by one point seven okay so so if my product is $40 what would that seven breakeven right I don't get that number seven yeah so like you'd have to calculate that okay you can I think you a break-even how to calculate your Facebook row as for like your business like what the break-even is so just Google breakeven row ass and it'll tell you how to calculate a break-even and once you find out what yours is you'll be able to know what your goal is because if you do your goal under purchases remember what I just said about like what if somebody buys for two of their brothers and themselves that's one person buying three products which can happen so that's what it's important to look at return on adspend and find out what your breakeven is there rather than your break-even in a dollar amount it's more important to find it on our breakeven on a row as so that way it's the math model works correctly in your case okay so I shouldn't be looking at like okay my product my profit is twelve dollars but I spent seven dollars basically here so I'm basically making five bucks yes and if you did that that would take forever to tally up so if you do row as you'll know exactly what your profit is in all cases because it accounts for any number of purchases because it's a variable it can always adjust okay so what so but this doesn't look good though if it's 692 like should should I say like my goal should be under does this number ever change or get lower over time the amount spent yeah it does it does if you're improving it yeah and so what should your goal to be always to be above breakeven rather that's ten cents above breakeven or a hundred dollars above breakeven as long as you're above breakeven you're always profitable right most nor as you said it's one point seven yeah that's a very yeah that encompasses a large amount of e-commerce stores landed that number but I would confirm yours 1.7 break-even row as okay I don't even know what 1.7 is but I'll just like to hook that up and ask okay so then I should just base it off of that as my goal yes in regards of the money then moving forward so I'm gonna let this run for the next 7 days right correct and if you're above your breakeven row as you keep it running and I'm not having this campaign run not the CDO retarget I'm only just gonna have these two campaigns run they look alike and the interest campaign and then oh because that's what you said on Monday before they look like cuz he said that I didn't have enough um like the add to cart' within the past 30 days I had zero link clicks so I don't even know part like zero like zero everything and this one good link clicks but no one purchased from it it was 16 dollars spent so you said I shouldn't I should focus and get the correct ad said that is the most successful and then I'll retarget using that ad set for this campaign you got that right right yes okay and then I have these two going and then I'm just gonna let it run for the next seven days and I have ten dollars for the ad sets that have a purchase and five dollars for the ones I don't and if I don't get any purchases do I turn these ads that's off after seven days or three correct after after the next then you can turn those off within the next 48 hours if they don't get a person purchase 48 hours of ice of two days then what happened what happens if nothing had been e purchases in the next seven days with these three ad sets like these for the one we'd book pack our bags and or we'd give up on it unfaithful guides no I'm just kidding that won't happen no won't happen I can assure you'll get purchases on this on those more yeah yeah and every port but you're gonna get more purchases on those it's very rare to see one one one and then it never happened again it it would be a very very rare that I've never seen something happen like that I think you'll at least get four to five on a few okay so 48 hours if no purchases turn off those and what if I do get a purchase should I increase it to $10 if your Rose is at 3x and above okay my rose so that's this yep and just that - yep should I is that should I keep that one keep should I still keep that one going yes okay because then what about even if you break evens at 1.7 there no it's fine okay and then what do I do like do I just sorry what's the next step after you are proven what do we do after that sorry what do I do after the ad sets like after seven days what are we gonna do with these four ad sets switch it to CBO are we gonna start making look-alike audiences and yeah you already oh yeah and then am I gonna start testing more like just men just women or anything like that we might just scale those up only because right now this is very general this is like both men and women all ages and just that one interest level group that's awesome but majority majority of is like 90% men so I don't know if I should just focus on men no no no no don't do that the algorithm is smart enough to understand that they will get it don't in knows okay I just want to know like what the future looks like here like okay like like money raining the future is you got an optimized Journal you already said the future you're gonna follow those and then the next thing is just increasing your spending on the things that are working I mean what's your budget I can tell you the future based off your budget well you got I mean how much can you put in on over the next thirty days I right now it's just I don't have I can put in right now I think I have like 70 70 or 50 or the daily budget but I can definitely put it more yeah so you just keep scaling up on those audiences until they until you start to see the ROI eyes start to trend down again and then that's when you peel back spin just a little bit to bring it back up to where it's maintained point was let's say it's like a for like a three point seven that's where it just stays but if you increase any more past 100 daily it goes to like a three point two so you will then find new audiences at that point so then I'm just gonna keep making look-alike audiences and retargeting and making am I gonna make more best like more targeted audiences at all or my other you're gonna get broader and broader and broader I'm gonna get broader yes that's scroll over all the way to the right scroll yeah that one that's a 4.2 that's your best return on a spin in this set of audience and the set of campaigns it's a 4.2 look at that audience yeah open up an audience that audience is probably 280 million people hit edit 230 mmm people are in this audience and that's your best one broader is better the two B's narrow is negative it means you lose the more narrow the more negative it gets because it's not scalable it's narrow only works for very very very small small scale operations if you're looking to keep your budget of like twenty daily or fifty daily or anything under 100 daily you could get away with narrow but anything above that you're gonna have the test new strategies to get scale and if an audience is getting good row as that has like 230 million then guess what that means for scaling you can go up to a thousand daily you can go up to ten thousand daily and that's where you can make millions of dollars per month so you need these ways audiences my daily should be for the next leaving it where it's at for the next seven days and only increase if it's above three X in increased by five dollars until you hit 30 daily and then at 30 daily switched to twenty percent daily twenty percent increases does that make sense okay I mean I guess at that point also I'll have my next call with you but by that point weekly yeah okay all right so what do you think it's like a good goal to send like like yeah I think you spent a thousand dollars you would want to make at least thirty two hundred damn it no not well I mean maybe one day but a good goal for the month would be I mean if you're gonna spend a thousand and try to at least make thirty two hundred and then after that I would try to go up to three thousand and try to make ninety eight hundred and then after that I go six grand and try so if I spent eighteen to twenty K like spend 1,000 daily or monthly yeah well whatever your budget can handle I mean like it I would start out I mean if I'm assuming you're gonna do a thousand for the month or I don't know I mean like that's just what it looks like from your daily spin right now I do we have the money I'm just like trying to yeah it's better than whatever it you're in the progress of doing it so like as you're seeing metrics come through you'll have better clarity on what you want to spend because you'll know you'll just see it like holy smokes we're making axe let's scale it up when you add in five daily on each okay all right um I guess once I started this up I'm gonna start at zero again cuz I stopped the campaigns so we'll see where it goes in the next seven days okay yeah I'm pretty excited see what happens okay and I won't do the retargeting and you said that it's correct even though it was like the last thirty I wasn't like the thirty that we did a few months ago it's like yeah uh 30 days yeah okay I just want to make sure let me show you you cuz this surprised me I was like zero clicks so like here's a good goal I'm gonna show you on my screen so like this right here you see this yeah so like this is a we spent a thousand and our goals are much aren't very extreme and they're very rare to get numbers like these when we spend a thousand and made 6k with this one right so I mean like half of this we would still be super happy but like this one's about a 5.5 X right now just for the last 15 days about a thousand one hundred and then like yesterday what was it it was like a seven point nine five spent $78 made 620 let's see what it is today about seven point six eight today spent sixty bucks made close to 500 you see I'm saying like and like those are the kind of numbers you want to do like spending $19.20 have to Google and this thing build out right like look at the three we have they're identical to what you have it's the same build out audience and look like here's the retargeting but guess what it only has one purchased like out of the entire month because we don't have enough in that audience set so I mean you know it's not like you're in the most unique scenario like your ad account is I could show you 50 ad accounts right now because we're managing that many and all the exact set is yours and they also tell the same story nobody has a unique story they're all the same and the data works out the same and you can see this one's going to be your top then it's gonna be this one that'll be this one so like these numbers were all shift upwards eventually but since we're in the early stages is where they are right now but even in the early stages we're only spending an eleven hundred dollars in making 6100 like here's the interest and like look it started high and it went low so we turned off the expensive ones because look I mean it wasn't much money it's a 1.25 just like how one of your audiences might have yeah like we did it too but like you know we gave this one's been in further down the run for a while and it's been a lot to get really 1.4 but we kept turning those off and went towards the ones we really wanted now we got some of these in here that are like really doing well okay so right now I'll just spend ninety seventy fifty to seventy-five daily and then just go from there and check in with my daily budget yeah and look just just to show you that I was like giving you the same advice that we use like ranking by row as and look at our spend the highest spend is on the best ranking row ass so like it goes up from there we only increase our spend on like the top perform Lawrence and if we do last seven days on this one yeah and probably be a more accurate picture of what the ranking is in terms of spending so 1.7 is most ecommerce is break even rise season ROI yeah the return that's been that's most I mean I heard today somebody had a 1.5 I mean I hear so many different numbers but most I almost all the numbers are here at 1.7 anything above that I really haven't heard so I just need to get I'll just like Google how to calculate break-even row as and yeah I'm sure plenty of articles will break it down for you so they'll break how can I calculate the right you know this one's a wine but that's because they're talking about a break-even in terms of your marketing spend but some of these articles will talk about your product break in it are you profitable at three five or ten so this one's explaining it so cost profit margin row as breakeven and just make sure it's extremely accurate and like don't inflate or deflate numbers so that's a good one newsfeed org I don't know how accurate this one is because I mean there's a lot of grammar and mistakes in here that I'm noticing but you could probably go through these and just do a few of them but just to make sure they all line up I think it'd be easier if somebody provided you the downloadable sheet here profit margin yeah so they have a formula here I feel like ideally I want to spend 10% on is that even something is that possible but marketing Facebook guys and then most companies most companies spend like 15 and then if you're looking to scale you need to be at like 25 really 25 percent on marketing yeah that's but good so it wouldn't work at all okay because I am looking at a scale obviously so 25% marketing Facebook that scaling and that's and then the other 75% that would be profit and everything else yeah I mean like the least 15% preferably over 20% your revenues to really grow which I agree with so like what are you in or what industry retail but what is this this you're in consumer products now yeah yeah so I mean like you can go through these averages 10 to 12 but I mean like like this one was saying to really grow it's gonna be 20% above its really grow 20% above but right now percent yeah another one right now it's not looking good but yes I'll take time yeah here's another one this one's at a 7.37 this month yeah so like this one's a little too pretty I mean this is kind of a dream scenario but you know where you're spending 17 bucks making 500 I don't know how likely that'll be for most people we spent $10 here and made above 302 Soho that's not everybody but it's our it's the process right it's the same process that I'm sharing being really tight on it like we've perfected how accurate and quick we are with changing things but it's the same method even if you slack off on it it's still going to generate you 3x plus but still check in on it once once a day you said yeah you should always check it daily just to see what's happening but look at your check it daily to see where things are going but don't like worry about daily results right okay so this one looks kind of too pretty these are a stupid number 73 extra turn on now it's been like most people won't spend 4 bucks and make 332 it's just not normal I mean you know you could ask for hundred thousand advertisers and nobody would even show you a number like this so this is really I should show you a different account but if you like have a bad day that's like say a 1.56 like don't worry about it because the day before could be like a five and then the following day after could be a twelve you seen them saying you saw that one like seven days well at five and then it's today it's 12 so Oh leverage is itself out okay so based on average I'll spend 350 to 500 a week if I'm doing like 50 to 75 a day yeah that sounds about right yeah fifty bucks a day that's 350 a week right I think a few bucks a day right now when I pull