Free YouTube Transcribe

Video transcript

How to Scale Facebook Ads on a Low Budget (Post-Andromeda)

Sergio C · 6,157 words · 28 min read

Want to search this transcript, jump the video from any line, or download it as TXT, SRT, or VTT?

Open in the transcript tool

Full transcript

0:00One of the brands we took on was doing

0:01about $6000000 a year. A few months

0:03later on the same ad spend, we increased

0:06revenue by 45%. We didn't give them a

0:08bigger budget, we just changed where

0:10every dollar was going. Because right

0:12now, since Meta's Andromeda update,

0:13everyone is telling you the same thing.

0:15Pump out 15, 20 new creatives and let

0:18the AI find your winners. And that's

0:20fine if you have the budget to feed it,

0:21but if you're spending $30 a day or at a

0:23smaller scale than these big companies,

0:25all that does is spread your money so

0:27thin that no single ad ever gets enough

0:29to prove anything. So, in this video,

0:31I'll show you how we actually scale

0:33Facebook ads on a small budget by

0:35forcing every dollar into ads already

0:37working. Instead of spraying it across

0:3920 new ones and hoping one hits.

0:43On my screen, you've probably heard some

0:44version of this advice over the last

0:46year. Create more ads, more concepts,

0:48more hooks. Giving Meta more variety or

0:50different concepts to let the system

0:52decide what actually works, fueling

0:54Andromeda. And the idea behind that is

0:56not completely wrong. They are right. In

0:58simple terms, Meta is using the creative

1:00itself as part of the targeting. It

1:02looks at the image, the video, the copy,

1:04the people engaging with that ad, and it

1:06uses that data to try to match it with

1:08more people who are likely to respond.

1:11So, yes, more creative variety can give

1:13Meta more opportunity to find a similar

1:15buyer. Some buyers engage with the UGC,

1:18others engage with maybe a more

1:19lifestyle infographic image. But the

1:21part that always gets left out is that

1:23every one of those ads needs enough

1:25budget to actually fuel that Andromeda

1:28flywheel. All of these ads need budget

1:30to place out in the market, get the data

1:32signals, and then allow Meta to keep

1:34deploying it to find your ideal

1:37audience. And this strategy works for

1:38those people spending $1000 a day, $5000

1:41a day, or upwards of $50000 a day. And

1:44it's exactly what they should be doing.

1:46But it's just wrong for smaller accounts

1:47who are maybe just getting started and

1:49don't have the capital to actually spend

1:51thousands a day. And if they do try that

1:53strategy, you'll see down here with

1:55smaller budgets, it doesn't really work.

1:57A handful of ads will steal the spend.

1:59This one got $12, $6, $3, and the others

2:02are getting pennies. Never able to prove

2:04themselves in the market and never able

2:06to let the algorithm actually work as

2:08it's intended. And if you look in your

2:10account right now, you can probably see

2:11that something is very similarly

2:13happening in your account. Maybe a

2:15couple of the ads are getting 80, 90% of

2:17the budget, and the rest are only

2:19getting dollars. Not able to actually

2:21fund the growth, not able to actually

2:23fuel performance, and actually weighing

2:25down the account average. And

2:27unfortunately, this structure doesn't

2:28work when you're not able to feed it

2:30enough data. You won't see the results

2:32you're hoping for. And no, the answer

2:34isn't you just need more creatives. With

2:36smaller budgets, you actually have to do

2:37the opposite of that advice. We take

2:40control of where money goes, and that

2:41starts with finding what actually works.

2:43And if we pull up this account here, you

2:45can see it's a brand new client. They

2:47came to us, no history in the ad

2:48account. You can see everything here is

2:50completely empty all the way up until

2:51March 13th, which was our first start

2:54date. And they were a brand new startup,

2:55you know, they had limited budget, under

2:57$100 a day, and they told us, "Hey, we

2:59want to make sure that we can grow, have

3:01a roadmap, actually understand what's

3:04working, understand what's not working,

3:05and more importantly, keep our

3:07profitability in mind." And so, if we

3:09look at the first 30 days of our service

3:11with them, that's exactly what we did.

3:12And we started with something called the

3:14creative test. So, what that means is,

3:17well, before I even talk about targeting

3:19or before I talk about the product page

3:20or before I talk about price incentives

3:22or shipping rates or shipping thresholds

3:24or anything like that, I have to make

3:25sure that the ads we're actually using

3:27and leveraging with this client are top

3:29performers, are ads that the market

3:31actually wants to see. And more

3:33importantly, we're going to make sure

3:34that we cut the ads that the market

3:36doesn't want to see, ensuring that we

3:38remove the fat from the account, and

3:40overall keeping the average return on

3:41investment for this account as high as

3:43it possibly can be. And so, the very

3:45first order of business when working

3:46with any new client or even phasing into

3:48an existing account is making sure that

3:50creative assets are where they should

3:52be. And so, we start with a creative

3:54test. It was the first campaign that we

3:56launched inside of this brand new ad

3:58account. And you can see, fun fact, as

3:59we move up our stairway and go through

4:01our process with every client within the

4:03first 30 days, you can see that results

4:05get better and better and better. And

4:06that's not just because of, you know,

4:07some campaign hack, that's because we're

4:09able to take the learnings from test

4:11number one, apply it in test number two,

4:13take the learnings from both of those

4:14tests, apply it in test number three,

4:16and overall get more and more efficient

4:18because we begin to leverage only

4:20winning assets while cutting the losers

4:22or the fat to make sure, again, that

4:24return stays high. But, you can see

4:26here, we start with a creative test.

4:28This is a very simple structured

4:29campaign. I can go more into how we

4:31build this in another video, but

4:33essentially it's a CBO campaign where

4:35the budget is on the campaign level.

4:36It's broad targeting because we don't

4:38want to add in an audience pool to add

4:39another variable to our testing. Right

4:41now, what I'm concerned about are the

4:42creative media assets. And here is where

4:45you can see, we tested 16 ads with this

4:48client. We wanted to figure out what

4:49were the three to four best ads in here,

4:51so we can cut out the 13 or 12 that were

4:54just weighing the account down. Now,

4:55usually what would happen is you would

4:57take all 16 of these ads and you would

4:59say, "Hey, let's let Andromeda figure it

5:00out. Let's put all of them in the

5:02campaign. Let's put our max budget on

5:04that campaign and over time Facebook

5:06will spend on the winners." But, what

5:08you would see happen is one ad is going

5:10to get out of this total $586 spend, one

5:13ad would probably get $450, another ad

5:15would get $50, another ad here would get

5:18$20, and all of these would get less

5:20than $10 all the way down till they're

5:2120 cents or even lower. And the issue

5:24that I have with that is that those ads

5:26that have 20 cents of spend, I don't

5:27believe that they were ever out in the

5:29market enough or a long enough time to

5:32prove themselves to tell me that they

5:34actually aren't good assets. And the

5:36thing is, when we've done our AB test,

5:38as I'm going to show you here, sometimes

5:40we find that the ads that Andromeda does

5:41not favor are actually the winning ads,

5:44they're the golden nuggets in the

5:45account. And when they're actually able

5:47to get volume behind them, they tend to

5:49be top performers. Now, this doesn't

5:51mean that every underutilized ad is

5:53going to be your top performer. You need

5:54this clear AB test. And how we do that

5:56is, well, I went to my team and I said,

5:58"Okay, if we want to be able to identify

6:00a top performer, what do we have to do?"

6:02Well, we have to get market signals,

6:04right? We have to put these ads out into

6:05the market, get impressions, get data on

6:08what the market says about it. And so we

6:10said, "Okay, well, what's a reliable

6:11amount of data? We don't want to run

6:13this test for thousands of dollars. We

6:14want to find our winners as soon as

6:16possible and for as low cost as

6:18possible. And so we said, well, it

6:19depends on the client's budget, right?

6:21Because if we have about $30 a day, an

6:23average CPM is about $28, $30. It

6:26depends, like if we're going to be

6:28running 16 ads, it'll probably take 16

6:30days. We don't really want to do that.

6:32So if a client has more budget, we can

6:34say, "Okay, let's maybe do 1,000, 2,000,

6:373,000 impressions just to really get

6:39enough data." Now, the reason for this

6:40is I like 1,000 impressions to be the

6:42absolute minimum that we go to. And

6:44because it's essentially a flash in the

6:46pan of what the market believes about

6:48your ad. Now, it's not going to be the

6:49most accurate result, and that's because

6:511,000 impressions is, again, only a

6:53flash in the pan. Imagine if you have a

6:54neighborhood full of 1,000 houses and

6:56you only survey maybe 10 of those

6:58houses, you're not really getting the

7:00average neighborhood sentiment or the

7:02average neighborhood opinion on

7:03something. You have to talk to 100, 500

7:06of those houses. And so it's almost the

7:08same exact thing here. We want to talk

7:09to as many people as we can, get their

7:11inputs on the assets that we deployed to

7:13them, and then from there understand the

7:16metrics and be able to cut the fat from

7:17the account and focus on our winners.

7:19And so for this account here, because

7:21they had about $80 a day in total

7:22budget, we went with anywhere from 2 to

7:243,000 impressions in total to really

7:26give us good market information on what

7:28they think about these ads. And so what

7:30I do here is I let the ads just run as

7:32is, and I keep an eye out for when they

7:34are going to hit about 2 to 3,000

7:36impressions. And then I manually turn

7:38them off before they get over 3,000

7:40impressions, so then other ads will have

7:43the ability to get the spend. This is

7:45basically forcing Andromeda and forcing

7:47meta to now spend on these other ads

7:49that weren't getting the spend in the

7:50first place. And so, now by the end of

7:52all of this test, it may take a week or

7:54so, you're going to be able to have all

7:55of these ads hit 2 to 3,000 impressions

7:57or at least 1,000 impressions. They're

7:59all going to be turned off. And now,

8:00what you're going to have is a really

8:01cool scorecard here. You're going to be

8:03able to look and see, okay, they've all

8:05been out in the market for the same

8:06amount of time. What are the differences

8:08of supporting metrics? And so, what I'm

8:09looking at are CTR all, CTR link

8:12click-through rate, and CPM. Now, if I

8:15sort by all of these metrics, you can

8:16see that we have some with a CTR all of

8:186.5, 6%, which is really, really

8:20healthy. And the important part of this

8:22test is we're also able to identify ads

8:24that are on the lower end of the

8:26spectrum, basically giving us a 2%

8:28click-through rate. Now, the reason why

8:30this is important because if we're

8:31taking 2% versus 6%, that's a difference

8:34of a three-times engagement rate. And

8:36so, we probably want an ad that engages

8:38with our audience at a three-times

8:40higher rate. That means three times more

8:41attention, three times hopefully more

8:43link click-through rates, and three

8:45times more opportunity for purchases,

8:47which is the end goal of this client.

8:48CTR, again, is just the tip of the

8:50iceberg. I'm looking at all of these

8:51different metrics. Some of these other

8:53ads brought us a almost 3% link

8:55click-through rate, while others almost

8:57a 1%. So, again, three times the

8:59opportunity for sales. And I'm also

9:00looking at CPM because different ads

9:03will give us different CPMs. We can

9:05spend the same amount, or actually not

9:07spend the same amount. We can get the

9:08same amount of impressions from two

9:10different ads. This one had to spend $36

9:13to get in front of 2,000 people. This

9:15one had to spend over three times the

9:17amount just because Facebook gave it a

9:19higher CPM. And so, that tells me right

9:22there, it is probably just not a

9:23cost-effective ad for right now, right

9:25for the beginning of an ad account. We

9:26want to make sure that we can get in

9:28front of people at a cost-effective

9:29rate, that it's engaging at a higher

9:31rate, that people are actually link

9:32clicking through, and then they have the

9:34opportunity to be on the site to buy.

9:36Now, these are three supporting metrics

9:38that I look at, but of course, I also

9:39look at supporting metrics in the

9:41funnel. I look at add to cart rate,

9:42checkouts initiated, overall purchases,

9:45what ad drove the highest return on ad

9:47spend. Now again, the reason why this

9:49test is important is because you can see

9:51all of these ads were out in the market

9:52for the equal amount of time or very

9:54close to equal amount of time. You can

9:55see that some of these ads got a 11, 10

9:58times, seven times return on ad spend

10:00when a lot of these, there's hundreds of

10:01dollars spent down here on different

10:03assets that resulted in no sales and

10:05sometimes not even any buying behavior.

10:07And so, this is a very important key

10:09because imagine if we kept leaving it up

10:11to Andromeda and they would maybe favor

10:13one of these ads, who knows, right? And

10:15if they did, how much money would be

10:16bleeding silently from our account? We

10:18want to make sure that every single one

10:20of our dollars, especially at a lower

10:21spend, especially at a starting stage,

10:23goes to effective ads. This is where you

10:26create margin. This is where you create

10:27return on ad spend. This is where you

10:29create profit and you're able to then go

10:31to the next stepping stone because this

10:32fuels maybe a next inventory order.

10:35Maybe this fuels more learning. This

10:36ultimately gives you more time, right?

10:38Because if you're getting revenue in,

10:40you can have more time in the market.

10:41And so, right now, the goal of this test

10:43is to identify what are our winners and

10:45what are our losers and make sure we can

10:47identify and capitalize on the winners

10:50for the next test. And when I say a

10:51winner, I do not mean an ad with a five

10:53times return on ad spend after spending

10:55just $12. You have to let this test run.

10:57I want to find the ads that actually

10:59finish the impression limit and produce

11:01the behavior we care about. I know it's

11:02hard to turn off a 10 times ROAS ad just

11:05because it hits the impression limit,

11:06but this is purely just a test campaign

11:08that we need clear results on. If it's a

11:10winner, then don't worry because we'll

11:12be running it again in the very near

11:13future. So, usually, I'm just trying to

11:15build a short list of two to five real

11:17performers. I still look at the

11:19supporting metrics, the CTR, link click

11:21through rate, CPM, cost per landing page

11:24view, cost per purchase, return on ad

11:25spend, but this is not a full data

11:27breakdown. On a small budget, I need a

11:29reason for every active ad to be there.

11:32And once I know a few real winners, the

11:34next move is the one a lot of brands

11:36with small budgets don't actually want

11:37to make. Now, this sounds obvious, but

11:39it's usually the part brands resist.

11:41They think that reducing the amount of

11:43ads means that they're shrinking their

11:44account. But, on a small budget, every

11:46underperforming or underfunded ad is

11:49competing with a live one for the same

11:51limited dollars. Remember, you don't

11:52have thousands of dollars a day to spend

11:54on this. You are not spending less when

11:56you cut the fat. You're funneling your

11:57dollars to exactly what performs.

11:59Putting it behind fewer, better

12:01creatives. So, the account may look

12:03smaller, but the signal becomes stronger

12:06and the money becomes more concentrated.

12:08Now, what I'm showing you is an account

12:10starting from scratch, but you can also

12:11do this exact process if you're already

12:13spending, generating sales, and just

12:15want to maximize returns, making the

12:17engine more efficient, even with larger

12:19budgets exceeding thousands of dollars a

12:21day. We worked with a brand doing around

12:23$6 million of revenue that had over 100

12:25creatives in the mix, a usual structure

12:27at that kind of scale. There was plenty

12:29of concepts,

12:30styles, hooks. And I remember the

12:31founder told me, "I don't want you to

12:33get better results just by increasing

12:35our ad spend. I want the same exact ad

12:37spend, but reduce our cost per purchase

12:39and improve our return on ad spend."

12:40After a quick audit, I saw the issue

12:42immediately. The budget was being spread

12:45amongst all of those assets, leaving the

12:47top performers with only a small

12:49percentage of the actual daily ad spend.

12:52They had good ads, but also had 70

12:54others weighing down the account. They

12:56thought variety was needed, and at that

12:58stage it is, but there is a very clear

13:00difference between variety and

13:01underperforming assets. We narrowed all

13:04of that variety and all of those

13:05concepts down to our top 30 ads, and we

13:08focused the ads around what was actually

13:10performing that have already proven

13:12itself while cutting the fat. We did our

13:14process, and in the following months,

13:16revenue increased by 45% without

13:18spending a dollar more, and that extra

13:20revenue allowed them to finally scale.

13:22And we worked with them for about 15

13:24more months, getting them up to $35

13:26million in revenue. That's a five times

13:28growth at a seven to eight figure level.

13:31And I'm not saying that the ads were the

13:32only reason for their growth, but

13:34removing the fat and focusing our ad

13:36spend on what was actually performing

13:38gave more breathing room to the account,

13:40allowing the founder and the rest of the

13:41business and the team to now be able to

13:44focus on new initiatives, new products,

13:46expand to new regions, and ultimately

13:47make better decisions for the business

13:49because they weren't just above water

13:51with their ad spend. And this is the

13:53process in our company when we work with

13:55clients. Establish a baseline, remove

13:57what isn't working and pulling overall

13:59average down, and start our next test

14:01from already proven concepts, allowing

14:03us to move down river, making sure that

14:05every dollar goes as far as it can. And

14:07we're able to do this time and time

14:09again with current client accounts, no

14:10matter the size. This business up 33% to

14:132.3 million from last year, same ad

14:16spend. We're just now putting the

14:17dollars towards more efficient assets.

14:19This company here, $500,000 a year, a

14:22little bit smaller of an account, but

14:23almost up 200% same ad spend as well.

14:26And I want to stress that it this isn't

14:28some magic trick or CBO versus This

14:31is actually just taking back control of

14:33where every single one of your dollars

14:34is going. Now, if you're looking at your

14:36own account, thinking you have no idea

14:38what ads are actually giving you the

14:39most leverage, well, that's the exact

14:41thing my team does for brands every

14:42single day. If you're running meta and

14:44the spend just isn't turning to growth

14:45like you want, there's a link below to

14:47work with us. If you'd rather run it

14:48yourself, good, stay with me because

14:51this next part is where small budgets

14:52leak the most money. Once I identify my

14:55winning assets in our CT, I graduate

14:57that into our next campaign, which is

14:59called a LT here. Now, this campaign is

15:02very unique because we have our winning

15:04assets, right? We know what gets a

15:05click, we know what's cost efficient in

15:06the market, we know what leads to click

15:08through. Now, the next variable that

15:10actually makes the most sense is, well,

15:12where do we take that user, right? We

15:14want to be able to control the landing

15:15page. We want to be able to see what

15:17landing page actually influences more

15:19bounce rate, which one has a higher add

15:21to cart rate, which one leads to a

15:23better checkout process and less overall

15:25drop off? So, I move forward into a LT,

15:27which is another very simple campaign.

15:29Now, what this is is one campaign and

15:31now I have multiple ad sets and these ad

15:33sets are different based on the landing

15:35page I want to use. I'm going to use my

15:37winning ad from my creative testing. You

15:39can see all of these have the same image

15:41for winning ad. And so, my media is not

15:44a variable anymore. The variable that I

15:46want to test is the landing page. Now, a

15:48lot of the times it may sound good on

15:50paper to say, "Well, if we're showing an

15:52ad for a t-shirt or a coffee mug, we

15:54need to take people directly to that

15:56coffee mug page. There's no sense in

15:58taking them and having them search

15:59around." Well, in concept and in theory,

16:01that is correct. But, the thing is I've

16:03seen time and time again that sometimes

16:05other pages influence buying behavior.

16:07So, for example, the product page of

16:09that coffee cup might just be a

16:10description, no reviews, add to cart

16:13button. This may work for someone who

16:14has high intent, who's ready to buy.

16:16But, a lot of your traffic, if they're

16:18cold traffic audiences, are not at that

16:20stage yet. They still need a little bit

16:21of credibility. They need social proof.

16:24They need to see why this product is

16:25valuable to them. So, sometimes the home

16:27page actually has assets that the

16:29product page doesn't, which leads to

16:31higher overall conversion rate. So, this

16:33is why we want to AB test everything.

16:34For this client specifically, we tested

16:36our winning ad going to the home page,

16:39to the collections page, to product page

16:41with these smaller variant of the

16:43product, product page now with these

16:45larger variant selected, just to see if

16:47we can influence a higher AOV. But, of

16:49course, as you can see here, this led to

16:50zero sales. Maybe price point and seeing

16:52that high price point from the first

16:54time they visited the website was

16:56actually a deterrent. And so, this is

16:57something that we learned through this

16:58test. We took people to the featured

17:00page, which showed credibility and

17:02featured on and, you know, platforms

17:04that this client has been on. And also a

17:06unique landing page that the client

17:08personally made for their persona,

17:10talking about pain points that they may

17:11have and why this product was valuable

17:13to this specific demographic. And so, it

17:15was very different than the original

17:17product page. Now, what I'm looking at

17:19is I want to make sure each one of these

17:21ad sets has equal amount of budget per

17:23day. Now, this is how we control it,

17:25right? Cuz now we can see that having

17:27these all spend the same amount of

17:29budget, we can see the difference of

17:31buying behavior. And if I sort by return

17:34on ad spend, it looks like the unique

17:36landing page actually resulted in

17:37healthy add to carts, more people moving

17:40through the funnel because I know that

17:41this featured page and smaller variants

17:43of the product page actually had more

17:45add to carts, but there was actually

17:47some resistance in the funnel. The

17:49unique landing page had less overall

17:51resistance and an extra sale. So, this

17:53tells me maybe over a long enough time

17:55horizon that the unique landing page

17:57would probably be the better option for

17:59us to choose. Now, imagine if we just

18:01started taking everyone to the homepage

18:02just off of because we never tested

18:04this. We would likely have overall half

18:07the add to carts, less overall

18:09purchases, and maybe even less than half

18:11the return on ad spend. So, this isn't

18:13again like some CBO versus or O

18:15Andromeda trick. This is controlling

18:18where the budget goes and understanding

18:20that every variable matters even down to

18:22the point of the URL that you use on

18:24your ads. We want to make sure we have a

18:26solid structure and learning around this

18:28for us to be able to move on to the next

18:29stage because once we know what ad to

18:31use and where to take them, now we can

18:34focus on who do we target with these

18:36winning assets. And once I have my

18:38winners, I simplify the structure around

18:40them. That usually means fewer

18:41campaigns, fewer ad sets, and fewer

18:43active ads in most brands want to run.

18:45And I'm not saying that every account in

18:47the world should use one campaign with

18:49one ad set. I'm saying that the

18:50structure has to match the amount of

18:52money available. So, if you're spending

18:54about $30 a day and money is being

18:55divided into four different campaigns,

18:5710 ad sets, and 20 ads, the budget is

19:00already gone before you could even do

19:02anything. And so, the next campaigns

19:03that I launch is an ASC, so an advantage

19:06sales campaign, and also interest. So,

19:08this is basically leveraging we know

19:10what ads, we know where to take them.

19:11Now, let me try some interest targeting

19:13to figure out who I want to target with

19:15these winning assets, but also I'm not

19:16forgetting about Andromeda, right? I

19:18want to leverage the algorithm. I want

19:20to leverage the machine that they built,

19:22the brain that they built, and say,

19:23"Hey, I have the assets I want you guys

19:25to use. I don't want to give you 16

19:27creatives and have you try to figure it

19:29out. I have the top four creatives you

19:31can see here. We chose four creatives

19:33here and not just the one. We wanted to

19:36pick our sample three to four winning

19:38assets from our CT. And we said, "Hey,

19:40we found the assets for you. We even

19:42found the URL that we want to use on

19:43this campaign. Now, we want you to

19:45leverage your algorithm to help us find

19:47buyers." So, we're almost making it less

19:49complex and we're leveraging the part

19:51that's really, really strong about

19:52Andromeda. And so, this campaign here,

19:54and keep in mind guys, this is our first

19:5630 days still, right? This isn't 3

19:58months down the road and learning and

20:00building data and yada, yada, yada, all

20:02this spend. No, like within our first

20:04month, we have campaign spending $500 in

20:06total and getting almost 6.7 times

20:09return on ad spend back. But, I also

20:11want to be able to see, well, can I

20:12target a little bit better? What if we

20:14actually hone in on like who exactly is

20:16our persona? So, the algorithm and the

20:18pixel could actually learn maybe a

20:20little bit on where we want to direct

20:22our attention. So, you can see here I

20:23have climbing, mountaineering, camping.

20:25This is a outdoors kind of brand. When

20:27we were able to target these audiences,

20:29we're able to get in front of our ideal

20:31persona with the unique landing page,

20:33with ads that they actually care about,

20:35and now get a 16 times return, eight

20:36times return. I don't want to boost

20:38these numbers cuz it's still very early

20:39spend, but you can see how within our

20:41first month, we're not at a two times

20:42return and learning. We're actually

20:44moving through the process, we're

20:46understanding what works, we're actually

20:47like having these internal discussions

20:49with the client and saying, "Hey guys,

20:50like this certain photo actually works

20:52for your brand and this video. Can you

20:54maybe make some more like that?" And

20:56these are actually what didn't work.

20:58These assets, maybe this type of photo

20:59didn't work. A product image style ad

21:02didn't really work. So, let's move away

21:04from those and let's work on what

21:06actually your market cares about. And

21:07hey, your unique landing page that you

21:09made was a home run. What if we make

21:11another one for a different audience

21:12persona? How do we build off of this

21:14momentum to actually get better and

21:16better results? And so, this isn't the

21:18end of the road. You're actually

21:19learning instead of just saying, "Okay,

21:21let me set up one campaign. Let me let

21:23Andromeda do everything." And then from

21:25there, what do you learn? You learn

21:27where it spent the most money, and maybe

21:28where you got a two times return. Like,

21:30you need to make sure that you

21:31understand what's happening so you can

21:32grow the brand and be in control of the

21:35return on ad spend, and more

21:36importantly, the profit. Now, I think

21:37it's important to note that I also don't

21:39really crazily raise the budget at this

21:41point. Just because this is getting a 16

21:42times return, if you've ran ads in the

21:44past, you kind of understand that. But,

21:46I don't take an ad that was doing a 16

21:48times return and immediately force it to

21:50carry $150 tomorrow just because one day

21:53looked good. If you've ran ads before,

21:55you understand that performance doesn't

21:56scale one-to-one. So, I want controlled

21:59increases. Maybe at this point, when the

22:01client's getting a five, six times

22:02return, I can say, "Hey, do you want to

22:04add 20 more dollars a day?" With that

22:06budget, I can launch another audience,

22:08find something that gets us close to

22:09that eight, 10 times return that we're

22:11seeing with other audiences. Or, at this

22:13point, if they also have more creatives

22:15that they want to test, maybe a batch of

22:1610 more new creatives, I can say,

22:18"Great, we're going to keep our normal

22:19campaigns running as is to not disturb

22:22the current performance that we've

22:23built, but we're going to just restart

22:25our CT on the side." This is why it's

22:26important to have it on a side campaign

22:29on its own, so you can always go back to

22:30it. And then now, when you launch your

22:32new ad batch, you can compare it to your

22:34original, and you can see did anything

22:36from the new batch outperform our

22:38current assets? And if they did, great,

22:40phase them into your main campaigns and

22:42allow them to also get budget while

22:44cutting the now new fat, which is maybe

22:46that first batch of creative. But, if

22:48those new creatives in your CT that you

22:50relaunched didn't outperform what is

22:52already running, then now you know

22:54better to not spend more money on them.

22:56You know better to turn them off in the

22:58CT, and you know to keep moving forward

23:01with your initial batch because they

23:02just get better results at the end of

23:04the day. And this is how the flywheel

23:06should work on a limited budget. You

23:08graduate into volume as the account

23:10grows. You don't start with volume just

23:12because the account can afford it. And

23:13there's one more lever to make a small

23:15account punch way above its weight and

23:17it has nothing to do with the ads.

23:18Everything we've discussed now is purely

23:20ads, audiences, landing pages,

23:22everything to get people to the website

23:24and convert. But we have to remember to

23:25actually look at the supporting metrics

23:27in the funnel. I look at where the

23:29website is losing people. So I'm going

23:30to sort by what we were running with our

23:32winning assets and be able to look here

23:34and say, "Okay, what are these funnel

23:36metrics? Where are we losing people?"

23:38Are link clicks actually becoming people

23:40who add to cart? Are the add to cart

23:41people moving to checkout? Are they

23:43completing the purchase? If the site

23:45converts more of the traffic already

23:47coming in, Meta needs fewer dollars to

23:49make more sales. And that's why

23:51sometimes the cheapest growth is

23:52actually stuff that happens after the

23:54click, after the ad. So sometimes

23:56instead of asking what new creatives and

23:58you know, what new things we should

23:59launch, sometimes the better question is

24:01how to stop wasting the traffic that

24:02we're already paying for and we're

24:04bringing to the website because scaling

24:05is not only about raising budget, it's

24:07increasing the amount of output the

24:09business gets from every single dollar.

24:11Um so I'm looking at 3,600 content views

24:13to 177 add to carts. We know from our

24:16KPIs inside of ADVT that this is below

24:19our 10% threshold. So that means that

24:21this is constraint number one. People

24:23are getting to the product pages or the

24:25unique landing page, but they're not

24:27adding to cart at a healthy enough rate.

24:29Now, the return on ad spend is still

24:30very healthy at a six times, but that is

24:32mainly because the AOV on this brand is

24:34about $250 and so they don't need that

24:37many sales to get a good return. But

24:39imagine if their AOV was $50, this

24:41return would be much lower. So we would

24:42have to look at this constraint and go,

24:45"How do we make sure we get 10% of

24:46people to add to cart?" And then from

24:48here, I don't like to see more than a

24:4950% drop to checkout initiated. And so

24:52we do have a higher than 50% drop here.

24:54So constraint number one is content view

24:56to add to cart and then constraint

24:58number two can be add to cart to check

24:59out initiated. And again, another 50%

25:02drop I don't really love to see here,

25:04but this is more within our standards,

25:06right? These two are the bigger

25:07opportunities. So, I can go to the brand

25:09and tell them, "Hey, what if we

25:10consolidate some of the bloated product

25:12description? Maybe we can remove some of

25:14the images on the website because

25:15there's so many here that is not helping

25:17with the user flow." And from content

25:19view to add to cart, there are certain

25:20things that we can tell the brand. Maybe

25:22adding a different color to the add to

25:24cart button cuz sometimes brands have it

25:25as just a white background. We want to

25:27make that button pop. There's many

25:28things that we can do to help with

25:30content view to add to cart. And then

25:32from add to cart to checkout, this could

25:34potentially be a shipping rate issue. I

25:35know this brand has shipping costs, and

25:37so maybe people are getting to the

25:38checkout and they're saying, "Well,

25:39$2.50, I agree to that, but maybe not a

25:42$10 additional shipping." What if we did

25:44a shipping discount in our retargeting

25:46funnel? And so, doing all of these

25:48things makes the budget more efficient,

25:50allowing us to hit the end goal of this

25:51brand and fuel them for a even more

25:54profitable second month. None of this

25:56was a campaign hack. Every move was

25:57about taking back control. We found a

25:59few ads that actually earned the spend.

26:01We removed the things stealing money

26:03from them. We simplified the structure

26:05so the budget wasn't being weighed down.

26:07We scaled the winner in measured steps,

26:09one variable at a time. Then we added

26:11new tests, new audiences when the

26:13account could afford them. And we

26:14improved the economics after the click

26:16so every visitor became more valuable

26:18without increasing the ad spend. More

26:20budget does not create efficiency. It

26:22amplifies what's already underneath it.

26:24And if you have a broken foundation,

26:25then more budget only ensures you lose

26:27more money, even if you don't realize

26:29it, like that $6 million a year

26:31business. Budget is fuel. A small brand

26:33may not be able to outspend the biggest

26:35advertiser in the market, but it can

26:36always be more disciplined about where

26:38every dollar goes, giving them the best

26:40chance to reach that second stepping

26:41stone and fund their growth. So, that's

26:44how you scale on a small budget. It was

26:46never about spending more. It's about

26:47deciding where your money goes instead

26:49of handing your budget to Meta and

26:50hoping the algorithm sorts out. If you

26:52get that right, your $30, $100 a day

26:55starts to behave like a lot more. And if

26:57you want to see exactly how I read in

26:58the account to find those top performers

27:00in the first place, that's the one I'd

27:01watch next.

More from Sergio C

Recently added transcripts

Browse the whole transcript library

This transcript was generated from the captions YouTube publishes for this video. Get the transcript of any YouTube video atfreeyoutubetranscribe.com, free, unlimited, no sign-up.