They Handed Me 8 Million To Run Their Ads, Here's The 5-Steps I Used To Maximize Their ROI.
They Handed Me 8 Million To Run Their Ads, Here's The 5-Steps I Used To Maximize Their ROI.
Here’s my simple 5-step system to running ads for 7-figure businesses.
In 2023, I managed 8 Million in paid ads.
Most people make running ads too complicated.
Here’s my simple 5-step system for running Facebook ads for 7-figure businesses.
Step 1: Creative.
Your creative is your targeting.
Creative refers to your ad copy, headline, and visual (image, video, carousel).
The fastest way to improve performance and scale your advertising is no longer through hyper-niched interests, audience testing, and duplicating ad sets.
It’s through creative diversification.
Old strategies leave us victims of rising ad costs, creative fatigue, and break-even campaigns.
Here’s how we upgrade our Facebook Ad creative:
Broad targeting.
Testing creative concepts.
Segmenting through copy/messaging.
Shift your time and energy into ad creative by isolating market segments through your creative messaging and continuously testing unique creative concepts.
In one test, broad targeting produced 30% cheaper leads than interest targeting. You can see the results here.
In another test, we changed the messaging from speaking to 3 avatars in one ad to utilizing 3 unique ads, one for each. The result was a ~75% reduction in cost per lead with the same offer, and landing page.
Let’s dive into the next step in maximizing your profits…
Step 2: Offer & Positioning.
Your offer > your ads.
Your offer is what you are selling and how it’s positioned in the market.
Reality check: No amount of media buying, targeting, or bidding techniques can mask (or make up for) a bad offer.
Maximizing profit requires a bottom-up philosophy. Without a great offer, your ads will suffer. This will show up in various places like your opt-in rate, conversion rate, and cost per call. Your offer is tightly connected to every step in your funnel.
More traffic will only highlight inefficiencies.
Start here:
Avoid looking at ad performance in isolation.
Add specificity and relevancy.
Assess each step of your funnel.
Assess continuity between steps in your funnel.
Speak with customers to dial in your messaging.
Let’s dive into the next step in maximizing your profits…
Step 3: Profit Economics.
Profit is the lifeblood of your business.
Your profit economics can be simplified into your average over value (AOV) and lifetime value of a customer (LTV) for the purpose of this newsletter.
Acquiring customers is expensive. This is why we leverage economics to maximize our return for each customer we acquire.
I believe it was Dan Kennedy who said “He or she who can afford to spend the most to acquire a new customer, wins.”
Companies are often willing to break even or take a loss on the first sale if they’re acquiring a customer. Because they know they’ll make money over the next months or even years for every customer.
We can leverage economics by:
Testing different pricing.
Improving customer retention.
Adding order bumps, upsells, and backend offers.
Expanding our products or services offered to maximize LTV.
Here’s a real-world example of using profit economics to (over) double profits.
I worked with a client selling a $97 course. There was nothing else anyone could buy.
While the campaign was profitable, because the Max LTV was low ($97) the business was not viable. Once we expanded the products to increase our LTV capacity by adding an order bump (new product #1) and introducing a high-ticket product (new product #2) on the backend, we increased profits by over 200%.
Let’s dive into the next step in maximizing your profits…
Step 4: Backend Automation.
Buy back your time while maximizing profits.
In simple terms, “backend” refers to everything that happens after someone becomes a lead and/or customer (depending on your business).
According to Dean Jackson, “85% of customers purchase after 90 days.”
By understanding the customer journey and buying cycle we can incorporate automation to nuture and sell at almost 100% profit because we’ve already acquired them as a lead or customer.
Here are 3 ways that we can incorporate backend automation:
Build trust and rapport through email marketing/automation.
Build automations/sequences that sell to increase LTV.
Capture more of our market by respecting the customer journey.
The biggest profits are made on the backend.
Let’s dive into the next step in maximizing your profits…
Step 5: Brand Building.
According to Data2Decisions, Brand Size is the #1 Profit Multiplier.
After managing 12+ Million in paid advertising I’ve witnessed the direct halo effect of “Brand” on paid advertising performance.
As the size of the brand grows it acts as a profit multiplier. You may have witnessed this in action when “famous” people can run ads or sell products with sub-par marketing and see superior results, whereas someone “new” with no audience or following wouldn’t achieve the same result.
In a recent post, I discussed how Dwayne “The Rock” Johnson leveraged his personal brand to build a $800 Million net worth and a Tequila brand worth $3.5 Billion. You can read it here.
Investing in brand will positively impact your long-term ROI:
Increases conversion rate.
Facilitates premium pricing.
Opens the door to new opportunities.
Provides market differentiation.
Builds trust and loyalty with customers.
Here’s a deep dive I did on how brand improves performance.
The path to improving ads is no longer isolated to the ads manager.
Modern “media buyers” are being forced to become “marketers” and “strategists”.
If they want to thrive, at least.
At the end of the day when someone hires me, it’s not actually to run their ads.
Even if that's the title I wear.
They want to see their business grow.
They want to see their calendars filled with booked calls.
They want to see zeros added to their balance sheet at the end of the month.
And once I realized this… I figured out what was needed to accomplish the real goals of my clients.
People may call me their “ad guy” but I think of myself as a “growth strategist.”
Landon
PS.
If you’re looking for a fresh perspective for your businesses, or looking to apply these same strategies to your business?
You can reach out to me for an audit (or chat) here: https://landonp.com/
Or, send me a private message whenever it’s convenient for you.