Show Notes:
Facebook ad costs are rising, that’s a fact. For some, it’s making it almost impossible to be profitable. Thankfully at The JW Agency we’ve implemented strategies with our clients, keeping their accounts stable and profitable. In fact, we’ve been able to reduce ad costs for clients, even in these crazy times.
In this episode I’m giving you 2 foolproof ways to decrease ad costs and stabilize your ads account – whether it’s on Facebook, Youtube, or Google!
If you implement these 2 things you’ll never have to worry about ad costs again. These 2 foundational strategies will set you up for success, no matter what happens (i.e.: pandemic, iOS updates, GDPR, etc.)
We dive into the ad side:
- Reducing your overall cost per click
- Refreshing creatives
- Testing audiences
As well as diving into the funnel side, analyzing how the funnel converts on the front-end and how it can affect your ads costs.
Grab a notebook, put in your ear buds, and press play!
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Share-worthy Quotes:
“Getting people to click on your ad and go to your page at the lowest cost possible while keeping the quality high has a lot to do with your creative – copy, images, video – and your audiences.“
“You can’t run a business unless you’re getting the sales.“
“Your audiences are exactly who you’re going after, who your ads are targeting, and who you’re speaking to with your messaging.”
Get the Transcript here:
Episode 20 – 2 Foolproof Ways To Reduce Ad Costs
Note: We use AI transcription so there may be some inaccuracies.
Hey, I’m Jess Wallman, Facebook ad and digital marketing expert. Welcome to the Ad Agency Secrets podcast, where I help you take the guesswork out of your ad spend and replace it with profitability. Now is your time. Revolutionize your life and create the impact you desire all while freeing up your precious time.
How? By taking a sneak peek at the exact methods our full-service ad agency use for our A-list clients while managing over $1 million per month in ad spend. Learn what is and is not working – from Facebook ads to copy, to funnels, into your overall marketing strategy. Implement these tips and strategies inside your business today and get ready to explode.
Grab your coffee and get ready for the Ad Agency Secrets podcast.
What is up, guys? I’m excited for today’s episode because we’re diving into a question and situation that a lot of people are finding themselves in over the last couple of months, and that is increasing ad costs.
So with the iOS update and lots of things changing on the Facebook platform, which I know you guys are all experiencing. We are experiencing it at the JW agency with all of our clients, and we’re seeing the skyrocketing fluctuation of ads. For a while their CPMs were skyrocketing, they kind of came back down and just overall costs are going up, being able to track and target your iOS users to having a potential hit on retargeting.
And so there’s a lot of ups and downs. And so I wanted to go over some ways to decrease their ad costs and really stabilize and have a long-term plan so that no matter what happens with the platform, this platform, YouTube platform, Google ads, whatever it might be. You’re prepared to make your ads work.
You’re prepared to put the work in on the foundation level because that’s what we’re going to dive into. So really when you talk about decreasing ad costs, there are two areas, right? There’s the ad side. And then the funnel side. And I’m gonna say the funnel side, because at the end of the day if you’re basing your CPL or your CPA, that’s what you’re tracking and trying to optimize for your lead costs, your acquisition costs, then your funnel side.
It has a lot to do with that as well. We’re mainly going to focus on the ad side. And we are going to talk just slightly about that the final site as well because most people only want to look at the outside. And once I show them the funnel side and small tweaks that can make there, that will dramatically decrease the ad cost.
Their minds are blown. So we’re going to talk about both today so you can implement them and get your ad costs down and really start streamlining your ads because that’s what we all want. We just want streamlined ads. And it’s really difficult to do that when our ads are going up and down, and it’s something that we’ve been able to do with our clients right now, our clients have been able to decrease their costs.
We have a client, you know, getting under $3 leads and a competitive niche and bringing in, you know, 10,000 plus leads. And it has not fluctuated since we’ve been doing exactly what I’m going to show you and talk about in this podcast episode. So the first thing, as far as when you’re talking about your ad costs, we’re going to go on the ad side here.
So not the funnels side but the ad side is really getting your cost per click, where you want it. Now, the cost per click means what Facebook is charging you to get someone, to click an ad and get your landing page. So how much is it costing you to get someone, to click your ad and get your landing page? And that cost per click is based on a few different other metrics.
So your cost per click is determined by your click-through rate. How many people are going to click through your ad? So how good are your creative and your copy and how many people are you getting to stop on your ads and then your audiences who you’re targeting as well. And so your audiences and creative are kind of the two big pieces there.
So we want to get your cost per click below. Right. We don’t want it costing $10 to get a click to your page, because if you spend a hundred dollars, you’re only going to bring 10 people in. Right. Whereas if it was a dollar cost per click, we got to get a lot more, right? So you want your cost per click to be low.
So when you’re looking at your ads, you’re like, man, how are my ads doing? And you see a cost per click of like 10 bucks or something that’s extremely high and you cannot scale that way. It’s costing you a lot of money just to get someone to click, let low. And you don’t even know if they’re going to opt-in or buy yet.
Now I want to preface this by saying as well, no matter what. And I feel like I’m going to say this all the time is that no matter what, when you are optimizing and you’re looking at your cost per click, no matter what, you’re going to look at your numbers and your sales. If I see a cost per click for an audience and this audience, I’m like, man, this cost per click.
Five bucks. It’s a little high for me, just so you know, we look for around $3, give or take for cost per click, but it really does vary on what the offer is and the niche, but give or take a $3, give or take maybe a dollar just depends on what it is. So let’s say I’m getting a $5 cost per click. I’m like, man, this is a little more expensive than I wanted.
But if I’m getting the sales or the booked calls or the per or the leads or whatever it is that my goal is, if I’m getting those in, that probably means it’s a pretty quality audience. And then I’m not going to worry so much about that cost per click. Okay. You don’t want to get a super, super low cost per click, but your quality of the audience is really not good and you’re not getting the leads or sales because, at the end of the day, you can’t run a business unless you’re getting the sales.
So in order to have your cost per click lower, you have to work on your creative. Creative is huge. Creative is what honestly the whole, like, in my opinion, 80% of what determines if your ad is going to make it or not. Is your creative, that’s your copy videos, images, anything that you’re using to draw attention, get people to click over from Facebook to your platform, to your, to your, your funnel.
Being able to test creatives fast enough, being able to get them created and have a plethora of creatives waiting to be tested, and then ensuring that as you’re creating creatives, you’re always thinking of different hooks and angles and having a variety of creatives. You don’t want to create five different creatives that are very similar.
The angles are really similar. The imagery is really similar because really what are you testing? Not really testing anything. You’re testing the same thing again. They might not convert. It’s the first one’s not going to convert very likely the rest of them. Aren’t going to convert very well either. So I’m a big advocate of when you’re going to test your creative, if you’re trying to get your ad cost down is to test a variety of creative, make sure they’re different.
Make sure the hooks and angles are different. Make sure the images are very different. So you might do an image of, you know, you as the personality, right? You might do an image of an action-type image of you actually doing the work or whatever that might be. Might do some kind of animation in your images.
You might have a really polarizing black and white. There’s a variety of images. You just have to make sure they’re different. And that the angles and hooks, if for trying to go after how someone might feel, if they can’t scale their ads, it was talked about me. For example, if I was trying. Put an ad up there on teaching someone how to scale their budget up so they can spend more on Facebook and make more money.
Then I might do images on, you know, someone pulling their hair out and how it feels when they’re trying to scale. Or maybe someone who’s sad because they scaled and their ROAS or return on ad spend, just pull limited for someone who’s excited, cause they’re going to scale and they’re, you know, they’re thinking about all, you know, the income is gonna be coming from their skin.
Or, you know, I might just do a variety of things. I might even do a cute little dog who is on a computer scaling their spend. I don’t know. Right. I’m just making that up, but it’d be a variety of things, but you see how like a, that was the only one hooker angle I just did. I would probably do multiple hooks or angles.
So scaling CBO versus ABO or how to optimize or how to refresh, create a or whatever that might be. So being different and having a variety is so huge. Our clients, we’re always refreshing creative. We have an entire creative team, so we’re always at least minimally refreshing creative, monthly doesn’t mean that we have to take out all the creative that we’re using.
If something’s doing well, you don’t remove it, but we’re creating a more creative to consistently test on a small budget. So we always have something ready to go. If you don’t have something ready to go, you don’t have an image or copy that you’ve already proven to convert. What’s going to happen is you’re going to have fatigue happened on your current creatives.
Your current cramps are going to stop working and then you’re going, not going to have anything already tested and ready to go so that you don’t have a week of, you know, non-performing ads. You’re going to see. My ads are starting to fatigue a bit. I’ve already tested on a small budget. These other creatives, I’m ready to implement these now so that we don’t go a week with no leads or a week with no sales, because that could be huge.
You could might even last two weeks, depending on a home. If you test new creatives and they don’t work and you have tests more. So being able to test these on the side is huge. Because again, if you’re not testing, you don’t have things ready to go. You’re lagging you’re you’re not being proactive. And when you’re not proactive with your ads, your ads are going to suffer.
Your sales are going to suffer. So creative is huge. And since I personally think that they make up like 70% or more of like making an ad work in general, you should not take this lightly. You should be putting a lot of focus on your creative, your copy, your images, videos are powerful, powerful, powerful, powerful.
I’ll be doing another podcast episode on video soon, but they are so powerful that if you’re afraid of video, please don’t be afraid of video. Practice, practice, practice. Get used to doing video because video is really like, that is the way you guys, we just implemented video with a client. Just kind of hesitant about doing video and there, I actually, I just have a screenshot right in front of me.
It’s not even planned, you guys. It’s how crazy this is because I was just so shocked and not really shocked. I was just excited because we’ve already seen this a million times, but on here we go. So we have this screenshot, my media buyer just sent us and one of the videos has a click-through rate, all of 16.8, 3% 16.83.
We look for about a 3%. And then our CTR link click-through so people who click the link to go to the page, it was 7.2, 1%. And we look for about a 1% you guys it’s seven times more. And then our cost per click, our cost per link click. We look for about $3, give or take we’re at 95 cents and we already got a purchase then.
And it’s phenomenal. So the power of video is going to be huge. So being able to break through that. I’m gonna do a whole nother episode on that, but be able to break through and be able to do more video. You’ll just see the amazing results that that’s going to bring you. So that’s the creative side guys, audiences at the same time.
So your audiences are exactly who you’re going after, who your ads are targeting, who you’re speaking to your messaging is going to come across to different audiences differently. So ensuring that you’re consistently testing new audience. And you don’t just rely on two or three audiences because these are the audiences that have worked for you so far.
And so you just continuously use them. And then the short into fatigue, and you’re trying to bring in more creative and you don’t know why they’re not working, even though the creative is probably really good. It might just be because you’re, you’re going after the same audience over and over again. So just like I said to constantly put some kind of like a small testing budget towards your creatives, you’re going to want to do the same thing for your audiences and continuously test new audiences.
So that you always have, again, if an audience starts to fatigue and it’s one that you’re spending maybe 60 or 50% of your budget on, you’ve got some audiences already tested and you’re ready to move them in so that they’re ready to go. So testing your audiences, ensuring because again, even with audiences are different sizes, they start to, they start to drop or they get bigger based on Facebook’s algorithm and they start to fatigue after a while.
Maybe they’re too small and are fatiguing. Your messaging might start, you know, not being as powerful as it once was with that. And so being able to shift your audiences and having an abundance of those are really, really powerful. So that is how you’re going to decrease your cost per click. We just met my biggest thing was your cost per click.
Getting people to click on your ad and go to your page at the lowest cost possible while keeping the quality high has a lot to do with your credit. Copy images, video, and then your audience says also some audiences, guys, you play with them. Sometimes you might be a really good audience, but maybe they’re too competitive.
So really diving into audiences and thinking about organizations, books, influencers, keywords, brands, et cetera. You can really, really deep dive into audiences so that you can start broadening them a bit more. So that’s the ad sinus, where I want to spend a majority of this episode on, I want you guys to know something.
I want you to understand the power of, and I should have worked out some math beforehand, but I want you guys to understand the power of if you have a hundred people, okay. And you send a hundred people to a page and only 20% of them often, right? That’s a 20% conversion rate. That’s right. I personally have really high standards.
I look for webinars and challenges and video series. I looked for about a 40%, 40 to 45% is what I’m looking for for an opt-in rate. If you have like a downloadable PDF or a downloadable script, something they can download and walk away with right away, it’s free. I looked for about a 60 to 65% or higher.
I have high standards when it comes to those, but they’re very doable because almost all of our clients get that. Okay. The opt-in rate is huge because if you have a 20% opt-in rate right now for your challenge, you’re like, man, I lead costs is like $8. It’s just a little high. Well, if you’ve got the 40% that I just said that I know can happen, because most of our clients are getting that right now that could almost cut your lead cost in half, just by making tweaks to your page.
Nothing on your ads, your ad state, exact same. You’re like, man, I click through rates and my cost per click. Everything’s doing so great in the ads. Why am I knocking lead cost? That it wa why is my lead cost? Right. And you go to your landing page and make a few tweaks, and then it increases by 20%, 5, 10, 15, 20, 30%.
Your lead cost is going to dramatically, dramatically drop. And it’s so crazy because your ad stayed the same. You did nothing different with your ads, but you just made a few tweaks. Same thing. If you’re talking about purchases, if you’re running a conversion ad for purchases and you’re trying to get sales in and you’re like, man, my cost per acquisition is $50.
I need to be $30, but your conversion rate on your sales page is only 1% and you really need to be at 3%. Well, make some tweaks, make some changes, get that up to 3% and. Your cost per acquisition on the front end with your ads are going to drop. It’s going to be amazing because it tweets me on the page.
So anytime we have a client that comes to us is never just about the ads themselves. And we’re trying to decrease ad costs. It’s about the ads and the funnel. They have to work hand in hand. And if you’re only trying to make one work and not the other is going to be a really hard struggle for you. It’s going to be really hard, struggle for you to get the ad costs down.
So you have to look at both and work on both. And if you are doing ads yourself or you’re working with an agency and you know that your funnel isn’t really where it needs to be, but you’re just super upset at, you know, your ads, networking. You have to look at the funnel side as well. They go hand in hand and really on me sometimes, like I said, it’s just a few tweaks to a page and then the conversions go up and your ad costs just drop and you’ll be amazed at what can happen.
I hope that was helpful. Guys decrease in ad costs right now. I know is really huge. It’s on top of everybody’s mind and shoot. It’s always on top of my mind, right? I run an agency. So it’s always on the top of my mind and my team’s mind. And literally, these are the things we go to. We go to creative, we go to audiences and we go to the funnel itself and really anything outside.
And these are fundamentals that go outside of Facebook ads. This is in general when you’re running any ads. Whatsoever. It doesn’t matter the platform. And when you’re trying to get your costs down, you have to look at the creative and the audiences and the funnel that it’s going to, those are fundamentally, what’s going to make your overall funnel work.
And so I’m hoping this is helpful. I’m hoping you grabbed one or two tidbits. You can walk away to start implementing super appreciate guys. And yeah, I will see you guys in the next.
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