Show Notes:
What’s the essence of your business if you don’t intend for it to grow in size and profit?
Intimidating as it may seem, it’s a fair question to ask yourself as a business owner, whether you’re a coach/consultant, selling physical products, service-based business, or a local mom-and-pop shop. It doesn’t matter if you’re just starting out or looking to bring your business to another level, growing your business should be the ultimate goal.
The 5th and last phase of the GPS Method is all about how to optimize and scale. This is after you’ve already successfully applied phases 1 to 4.
This phase is all about following the data and allowing it to tell you exactly what’s working well, what’s broken, and how to troubleshoot. You’ll identify the bottlenecks in the campaign so that you can tweak, optimize, and get better results.
Once you’ve been able to optimize your campaigns and they are working effectively and are profitable, now it’s time to scale up! Scaling can be a beast, but with the right strategies and methodologies you can scale up your advertising budget and be able to impact more lives and make more money.
Share-worthy Quotes:
“Take ownership of your ads, even if just a little, so that you can feel 100% confident that they are performing to the standards you expect.”
“When you’re making consistent sales and your funnel works, then it’s time to scale.”
“If you don’t know that you’re putting $1 in and getting $4 out, then you don’t know it’s time to scale. And scaling your budget means scaling your revenue. So you should know your numbers!”
Get the Transcript here:
Episode 6 – The GPS Method Phase 5 | Optimize and Scale
Numbers, data, profits. Oh my, yes. That is what we’re talking about in today’s episode. Welcome back everyone to the Ad Agency Secrets Podcast. We’re in episode six already. I can’t believe it. I feel like time is flying by. That’s a good thing, I guess, right? And today we were talking about phase five. Now the GPS method, the optimize and scale phase, the last phase of the GPS method.
And this is probably my most favorite topic because I actually secretly love numbers. I know super weird, right? And what I love about math and numbers is they don’t lie. There is always a right answer and the numbers always tell you the straight truth. They’d let you know where you messed up and what needs fixing.
That’s how it is with ads. The data that comes back from your ads is 100% honest and true, but most importantly, it’s telling you a story of where the bottleneck is in your marketing of what is, and is not working where you should focus your attention. And most importantly, it tells you what specifically needs to be fixed.
And I don’t know about you, but I like clear instructions. I like specifics. I like a roadmap. Hence why I like numbers and why you should too. Plus once you can identify the bottlenecks in your campaign, you can then tweak and optimize and get better results as in better profits, which then you can scale up your budget and make more money.
And unfortunately, we have way too many clients coming to the JW Agency who really don’t know much about their advertising numbers. Some of them are spending 50,000 or more a month in Ad spend and they don’t know how well they’re doing. And if you don’t know how well you’re doing, it’s hindering you from making the decision on scaling up.
As I spend it day in and day out and at the JW agency, we report out weekly to our clients, exactly how every campaign is doing, and we include the data and the numbers that are important. And so we actually run a lot of webinars and challenge funnels. So we report things like the number of leads, cost per lead, the cost per click, your show-up rate, for the webinar show up rate to purchase conversion, lead to purchase conversion, your cost per acquisition, and obviously a whole bunch others, but we take reporting seriously here.
So if you aren’t getting your numbers. From your current agency or the person managing your ads and make sure you ask them, I want to empower you to take ownership of your ads, even if just a little so that you can feel 100% confident that they are performing to the standards you expect. That’s why I’m going to give you a handful of KPIs that you can quickly look at inside your ads manager.
So you can at a glance understand how to optimize your account, which really just means I want you to understand how your ads are doing. Learn how to fix them and get you to a point where you’re ready to scale, which we will talk about it, you know, later on in the episode. And as always, I want you to, as always, I feel like I always preface this by saying, I’m providing you some industry-standard metrics.
So these can vary for you based on your niche and if you’re B2B or B2C. So please keep that in mind. So one of the first metrics we look at is your CTRL and your C, which is your click-through rate all. And the way I look at that is. Your click there at all. It means they have, they had to click on your ad in some way, shape or form, whether it was to read more or to share or to like, or whatever that might be.
You know, add to a cat person, then you know, the audience is wrong and they’re not going to stop. It’s also, it also has to do with the image as well. Right? So we aim for our CTR. All we aim for 3% for Facebook and a 1% for Instagram or Instastory. And if you aren’t hitting this metric is cut it’s caused by your image or your targeting.
So test to more images or videos. Along with testing, more targeting options until you see this number increase. The next metric we look at is your CTR link, which is your click-through rate link. So what that means is once they’ve stopped on your ad, how many of them are clicking the link in your ad to go to the next step, to go to the landing page. Right?
So we aim for 1% for Facebook and 0.5% for Instagram and its story. If you were hurt hitting this metric is caused by your copy, right? So they are stopped because the targeting was right and the image got their attention and they read your copy and they decide not to click over. Then something was wrong with your copy.
It wasn’t enticing enough. The call to action. Wasn’t strong enough. So test more copy until you see this number increased. The next metric we look at is your CPC, which is your cost per click. So how much is it costing to get a click? Right. I think we talked about this briefly. In another episode, you could spend $10 and your cost per click could be $10, which means you got one-click for $10 or your cost per click could be.
$2, which means you have five clicks for that $10. So you want to get as low of a CPC as possible. So we aim for about $3 or less. With our cost per click. If you aren’t hitting this metric 90% of the time, it’s because your click through rates are low. So we just talked about the click-through rates.
We talked about click-through rate all and click-through rate link. So if your CPC is higher than that $3 mark, it can 90% of the time it’s because your CTRs are low. So just fix those and that will hopefully lower your CPC. It could also be caused because your CPM is higher. Okay. So your CPM you’ll see that metric in ads manager can be high due to either targeting the wrong audience.
Or due to a competitive audience. So changing your targeting in order to lower your CPM, that’s important. So again, if you want to lower your CPC, increase your CTRs, lower your CPM. Do that until you can see your cost per click, lower, the lower your cost per click. The better you want to spend less to get as many people and as many eyes on your landing page as possible.
So that leads us to your CPM, which we obviously just discuss a little bit, we aim for about $20 or less to $20 or less for cold audience targeting. It can be much higher if you have a warm audience. So don’t freak out if you see that. But if you’re seen above $20 CPM to a cold audience, it could be high because it’s the wrong audience, which leads to usually a low ad relevance score.
Right? If you’re putting your ad in for the wrong audience, your ad relevance score, relevance score to pimps low, which then increases your CPM. It could also be because it’s a competitive audience. That just means a lot of people are betting on this particular audience. So really it’s just about testing.
At this point, you could possibly narrow in more on your audience. You could even go broad on your audience. You could create a new lookalike audience to test. So just test guys, change this up, change up your audience until you see your CPM lower. Okay. So that was a lot of numbers we just spoke about there and I don’t want you feeling overwhelmed.
I would rather you create sticky notes with these goal KPIs, put them on your computer screen. So, you know, at a glance. What to look for what your personal average numbers are and create goals to beat your current numbers. Okay. So again, as I said, these are industry standards. If you’re seeing, oh, my average is here, create a goal so that you can get it better and give these goals to your agency, whoever you’re working with.
If you’re like, “Hey, I think this is below the industry standard. We are at two-point. 5%, I want to get it to 2.7, 5% next hour, and then 3%.” So creating those goals will help you feel empowered to know that you’re getting better. Now, once you’ve optimized your campaign guys, and you’ve got a solid funnel converting.
Well, first off, congratulations. That’s huge. And then second, it’s time to start scaling baby. You can scale as slow or as fast as you want, but I want you to scale. I don’t want you to wait too long. I’ve had clients come to us who spend $10,000 a month making back $30,000 a month, right. And to send it, spending it all on getting three back.
And they just stay there. They’re not scaling. And that’s when you’ll usually hear me say the little catchphrase that I said in episode one, which is to scale the poop out of it. And apparently, now I have to say poop because apparently my first episode got flagged as explicit, crazy. But yeah.
The scale of poop out of it. So when you’re making consistent sales and your funnel works, then it’s time to scale and scaling. It has a few components to it. It’s not just about increasing your budget, although that is a big part of it. It’s also about testing more so testing, more creatives, and more audiences.
We have clients who are spending right now over $250,000 a month in their ad spend. And we’re implementing and bringing in one to two new creatives a week. We still keep the old creatives running as long as they’re performing because every creative has a shelf life. So being proactive and ensuring that you’re testing new creatives all the time is key.
You don’t want to be in a position where you’re winning ad set and ad who have, you know, you’ve been kind of like banking on start having ad fatigue, start to not perform. And all of a sudden you have to scale back your spending because you had to turn them off. Start from scratch with a new creative and audience.
And it makes it really hard to scale when you’re stopping and starting. So make sure you’re testing along the way. Be prepared, continue testing. Okay. Guys and testing never ends. I mean, a question I get a lot when I speak to potential agency clients on the phone is they’re always asking me, “Okay, well, when will the testing phase be over so that we know what works and we can scale.”
And my answer is never what they like. It’s always never. Testing never ends. And that’s a good thing. You, you want to continue to do better and lower your lead cost and lower your cost per acquisition. That’s what testing will do. All right. So let’s go back to scaling. Yes, you can test more creatives. You can test more audiences.
The more winning combos you find, the more you can scale. But another way to scale is to increase your daily budget, either on your ad set level. If you’re doing ad set budget or CBO campaign, if you’re doing CBO campaign, So I recommend if you aren’t in a rush to scale, then scale slower, like increasing your budget every three to four days, that just gives Facebook’s algorithm time to adjust.
However, if you are wanting to scale faster, which we, we do very, very well here at the agency, I would wait at least 48 hours. 48 guys between scaling an ad set or a CBO campaign at a minimum. Most people try to scale way too fast, or they just aren’t scaling properly. And that’s when you hear their ads become volunteer volatile and their numbers are like going crazy.
And the return on ad spin, which is, you know, you’re trying to scale to increase your, your revenue. And, but unfortunately, sometimes if you don’t scale properly, your return on ad spend dramatically decreases. So be careful when scaling it is a beast and I’ll be sure to go over it in more detail in future episodes.
Um, and then outside of that, you can, you can always duplicate your ad sets or you can duplicate your actual CBO campaign. You can even duplicate them a couple of times, that way you’re increasing your overall spend. Now I know you probably have questions on that, but I’m actually going to go over that in another episode because that’s a whole other, um, whole other part to go over guys.
So if anything, I want you to walk away from this episode, understanding the importance of knowing your numbers, what numbers to look for, what they mean, and how to quickly troubleshoot them. And again, if you don’t know your numbers, We’ll find out the only thing to know, uh, how well your ads are performing.
Like you have to know how they’re performing and know whether or not to scale perspective. If you don’t know, if you’re putting a dollar in and getting four out, then you don’t know it’s time to scale, which means, hello scaling your budget means scaling your revenue. So know your numbers so that you can impact more lives and make more money.
Woo. That is a wrap guys. That was a lot that was actually the complete overview and many deep dive into the GPS method. We went through all five phases: recap strategy, connect, convert, close, and optimize scale. And these are the foundations of a successful marketing campaign and overall business that we use with every client at our agency.
So I hope you took notes. And hopefully, you’re taking action. And if you want more support on your marketing and your advertising, then stay tuned for more episodes. I have some behind scenes of successful launches that we’ve helped support how to craft winning ad creatives, understanding why your audience is not buying a Ninja retargeting strategies, and more so stay tuned.
And I will see you in the next episode.
LISTEN AND SUBSCRIBE!