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Podcast Episode 3: The 3 Critical Metrics You Need To Grasp Before Scaling (Or Killing) Your Facebook Ads.

Critical Metrics You Need To Grasp Before Scaling (Or Killing) Your Facebook Ads.

Strap yourselves in everyone. This is the Digital Marketing Gangster podcast coming at you live, wherever you choose to listen.

Hey everyone. Welcome to the Digital Marketing Gangster Podcast. This is Dean Denny speaking, managing director of Owen Denny, and this is episode three. This week we’re gonna dive into something a little bit more technical. This week we’re actually going to be discussing when to kill a Facebook advertising campaign, and what are the key metrics that we look for.

When we decide to pull the pin, I guess keep it going scale, and we just wanna explore in general what to look for in terms of whether or not a campaign’s a winner or it’s a real big fat loser. So guys, strap yourselves in. It’s gonna be a fairly technical discussion, but I can nearly guarantee you if you go about applying everything that you hear in this podcast today, you will truthfully, and I mean truthfully achieve some remarkable and magnetic results with your Facebook advertising campaigns.

So let’s get down to it.

Okay. So episode three of the Digital Marketing Gangster Podcast, Facebook Ads Optimization and Knowing When to Kill Your Campaign. Well, ultimately you could say it’s the converse, when to double down, drill down, optimize and scale the living shit out of your campaigns. And before I really dive deep into this discussion, I really want to break it down to two key discussions today.

Discussion one is going to address cold traffic, and then discussion two is going to address warm and hot traffic. Now, For those who are just becoming aware of the flexibility and the power that Facebook ads has in one’s business, believe me, I am totally obsessed with them, and I literally built my agency of being able to deliver Facebook ads for our clients.

Now, for those who are getting started in digital marketing, let me just tell you this, today’s subjects. Be a little technical. I’m not gonna say too technical for you, but if you stick with it and you try to listen through it and pay close attention, I’m sure you’re gonna be able to get something out of today, and what we will.

Really, really do is try to give you somewhat of a framework to know whether you’re on the right track and or if you’re on the wrong track. Another thing before we really dig into the discussion today, guys, is that with your campaigns that you’re going to roll out using Facebook, whether you’re already doing them at the moment or you’re planning to do it or whatever, I want you to just ensure that you’ve validated your products first.

Now, again, if you can’t sell your product right now, Facebook ads aren’t going to fix that. All they’re going to do is focus that attention on. Your product, and in fact, it’ll only exacerbate the results that you’re currently achieving. If you are failing right now in business and you’re not selling any products, maybe you need to look at your products first before you even decide to pursue Facebook advertising in your business.

So guys, today’s discussion will be at. Cross between, you know, top of funnel traffic and warm and hot traffic. And what we are going to define as top of funnel traffic is people who have never heard of you or who have never jumped on your website or have never engaged with you on Facebook and Instagram and you’re going to be using things such as look like audiences, which are essentially something we will dig deeper in about five minutes time.

Or you’re gonna be using interest targeting. So that’s leveraging Facebook’s abilities to target people by demographic age interests, and a bunch of a suite of cool stuff. So guys, before we dig into it, that’s, this is just a quick precursor of what’s going to be covered. We’re going to be really dividing this whole conversation up into top of funnel traffic, which is going to be cold traffic, and then we’re going to be dividing it up into the second half of this, into middle of funnel and bottom of funnel traffic, which is essentially just warm traffic. So guys, let’s get to it.

So let’s start this conversation on cold traffic optimization and knowing when to kill or scale your campaigns. Using Facebook advertising. So, cold traffic at the core of things is essentially targeting people based on either interest or based on what Facebook believes is your target customer through lookalike audiences.

Now, in this conversation today, we’re not gonna talk about how you go about doing such a thing. Uh, we’ll cover that at a later date, and that’ll be more of a, you know, a beginner or a junior’s. I guess podcast topic, but the whole point of today is podcast, um, especially this section of the podcast is to give you some ideas, give you some strategies, and give you something that you can go about actioning to make better informed decisions in regards to what to look for at the top of the funnel.

Um, and with cold traffic and when to keep those campaigns going, when to dull down the budgets and when to essentially scale them because of the optimization. So guys, with the top of funnel, you are often bottlenecked by the audience size, which you were targeting. Now guys, what I want you to think about here is, Okay, if I’m only able to target a hundred thousand people and we have a winning campaign, and we’ll define what winning is shortly, does that mean I can just keep on pouring it on and spend more money and more money and more money and more money to keep on getting these results?

And, uh, unfortunate answer is: only sometimes. Now, the reason why I’m gonna say only sometimes here, guys, is that when you have a defined audience, and if the audience is small, the more money. You throw at that particular advertising campaign, the more people within that audience you’re going to reach. And there’s going to be a point within that campaign when you reach everybody in your audience and you saturate your marketplace.

So what starts to happen is that the number of impressions starts to exceed the number of people reached, which means. I guess generalist advertising terms is that your frequency, i e, the number of times your advertisements have been shown to people online is going to increase over that 1.0 number. Now in terms of whether or not you should continue in advertising campaign to call traffic or not.

I think, yeah. At Owendenny, we have this firm rule that no ad should be shown more than twice at the top of the funnel. I e to people who have never done business with us, people who have never interacted with us on Facebook or Instagram, or ever jumped on our website. And the reason why we have that is this, if people are getting touched more than twice by that same message and they haven’t taken any form of action, it’s probably not going to correlate with them. It’s not going to, uh, resonate with them. And it just ultimately shows a lack of respect for the market in the sense that we’re not really understanding them. So, in order for you to go forward at this point, what you need to consider are the following, um, you know, is my message right?

Is my copy tight, um, What’s my call to action and what ultimately, at the end of the day, if I get people to either engage with this post or click through this post, is the promise on the other side of action good enough? Remember, When you are running Facebook advertisements, people don’t want to see Facebook ads.

The only people that like advertisements are marketers. Let’s just understand, conceptualize that and just ingrain that into the back of your heads. No one cares about advertisements in their day-to-day. They just wanna be on Facebook. They just wanna chill. They wanna be on their Instagram accounts. They just wanna chill.

They wanna do whatever the hell they want, wanna catch up with their friends. Whatever. Only marketers are looking for ads on Facebook. So again, the first nugget we’re gonna throw down here is, remember with top of funnel advertisements, if the frequency of that ad exceeds two, it’s probably a time to kill that ad.

Now what I mean by the frequency exceeding two, I don’t mean that across the entire ad sets. Well, actually I do. What more importantly, you can’t touch that audience twice with the same ad. Or any more than that, it’s just not going to work out. I hope I’ve explained that clearly. If I haven’t remembered, guys, just touch me up on Instagram with at Digital Marketing Gangster, and you can searchy ask me questions, ponder about that and work it out from there, and we’ll, we’ll go through it together.

The second big thing that I look for when we’ve got a campaign. Um, you know, if it’s not really performing that well is click through rate. Now with top of funnel ads, the idea is to drive as much cheap traffic or as much cheap engagement into your Facebook page or onto your own personal website while your business website more so now.

One of the things you need to look for in terms of, you know, being able to get that cheap top of funnel. Action and results is to ensure that you’ve got two things going for you. You’re gonna have to have a really strong quality score. Now, what I mean by a quality score is that Facebook individually scores each ad that comes up into people’s feeds, and ultimately the quality score is subject to like, how good is your ad?

How good is the back end of the ad? So the landing page. What you want people to do, is that congruent with your audience? So if you can get your quality score right, Like a higher than seven or eight or nine, you’re going to have a really, really good time and get some really, really cheap clicks. Some really, really cheap post engagements, some really, really cheap landing page views, or even like pixel conversions.

It’s going to happen. You might have a really great

now if anything’s lower than 8%. Now we’re not talking about rate, we’re talking about. Thanks for. I’m not sure about the official ruling here, but if you just select ctr, which is click through rate in your, um, in your Ads manager, what that click through rate also depends for is people, you know, basically just click on getting through to the landing pages accounts for people clicking a copy with no links.

It basically any form of interaction and then any clicking within the surface area of the ad, essentially. Uh, part of you as I’m walking squad, that’s considered click and Facebook actually considers that it’s doing its job, and that’s not what you want as an advertiser, unfortunately. So remember guys, when you go about selecting those metrics , select the outbound clink.

Link, click through rate, outbound link, click through rate, and if that number is less than 0.8%, you really need to work on your copy and your offer there. Now. That all comes with a caveat though. Now this is a pretty important caveat and it’s going to run, I guess, consistently across consistently, sorry, across all of today’s themes and.

That caveat is this, you need to have at least 2000 impressions on each of your advertisements in order to make a calculated decision. And quite simply, it’s this, in conversion rate optimization theory, you need to have enough statistically significant data points to drive a, you know, a conclusive decision. Now, one of the worst things that you can do, especially when you’re buying Facebook ads is consider, hey, uh, we’ve had, you know, only 124 people see this post, and we’re getting a 7% click through rate.

Therefore, this is gonna be the winner when in fact, And this is the sickening part. As that campaign, you know, starts to scale out, unfortunately people don’t really get a chance to see that those results really aren’t scaling at all. So when you go about making any of these decisions today, in shortly, you’ve had more than 2000 impressions in the first place.

And if you do have 2000 impressions on each of your ad sets or each of your ads, that’s when you really gotta be making those calculated decisions in order to do what you want to do online. So in recap, think about that frequency for the top of funnel traffic. Is it less than two? Okay, great. Keep letting it run.

Okay. Number two, click through rates. Is it, is the outbound link click through rate greater than 0.8%? Yes. Awesome. Let it run. But

again, it all comes back. To do, we have at least 2000 data points or 2000 impressions to justify us leaving these campaigns run. So for instance, hypothetically you have three or 4,000 impressions on a campaign. We just got a a 0.5% link, click through rate, or an outbound link click through rate. At that point, you know, it’s had more than 2,000 impressions, and we know based on the data we can see that the outbound link click through rate isn’t very good. You’ve gotta kill that campaign immediately. And one thing that we do at Owendenny Digital is implement automated rules to do such a thing. So we don’t actually ever have to touch the ads in order to achieve the results we really wanna achieve and would totally recommend you guys check out how to use automated rules.

They’re a little bit more advanced, but I’ll tell you what, it has reduced our ad management time by a good 25% at Owendenny Digital, and they are the duck’s, guts, the cat’s pajamas, the bees knees, you name it, whatever. We really, really love them. So that’s something you might want to consider and think about doing.

Um, and finally guys, just to recap the whole frequency discussion, if you’ve got a huge audience, just say your audience is like 15 million and you have an absolute banger of an ad, like you’re getting, you know, 1.5 click through rates, um, you know, you’re getting just outta control, cheap traffic, outta control, everything, even getting like purchases and sales or whatever.

There is more than a fat chance that you can just scale that thing to the moon and really, really push the traffic there. Um, so once again, this whole reach frequency sort of thing really does only apply when you’ve got smaller audiences. But if you’ve got a huge audience, just ensure that that frequency does never exceed two, otherwise you’re gonna get some mad, ad fatigue. Your costs are gonna raise up and the actual results that you’re looking to get are more than likely just to drop off and trail away really, really quickly. So guys, this is part one, part two is coming up shortly and my apologies for all the wind.

I am walking by the beach as per usual launching this podcast for you guys. And um, I hope this all really helps. The next part’s gonna. A little bit more exciting on top of this yet again. So guys, we’ll talk shortly.

So guys, ah, part two. Middle and bottom of funnel traffic, which is essentially warm traffic, but you could also consider it to be hot traffic using Facebook ads. Now guys, this is a somewhat technical discussion. Again, however, I want to clue you in on something I was thinking about just I would say five minutes ago.

Um, and I think this is pretty damn exciting in regards to utilizing automated rules to ensure that you’re getting the most juice out of your middle of funnel and bottom of funnel campaigns. And.

It just dawned on me that if you leverage automated rules to regulate your frequency, you can really do some incredible amounts of damage just by using a somewhat runge cutter approach, which is somewhat of a Montecarlo simulation for those who understand, you know, simulation strategies in the whole, you know, engineering modeling space.

To really ensure that you’re not over-delivering your middle and bottom of funnel ads. And the reason why I’m going to say this is that your middle and bottom of funnel traffic, the sources that you are targeting are generally at least 10, if not a hundred times smaller than your cold traffic audiences. Now we’re talking about people who have been on your website in the past, say 30 days.

We’re talking about people who have interacted with you on Facebook for the last two weeks, or on Instagram over the past two weeks. Using Facebook ads to target these people is an amazing opportunity because it gives them a problem chromatic like experience, which is sequential. And it enables you to continue that discussion, which they just had with you, either on your website or ultimately in their social media feeds.

And that’s a really neat, unintrusive way to do such a thing. But the key is, Ensure that you don’t over-deliver your ads because the audio sizes are too small. Now, what I would recommend here, you guys, that this is strictly the frequency, the number of times you’re delivering your ads. Per person. And secondly, the other thing you really want to lock down, understand and track here is the click through rate.

So guys, again, I would say the click through rate in all of this sort of thing needs to be north. Of 0.8%. That’s going to be a common theme throughout today’s discussion on the podcast. However, guys, um, I really want you to consider that this clickthrough rate is really, Going to plummet if your frequency really decides to ramp up.

Now, this is where it can get really, really, really, really, really concerning for some advertisers because they’ve got this great campaign that’s doing all these, uh, this, that, and the third, but they see the link click through rate. The drop its ass and simultaneously it’s gonna be dropping its ass. And also your cost per click has just gotta skyrocket.

And that’s simply because the fact that you’ve over delivered your ad. It’s just not cutting the mustard anymore. Now, one thing you can do in Ads Manager, which is really, really nifty, is have two simultaneous rules working against each other in. The Ads manager in the ads manager to ensure that your ads aren’t being over delivered.

So what I would suggest is running two automated rules like this to ensure. Well even three, and I’m gonna show you how you set them up on this podcast. So I hope you got your pen and paper ready. Um, and we’ll do it. Set up these so many rules to ensure that we’re not over-delivering those ads. So number one, the key metric you wanna look for here isn’t so much impressions because you may not get 2000 impressions per ad set or per audience is if frequency increases more than three. Now we’re saying three here at the bottom of the funnel because there is some science to this, but if your frequency of delivering your ads increases above three, then adjust your campaign budget. Negatively. So reduced your campaign budget by 25%.

Okay, so let me just repeat that again. If your campaign Frequency Inc is greater than three, Reduce campaign budget by 25%. That’s going to ensure that you know, when you’re not getting enough traffic to your website, which is stimulating those audience sizes, which essentially your ads are being delivered to if you’re not getting that traffic and Facebook is just delivering willy-nilly and it’s really pushing those ads to those people. What I want you to consider here is just dropping that amount of traffic off and reducing your daily budgets. Now you can set this up to work every three days and give this, set this up to, you know, run every day or multiple times a day. This rule, I would just say set it up daily. So that’s the first thing you want to do.

So if the frequency doesn’t, you know, if the frequency. Is greater than three reducing budgets, but then at the same time, on those same ads, what I would recommend you do is have a second rule is if the frequency is less than, say two. Increase your budget by 25%. So let me say that again. If the frequency of your ad delivery is less than two, increase your ad budget by 25%, so that draws that.

The ad is always going to be sitting anywhere between two and three times per week. So that’s something. You may want to consider for each of those adset, so that’s a sneaky little trick you can run there. On top of that, if you can really see some crazy amounts of a fatigue, I would also overlay a third rule, and once you’ve got a benchmark of your allowable click through rate, it might be say 0.8% or 0.9% or whatever.

As soon as the click through rate or the link click through rate, or the outbound link, click through rate, which is my personal favorite, drops below a certain percent, reduce budgets by so much. And, um, you can have that running every day too. And that will essentially enable you and your business to ensure that you’re not over-delivering those warm traffic and hot traffic.

Ads to those audiences. So that’s a really, really sneaky way to ensure that you’re not overdelivering those ads. Now again, if you wanted to go about doing all of this manually, that’s no problem. Remember, if the click through rate drops below 0.8%, you may really need to work on your creative. You really might need to work on your offer, or you might just need to drive.

Cold traffic to your website, to those Facebook engagement posts that you were doing previously in order to ensure everything is kosher. But there could be some issues just with your offer. That’s just with your audience. So again, I understand the audience. Most of these things are going to be solved by, um, at this, this stage, at the middle, in the middle, and the bottom of your funnel, your creative powers matter, don’t get me wrong. More importantly, if they’ve already been on your website, this is just a subtle reminder, be like, You haven’t taken action last time. How about you do this instead and you push them along the customer journey? Sorry guys. It’s really windy. I want, I’m at the beach still doing this podcast, part two.

Just having a light walking, you know, talkie, it’s beautiful town Victoria, Australia. Um, so again, guys, that’s something you really can’t consider here in the sense that yes, you may not have those 2000 impressions, which you did have. You can’t be like completely, utterly, and totally conclusive with what is actually working.

However, what you can do is. Well, these ads are being delivered multiple times to people who already know me, and if these guys aren’t reacting, these guys aren’t taking any form of part. They don’t want anything to do with these ads, which again, consumers don’t really want to see in the first place.

Maybe we need to work on the creative. Maybe we just need more people to the website, or maybe we just need a better offer. So, Again, guys, this is part two of the podcast. Um, and I really appreciate all of you for listening so far to this. Um, I, I think we’ve had, you know, maybe three or four people even subscribe and it’s been an absolute shock and I’m really excited to see that.

So, yeah, I’m gonna jump off this now and I’m gonna follow up with you in just a minute.

Once again guys, it’s Dean Denny, the digital marketing gangster, saying a big, massive thank you for listening to this podcast. I really do hope you got something out of it, guys. These are the exact rules which we are using in Owens De Digital to help our clients achieve tremendous results utilizing Facebook ads, Google ads, any form of Google Ads product.

In fact, LinkedIn, Snapchat, you name it, whatever, but literally whatever. I am spitting outta my mouth right now. We live. Breathe and practice this shit. So guys, this isn’t some fluffy digital marketing podcast to get you to buy anything. This is 100% totally free. In fact, this podcast right now isn’t even designed to get you to work with Owendenny digital.

My own personal digital marketing agency. All we really want to do here is to enable entrepreneurs who are bit down on their luck, who can’t afford, you know, those private coaching sessions, all those masterminds or this, that, and the third of whatever. We want to give them that information, which they can go about using in their own Facebook campaigns to be successful going forward.

Um, this is for marketing teams, this podcast guys, this is for more than just, you know, the entrepreneur or. Business owner or even the big business owner. This is for anyone who’s got somewhat of an interest in digital marketing, in marketing strategy, or basically advertising in general. Guys, this isn’t something I do for any form of profit, and the only way I really desire to be paid right now is through your time, your energy and attention, and if you truly enjoyed today’s experience, if you truly enjoyed the content.

And if you think that this content is valuable, please do one thing. And all I ask of you to do today is to subscribe to this podcast on whatever platform you choose to listen to this on. You might be on Anchor, you might be on Spotify, you might be on Google Podcasts. Um, we aren’t on the Apple Store yet, but hey, we are totally working on it.

And guys, this is. I’m the digital marketing, gangster speaking, it’s Dean Denny. And I’m just signing out and saying a big, massive thank you. And if you’ve got something from this today, please subscribe. And then, you know what? Even share it with a friend, it’d be like, yo, my boy Dean, um, d o d, he knows his shit.

Why don’t I, why don’t just give you this podcast. Have a listener. He’s got some really unusual ideas about automated rules. Ensuring that, you know, hey, we’re not wasting money on Facebook, or, hey, um, this is the way when we know when we have to kill the campaign because it totally sucks because of the click through rate.

Or this is totally awesome because the click through rate’s great. And we’ve got so much an audience to go after. So guys, this is way too exciting. So dear boy, d o d, signing out, I just wanna say, Thank you for listening, and tune in for episode four shortly next week. All right, cheers for now. Catch ya. .

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