My Simple 4 Step Facebook Ad Framework That Made $10M

Summary

This video script outlines a proven 4-phase system for scaling Facebook ads, generating millions for clients. Phase one focuses on audience identification, phase two on creative optimization, phase three on demographic dialing, and phase four on scaling with a Campaign Budget Optimization (CBO) strategy. The script emphasizes the importance of data-driven decisions, testing various elements, and finding the best combinations of audiences, creatives, and demographics to predictably scale ad budgets.

Takeaways

• 📈 The script outlines a 10 million dollar ad system for scaling Facebook ads, emphasizing the importance of a structured approach to predictably and consistently scale ad budgets.
• 🎯 The system consists of four phases: audience identification, creative optimization, demographic dialing, and scaling, each with a specific goal and strategy.
• 🧐 Audience identification focuses on finding the best audiences for the offer or business through testing different interests, lookalike audiences, and images with minimal ad copy variations.
• 🎨 Creative optimization involves testing various ad copies and videos alongside the best-performing images from the previous phase to determine the most effective creatives.
• 🔍 Demographic dialing is about narrowing down the best-performing audiences based on age, gender, country, and placements by analyzing data from previous campaigns.
• 📊 Scaling involves using the Conversion-Based Optimization (CBO) strategy to allocate larger budgets to the best-performing ad sets to ensure they exit the learning phase and scale effectively.
• 📝 The script provides a formula for calculating the daily budget for CBO campaigns, which is the average CPA times 50 divided by 7, ensuring enough budget for conversions.
• 🌐 It mentions the possibility of hyper-optimizing the CBO campaigns by using cost caps to control the maximum amount willing to pay per conversion.
• 🚀 The system is designed to be scalable, allowing advertisers to go from a small daily budget to a large scale quickly by following the outlined framework.
• 🤖 The script suggests that the system can be provided to others for their use, implying that it is a replicable and standardized approach to ad management.
• 📉 The system acknowledges that without a proven system, managing and scaling large ad budgets can be challenging, and small wins may not be sustainable over the long term.

Q & A

What is the main challenge in scaling ads over the long term without a proven system?

The main challenge is the inability to predictably and consistently scale, as one might only achieve quick, small wins without a reliable system to manage and scale big budgets.

What is the purpose of the '10 million dollar ad system' mentioned in the script?

The '10 million dollar ad system' is designed to generate millions of dollars for clients from Facebook ads by providing a structured approach to launching, testing, and scaling ads.

How many phases are there in the described ad system?

There are four phases in the ad system: audience identification, creative optimization, demographic dialing, and scaling.

What is the goal of Phase One: Audience Identification?

The goal of Phase One is to find the best audiences for the offer or business by targeting warm audiences, interests, and look-alike audiences.

Why is it recommended to have one interest or look-alike audience per ad set during audience identification?

Having one interest or look-alike audience per ad set helps to avoid stacking variables and allows for clear testing of which audiences perform best without confounding factors.

What is the primary focus of testing during Phase One?

The primary focus of testing during Phase One is audience identification, although images are also tested to find the best-performing visuals.

What is the objective of Phase Two: Creative Optimization?

The objective of Phase Two is to find the best creatives that work for the identified winning audiences by testing different ad copies and optimizing images or videos.

How does the script suggest testing ad copies and images in Phase Two?

In Phase Two, the script suggests using the best-performing image from Phase One with three different pieces of ad copy, and also testing video against the best-performing image to see which performs better.

What is the strategy for testing different types of images in the third campaign of Phase Two?

The strategy involves testing contrasting images, such as an authority shot, a family lifestyle photo, and a selfie-style image, to identify which type of image resonates best with the audience.

What is the purpose of Phase Three: Demographic Dialing?

The purpose of Phase Three is to fine-tune the targeting by analyzing data from previous campaigns to identify the most responsive demographics, such as age range, gender, and placements, and then focusing ads on those segments.

How does the script suggest analyzing data to inform demographic targeting?

The script suggests analyzing data from previous campaigns to identify which demographics, such as age ranges or genders, responded best to the ads, and then creating new campaigns targeting those specific segments.

What is the main action taken in Phase Four: Scaling?

In Phase Four, the main action is to duplicate the best-performing ad sets from the previous phases into a Campaign Budget Optimization (CBO) campaign with a larger budget to scale the ads and ensure they exit the learning phase.

What formula is used to calculate the daily budget for a CBO campaign?

The formula used to calculate the daily budget for a CBO campaign is the average CPA times 50 divided by 7.

Why is it important for ad sets to exit the learning phase when scaling?

Exiting the learning phase is important for long-term scaling because it means the ad sets have proven performance with more than 50 conversions in a seven-day period, allowing for more reliable and consistent results.

What additional scaling strategies are mentioned in the script beyond CBO?

Beyond CBO, the script mentions using cost cap strategies, such as cost cap one, cost cap two, and ROAS (Return on Ad Spend) bidding, to further optimize and scale the ad campaigns.

Outlines

00:00

📈 Introduction to the 10 Million Dollar Ad System

The speaker introduces a proven system for launching, testing, and scaling ads, emphasizing the need for a consistent and predictable method for managing large budgets. The system is outlined in four phases: audience identification, creative optimization, demographic dialing, and scaling. The audience is assured that despite the complex appearance, the system is simpler than it seems and will be detailed in the video. The first phase involves identifying the best audiences through three types of campaigns targeting warm audiences, interests, and look-alike audiences, with a focus on testing different variables such as images and ad copy.

05:01

🎨 Creative Optimization and A/B Testing Strategies

This paragraph delves into the second phase of the ad system, which is creative optimization. The goal is to find the most effective creatives by testing different ad copies and images. The strategy involves using the best-performing image from phase one with three different ad copies and testing them against each other. Additionally, the effectiveness of video versus static images is explored. The paragraph also discusses the importance of testing contrasting images to determine which resonates best with the audience, and how to create variants of the best-performing images for further optimization.

10:01

📊 Demographic Dialing for Targeted Advertising

The third phase, demographic dialing, is introduced in this paragraph. The focus shifts to refining the targeting based on age, gender, country, and placements by analyzing data from previous campaigns. The strategy involves duplicating high-performing ad sets and narrowing the target demographic to specific segments that have shown better engagement and conversion rates. Examples are given for targeting specific age ranges, genders, and countries based on performance data, as well as optimizing for different ad placements like Instagram feed or Facebook stories.

15:01

🚀 Scaling Campaigns with Campaign Budget Optimization (CBO)

The final paragraph discusses the scaling phase of the ad system, which involves using Campaign Budget Optimization (CBO) to increase the budget of the best-performing ad sets to ensure they exit the learning phase and scale effectively. The speaker provides a formula for calculating the daily budget needed to achieve 50 conversions within a week, which is crucial for long-term scaling. The paragraph also touches on the possibility of using cost caps and ROAS (Return on Ad Spend) targets for even more refined scaling. The speaker concludes by stating that this framework can be used to scale ad budgets from small amounts to thousands of dollars per day.

Keywords

💡System

A system in this context refers to a set of interconnected rules and processes designed to achieve a specific goal. In the video's theme, the system is crucial for launching, testing, and scaling ads predictably and consistently. The script outlines a '10 million dollar ad system' which is a framework for generating revenue from Facebook ads, emphasizing the importance of having a reliable and scalable methodology.

💡Audience Identification

Audience Identification is the process of determining the most suitable target audience for an ad campaign. It is the first phase of the system described in the video, where the focus is on finding the best audiences for a particular offer or business. The script mentions different campaigns targeting warm audiences, interests, and look-alike audiences, highlighting the importance of identifying the winning audiences for effective ad scaling.

💡Creative Optimization

Creative Optimization is the second phase of the system and involves refining the ad creatives to improve their performance. The script discusses testing different images and ad copy to find the most effective combination. This phase is essential for enhancing the ad's appeal and ensuring it resonates with the identified audience, which is a critical step in the overall ad scaling strategy.

💡Demographic Dialing

Demographic Dialing refers to the process of fine-tuning the targeting of an ad campaign to specific demographic segments based on performance data. The script explains how to analyze the data from previous campaigns to identify which age ranges, genders, and countries respond best to the ads. This keyword is central to the video's message as it demonstrates a data-driven approach to ad targeting for better results.

💡Scaling

Scaling in the context of the video means increasing the budget and reach of successful ad campaigns to achieve higher levels of revenue. The script outlines a process for scaling, which includes duplicating successful ad sets into new campaigns with larger budgets, known as Campaign Budget Optimization (CBO). This keyword encapsulates the ultimate goal of the ad system described in the video—to expand ad reach and performance systematically.

💡Campaign Budget Optimization (CBO)

Campaign Budget Optimization (CBO) is a strategy mentioned in the script for scaling ad campaigns by setting a daily budget that should yield a desired number of conversions over a week. The script provides a formula for calculating the CBO budget, which is based on the average CPA multiplied by 50 and then divided by 7. This approach is designed to help ad sets exit the learning phase and achieve consistent performance.

💡Look-alike Audiences

Look-alike audiences are groups of people who share similarities with a known successful audience, such as existing customers. In the script, one of the audience identification campaigns targets look-alike audiences to find new potential customers who are likely to respond positively to the ads, illustrating the concept of leveraging successful audience data to inform new targeting strategies.

💡Ad Copy

Ad Copy refers to the text content of an advertisement, which is crucial in conveying the message and attracting the audience's attention. The script discusses testing different pieces of ad copy alongside images to determine which combination works best. It is a fundamental element in the creative optimization phase, where variations are tested to improve the ad's effectiveness.

💡Conversions

Conversions are the desired actions that a business wants a user to take after viewing an ad, such as making a purchase or signing up for a service. The script mentions the importance of achieving a certain number of conversions within a week to help ad sets exit the learning phase. Conversions are a key performance indicator in the ad system described, directly impacting the scaling strategy and budget allocation.

💡Cost Per Acquisition (CPA)

Cost Per Acquisition (CPA) is the cost associated with acquiring a new customer or conversion. It is a critical metric in the script's ad system, used to calculate the budget for scaling campaigns and determining the efficiency of ad spend. The script provides an example of using the average CPA to set campaign budgets, emphasizing its role in optimizing ad performance and cost-effectiveness.

Highlights

The necessity of a proven system for launching, testing, and scaling ads to ensure long-term, predictable, and consistent scaling.

The introduction of a 10 million dollar ad system used for generating millions in revenue from Facebook ads.

The simplicity of the system despite its complex appearance, promising a detailed breakdown to follow.

The four-part system consisting of audience identification, creative optimization, demographic dialing, and scaling.

Audience identification involves finding the best audiences for an offer or business through specific targeting strategies.

The strategy of having one interest or lookalike audience per ad set to avoid variable stacking.

Testing different images and ad copy to identify winning audiences and the best-performing creatives.

Creative optimization phase focuses on finding the best creatives by testing various ad copies and images.

The use of video in campaign testing to determine if it outperforms static images.

Split testing different types of images to find contrasts and the best-performing image variants.

Demographic dialing to refine targeting based on age range, gender, country, and placements that yield the best results.

Data-driven decision-making in optimizing campaigns based on performance analytics.

Scaling phase involves duplicating top-performing ad sets into a Campaign Budget Optimization (CBO) with a larger budget.

The importance of exiting the learning phase by achieving more than 50 conversions in a seven-day period.

The formula for setting campaign budgets in CBO to ensure sufficient budget for conversion goals.

Strategies for hyper-optimizing CBOs, including cost cap and ROAS bidding for further scaling.

The potential to scale ad budgets rapidly from small to large amounts using the outlined framework.

Transcripts

if you don't have a proven system for

launching testing and scaling your ads

you will always struggle to predictably

and consistently scale over the long

term yes you might get some quick small

wins over a certain period of time but

if you want to manage and scale big

budgets you need a system that you can

stick to and you can also provide to

others so they can also use it for their

own results as well and that's exactly

what we have done so in this video I'm

going to outline the 10 million dollar

ad system we have used to generate

millions of dollars for our clients from

Facebook ads now I know it looks a bit

confusing on the screen right

now because there's like org chats and

stuff I guarantee that it's actually

more simple as you than you think when

we get into the detail which I'm going

to go through right now so there's four

parts to our system you can see here

phase one is audience identification

phase two is creative optimization

then we move on to demographic dialing

and then we go on to scaling and let's

jump into number one so

audience identification so the whole

goal of this

is to find the best audiences for this

offer slash business so we have free

campaigns number one is a one campaign

that targets basically the warm

audiences nothing special there we have

a second campaign that targets called

interests and we have a Third campaign

that targets look-alike audiences

now the structure that we have found to

work the best is having one interest or

one lookalike audience per ad set so we

don't stack anything on top of each

other

and we have free ads within one ad set

and across the campaign the ads the set

of ads are identical so you can see here

ad copy one add copy one add copy one

add copy add copy one image one add copy

one image two add copy one image free so

there's actually a couple of things

we're testing here the interests or the

audiences we're testing right because

the whole point of this is to identify

the winning audiences

but we're also testing the images we're

just using one piece of AD copy so the

variable the main variable we're testing

is the interests or the audiences or the

lookalikes but we'll also at the ad

level testing three different images

because why not right because you can

there's not two variables here there's

just one the image so at the end of this

testing phase the main again the main

issue or the main goal is to find the

interests that work best

but then also to find what image also

works best but the main focus is the

audience identification

once we have run that test and you can

see just some details here you can

you can stop the video and look at the

notes on the left hand side

in terms of like testing phases and

budgets etc etc but after we have

identified the audiences that work the

best we can move on to phase number two

which is creative optimization

so you can see here

and this should be

campaign number three

you can see here we've got three new

campaigns and the whole goal of phase

two is to find the creatives that work

the best so in this example we found 10

winning audiences you can see here the

actual ad set level here is one to ten

you might not have 10 winning audiences

you might have more obviously I just did

10 for a round number but depending on

how good the phase one performed you

might have more you might have less

now as the fair suggests we're looking

to optimize the creatives so we're going

to try and find the best creatives now

you can see in phase one we only tested

one piece of AD copy which obviously

isn't good enough we need to test more

ad copy so that's going to be campaigns

number one goal is to find the best

piece of AD copy so we're going to

choose the best image so we've tested

three different images in phase one one

two and three whichever one perform the

best we're going to take that image and

we're going to put that image now with

three pieces of copy add copy one from

phase one but then we're also going to

create ad copy two and add copy free and

put that into an ad set so you can see

here we've still got one ad set one

audience one target interest per ad set

free ads per ad set but right now we've

got the same image and we've got three

different pieces of copy and we're going

to run this test to try and find

obviously the only variable is the copy

the image and the interests I mean we're

testing different interests but there's

only one interest per ad set

so the main variable we're trying to

find figure out here is the ad copy

campaign number two is we will test it

with

video to see what performs best this

campaign one with the images or campaign

two with the video so you can see here

we basically can just duplicate this

campaign and we can change the image for

the video

everything else stays the same the

audiences stay the same the free pieces

of odd copy stay the same the only

difference is that we're trading the

image out for the video just to see if

for this offer for this business if

video works better than static images

campaign number three is we're going to

be split testing more images

so we've obviously seen from ad copy one

over here we found one image that works

the best now this could be let's just

say it's for a personal brand right this

is an online coach image one could be of

them speaking on stage image two could

be them home with their family and then

number three could be like just one by

themselves whereas like a selfie style

face to camera right the idea is that

you test different types of images

there's no point here testing someone's

them stood on stage and then a different

angle of them stood on stage and then a

different angle of them stood on stage

right because they're too similar we

want to test contrasts here so we could

do Authority shot of them stood on stage

we could do like family lifestyle

um with them with their family and then

number three could just be like a

lifestyle shot of just them by

themselves like face to camera selfie

style right more natural

now let's say for example

that the

family lifestyle photo perform the best

so you can see here the same piece of AD

copy but want the different images so

let's say image two worked the best so

what we're going to do now in campaign

free is we're going to take that best

performing image you can see it here

image and we're going to create variants

so it was a lifestyle photo of them in

the family that worked the best it

worked better than the selfie style and

it worked better than the authority shot

so now we know that the family lifestyle

photo performs the best we can split

test variants of that photo so maybe we

pick maybe this was a family photo of

them indoors maybe we pick a family

photo of them outside and then we pick a

family photo of

I don't know them out for dinner or them

at the beach or them doing like some

form of fun activity right it's

obviously going to be dependent on what

type of creatives you can get but that's

the strategy is in this campaign to be

optimizing

the the winning image and see which ones

work best and create variants of that

image to see which one hits home and

we're testing it with ad copy one the

same ad copy from the original campaign

so we can see which one works best

so at this time we're essentially going

to figure out which piece of AD copy is

performing the best we're gonna decide

which image or video like this image or

video

work the best with this offer and then

if it is image we're going to see

which variants of the image to hyper

optimize works the best

and at this point we're ready to dial in

the demographics so the whole point of

this goal by now we have already got the

audiences that work best we've already

got the creatives that work best so now

we just need to dial in the demographics

so demographics is essentially age range

genders countries and then also we have

placements in here as well which I

understand isn't a demographic but you

know it's just part of the process

so what we want to do now is analyze the

previous data from all of the different

campaigns and let's say in this campaign

number three

we analyze the data and we saw that a

lot of the cheap clicks and the clip

cheat leads and the cheap results were

coming from a certain age range let's

just say it was 45 to 65 then what we

would do is duplicate say the best

performing five ad sets from this

campaign into a new campaign everything

would stay exactly the same except we

would just Target that specific age

range

and let's just say in this campaign this

video campaign that

we looked at the data and females were

responding better to this art and this

campaign than males so we'd pick the

five best performing interests sorry

audiences or just whichever audiences

were within kpi so out of the 10 maybe

it was two or maybe it was 10 of them

right just depends on what the data says

but if females will perform responding

better then we would duplicate the

winners and we'd put them into a gender

Campaign which was targeting female only

obviously if males responded better then

you would do a male only campaign

what we can also do as well and this

depends on the offer if you can only

Market to one country let's just say you

know the the company only ships and

serves people in the US then obviously

you can't do a campaign targeting a

different country but let's just say for

example there's a couple of things what

you could do

maybe initially

you targeted multiple countries so let's

just say you did the top four which is

U.S Canada UK and Australia

what you could do then is again you've

looked at the data and let's say in this

first campaign

that people from the US responded best

to the ads you could take the winning ad

sets you would duplicate it into a new

campaign and test us only or

alternatively if you only targeted the

US in the beginning but you have the

ability to Target different countries

then you could just do a random test of

okay so it worked for us maybe it will

work for Canada so you would pick the

best performing campaign the top

performing ad sets within that campaign

select them duplicate them into a new

campaign and you could Target Canada so

we've got four here but you could do

multiple it just depends what the data

tells you if there's if like there's a

good age range for all of these

campaigns and you could duplicate them

all once and do an age range test so

that would be free campaigns maybe

females responded

better to this campaign this campaign

but males responded better to this

campaign when you duplicate this female

duplicate this female duplicate this to

male right so there's three more so you

could actually have countless ones it

just depends on what the data tells you

right it's all data-driven decision

making

and then another final one we like to do

is placement so again analyze the data

if there's anything within these

campaigns that say Hey Instagram feed

people from the Instagram feed responded

better to campaign number two pick best

performing ad sets duplicate it into a

new campaign and Target IG feed only the

same with Facebook feed Instagram

stories etc etc you just got to analyze

the data from all these campaigns and

then choose which one works the best

and that is demographic dialing it's

basically taking what's working and then

really dialing in so we're targeting

that specific segment of the audience so

at this point we know what audiences

work best we have the best creative

combinations and now we know what

demographics and placements are working

the best now we're ready to scale and

this parts are super simple

all you do is look up you can look at

all the campaigns but specifically these

ones because these the ones from phase

three should be mostly dialed in right

now but if you've got campaigns earlier

on I mean AD sets earlier on that in

campaigns earlier on that are killing it

then you can still scale some of those

but essentially what you would do in

this part is look at any of these

campaigns and see which one is working

the best let's just say for example

campaign and again you can have more

than four you could have you know 20 of

these campaigns in phase three depends

on the data let's just say campaign

number one was working really well

what you want to do is pick the

basically the ad sets that are within

kpi so out of the five that you've got

here let's just say four of them was

within kpi you could pick those four and

you could duplicate it typically what we

like to do is three to four ad sets in a

scaling campaign so you look at your

campaign and you would pick the top two

to three to four ad sets and duplicate

it into a CBO

so let's just say this one was working

best and audience one two and three was

working the best we would duplicate it

and put it into a CBO you can see it

says CBO here

right

now we've gone from this is the first

time we've gone from ad set budget to

campaign budget now you want to

duplicate it you want to keep everything

on and then you want to let it run

the budget you can see the formula here

is the CPA times 50 divided by 7. so

real quick how the algorithm works the

whole goal here

from phase one to three is to figure out

what's working these ad sets will

eventually die why because most likely

they aren't going to exit the learning

phase if you want to scale over the long

term you need your ads to exit the

learning phase the way you exit the

learning phase is having an individual

campaign or an individual ad set get

more than 50 conversions sorry get the

ad set more than 50 conversions in a

seven day period

now most of these ad sets are at a five

to Fifteen dollar a day budget and

depending on the campaign most likely

they aren't getting over 50 conversions

as in a seven day period because if it's

got a five dollar a day budget seven day

period means it's going to spend 35 that

means that it's going to have to have

conversions for less than a dollar if

it's going to get 50 conversions after

spending thirty five dollars so you can

see that it's unrealistic for these ad

sets to

get out of the learning phase

so the whole point of the CBO is to find

what's working the best put it in your

CBO with a larger budget so then it

feeds the ad sets a big enough budget

for it to exit the learning phase so

again the calculation to get out the

learning phase is 50 conversions in a

seven day period so the budget that we

set these cbo's at is the average CPA of

the campaign

Times by 50 divided by seven so you're

setting it at the daily budget that

should get 50 conversions over a week

so say for example

that your average CPA here from one of

these campaigns was let's just say it

was ten dollars

so what you would do is you would do ten

dollars which is the average CPA you

would Times by 50 which is 500 bucks

then you would divide by seven and that

number I'm not going to do the math in

my head but it would be 500 divided by 7

that would be the daily the minimum

daily budget

typically what I like to do as a general

rule is my cbos don't really go any

lower than 100 a day even maybe if this

calculation comes up to like 75 dollars

a day I'd still probably just put it as

a hundred just because then you're

giving the algorithm a bit more room to

work because realistically

you know you're not going to get the

exact CPA that you were getting in phase

three it's probably a tiny bit higher

because we're obviously trying to scale

so that's like a general rule CPA times

50 divided by 7 and then probably just

round up it's kind of like the loose

rule

and that's what we do

and again you can have multiple of these

campaign ones right because if you if

you've got free ad sets in campaign free

that's working you make a CBO out of it

if you've got four ad sets in campaign

one that are working you make a CBO and

you can even go back to these previous

campaigns and if they're getting a good

if in campaign two here there's four ad

sets that are working then I would

duplicate those four into a CBO if

they're continuing to work then let's

just try and scale them

now as a general rule that's what we do

we scale into a CBO what we can also do

for hyperscale is to do some cost

bidding so what we like to do is cost

cap one cost cap two and a row as so

cost cap is basically putting a cop on

the cost a cap on the cost sorry so for

example

we can if our average CPA was a hundred

dollars

from the other campaigns then we would

do

a cost cup that says

we only want to pay a hundred dollars so

that campaign's only going to spend

money if

we can get a conversion for a hundred

dollars right and again this isn't a

video on Cost Cuts or anything like that

it's more of the ad structure so I'm

sure there's more videos on this channel

around cost cut structure but that's

essentially what we do we do a CBO we do

a cost cut one we do a cost cup two and

then we do a row as which is essentially

the same thing but it's looking at the

row as number instead of the cost per

conversion right so maybe we'd say we

want a two rowers

and that is it that is our four-part

scaling system now there is actually

another phase after this where we

basically hyper optimize these cbos but

it's not 100 necessary you can very

easily use this out structure to go from

zero from 100 from 500 a day to spending

five thousand dollars a day very very

quickly following this four-step

framework