This Small Pivot Saved This Dying Facebook Ad Account

Summary

In this video, the speaker shares key lessons from scaling e-commerce brands through Facebook ads. They discuss the impact of optimizing ad account structure, testing new creatives, and identifying unique market desires. Highlighted are successful strategies like consolidating campaigns, pivoting to market awareness, and using fresh, targeted creatives to achieve explosive growth. Examples include scaling a women's clothing brand from losing money to making hundreds of thousands a month and increasing ad spend efficiency for a lead generation client. The speaker emphasizes the importance of fresh perspectives and continuous market research for success in digital advertising.

Takeaways

• 😀 Consolidating ad campaigns can significantly improve account performance by streamlining management and eliminating inefficiencies.
• 😀 Avoid overcomplicating ad account structures—focus on one campaign per business objective to prevent budget fragmentation.
• 😀 Iterating too much on the same winning ad can lead to burnout—switch up your creatives after a few weeks to maintain fresh engagement.
• 😀 Market research is crucial for discovering new customer desires and needs—filming new creatives based on this insight can lead to exponential growth.
• 😀 When scaling, focus on understanding market awareness—create ads that resonate with unaware audiences who aren't actively searching for a solution.
• 😀 Using a hidden fear (like the fear of losing money) can engage an unaware market and create a compelling reason for people to take action.
• 😀 Scaling an e-commerce brand internationally requires localized campaigns and stores to cater to specific regional markets, like translating content and currencies.
• 😀 Sometimes, the key to rapid growth is simply recognizing the right time to scale—like aligning your product with seasonal demand in Q4.
• 😀 Identifying and tapping into untapped desires or problems in the market creates a competitive edge and reduces market saturation.
• 😀 A unique approach to positioning a product can open up a 'blue ocean'—a space with minimal competition where growth is easier to achieve.

Q & A

What was the key reason the female clothing brand was losing money on Facebook ads?

The brand was spending around $750 to $1,000 per day on over 60 campaigns with a return on ad spend (ROAS) of 0.7 to 0.9, which meant they were losing money every month due to inefficient ad account structure and excessive campaign fragmentation.

How did the consolidation of campaigns impact the brand's performance?

By consolidating the campaigns into just one or two, the brand was able to improve their ROAS to 3x within the first week, eventually scaling to $3-400k per month in revenue over six months.

What does the speaker believe about the role of ad account structure in performance?

The speaker believes that while ad account structure isn’t the ultimate solution to scaling, it can drastically improve performance if the account is poorly structured. In some cases, consolidating campaigns can lead to a significant boost in performance.

Why did the Metal Signs brand plateau at $1,000 a day despite having a winning ad?

The brand plateaued because the speaker kept trying to iterate on the same winning ad without finding anything new or fresh to engage the audience, leading to stagnation despite numerous iterations.

How did market research help the Metal Signs brand break through its plateau?

By stepping back and conducting market research, the speaker discovered new desires in the market and filmed new creative content that directly addressed those desires, which led to scaling the brand to $5,000 a day within a few weeks and $10,000 a day within a couple of months.

What is the 'Big Swing' strategy for testing new creatives?

The 'Big Swing' strategy involves targeting larger market desires, new problems, or new ways to position a product that competitors aren’t addressing. This allows a brand to tap into new audiences and create more compelling ad creatives.

How can an 'unaware market' be effectively targeted in ads?

To target an unaware market, ads should avoid directly mentioning the product or its benefits. Instead, the ad should highlight a hidden fear or big win that resonates universally, such as a fear of losing money or the desire for a luxury item like a Lamborghini, before introducing the product as a solution.

What was the pivot that allowed the lead generation client to scale from $10k to $15k per day in ad spend?

The key pivot was shifting the focus to new ad creatives targeting an unaware market, where the ads played on a hidden fear (losing money) and highlighted the potential financial loss to reel in new leads. This led to a reduction in the cost per lead and allowed for increased spending.

How did the e-commerce brand's seasonal shift in product offerings drive massive growth?

The brand saw a huge increase in revenue by capitalizing on Q4, which is the peak shopping season for kids' toys. By creating new Shopify stores tailored to specific countries, including translated creatives and currency for each market, they were able to expand their reach and significantly scale revenue to $3.5 million over three months.

What was the mindset shift that led to success with the inner circle student's brand?

The pivot was recognizing that the student had the right ad account structure and creatives, but what was missing was a fresh perspective on how to position the product in the marketplace. By identifying a unique desire that no one else was targeting, the speaker helped the brand scale to over $1 million per month within six months.