Everything I've Learned Spending $30M on YouTube Ads | Tommie Powers Interview

Summary

In this insightful interview, Nathan Chan, CEO and founder, discusses mastering YouTube ads with a self-proclaimed 'YouTube ads goat' who has spent over 30 million dollars on the platform since 2012. The conversation delves into the power of YouTube as an advertising medium, the importance of creative hooks, messages, and calls to action in ads, and the strategy of viewing ads through the lens of customer lifetime value. The expert shares his journey from Google ads to YouTube, emphasizing the platform's potential for businesses of all sizes and the necessity for resilience in entrepreneurship.

Takeaways

• 📈 YouTube boasts two billion active users per month, making it a vast platform with a high potential audience for any business.
• 🎥 The power of YouTube ads lies in their ability to replicate the global impact of TV, but in a digital, accessible format across multiple devices.
• 🛍️ Diversification of ad spend beyond Facebook to platforms like YouTube can be beneficial, especially for businesses looking to expand their reach.
• 🚀 Starting an online business requires resilience and the ability to adapt, as illustrated by the interviewee's transition from management to online marketing.
• 💡 Creativity in ads should include a strong hook, clear message, and a direct call to action to effectively capture the audience's attention within the first few seconds.
• 🔄 The concept of 'open loops' is used in advertising to create intrigue and maintain viewer interest, similar to cliffhangers in TV shows or movie trailers.
• 📊 For scaling ad campaigns, starting small and learning quickly is essential before increasing the budget for greater impact.
• 💰 Understanding unit economics and customer lifetime value is crucial for determining how much can be spent on acquiring a customer through ads.
• 📉 The mindset of learning from ad spend, rather than immediate profitability, accelerates the path to successful advertising strategies.
• 🔑 The key differences between YouTube and Facebook ads include the format of creative content and the user behavior on each platform, requiring tailored approaches.
• 🌐 The future of YouTube advertising is promising with increasing global internet adoption and the potential for more businesses to leverage its capabilities.

Q & A

What is the significance of having two billion active users per month on YouTube for advertisers?

It means that no matter who the target audience is, they are likely on YouTube, providing advertisers with a vast potential reach to connect with their desired demographic.

Why did the interviewee start using Google Ads and affiliate marketing?

The interviewee started using Google Ads and affiliate marketing in 2007 as a way to provide for his family and find success online after not achieving success with other methods.

How did the interviewee's experience with eBay selling in a pawn shop influence his online career?

The experience showed him the potential of making money online through selling items like a broken camcorder for a profit, which sparked his interest in the internet as a viable way to generate income.

What was the turning point for the interviewee that led him to specialize in YouTube ads?

The turning point was when he started an agency and began running Google Ads. His success with clients like Kevin Kergansky, who saw significant growth after implementing YouTube ad strategies, led him to specialize in YouTube ads.

What is the interviewee's perspective on the power of YouTube ads compared to traditional TV advertising?

He believes YouTube ads are powerful because they take the concept of TV advertising and expand it to digital formats that are accessible on multiple devices, allowing for a broader reach and more engagement.

How did the interviewee's strategy of using YouTube's external link annotations contribute to business growth?

By using external link annotations, he was able to embed clickable links within videos, which reduced viewer guard and directed them to the client's website, leading to significant business growth for clients like Kevin Kergansky.

What is the interviewee's advice for businesses that are not yet making six figures?

His advice is to focus on one advertising platform and not spread themselves thin until they have gained some traction. Diversification should come after achieving a certain level of success.

What are the key differences between running Facebook ads and YouTube ads according to the interviewee?

The key differences include the format of creative messaging, the user behavior on each platform, and the intent behind user interaction. YouTube ads often require a stronger hook and message baked into the video itself due to the platform's nature of seeking information.

What is the interviewee's C3 Formula and why is it important for successful advertising?

The C3 Formula stands for Creative, Campaigns, and Conversions. It's important because these three elements are crucial for any advertising platform. They represent what you're saying, who you're saying it to, and how you're getting them to take action.

How does the interviewee define 'margin' in the context of advertising and why is it important?

He defines 'margin' as everything it takes to deliver the promise made when taking someone's money. It's important because it dictates how much an advertiser can pay to acquire a customer while still being profitable, considering the potential for future sales to the same customer.

What mindset does the interviewee suggest for businesses when it comes to spending on advertising?

He suggests a mindset of learning and investment. The more a business spends on advertising, the faster they learn what works and what doesn't, ultimately leading to success through iteration and optimization.