My Simple 4 Step Facebook Ad Framework That Made $10M
Summary
TLDRThis 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
📈 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.
🎨 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.
📊 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.
🚀 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.
Mindmap
Keywords
💡System
💡Audience Identification
💡Creative Optimization
💡Demographic Dialing
💡Scaling
💡Campaign Budget Optimization (CBO)
💡Look-alike Audiences
💡Ad Copy
💡Conversions
💡Cost Per Acquisition (CPA)
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
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