[0:09:28] Question 1: You mentioned that uploading your email list in Facebook and use the list in the audience insight to find out new interest. May I know what is the minimum number of the list in order to be accurate?
The first question is by Wayne Tan. Wayne asked,
Hey Fred, you mentioned that uploading your email list in Downtown and use the list in the audience insight to find out new interest. May I know what is the minimum number of the list in order to be accurate?
That’s a really great question that you brought up. I have to first bring up one important point. Over time when you are acquiring new customers in your database, you will see a slight difference in the interest targeting through the audience insight, only because through your activities and through different times and through your different efforts of marketing, you may attract different people towards your business. It is actually very important though that you obviously upload your customer list. It is very important to use your customer list because those are people giving you their credit card numbers and you want to find out exactly who they are so that you can expand, so you have to upload your buyer’s list. The number that starts to get accurate will be around over 10,000. You can still upload it when it comes to a couple of thousands, it’s still fine but it may not give you as much data as basically having 10,000 buyers uploaded right into your Facebook account as a custom audience to run the audience insight to really see who these people are.
Again, like I said with my team, we do it on a monthly basis now because when we compared back the custom audience of our buyers, let’s say from 6 months ago to today, we saw a difference. With that difference, we have the ability to expand our market a lot more. When it comes to a number I will say it’s going to be 10,000 that would be the best number to be accurate but with the custom audience, you can start with a 1,000 or 5,000 and really let Facebook tell you the data. If you are basically running a majority of your traffic from Facebook then with the custom audience obviously you’ll get a lot more information than using other traffic sources. Again, my best number is 10,000 but if you are basically having a smaller list I will still advice you to upload it as a custom audience then you can see if Facebook spits out the data about your audience. I hope that helped you out.
[0:12:05] Question 2: What do you think of twitter? What's the best way to advertise on that platform?
The second question is by Chris Hoff. Chris asked,
What do you think of Twitter? What’s the best way to advertise on that platform?
That’s a really great question that you bring up. First things first, I do not advertise on Twitter. I had advertised on Twitter around 4 to 5 years ago when they’re not that mature. They were still in the [inaudible 12:24] of advertising online but until this day I haven’t gone back. Last time when I ran it around 4 or 5 years ago, I didn’t really get any results. I was actually getting a lot of retweets, a lot of engagements but I wasn’t able to acquire a sale right out of it. Now I know that Twitter has made a drastic change in their platform; for example, adding images in there and giving you more ability to add more characters. Ever since they have done that transition I have not run an ad before so I can’t give you the best strategy or the best way to do it only because I haven’t run it myself lately. I don’t want to give you the false advice.
However, do I think it is an advertising platform that worth the time? I would say yes only when you basically have your main traffic sources consolidated. Let’s say that if you are getting Facebook ads running, you mastered it and it’s doing well. You start running Google it starting to pick up well, and then you actually look at Twitter as a second tier just like Pinterest or basically native advertising. I classify those as the second tier. What I mean by the second tier is that I always focus all my energy and effort on Facebook and Google and a little bit of Bing at the same time. Again, like I said in previous episodes it is very important for you to actually drive multiple traffic sources to your website. But will Twitter bring a truckload of visitors right away that are going to buy anything that you sell? I don’t know. I assume that Twitter won’t have as much traffic as compared to Facebook and Google. I think that is a very fair comparison.
For me, we both only have 24 hours in a single day so for you to maximize your money and time, obviously you want to focus where the elephant is, Facebook and Google. Once you able to master that then I think it will be something that is definitely advisable for you to actually look into it and test it out. Again, from my knowledge based on the last time that I run Twitter and based on my advertising experience, I would assume when it comes to Twitter it is all about the hashtag. Obviously, on Twitter people, just search for hashtags or people show interest in a particular person or like a fan page that’s what Twitter is. I think those two are the main targeting; keywords and basically going after the specific like Twitter profile or similarity to the Twitter profile. But I think the golden key from my experience in advertising personally is the keyword side because if someone actually searches for the hashtag and your ad shows then it’s kind of like search ads. Master Facebook and Google first because they are the dominant players and then you can look into Pinterest, Twitter etc.
In respect to Facebook, here’s an amazing fact for you guys. I know that in Q4 last year everyone was struggling, complaining that Facebook ads were super expensive, all the big brands were using it and causing your CPM to be super expensive. I still remember some of my campaigns we were up like on average $60 per 1,000 reach. That was like crazy. But you know what with the holiday is over, our CPM dropped to 1/3 and we’re paying only $20 CPM. So, I want to share with you guys that the time is now. A lot of people will say, “You know what you can make a lot of money during the holiday because people are in holiday mood.” Yes, that is true but on the other side of the pendulum is that you’re going to pay a lot more in ads spend to acquire a customer. Right now, even though it is what we call a “low season” with inventory being opening up, CPM being dropping down it is a perfect opportunity for you to start running a lot of ads on Facebook to get those inventory at a way lower cost and you can simply turn it to profit because you are paying far much less in advertising.
[0:17:41] Question 3: I had about 0.20 cent CPC then I duplicated the campaign, and it was almost up to 1.00. Why? Did I lose my data the pixel gathered when I duplicated the campaign?
Moving on to question number three, it’s by Frank Ippolito. Frank said,
I had about 0.20 cent CPC then I duplicated the campaign, and it was almost up to 1.00. Why? Did I lose my data the pixel gathered when I duplicated the campaign?
Two questions. Let me answer the first one first. You had a $0.20 CPC and then you decided to duplicate the campaign for some reasons, maybe you want to increase your budget or do something different. If I assume, you are trying to increase the ad budget that’s the only reason why you duplicated the campaign is to actually increase from let’s say $5 to $50 a day then at that point I would understand why you duplicated the campaign. But if you duplicated it just for the heck of duplicating then you are shooting yourself in the foot because you have something that is working, why the heck do you want to duplicate it and affect the campaign overall?
If you basically duplicated it because you want to increase the ad spend, here’s the answer to your question on why your original is spending $0.20 and your new one is spending $1. The reason is that in your pool now that you basically told Facebook that you actually have more budget, Facebook is going to go after within your audience another segment within the audience. Let me take a step back, let’s say that you’re running $5 a day campaign or whatever budget you are at and let’s say your pie is this big. Let’s say this is a million audience size right here. When you first run the campaign, Facebook will only serve a portion of these audiences. I call it the audiences within an audience because with your budget Facebook can’t run to every single person who is in your target audience because the size is way too big than what your budget is going to be. Facebook is going to basically find the lowest hanging fruit for you and only advertise to a segment of people who will most likely respond to your ad. Now, when that is running and then you decided to duplicate the campaign with a bigger budget, guess what? That pie starts to get bigger. That audience within the audience starts to get bigger and Facebook now basically says, “Well, I have a bigger budget I’m going to find other audiences within your core audiences to see if it will plan out for you because Facebook’s job is to spend your money. Their job is to serve to people who will most likely to respond.
Now, do you lose the pixel data? You won’t lose the pixel data; however, it will reset the algorithm though. Each time you duplicate a campaign, make an edit to an ad set, make an edit to an ad, it will reset the algorithm. When it rests the algorithm it doesn’t mean that all your pixel data is gone. Facebook will still take in consideration the past historical data of your pixels but the algorithm has not kicked in yet. It’s not a full effect right away so that’s why you will see a price difference. That’s why you will see a price difference. Here’s what I can tell you, when you start running for a couple more days and if you change nothing but just a budget, you will start to see and most importantly make sure that your click-through rate stays consistent before you duplicate it then what’s going to happen is that overtime Facebook will slowly get back into the CPC that you were getting because they found at that if I’m going after the audience that we think within the audience that’s going to work and it doesn’t work, then Facebook will sell to those people and serve it back to the ones who is going to work actually well for you and your campaign. I hope that answered your question and cleared your mind on what is happening and have an understanding on why that happens at the end of the day.
[0:21:39] Question 4: I was doing well scaling an ad I had running and my sales were over $100 a day and then from Monday this week my sales have suddenly dropped off and now I am lucky to get $30 a day I have dropped my ad spend accordingly. Am I doing something wrong? My ad set has been hitting all the required 4 numbers with CRT over 2.46%, CPC $0.73, CPA making a profit (but is increasing to break even, as sales have dropped) and CPM $17.87 (was $14, but has increased this week). My audience size is approx 1 Millio
Moving on to the Fourth question by Leeanne Beaton.Leeanne said,
I was doing well scaling an ad I had running and my sales were over $100 a day and then from Monday this week my sales have suddenly dropped off and now I am lucky to get $30 a day I have dropped my ad spend accordingly.
Am I doing something wrong? My ad set has been hitting all the required 4 numbers with CRT over 2.46%, CPC $0.73, CPA making a profit (but is increasing to break even, as sales have dropped) and CPM $17.87 (was $14, but has increased this week). My audience size is approx 1 Million. Thank You!
Here’s a typical scenario that happened with you Lean. So you were running and doing great and then you basically increased you ad spend and you started to see a drop off but your click-through rate and CPC stayed the same. What really happened is that Facebook got a bigger budget and within your million audience size Facebook starts to increase the audience within that audience. At the end of the day once you increase, you still want to let Facebook run for it a little bit to actually understand and to really see or let them figure out who your best audience is going to be. Facebook’s job is always going to try to help you find the lowest cost possible and at the end of the day when you start to have a bigger budget Facebook knows that “Now I have a bigger room I’m actually going out into a bigger audience within your 1 million audience size to see what works out.”
If you already have a campaign that’s working, I don’t think frequency is a problem. At the end of the day, I will actually have you continue running it at a lower budget and then increase it back as we go. However, if your audience size is less than 1 million and you are starting to see a click-through rate decrease. The click-through rate was really doing well. Let’s say it was doing 2.46% and then a couple of weeks later it dropped to 2 or sometimes 1.8%. That really will cause what we call“ad exhaustion”. And this normally happens when you have like a really large budget on a daily basis. I’m not sure what your budget is by the way but let’s say that you have a really large budget in the smaller audience size. Then at the end of the day what’s going to happen is that the same people are seeing your ads over and over again and the ones who don’t click, they will never click because the ad is not creating a rapport with them. They are not interested in your ad. Here’s what you do and this is a very common thing when it comes to scaling. You have to test different creative and basically re-enter the market because let’s say that you got 3% click-through rate and when you starting to actually see the ad exhaustion technically right now you’re missing out 97% of the audience who are seeing your ads because they’re not clicking it. Again, they’re not clicking it because they are not interested in your ad but if you actually come over in a different angle and come over with a new creative it may pique the interest of the remaining 97%. They will actually click and then revive the campaign almost right away. Some quick feedback and tips for you guys.
[0:25:48] Question 5: Should ads (for physical products) be posted visibly on an Facebook page or be dark posts?
Moving on to the last question, it’s by Claudia Wallon.
Should ads (for physical products) be posted visibly on an FB page or be dark posts? Thank you for all the info you are giving.
When it comes to dark post and pushing on a post, I actually had an episode talking about the dark post already so I don’t think I need to bring that up again.
The answer is you should not. And the reason why you should not is that if a person actually goes to your Facebook page and see that all your posts do not have content but they are just all BUYYYYYYY people will get upset about it and they’re not going to actually really connect with you and your brand. You do not have to pamper your entire Facebook news feed on your Facebook page to be all about SELL. Right now consumers are brilliant, you have to give a lot of content out. That’s what you have to do.
Here’s what I would do if I were you. Whenever it is an ad, I never post it. It is up to you if you want to do that or not. The decision is yours. Here’s what I normally do. I go to Facebook to create an ad. Each time I create an ad, it creates a post and we call this a dark post because it doesn’t show up in your Facebook news feed. Every single ad that you create is classified as a post so if you create a different ad set and you want to use the same ad and you use the Facebook ads tool to create that ad, it will create a separate post. Even though it is identical, it will be a separate post.
Here’s what I normally do, I first create my campaign, my ad set in one ad first or maybe three ads if I’m using a 3X3 method. That’s the first thing that I do. Each of my ads will have its own post ID. If you have a business manager account which I told you the importance and why you need one a couple of days ago. Inside your Facebook business manager account, you can actually go to the top menu and click on a page post. When you click on page post on the left-hand menu you will see something called the ad post. When you click on here those are classified as dark posts because they are hidden from your Facebook page news feed and primarily used for ads. You can actually copy that ID. Again, like I said every single post even your ads will have an ID to it. And when you want to use the same exact ad, let’s say you are trying to create ad set number 2. You want to use the exact same ad then when you’re going at the creating your ad part, do not create a new ad rather use existing post and copy that ID that you copied from your page post in your business manager account right into your ad’s platform. Then what’s going to happen is every single ad that you’re running, every single traffic that you’re running will funnel into that one single post so you can carry all the social proof, all the comments, all the shares etc. At that point, I usually just let it stay over there but if it is a campaign that I know is doing phenomenally well let’s say for example if you were on my Facebook page, I pinned a post and that was actually a dark post. It was an ad that I created and I simply just put it as pinned so I can capture email addresses. You can do that if you want. If you know that you have a winner ad that you want to basically have it featured right on your Facebook page. I hoped that helped you out and you guys actually understood this tip.
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Moving on to our kickstart 500 winners. If you guys are excited to actually see if you are the winner of our kickstart 500 put in the word EXCITED into the comment box on Facebook or YouTube, let me know. So the kickstart 500 winner for today is Eddy Jun Ying Li. Congratulations Eddy for winning our kickstart 500 grant. Eddy is in e-commerce. He is from China, grew up in Canada since 8 years old. You have a long story and I don’t think I should be reading this entire story to the public. At the end of the day, he wants to achieve with the $500 to build up a store and then use the money to test Facebook ads properly. He wants to make steady sales and finally break free from this restaurant slavery. I really hope that this $500 will help you kick-start your business and we will send you a to-do list. You have to accomplish all five goals. Once my assistant actually sent you the five goals that you need to accomplish then you will be entitled to one on one consultation call for a full hour with me where I’m going to dissect your business, walk you through, help you out, and give you training and some advice personally. Congratulations Eddy. For those of you who did not win it is fine, don’t worry I’m doing this every single week. As a matter of fact, I think, I invested quite a lot of money right now. I think this year we may end up like 6 figures on just giving or investing in individuals like you guys who want to start a business but don’t have $500 to do so. I don’t think it is going to end anytime at all. I’m just going to keep giving away $500 just to help you guys out.
Once again though, from time to time I will ask you to make an investment here or there only because I’m an entrepreneur I have to make my money back and I have to basically justify my time. I don’t ask it often. And when I ask for it, it is basically something that I know has potential and true value to every single one of you.
With that being said, right now today we released or digital boot camp, an 8-part video training series where you get to build a profitable online business using nothing but emails. No credit card required. Watch the video, go ahead, take action and learn other business models or maybe it is a business model that you think that will work well for you this year. The link is above this video or right below if you are on YouTube. Click that link, sign up. It is tiny.ie/bootcamp.
I have a lot of you asking how to enter for the kickstart 500 grant. All you have to do is go to fredlam.com/500 you will see information about it in there. Guys, if you are on YouTube make sure you subscribe to my YouTube channel and click that bell icon which is a notification. Make sure you join us in our notification squad so that each time I come on live you get an instant notification that I’m live in our daily huddle. This year I’m going to release a ton of video training for you guys. I’m going to start my recording very soon. If you want to be the first to get this training make sure you subscribe to my YouTube channel. If you are on Facebook, make sure you head over to YouTube, search my name up, click the word subscribe and hit the notification button. That’s really it for today’s daily huddle. I look forward on seeing you guys tomorrow at the same time 6PM Pacific, 9PM Eastern. Bye now.