If you watch one Facebook Ad Video, Make it This transcript

In this video, we're going to be covering literally every metric that you need to know if you're an e-commerce brand, a media buyer covering Facebook, TikTok, Shopify, all the scenarios that you will encounter, how to solve them, what they mean, and what you can do about it and get past all the bottlenecks in your business and be able to scale. If you don't know who I am, we advise on over $200 in ad spend and work with some of the biggest brands in the world that you definitely know and love.

So, let's go ahead and get into this video. First category is going to be Meta. >> If we have a high CPM, >> what's the quickest way to lower it? >> Run more ads. >> Ads. >> No. I don't want to say change your offer cuz that's So, you can't really do that. >> Well, offer's one of them. There's really 11 things, but we're just going to cover two primary ones. Offer. Usually the first indicator is compliance issues. And essentially what that means is is like if somebody's running peptides and they're saying, "Hey, this helps you lose like 40 lb." you're going to have like a 150 CPM.

Or you say helps daily focus. Like there's certain keywords that Meta flags in like health categories or gambling or gaming, different like industries, you'll get really, really, really high CPMs and that's a problem. >> Mhm. >> Now, the other thing with CPMs, the biggest one of all is your offer. So, with an offer literally if you have a $100 product and you offered it for free tomorrow, you would take your CPM from $100 down to like three bucks.

So, Meta deems offers as like one of the biggest levers to pull with CPMs specifically. So, just reducing your price or doing a special deal or including more in the actual offer >> Oh, is that why ads that include what's inside a bundle deal those would do better? >> As long as it's better than your competitor's deal. So, if you're offering bundles and your competitor's offering bundles, as long as your offer is better, whether it's pricing, value, what's included, you're going to get a better CPM. >> And that's only like on the ad itself, not relevant to like what's on your website? >> No, it factors in your website, too.

So, compliance, Meta will scan your site, they'll scan your offers, they'll scan your page speed. If your page is slow, it'll increase your CPMs. But all of the other points, these two are the biggest needle movers. Everything else is like how fast is the website or how relevant is the creative or, you know, how many people are converting or how big is your audience. Maybe you made it too narrow. That's all little stuff and it like slightly adjust your CPM.

But the biggest way to reduce it is your offer or just fixing your messaging. So you just tweak your messaging and get it on into the compliance zone. >> So you said like your your website plays a big part too. Then does that mean like if you have like a really bad website, your CPMs are just going to be really high? >> No, not necessarily. It's a very It's weighted very low on that scale. So just because your site's slow, it may affect your CPM by like a few dollars.

That much. It's not that big of a change. >> If like your website is not compliant to Meta, that would mean maybe it's high as well? >> If it's not compliant, you're going to have a high CPM always. So you just adjust all the keywords on there. That's like the quickest way you can see like a $50 reduction in CPMs. Another scenario, low click-through rate. If you have a low click-through rate in your ads, what does that mean?

How do you fix it? >> Run better creatives. >> It's simple. You just make better creatives. And that sounds generic, but it's really simple. It's just messaging and creatives. So you just improve your messaging. You're actually going after being more relevant rather than just saying, "Hey, try this product." You're actually calling out your audience. Moms, you know, do you have gut health issues? XYZ, are you um a busy professional?

Messaging helps with that. Your creative and offer helps with that. Having features and benefits, a review base, all the different ad formats you can think of. You just need to work on your creatives. If you can get a good click-through rate and a low CPM, then your Meta ads are fine. >> Okay, like if I had like a bad click-through rate, but like I had five ads versus like 100 ads, would it be different? >> Volume doesn't necessarily matter.

You may only have image ads. So you need to have UGC because your product may be more complicated. So you just need to explain it better. So you just improve your creatives, improve your messaging, be more specific, add in more unique formats, incorporate videos. And then if you have a low CPM and a high click-through rate, then you know your ads are doing the job of getting people to the site. Now, let's say you do have a high click-through rate after doing messaging creatives and you have a really good CPM.

That's not a meta ads issue. So, what what does that What does that mean you need to do? >> You have like a website conversion issue. >> Yeah, you have a low conversion rate. So, how do you fix it? >> Uh I'm assuming just like changing things on your website. >> Let's just say you have a low conversion rate, right? This is a random site I pulled up. Like one of the first things you can do is you can get rid of this right here and you can do three bullets.

That's going to like make it more clear for what your offer is. You put like all your features and benefits. You want to have five to seven images. So, you'd have at least five to seven call outs. And one would be like an ingredients. One would be a flavor shot breaking down the actual flavor of the gum. Another one would be like what are the benefits of actually taking this. Another one is like the serving size. Another one is a lifestyle image.

So, that way like it's an educational breakdown. The next one is you can default to subscribe and save since you have a 10% off offer. This right here can go below the add to cart. You can also remove quantity because when you hit add to cart, you can already be able to essentially add more items to cart. Um so, that reduces your padding. If this is a six-pack, you need to show the six-pack when that's pre-selected. You can even remove this if you're only offering one.

That way all of this scoots up. This can go. So, that pushes this up, right? This padding right here, that padding, you can remove that and just scoot it up even more. You can also add a banner at the top that calls out your offer. Since they have free shipping, this whole section can go down, but you can also take the free shipping on 35 plus plus and put it up here so that way you're not wasting space. >> Oh, wow. So, the idea is to move everything as forward upwards as possible. >> Yep.

Yep. So, on first load you see everything you need. Has all the breakdowns. Has all the key imagery. Then obviously as you scroll down the site, you want to have like breakdown images. You don't need this big section here. Like that's not necessary. Um yeah, you would break down the product page. And that's just like one way to increase You just adjust the website. That's adding key callouts, you know, benefits, all the images, optimizing for speed.

You know, there's a lot of things that go into website optimization. Education, breaking down the product, walking them through it. So, if you have a high click-through rate and a low CPM but a low conversion rate, you have a site issue. You don't have a creative issue. >> How often is it where the issue really is the product is not that desirable? Is it ever really like the product that would like have that low conversion rate? >> Yes.

What does it mean if you have a low conversion rate and a high AOV? >> Means not a lot of people buy, but when they do buy, they spend a lot more money. >> Yeah. But you don't really have to fix this. This is normal. It's normal. Because for instance, Grind Basketball, they sell a $1,700 like portable basketball shooting machine. It's $1,700. You're not going to have a high conversion rate on that. That's That's normal.

It's okay. It's fine. So, if they have a high click-through rate, high CPM, low conversion rate, they can still adjust site, but that's normal for them because they have a high AOV. So, it's okay. They can still work out the back-end like metrics. Right? So, they can get a lot of clicks, very low CPMs. They can then offer pay plans and get their conversion rate up a little bit more. But since they have such a high AOV, it's okay because it still works out on their COGS.

But if you have a low conversion rate, high click-through rate, high CPM, it's a site issue. Next category is website. If you have flat sales, high return on ad spend, what does that mean? What do they need to do? >> Sales are flat, you need You need to spend more. >> There's two scenarios. One, yes, spend more. But before you spend more, you first have to validate. And And the validation is you're just going to check and see if you have a high returning customer rate.

Let's say you have 80% returning customers. Well, no wonder your ROAS is high because you're more than likely just attributing all your sales to your current customers. That means your campaigns are just reaching the same people over and over again and getting them to buy. So, you're sending out an email and Meta is attributing it, so you're getting a high ROAS. So, a lot of times people will go flat in sales, they'll raise your spend because it looks like they have a high ROAS, but because the returning customer rate is so high on their actual Shopify, that means they're not acquiring enough new customers and they're just hitting the same people over and over again.

It's a fallacy. Does that mean like >> having a high returning customer rate is not necessarily a good thing? >> Having a high returning customer rate is a great thing. The problem is is whenever all of your ads begin to target those same people who've already become your customers. So, then you cause this issue of not being able to acquire enough new, so your sales go flat. So, people will be stuck at like 40k a month or 400k a month even.

And every month they're stuck at that, and no matter how much creatives, no matter how much they change with their ads, and they scale spend, their metrics look good, but they're not moving anywhere because it's the same people buying in over and over again. They're effectively reacquiring the same customer every time, or false attribution. >> What do you need to do? >> You need to like exclude your current customers in your Yes. >> ads? >> Flat sales, high ROAS segment.

You segment out all past customers, your email list, completely out of your campaigns, and then you switch the conversion objective to acquiring first-time customers. So, you focus all your actual segmentation on the emails and on the Meta side. And then you adjust your offer messaging to first-time customers. So, you'd say, "Hey, first-time customers get 15% off. Hey, first-time subscribers get 30% off their subscription." >> Oh, like on your website, like >> And in your creatives.

And then you segment out all the audiences, you segment out all your email on on the back end. That solves that issue. Then your returning customer rate goes from being 80% like this to then doing something like this. To then being at 30% and then your new customers ends up being 70% and then what happens to your sales instead of being flat it actually begins to go up over time because you're acquiring more new people. >> So that means like also like you would have to go harder on your email and SMS? >> No, you just segment out your purchases from your campaigns and then you focus some of your flows on acquiring that new people. >> How do you like keep people like returning? >> Well, in that scenario they don't have that issue.

On the reverse side of that, if you have a low returning customer rate, what do you do? >> Like you would have to figure out better email flows and text flows? >> Yeah, I mean you can remarket to people, but what's the big lever? Subscriptions. >> Oh, okay. That makes sense. >> Yeah. >> Yeah, just subscriptions. Maybe you don't have a subscription offer. You just incorporate that on your site. You can also do retargeting. >> Okay, what if you're like a clothing brand? >> If you're clothing brand retargeting.

You take a retargeting audience, do all your past purchases rather than pushing your best seller which most clothing brands will run with their top two or top three SKUs or just their hero product and they'll scale that out. But they'll have a low returning customer rate because their site isn't set up to show their other products. So you put new arrivals at the bottom of the site or you go to retargeting campaign, you make a purchase audience, you do a carousel of all products and then you drop in your second hero, your third hero, your fourth hero, your fifth hero, your next best sellers to past purchases to get them to buy.

You send out more emails to that list saying, "Hey, we have new drops available." You incorporate a drop strategy. So subscriptions only work for like consumable products or stuff that like can be exhausted, right? As a resource. But clothing, you can also incorporate loyalty programs where they buy more as well which is that form of a subscription. Like for instance, Stab Athletics does that. You pay a subscription, you come back, you get a credit to use it.

But that's more of a one-off strategy. Not every clothing brand needs that. It's mainly drops, retargeting, and then hitting your list enough with your additional products. >> Are there like situations where like you buy once and like that's it? >> Sometimes, like Grind Basketball for instance, you buy one machine, but you just incorporate other products that would need to be purchased multiple times. Like maybe a cleaning kit to clean the machine, degreaser, maybe basketballs.

One goes flat or, you know, is no longer has the right bounce or something happened to it. So you incorporate products that can be used in addition with it. Same thing for our site. What are some more issues? If you have a low AOV, how do you fix that? >> Adding Well, I guess if you don't have any more products, like adding more products or like offering bundles of the same product. >> Bundles? >> Uh upsells. >> Upsells? >> Cross-sells. >> Yep, cross-sells.

That's the quickest way to increase AOV. Instead of offering one item, you offer a four-pack at a discount, you offer a six-pack. You do pre-built bundles where you pre-select different products that pair well together. Maybe a like a lip gloss and, you know, another item that just pair well. Face moisturizer and then um an exfoliator. You put those together, you take the exfoliator, then you do the moisturizer. You pre-build them, and then you also offer additional packs on top of like one unit SKUs.

So lip gloss, you can buy three-pack or you can buy three color variations in a pack. You can cross-sell into other items. You can upsell into bigger packs. So you'd have in-cart upsells, on-site upsells, you'd have pop-up upsells, you'd have pre-built bundles across site. That will fix an AOV issue very fast. What is the minimum AOV you should be at? Industry standard, like no matter what, if you're below this number, it's just not going to work. >> 35. >> Yeah, perfect. 35.

Anything below $35 is horrible and it's almost impossible to scale. So, that leads us to this, right? So, if you have a low ROAS, high click-through rate, and you have a low CPM. We know a low CPM is good. That means you're reaching enough people. You have a high click-through rate. That means that people care about your ad and are clicking through. They're interested. You have a low ROAS. But, what else? You have a high conversion rate.

So, maybe you're at a 4%. Let's just say you're at a 4%. $10 CPM. You have a you know, 2% click-through rate. You have great clicks. You have You're reaching a lot of people. You have a lot of people converting. But, your ROAS is still low. What's the issue? >> You're not making enough money per customer. >> AOV. >> Yeah. >> Just what we're talking about. AOV is the issue. Simple as that. If you just double your AOV from 35 to 70, your ROAS can go from 1.2 to 2.4 without ever changing anything on your ads. >> You can literally double your return on ad spend just by increasing your AOV. >> Some more ways to increase AOV is like shipping thresholds, special offers.

If you spend 100, you get a free hat. You spend 150, you get a little welcome back. >> Oh, yeah. >> If your average AOV is say $39, you offer free shipping at 40. So, they just got to spend a dollar more. So, they're going to go add another $15 item to cart, and now you're over the edge. >> Those are pretty common issues. Some more scenarios that like people will encounter. Let's switch over to TikTok now. All right, let's TikTok shops specifically.

Because the same rules apply to TikTok ads. Um but, TikTok shop. If your request rate, this is like when you send out samples to customers, then you have something called a request rate. And a request rate is like your percentage of request rate. So, if you send a thousand, you get 10%. That's 100 people who reached out for a sample. If you have a low request rate, what is the issue? So, let's say your request rate is a 0.1%. >> I'm guessing it's either like your brand doesn't look like it's built up enough or like your brief is not >> Yeah, that's one listing.

So, good listing needs to look like something that's promotable, having all the right images, the descriptions, all the details on your page, but there's a bigger one. The one that matters the most. >> The offer that you're giving the creators? >> Potentially. That falls under messaging though. So, messaging is the biggest one. So, if you're saying, "Hey, we love your content. We'd love to work with you." and you're getting a point one, that's an issue.

So, you test five different agents and the first agent is, "Hey, we're offering a crazy high commission. We have a $50,000 ad budget. Here's all the things that are the best selling points about our product. Here's the scripts that have worked from our ads that have converted with a 7x ROAS." And we want to work with you because we think you're a perfect fit. You're from a point one to a 5%. TikTok Shop is very hard to scale without a high request rate.

Because then you're at a point one, you send 1,000 invites, you're going to burn through your invites and only get 10 people reaching out. All 10 of those are going to be low quality. It's impossible. So, how do you find high quality out of only 10 people? Even at 5%, you know, out of 1,000 people, you're getting 50. This is actually one. At a point one, that's one person. If you have 5%, it's a lot easier to get more creators reaching out so you can qualify them.

Now, let's say that you have a high request rate, but you have low TikTok Shop sales. So, you have a really good request rate, but you still have low sales. What's the issue? >> The messaging that your creators are saying is not converting? >> Quality is the issue. They're reaching a lot of people, but they're approving a lot. >> The quality of the creators. >> They're approving way too many creators. They're shotgun approaching it and just basically sending samples to everybody and they're getting crappy results.

So, what do you do? The answer would be you add in pre-qual and post qualification. So, pre-qualification is whenever you're building your audience to reach out to people, you say, "Hey, we want 1,500 GMB, 17% post rate. They need to have 10,000 views on average. That's pre-qualifying. Post-qualifying is actually validating whether or not they actually have those metrics inside of TikTok Shop. So, you then go double-check again after they've reached out to you and then say, "Oh, they have 10,000 views.

They have a good post rate. They have great GMV. We approve." So, you want a high request rate so that way you can be very specific on your pre-qualification and post-qualification. >> Got you. But, having a high request rate and just accepting and sending out product is not necessarily a good thing. >> Just sending product for the sake of it doesn't work. >> By the way, is that like um going through TikTok or is that like by going through like >> Yeah, you're you're using an automation to send out the invites, but then inside of TikTok you pre-qualify and post-qualify on the uh sample request list.

Listing is another thing that helps with that, making your listing sought after, your offers, that sort of thing. If you're trying to ramp up on TikTok Shop, if you're trying to do, let's say, 100K a month, what's the most basic form of getting there? >> Like with creators, if you're going to get to 100K a month, like what is a minimum >> threshold of samples you have to send out to people? >> 20, 30 30? >> A week? >> I was going to say a month. >> 400 a week. 400 samples a week, that'll get you over 100K a month very quickly.

Assuming you have a high request rate and you're pre-qualifying and post-qualifying, that's the quickest pathway to get to 100K plus. Send 1,200 products first month, you'll be right on your way to getting over 100K. >> Wolf, 100 products? >> Should qualify creators. They met the criteria. >> Is that profitable sending that much product out or >> Yeah, it is. It ends up working out in the math because it ends up overflowing if into Amazon, it overflows into Shopify, >> Mhm. >> overflows into retail. >> Okay, so if it's like if TikTok is like your only sales channel, maybe it's not like the best. >> nobody's It's nobody's only sales channel.

It's usually that comes after. Nobody starts on TikTok Shop. It's just not a >> They usually rare have like a Shopify >> Yeah, at minimum they have this one, at second they have this one, at third they have this one. >> If they do have all three, then they should you probably be doing that on TikTok to increase the revenue on all three of those. >> Yeah. Having a TikTok shop lifts Amazon sales, it lifts Shopify, it lifts retail.

Um most people see like a 30% lift. >> Okay, how do you How do you stand out like 400 400 invites a week? >> You ramp up your automations to about 100,000 invites a month, and you get roughly 6,000 something creators reaching out. Assuming you're at like 6%, that's 6,000 creators, and then you pre-qualify, post-qualify, that gets you to about 1,200 of those. So, the math works out. You just ramp up your automation invites.

Now, when you're approving creators, let's do creators next. This is very common. So, how do you Let's say they have high GMB, it's 1,500. They have high GMB last 30 days, 1,500. And then their views, and then this is just last 30 days. Last 30 days, they have a 1,500 GMB, their view volume, 500 views, and their GPM >> What is GPM? >> Sales they generate per 1,000 views. So, let's say it's $5. Would you approve this creator?

They've generated 1,500 in last 30 days for another brand, they average about 500 views, a GPM of $5. And let's just say your product is $20. Do you approve this creator? >> No. >> Why? >> If it's $5 per 1,000 views, but they only get 500 views, unless I'm doing math wrong, it doesn't look like they'd be making that many sales. >> That's correct. So, that means if this is per 1,000, at five bucks per 1,000 views they generate for a brand, that means this creator at $5 is only generating $2 and 50 cents.

Our product was $20, so that effectively means we're going to get zero sales. Now, another scenario. Let's say that GMB is 10,000, views are 2,000, GPM is 10 bucks. >> So, that would mean they've generated around $20 per It'd be like a break even on that one. >> Basically. Maybe they go viral and they generate a bunch of sales. It's possible. It's just an average. So, yeah, you'd break even, you'd send it, and still get the asset.

Now, even though they have low their view volume isn't crazy, we still got the views, we still got the awareness, we potentially broke even on our product, and we can also take that video and launch it in a Tik Tok shop you can Vmax out and get sales behind it. So, let's do some more. >> So, that would be a yes on that person. >> Yeah. Let's say 100k GMB and 6,000 views and GPM is a dollar. >> It looks like they would generate like $6, but the amount of views they get is pretty high.

So, yes, but it would be like a loss in term like on the front end. >> It's up to the brand. I wouldn't send the product, but you can get the view volume on it and maybe they get more sales. Now, here's another scenario. Let's say they have um $10 GMB, but they have 100,000 views on average per video. GPM is zero to five. >> Wait, so that means that they've proven to not make a lot of sales, but they get tons of views. >> Uh I I would say it depends on the brand again, but I that would be like a no-brainer yes. >> You would say yes?

But, what most people don't realize, they may not approve this. Here, there's actually another equation here. So, let's also add this real quick because this affects things. So, this is post rate. Post rate, let's say this is 70%, this is 80%, this is 50%, this is 5%, now would you approve that creator? You'd still approve the creator. So, even if they have a 5% chance of posting, it's 5% chance. But, they get 100k views on a video, GPM can be or their GMB can be misleading because that means they're very selective on who they post about.

But, if they're reaching out to you, that's a good sign already because that means they're interested in posting. That means they're very protective of their following because they're really good at getting view volume. And GMB, they may only do a deal every 45 days. So, their GMB is only tracked on the last 30, so they may have to actually had a video do like a million in sales, but it's not accounted for in that data whenever you're screening your creators.

So, you'd approve them anyways, do the coin flip to see if you I mean, what's the risk? We send a $20 product, if they don't post, whatever, we lost 20 bucks, but if they do post, this number is actually just deceiving, but in reality, we get 100,000 views on the video, assuming that their GPM is 5, 10, 25 bucks. Usually, this number is inaccurate because there's no data because of the time frame. >> Yeah. >> So, >> that's a good creator. >> That's a great creator.

Now, what do you do if um let's just say their post rate is 100% chance? 100% chance of posting. >> They like yes for the content? >> You can leave it up to the brand, but I'd say no. That's a no. This one, that's a yes. This one, that can be a yes or no. This one is definitely a yes. >> So, you like you like the view count is like a huge >> make money on this creator. We'd break even on this creator. We can pump ad spend behind this creator.

She's has really good sales volume, but she may have just been promoting a product that was like super cheap. So, there's a good chance that we get at least a few orders on that. This one, if they actually post, there's a great chance that we could potentially go viral and get a ton of sales. >> Oh, wow. >> So, if post rate is super low, but view volume and GMV is super high, take it. If post rate is super low and um view volume is super high, still take it.

Now, if GMV is high and views are high and GPM is high, always take it. That's for creators. So, there's a little bit of qualification that goes into that. And then obviously, there's a few more things like what is the creator score? Is it above, you know, a 3.8 or above 70%? Like, those are things that also you can factor in. Um yeah. Here, let's do this. Let's go back to site. Here's some more you'll encounter. So, you have a 8% add to cart rate.

You have a 1% conversion rate. What's the issue? There's two scenarios that are usually indicative of this. >> Uh I would assume it's like shipping? >> Yes. Shipping is 90% of it. Most of the time it's just a shipping issue. Shipping is way too much. So, it's super expensive to ship. Product is 30 bucks, but you're paying $20 to ship it. Now, the other scenario is something's broken. Sounds crazy, but a lot of times you'll click the add to cart and there'll be another button covering it.

Or it's really hard to actually check out. Like a bunch of pop-ups happen or something it goes to a cart page. So, it loads a cart page, but there's also a drawer cart. So, cart page loads, but then you also have a drawer cart showing. Maybe you have a loyalty button that's like 10% off if you claim it, but your checkout button's here and then you have a support button and the only spot you can click is this little spot right here.

That's a conversion killer. Or maybe you're just sending to a cart page. That'll kill conversion rates because you're spending 2x the amount of time trying to load this. Then they dump something on a page. They have to click another button, whereas a drawer cart just pops out immediately. >> Uh >> Another issue, >> Yeah. >> checkout page could not have like enough pay options. There's no pay options or high shipping cost.

High shipping. Or maybe they're targeting a country they can't even ship to and they didn't realize it. Or the traffic's just like horrible. There's a few scenarios, but most of it is shipping or something's broke. And the broke scenario is like something's covering the button or it's just not present or not obvious. >> Adding more payment options like Apple Pay, Google Pay, Klarna, all that stuff. >> conversion rates.

If you only offer like a couple payment options, that could be an issue. You may have a really high add to cart rate, but you only offer like three payment options instead of 15. You don't have Google Pay, Apple Pay, Klarna, Afterpay, Shop Pay. >> Would having like 15 like bring it lower cuz of the options? >> options for people to buy. Whatever card you have, you can use. You could use Venmo. Do you want to use Apple Pay?

Do you want to use Google Pay? Some people keep money in different accounts. Happens all the time. Now, another scenario with site, you have a 4% add to cart rate, right? And then you have a 3% conversion rate. What's the issue? >> I feel like that would be like just natural. >> That's good. It's fine. But what what would that point to as an issue? You could even say 3.5% to make it even more obvious. 4% add to cart, 3.5% checkout.

Every person adds to cart checks out. >> I assume there's like a high dip no matter what. Um >> There's not a dip. It's People Everybody who's adding to cart is pretty much checking out. You can make it even crazier and say 3.9. What does that mean? It's good conversion rate. >> Yeah, I didn't think that was a problem. I didn't think you could do anything there. Um >> It's not a problem. This is low-hanging fruit. If every person is adding to cart is checking out, that's a great thing.

So, that means there's a huge that ends up forcing this to be an opportunity. Because most people overlook that and be like, "Oh, we have a great conversion rate. We're fine." But what that really points to is we're missing out on op cost. There's an opportunity cost that we're missing out on. All we need to do is just raise our add to carts. I mean, if everyone's checking out and they love our product that much and as soon as they go to our site, they're hitting add to cart, we just need to work on getting our add to cart rate to 80%.

Then what happens? We go to a 7% conversion rate. That might sound extreme, but it happens all the time. So, how do you do that? PDPs. You can make more specific PDPs, personification. You can open up more personas. Because if you're only Maybe you're optimizing really well for one hero product, one hero persona, and you're only talking to moms around gut health, right? And it's just super crystal clear. Your page is all about that one thing.

Right? But maybe you're missing out on athletes that have gut health. Because the product can work for men and women, but you're only appealing to moms. >> Yeah, or like older people, etc. >> You could open it up to grandparents that have gut issues. You could open it up to younger people that have gut issues. Assuming the product fits in those different spaces. >> Mhm. >> But if that's the case, just personify and you open it up to more personas, launch more PDPs for it, and you get a much higher out of cart rate because you're hitting more people. >> Does that mean you have to like do some complicated like pages for each person as they land, or is it the whole page like optimized for like everyone? >> So, your main product page, you would have all the different personas.

If you go to like Loops, the like earbuds, it's like, "All right, this helps people who go to concerts. This helps people who want to sleep better. This helps people who are trying to focus at work." A concert goer is very different from somebody who's trying to sleep better. Somebody who's trying to sleep better is very different from somebody who's trying to focus at work. Three wildly different personas all on one page.

So, they have a really good conversion rate, but their out of cart rate is comparable to their conversion rate, so their opportunity is add in more personas, raise your out of cart rate, your conversion rate goes up. They don't need a 7% to scale. They can scale all day to 3.9, but why not pull an easy lever to quickly double if the opportunity is there? >> Gotcha. And then, for like when you say PDPs, does that just mean like >> It's like a long-form specific listing for one persona.

Or this one's just moms. And then, you have another product page that's just XYZ. So, you can open up more tranches and scale harder. All right, let's go back to like Meta, but specifically scaling. Let's say that you went from 40K, then you went to at a 4X ROAS. So, this will be rev, ROAS, this will be spend. So, you spent 10K, made back 40, right? And this will be month one. Month two, you scaled 80K, you spent 20K.

You're still at a 4X, right? Month three, you made it to 120K, and you spent 60K. Now, your ROAS is 2X. Then, you went down on month four. So, 100k, but you spent 60k. Now, your ROAS is 1.6. This is pretty standard um lineup that most people experience. There's really not too too much wrong here, but your ROAS has been good. You scaled up. Now, the third thing or the fourth thing I was going to add is creative. They had five creatives they scaled with here, they had 10 creatives, and 10 creatives, and then 10 creatives.

So, that's how many creatives they use to scale. What do they do now? Because now they're downtrending. So, this is the first time that they're starting to go down in ROAS. They dropped pretty significantly after they raised spend here. So, month three was beginning to be the culprit. What's the issue? ROAS went down from 42, it got cut in half. You 3x your spend, that's normal. But, what's the issue? >> Uh maybe they had the same creative for 3 months.

And maybe they need more creative. >> That's the answer. They're just not running enough creative. So, they doubled, when they doubled their spend, they doubled their creative volume. They should have 3x their creative volume. >> Oh. Oh, that makes sense. Yeah. >> then to sustain it, rather than just holding those same 30 creatives, now you need to be dropping in 15 every week as you're hitting higher spend levels. So, on top of this 30 that they have, they can't rely on that going forward.

So, they got to keep increasing their creative volume. So, they should be closer to 60 here, even if they're at the same spend level. Because you're burning through your creatives faster. So, you have creative burnout hitting in a lot quicker. So, even though you're ramping up your creative volume, it's still not at high enough spend level to burn through creatives fast. But, once you start hitting 60, 100k spend levels, there's an additional multiplier.

It's not just scaling proportionally with creatives. Now, you're also experiencing spend burning through creatives faster. So, you have winners burning out quicker. So, you need more creatives on top. So, really, you should be not just at 30 again the following month, you got to even ramp up your creative velocity. >> In your ad account, would that mean like you would like cut the ones that don't work and then add more or >> Yeah, you're cutting what's not working and you're flushing in new creatives all the time.

So, let's just play that scenario out, right? So, the ROAS went down. Let's say they have one campaign, CBO, they have a couple ad sets, maybe, and then they have 10 creatives in each, right? They're at the 30 creatives. They're doing 120k a month. But, they scaled their spend to 60k. They're stuck at a 2x-ish ROAS. They're having a hard time getting past that spend level. Every time they drop in new creatives, nothing changes.

They're still stuck. What's the issue? What do they got to do if they're stuck? They try to launch in another five here, but those don't get spent. They launch in three more. Nothing's happening. They're dropping in creatives. So, they just applied what we just said. >> Maybe the creatives are really the same angle that >> Potentially. Really, the issue is they don't have a creative testing. So, they need a creative testing campaign to actually get creatives flushed through.

So, they drop 10 new here. What's working, they then rotate over. So, if these get four to 5x ROAS, because these, when you drop creatives in a high spend campaign, if you're spending, you know, at 60k a day, let's say 2k a day on spend, it's only going to go to your top performers. So, when you drop in five, you're only maybe getting $10 a spend, 50 bucks a spend, nothing's happening. So, you drop them in here, they get dedicated spend, they get proven out.

Meta doesn't want to put budget behind creatives that aren't proven. Right? They're just going to stick to what already works, which is why your ROAS will trickle down and burn out faster. Once it's proven, you rotate it over. And then you bring your ROAS from two to, you know, maybe a 3x. And so, now your spend levels, if you keep your spend the same, now you're at 180k, just because you have a better creative testing framework. >> Does that mean like it even if you're like trying to test and throw in like new creatives, like you wouldn't know that a creative is even good because your already good creatives are taking all the ad spend. >> Meta is just going to stick to what creative it knows is performing.

So, it'll flush budget through there. So, yes, you may not know if the creative works. Usually, if a creative is good enough, it'll take off and get spend, but you want to give it the opportunity by putting in a creative testing. New ad set, new audience, dropping new creatives. Once it works, rotate over. >> And then like in in like that other one, like is it just like you like have like dump all all your creatives in there and if like the ones that don't work after a month, you just chop them, too? >> Yeah.

And then let's say that like you spin up UGC and you have 10 creatives. Whatever creatives are performing, you're rotating over. And it's giving you more spend. Plus, you're already flushing more spend through here. >> And like what's like the difference in like how much you would put in each one? Like I assume you don't want to put a whole lot of ad spend in like your creative testing. >> Yeah, you can scale up. If it's at a 4 to 5x, why not scale creative testing?

A lot of scenarios, let's just go over ROAS. Let's just assume people care about that. A lot of challenges with this. So, if ROAS is going down month over month, let's just say that ROAS is going down. So, what are all the reasons why ROAS goes down? >> Creative fatigue. >> Fatigue, that's one. So, you fix that with >> more creatives, new creatives. >> New formats. Fatigue can happen from the same angle being pushed over and over again.

If you're only saying, "Hey, this helps with" just going back off the same thing, gut health, you're eventually going to burn that angle out. Whereas like if you're talking about helps you sleep better, helps you, you know, helps you at the concert, helps you focus at work. That's more personas, but on a deeper level than that, like increase productivity, that's stat based. A review is um "Oh my gosh, I finally don't have to listen to my co-workers anymore.

I love this product. I don't have hearing issues. Um I can be more focused on the sound without actually like getting my eardrums blown out." You you build out more formats. So, more formats, more personas. Helps with fatigue. And what's another issue of ROAS going down? Frequency also plays into this if you have super high frequencies. You expand out your audiences. >> How would How would you do that? >> The frequency is like it your ads are going to the same people multiple times.

There's a lot of things you can do to reduce frequency. Expand audience, consolidate segment. You segment out current customers. A lot of times you'll reach the same customer over and over again. And then even like expanding audiences would be like you don't have a retargeting so Meta's self-retargeting for you because Meta knows that it needs to increase your frequency to get somebody to buy. So it's going to show different formats, but that raises your frequency which eventually ends up oversaturating an audience if it goes on too long.

So you add in a retargeting that it then self-adjusts because it now knows that you're already pushing that spend out which actually lowers frequency and people don't realize that. So having a retargeting can lower frequency on net new customers. It's okay to have high frequency on retargeting. That's normal. >> Let's say if you're like in like a Meta campaign, like how would you you would just make a different campaign in order to expand your audience? >> So consolidation means you have too much overlap.

Expanding your audience, you could do retargeting. Segmenting means you need to exclude people. >> What are some more though? We have fatigue, frequency. >> ROAS going down. >> I'm still confused on like the the expanding audience and retargeting thing. Like cuz if you have the same ad creatives >> So if you have one campaign, you have new, you have engaged, and you have customers. Now, these aren't audiences. This is just the back end of Meta.

Just imagine you have an X-ray view. Meta shows the ad to a new person once. They show it to the engaged people two times. Customers, they're showing it to six times. Brings your frequency to let's say a four because the impression share is high medium low right? So you're you have a very high frequency, but the problem is is that you're you only have one campaign and all of your spend is getting forced into these categories which then leads to high returning customer rate, right?

Which leads to flat sales which leads to ROAS dipping over time. Or it's good, you're getting high ROAS, but eventually it starts to go down and you have a high returning customer and your sales are flatlining. Now they're decreasing. Whereas if you segment out retargeting, you can control your spend because you excluded in this campaign first-time only. Frequency is at 1.2 x, but you're spending a lot of money. So you have a million impressions here, and you only have 100,000 impressions here when retargeting.

So you're controlling your spend basically. You may have a 10x frequency on retargeting, whatever, that's fine. You have a good ROAS. But because you're not spending a ton here, maybe it's only like $100 or whatever, you're just keeping your budget controlled. So you're even though this is a 10x frequency and this is a 1.2, you're still only at like a 1.7 frequency score. Whereas this one you're sitting at a four. It's because Meta gets locked in because it knows it needs to retarget.

And a lot of people don't realize that. They're like, oh, go on one campaign method, and then your frequencies go squarely, and then you kind of have to force out the segmentation. >> So like retargeting and like excluding would be >> But with this structure, it requires a little bit more management, more skills. You have to know how to divvy the budget. You have to be better at rotating creatives. >> Would they be the same creatives though?

Or would you make different creatives for that different campaign? >> Yeah. So this structure can work, too. There's multiple ways to combat this. There's never a one-size-fits-all. There's so many pathways to get there. But let's say that you didn't do this version, and you wanted to lower frequency on the one campaign method, you do 15 formats, five top-of-funnel, five middle-of-funnel, five bottom-of-funnel. So that way Meta just shows the creatives in order still, which is still what's happening here in newly engaged customers.

It's already doing that. But you just open up by incorporating 10 top, and then you do three middle, and then you do, you know, two bottom-of-funnel. So you just open up the top-of-funnel creatives more education, more first-time customer offers, more. And then that way it starts reaching more new people. >> Got you. Because your creatives themselves >> Yeah, so sometimes people have like three creatives and they're all like direct ads.

It's just very direct. It's like, "Hey, here's our product. Buy this now." It's just like super simple. It's like solves XYZ. And it burns out, it gets shown over and over, and it gets a little complicated, but that's kind of like different scenarios that people encounter. But, if we go back, that's that, right? So, frequency. The other way ROAS goes down is low creative volume. Low creative volume meaning they only run three ads when they should be running 15.

Creative velocity. What is creative velocity? >> How many ads you add per week? >> Yeah, so you increase your creative velocity if you're scaling spend and ROAS is going down, just increase creative velocity. >> When you're doing that, like when you're adding like a bunch of ads every week, wouldn't that like ruin your pixel cuz it has to relearn how to >> It's you're doing it in a separate campaign. >> Do you just do all that stuff in your testing campaigns, what you mentioned? >> Yeah.

You can have an ad that's totally misleading. Like it's a crazy high click-through rate, but super low conversion rate because people are like, "Wait, this was just BS." Like the ad basically said, it promised one thing, the website showed a different. Or it was a viral video you took from Instagram that had 10 million views, super engaging, but it has no CTA, never shows the product. They're running it as an ad, has crazy high click-through rates because everybody's interested in what that is, but then they land on the site and they're like, "What is this?" They never saw the product.

They didn't know what it was. It was a fallacy. >> So, you got like a lot of clicks. >> So, yeah, your your ad creative formats matter. Now, low creative is different from creative velocity. And then also, if you hold on to a creative for 3 months, I mean, that's obviously fatigue, right? Another thing is scale too fast. You scale too quickly. Another thing is >> So, what would be like scaling too quickly? Like you >> You go from $100 a day to 1,000.

Tanks your ROAS. It doesn't You got to go more gradual. Post-holiday is another reason ROAS goes down. You ran a big offer. You turn off your 20% off and you're back to your standard evergreen offer. People are like, "Why is ROAS down?" It's because it's after a holiday. You burn out your offer. Or you didn't offer and now you don't have one. Sold out. My ROAS went from a 5x down to 1x. What happened? I don't know what happened.

Well, I just sold out my hero skill. That's why your ROAS went down. I mean, if you sell out a product, I mean, it's pretty normal. You're going to expect You don't have a backup that's proven. Another thing is something broke. You can include that on anything. You always want to rule out something breaking. Website changed. Somebody switched out some images, thought they looked better, they didn't. Conversion rate tanked.

So, ROAS went down. Or meta had a bad day. They switched you from seating on Instagram and meta where you were getting a lot of sales, but all of a sudden you went through the third-party network and it put you on a bunch of news article sites with your ads and your impression volume shifted dramatically all of a sudden. Or you've historically done all women audiences for swimwear and you duplicated your campaign to fix your ROAS, but you accidentally, you know, opened it up to men and now men are clicking on the swimwear because they're clicking for the wrong purpose.

So, then all of a sudden your ROAS tanks and your metrics get thrown off. There's a lot of scenarios, but the first ones fatigue, frequency, creative volume, creative velocity. These are the first ones to check off the list. The other ones are just like, well, did we come off a holiday? Did we sell out? Did something break? Once you rule those out, it usually falls into this bucket here. Or you change products, change your offer, right?

Yeah, then you would expect that kind of thing to happen. You increase your shipping threshold, conversion rate dropped, ROAS went down. A lot of scenarios that can happen from that. Based on all the scenarios that you will encounter that we covered today, solving these problems doesn't actually matter unless you have a full strategy for your creatives, your Shopify, your TikTok shop. And this why I put together the first video here, which covers a winning ad creative strategy and framework that you need to be able to 2x, 5x, or even 10x your creative output and generate better results.

So, I look forward to seeing you there on that video where we get started with step number one, which is ad creatives.