Jason Yim – Your Marketing Partner
Jason Yim – Your Marketing Partner
How we used the money printing machine called Facebook Ads to print $60 for every $1 we put in
While I usually manage ad spends of over 6 figures a month on performance marketing for corporate clients, I started to consult for local SME businesses during this pandemic period to help out if they’re ready to scale their business
It’s a different ball game because of the smaller budgets, there isn’t much room to maneuver, run multiple A/B tests, or time to get learnings
So how did we do it?
The short answer?
Build a strong brand and performance marketing becomes easy
The client has grown their brand organically for the past 4 years and never ran ads
When they tried Facebook ads on their own with zero prior experience, they achieved a 13x ROAS (Return on Ad Spend) and a CPP (Cost Per Purchase) of $6!
This meant it cost $6 to acquire a new customer and they made $13 for every $1 spent
“Jason what does these metrics mean? Is it good?” they asked
I nearly fell off my chair hearing those numbers
“Yeah that’s pretty good” I said
How is it that a non-marketer is able to achieve such numbers?
I did a quick audit of their ad account and I was right
It was just a single campaign with a single interest targeting and a single creative
I would’ve thought the campaign would be a total flop
But because they took the time to curate and build their brand over the years, scaling becomes easier since they have a solid foundation
I wondered how much further the results could improve if we applied a proper campaign strategy to it
Well it wasn’t too difficult to apply some best practices on an ad account this fresh such as:
1. Create a campaign structure and allocated budget accordingly across the funnel
2. Defined and built multiple audience segments from cold interests, to warm audiences and lookalikes
3. Implemented dynamic retargeting with a segmented product catalog
4. Curate different messaging and creatives for each of the audience segments
With those inputs, we let Facebook’s algorithm do it’s magic and ROAS went up to 60x while CPP dropped to $1.57
This meant they made $60 for every $1 put into the money printer called Facebook Ads on our best performing audience
Overall on the entire campaign, we did an average of 30x ROAS which is more than double what they did on their own
What’s more, we did this without offering any discounts, preserving the brand value during a time where every e-commerce brand is doing their year end 11.11 12.12 BFCM sales
It meant we had doubled their revenue and squeeze out the ROI because by engaging a marketer they were able to make $30 for every $1 spent compared to only $13 they would have made if they ran the campaign on their own
If you don’t implement a proper campaign strategy when scaling, this quickly adds up to a loss of revenue
Imagine spending $10k in ads and making $130k vs the $300k you could’ve made
The lesson here is 2 fold:
Brand building is important to give you market share and be top of mind when your consumers are thinking about buying a product from your category
Performance marketing by itself can only do so much, results like this wouldn’t be possible without a strong brand unless you’re running massive sales/discounts/offers
Put in the work to build a strong brand, do things that don’t scale such as
Organic brand building is a long game, don’t expect results in 4 months
I mean even The Professor from Money Heist had to plan the heist over years before actually reaping the fruits of his labor
The client did the hard work of building the brand over the years, all I did was help squeeze out the fruits of their labor.
What do you think?