“I Just Want to Make Money, Can Someone PLEASE Show Me How To Target Ads?” …OK.
We’ve all been there.
At one point or another, we’ve spent a ridiculous amount of money on ads and testing, knowing our target audience should be into what we’re selling.
Maybe you make a little bit. Or maybe you just break even. Or maybe… maybe you sell some items or get some leads but still come out in the hole.
So, what’s your system for learning from your mistakes? Or do you blindly try again?
Well if you keep on trying, at least you’re not giving up.
Rather than letting you waste more money though, I’m going to lay out the EXACT method I use to test target audiences, and find winners EVERY TIME.
This is what I use for all of my clients, and it works whether you’re selling products, services, or doing lead generation.
I’m going to write it all out, step by step with images, but if you would rather watch a video, hit the image below, right here.
Alright, let’s get into this.
Step 1: Audience Research
A lot of times, people target the broadest term related to their business, hoping it will result in sales.
Why shouldn’t it?
Plain and simple, more often than not the generic term is too broad.
For example, let’s say I have an online store that sells camping equipment. So I target “Camping” as an interest. Well when I look up camping in the Audience Insights tool, I see it has 15-20 Million monthly active users.
In my experience, that’s far too large an audience. While you might think casting a wide net will bring in more sales, it’s just not the case here.
We only want to target people that are deep into the camping lifestyle. People that actually go camping, not just people who “like” it, or the idea of it.
So how do we do that?
Well we start with that broad term, and drill down.
Open up your Audience Insights Tool.
I leave the targeting very open during research. All of the United States (more on why in free video), 18+, male and female, open language.
Next, type that generic term into the interests section. I’ll use “camping” for my demonstration.
The first thing you’re going to see is the Demographics information. This information, ALL OF IT, is incredibly useful for both targeting, and crafting your sales message in your ads.
First, make note of the Gender percentages, and apply the 80/20 rule if applicable. For the camping audience, we’ve got a fairly even split of men and women interested in it. If it were 80% or above for one of them though, we would make note of that, and only target that gender in our ads.
Next, make note of the age groups, and apply the 80/20 rule again. WE want to target the bulk of the group that has roughly 80% of the people in it. For the camping audience, it’s pretty spread out again. I would target ages 21-60, as I find that people under 21 have less money for spending online. That could be different for your product or service though.
Apply your new age and gender filters in the side menu if applicable.
Now, click on the “Page Likes” tab at the top. This is a list of all the top pages that your potential audience likes. These pages are what we’re going to use for targeting.
Why would we target these pages?
Good question. These pages are where people that like camping hang out. They’re more direct, and focused interests. Some of them might even be pages for other products or paid services, and we want people that are interested in paying for things! Especially things that are related to your things.
So scroll down to the list of page likes, and you’ll see the first top 10. Smash that “See More” button 4 more times so you’ve got the top 50 pages.
Now copy these pages down somewhere (I always use Google Sheets for this).
Audience research done. Time to test these pages out to see if they’ll make us some money.
If you want to learn more about using the psychographics for crafting your sales message in your ads, click the image here.
Step 2: Rapid Fire Testing
Alright. We’ve got our Top 50 pages that people interested in your niche like.
Now we spend a bit of money testing them all out. There are a few different ways to do this, but here’s the method I use.
First, create a new campaign in your ads manager called “Interest Testing”. The name obviously doesn’t matter, but you should keep all of this separate from other campaigns.
Next, create a new ad set for EACH of the 50 pages. The pages will be your target interest. Don’t forget to refine age and gender if the 80/20 rule was applicable.
Use the same image and copy for each of the 50 ad sets. This is important, because when we’re testing out the audiences to see what works, the creative needs to be the same. If you’ve got an ad that worked or generated some results for you in the past, use that.
NOTE: You might not be able to target some pages simply because they’re not available for it. This is why we use 50 audiences, in case some aren’t available, there will still be plenty to gather the data we want.
Next, set the daily budget to $10/day for each ad set, and run it for 5 days. I never use lifetime budgets, as it changes the way the ads get served.
If you have all 50 audiences set up, you’ll be spending $50 total on each, which comes to $2,500 for testing. While this might seem like a lot, it is definitely worth it in the long run. By the end of the 5 days, you’ll be able to see what audiences are winners, and which are losers.
You should still only operate within your budget of course. If $2,500 is too much to spend over 5 days, spread it out over a month. Maybe do 5 or 10 per week, or month.
You might find that after the first 20 you test, you’ll have winning audiences already. In that case, you can start using them to make money while you continue testing the rest of your list.
But at the end of the 5 days of testing, here are the KPI’s (Key Performance Indicators) that you’re going to want to look at.
- CTR (Click Through Rate) – Above 2%. Ideally, this will be higher during your actual campaign, but for testing purposes, you’re looking for at least 2% by he end of the 5 days.
- CPR (Cost Per Result) – How much did it cost you per purchase (if any). The cost per purchase should obviously be less than the cost of your product itself. Ideally, during your campaign you’ll get it down to at least 50% of the product’s cost for a nice 2:1 margin. From there you can optimize. Now, if an audience didn’t get a purchase during the test, that doesn’t necessarily mean it’s a loser. If the cost of your product is much higher than $50, you might not have spent enough to see results. If your CTR and CPC are in line with other winning audiences though, you oculd use this for a campaign.
- CPC (Cost per click) – This really depends on the cost of your product. If you’re selling high ticket items ($500+), your CPC could be over a dollar. If you’re selling less expensive items, you might get it down to 2 or 3 cents. There’s an entire “Profitability Formula” I go into, but that’s in another post. For now, just be aware of where your CPC is when you’ve got a winning CTR and CPR. It will help you gauge new ads faster in the future, so you won’t have to wait 5 days for testing.
So, at the end of the 5 days testing, make note of the winners, and ditch the rest.
Next, take the winners and start creating “Super Groups” for ad sets. I combine the winning interest until I have an audience size between 1.2-1.8 million people. Try to group them by category as well, e.g., Celebrities, Brands, Media, etc. Different groups might have different ad copy that relates to them more.
After following all of this, you should have better insight into your audience demographics, and several validated audiences that you can sell to.
I’ll be publishing more soon, so check back once in a while for more free info like this.
In the meantime, get out there, apply what you’ve learned, help others, and MAKE THAT MONEY!