 Hey, what's up guys, welcome to a new video. So in this one, we're going to be discussing five dollar Facebook ads or five pound Facebook ads regardless of whether in the UK or the US. Strategy still applies and it's still a really popular one then that I see so many people still using and they're not always using it in the most efficient or beneficial or even in a way that actually makes sense. So what I try and do in these videos then is not, sometimes I do just go through a strategy with you guys that you can go and use and test yourself but then I also like to provide content on actually helping you understand the inner workings of marketing of a decent Shopify store of what a good product looks like because ultimately then if you don't have that understanding that under level understanding of how things work and why they work then ultimately you're not going to survive in the long run. If you don't understand how Facebook ads work you will not survive. It's like it really is that simple. You can put a strategy to test and it might work. You might make say a thousand pound and might make five grand, you might make 10 grand but ultimately in the long term you're not gonna be able to sustain a business on one single Facebook strategy. So in this video then I wanna dive into kind of the logic of Facebook ads. How you should be using $5 Facebook ads if at all and the reasoning behind that then the why behind the information essentially. So the first place I wanna start this video then is that when you move into Facebook ads when you start running Facebook ads you need to have a clear vision of essentially what your goal is. Now ultimately everybody wants to make sales. Everybody wants to be profitable because everybody wants to make money. But when you first start Facebook ads with a new product, with a new audience then you have to be in one of two minds. You're either testing a product and the audience is for that product or you're scaling it. Because depending on which one you're doing that will determine what your budget should be and whether you're scaling versus whether you're testing your budget has to match that strategy. And I'm going to illustrate why in this video. So the first place I wanna start then is with the Facebook for business ads help center. Head over to this and honestly this is one of the best places you can come for information because this is information provided by Facebook themselves on how to get the most out of running Facebook ads. So first thing I wanna illustrate and draw your attention to is that Facebook themselves say. So keep in mind that we as in Facebook recommend getting about 50 optimization events within your conversion window per week. So what does that mean? Essentially what this means then is that if you're running a purchase ad set with a seven day conversion window if you don't get 50 conversions so 50 purchases within that seven day window then your ad set will not optimize and therefore it will produce inconsistencies. And you may have seen this before I've spoken to probably hundreds of people in the past where they've been running purchase ad sets at five dollars per day or five pounds per day. And this might be you if you're watching this video where you'll get one or two sales per day then you might get nothing for say two or three days or even a week. And then you might get the odd sale again and then just nothing for a few days again. And this is the reason why then it's because you're not hitting those 50 purchases within that seven day conversion window. Kind of summarize that point so you can apply it to your own ad set say so if you take five dollars per day over the course of seven days that is 35 dollars divide that by 50 and it's about 70p or 70 cent per purchase. So if you're not if that ad set isn't achieving 70 cents per purchase then essentially it's not optimized and it's gonna be giving you inconsistent results. So what does this mean then for five dollar Facebook ads? Does this mean that you should never use them and in short then no it doesn't. There is still a place for five dollar Facebook ads and where that place lies is within testing. And the reason I say that then is because when you're testing an audience for a product then essentially what you're looking at is you're trying to find the best audience and to do that you have to test multiple audiences and then compare them against each other. So essentially it doesn't really matter what your budget is because in the testing phase you're not necessarily that worried about how many purchases you bring in or how profitable you're going to be. It's essentially how the main thing you wanna be focusing on is how that particular audience is reacting to your ad, to your product so you can compare it against other audiences. For example then a quick testing strategy might be to run five different ad sets to five different audiences the same ad creative, the same product. Set the budget to five dollars per day let them all run for two days and then compare the data. See which one is getting the cost, the cheapest cost building clicks which one has the best quality ranking which one is getting the highest click-through rate which one is bringing in more ad to cost or even purchases because then at that point what matters is that you're comparing like for like. So as long as each one of these ad sets has spent the same as each other then it's like for like and you can make a fair comparison and that is where five dollars ad sets per day are absolutely perfectly fine to use because it could be three dollars per day it could be ten dollars per day. As long as each ad set is getting the same budget per day then it doesn't matter that is the most important thing whereas when you're scaling when you're trying to make sales when you're trying to be profitable running ads at five dollars per day you're never going to hit that 50 conversions in the space for a week unless you get crazy cheap purchases. To be honest I've never seen anybody achieve purchases for less than a dollar so if you think you can good luck to you but ultimately what I'm trying to say then the best strategy to adopt is to run five dollar ads per day when you're testing different audiences and then when you've finished running that test and you've found audiences that are responding best to your ad look at the KPI so like I've just mentioned the cost per link clicks the click-through rate, ad to cards, purchases, et cetera pick one audience, maybe two audiences depending on what you want to spend on Facebook ads and then put enough budget into those ad sets individually to scale them and make sure that you put enough budget in them so that you reach that point of getting at least 50 conversions per week. Again this is backed up by Facebook so if we have a look in the Facebook business help center we can clearly see here that they stay themselves as in Facebook that if you use a very small or inflated budget so it works both ways so five dollars would be considered a very small budget the delivery system has an inaccurate indicator of the people for whom the delivery system should optimize set a budget large enough to get at least 50 total conversions and avoid frequent budget changes so what this means then is that if you have a new product and you're about to run ads for it you've tested your audiences found the best performing audience in terms of the KPIs I've mentioned earlier you take this audience and you start running a purchase campaign a purchase ad set for that particular audience what you set your daily budget to then has to be enough to account and achieve 50 conversions per week now you're not gonna know what you can achieve in terms of a purchase conversion what your CPA is going to be so what I recommend you do then is that for example that if you have a product that costs you five pound delivered to the customer and you can sell it for 20 pounds essentially that leaves you about 15 pound room for your CPA so what I recommend you do then to be on the safe side to make sure you achieve those 50 conversions per week is actually base your ad set budget on achieving 10 conversions per day which is obviously 70 conversions over the course of a week so 20 over that benchmark amount that Facebook recommends if you wanna make 10 conversions per day at 15 pounds per day that's 150 pounds per day as your daily budget or you can set a lifetime budget and obviously just pro-rata over the course for a week now you might be watching this thinking like that's a crap ton of money to be spending per day and it is yes so if you want to build up to that that's absolutely fine but just take into account the information we've discussed in this video in the terms of that if your ad set isn't achieving that benchmark of 50 per week then it might not be delivering consistently so if you do get inconsistent results that might be the reason it might not be because you've got a poor audience or a poor product it might just come down to what your budget is so what I would recommend then is that you take half of that so instead of spending say 150 pounds per day you could spend 75 run it for two, three, four days and then if the results look promising so you do start to get some really profitable days then that shows you have actually got a good audience and then start to scale it up to that benchmark of 10 conversions per day i.e. 150 pounds per day budget with that being said then just to kind of summarize the video is that when it comes to Facebook then it does take money to make money like some of my best performing ad sets will have daily budgets of like anywhere from kind of 250 pounds per day all the way up to 500 pound per day just because with that sort of daily budget the amount of conversions and data going through that particular ad set means that Facebook soon learns who your ideal customer is it can optimize focus down on the ideal person and then produce those consistent results so to kind of summarize the whole video is if you're testing go ahead and test make sure you test each ad set in a fair way i.e. spend the same amount of money on each ad set and then if you want a tight budget just take out of those ad sets you've tested take one at a time and start to scale it based on the parameters we've spoken about so go for 10 purchases per day to make sure optimize fast enough and if you can't afford that go for five per day but just take into account the fact that if you are again inconsistent results it may be your budget and to kind of iron things out and make it profitable over the course of a whole week, two weeks, three weeks, four weeks then it might just be a case of having to increase your budget so more conversions go through that ad set with that being said then guys I really hope I've made that clear any questions whatsoever please do comment them below I do read every single comment so if there is a question you want me to answer I will answer it if you enjoyed the video please hit that like button if you want more videos on Facebook ads then make sure you hit that like button because whichever videos get the most likes tend to be the topics that I do more videos on with that being said make sure you subscribe for weekly videos I do upload four to five videos every single week and finally thanks very much for clicking on the video I do hope you enjoyed it and I'll see you in the next one