 What's going on guys? So this is episode one of what's going to be like a four part series to think of it as kind of like a Facebook ads mini course. So lots and lots of people are jumping into drop shipping, starting businesses on Shopify, which is awesome because it's Q4. Most people tend to struggle with the market inside of things. And because I guess Facebook ads is kind of like my specialism, it's the one where I've spent most money. I've been doing it for nearly six years now. I thought I'd do kind of like a mini course to help people get started down the right path and understand Facebook ads a bit more. So like I said, it's going to be four parts. The first couple of parts, to be honest, we're going to be going over the nitty gritty of Facebook ads, probably the boring stuff. So I don't expect these videos to get many views, but trust me, it's really important that you understand. So these first two videos, we're going to be going over how Facebook ads actually work. Most people just want to watch a video on YouTube of a step-by-step strategy, throw some money at it and expect to make lots of money, but take it from somebody who has a bit of experience doing this that you will not be able to run your business successfully for any consistent or long or extended amount of time unless you know and understand how Facebook ads work. So in this first episode, we're going to be covering what's called Facebook ads total value. Most people have probably never heard of this. So I'm going to be going over this and basically this is how Facebook ads judges the value of your ads, which in turn affects the results of them. Episode two will be the running of ads. So we'll be covering things like the learning phase, which is super important because it's really important to understand how your ads are delivered and how to optimize them to get the best results out of them. And then episode three will be a testing strategy. Episode four will be a scaling strategy. But if you watch the first two episodes, you'll understand how Facebook ads work. So when you watch those strategies, if they do or don't work for you, you'll know exactly how to adapt them and what to do next. So the issue that most people have, and I certainly had this issue in the beginning too, it's impossible to do a video on YouTube, especially a strategy video for Facebook ads that's going to apply to everybody who watches it. If that video gets a thousand views, that could be a thousand people that have a different setup on their Shopify store, selling different products and different niches. So it's really difficult to do a strategy, it's impossible, I would say in fact, to do a strategy video that is going to apply to everyone. So this is why it's really important that you actually understand the inner workings of Facebook ads so that when you are testing and running strategies, if they don't work out, then you know what to do next. And it's the knowing what to do next, which is going to save you a lot of time, but it's going to save you even more money. It's making those decisions of which ad sets or campaigns or creatives to keep running or which ones to switch off. And that's probably the hardest decision you'll make as somebody who's advertising on Facebook. So with that being said, let's jump into episode one. Like I mentioned, we're going to be covering Facebook ads total value. Okay, so what the hell is Facebook ads total value? This is taken from the Meta Business Help Center to ensure that the winning ad maximizes value for both people and businesses. The winner of the auction is the ad with the highest total value. So this is what Facebook call it, total value. In case you didn't know, Facebook ads are an auction. Think of it as kind of like the eBay, but instead of bidding to buy a product, you're bidding to buy an impression. You're bidding to put your ad creative in front of somebody. The more people bidding for that same impression, that same person, that same audience, the more expensive it's going to be. And rather than Facebook just give the, or rather than Facebook just let the person with the biggest budget win every single time, instead they have this, which is called total value. The reason why they don't let the person with the biggest budget win all the time because it would just be a platform that's dominated by really rich people. And rich people don't necessarily have the best ad creatives either. So if it was just a case of being able to buy your way into getting the best results, people on the platform would get sick of seeing poor quality ads that leave the platform and it wouldn't be good business for Facebook or for Meta in the long run. So what they do is they use this thing, they call total value as kind of like a way to balance, keeping their users happy. So they only see ads which are high quality and relevant to them and also keeping advertisers happy so they can still get good results. So what the hell's total value is three different things all added up. They're not split equally as well. So there's no real way of kind of like scoring it to make sure that 30% is on bid, 30% on estimated action rates and 30% on ad equality. Facebook don't release how much each one of these kind of sway the judgment of which ad has the highest value. So basically they haven't come out and said it's more important to have a high ad quality rather than a high budget. They haven't released or said actively but if you kind of add a bit of common sense, Facebook is a business at the end of the day they wanna make as much money as possible. So if I had to say certainly from my own experience too, the ad sets that tend to do the best to the ones that have the biggest budgets. Certainly if you were to compare things like for like so if you were to take an ad creative on 100 pounds per day and an ad creative on one pounds per day, then the one doing 100 pounds per day is probably gonna perform a lot better because everything is exactly the same except it has a higher bid, a higher budget and therefore it's gonna have a higher total value and should get better results. So as I've pretty much mentioned bid is basically what your budget is for the ad set for the campaign for basically how much will you tell Facebook you're willing to spend to get your desired outcome. There are different ad strategies which we could go into but to be honest, I don't really take that much sense and much notice of that myself. I tend to let Facebook do that side of things. I'll just set my daily budget or my lifetime budget or my campaign budget, whatever it may be and then let Facebook do the rest. We have estimated action rates. So this is an estimate of whether a particular person engages or converts from a particular ad. In other words, the probability that showing an ad to a person leads to that desired outcome of the advertiser. So basically what this means is when you're running your ad and it's getting put in front of your audience if people are clicking on it and going to your website and they're not converting on your website, this will have a harming and damning effect to your estimated action rates. Ads that convert are obviously high quality ads and they're ads that the actual audience wants to see and therefore that will keep Facebook happy as well. So if you're getting a lot of people coming from your ads onto your store and they're not converting, Facebook's gonna think, hang on a second, there's something wrong with this website. People aren't buying from it. So there must be something dodgy about it. They must be too expensive or not professional enough or whatever it may be. If people aren't converting high enough, then it's gonna have a damning effect on your Facebook ad results. This is why it's super important and it tends to be something that a lot of people gloss over and skip corners on which is the actual design and building of your Shopify store and the offer that you're creating with your product. Then we have ad quality. So this is a measure of the actual quality of the ad. It's determined from many sources including feedback from people, viewing or hiding the ad. So next time you come across an ad on Facebook, click the dots in the top right hand corner and you can hide it and give feedback. Some people don't know that, but if you find that a lot of people are hiding your ads, again, it's gonna have a negative effect on them and the performance. What also contributes towards this is low quality attributes as well. So do we have, not that one. This is the low quality attributes. I'm not gonna spend too much time going through this because anybody can go to this and read this information but there are certain things that if you're doing on your ad, Facebook won't like it and again, it's gonna reduce your total value which in turn will affect the results and delivery of your ads. So withholding information. This is when you essentially use really bold statements. Well, it gives you an example here. So it's a miracle she didn't break anything amazing. So it's actually withholding what she broke and people might do this in their Facebook ads. So if you're putting something like this offer is too good to be true and then not saying what the offer is then that's gonna look bad in Facebook's eyes. Sensationalized, sensationalized language is also a no-no. A lot of these things you used to be able to get away with by the way, a few years ago. However, Facebook is starting to clamp down on things like this. So if you use like over the top exclamations and capitalized words and letters, again, this is sensationalized language, exaggerated lines, that sort of thing. Facebook isn't going to like it. Engagement bait. Now to be honest, this is something I used to do back in the day all the time because it worked brilliantly asking people to tag a friend that would like this product. However, Facebook do not like this sort of thing anymore because they think it's spammy. So again, if you are using this it's considered a low quality attribute and Facebook will mark down your total value. Other things worth to mention, probably the most important one is actually when it comes to dropshipping is lack substantive or original content. There's not a single social media platform out there that likes people really to some degree to keep sharing the same content or keep using the same content because then people become bored if they're seeing the same thing over and over again. So if you are using really popular ad creation services like viral e-com ads where the ads pretty much have all the same, the same clips perhaps just in a different order. If Facebook notices this, if the algorithm finds this out it's going to have a damning effect it's going to reduce your total value and in turn affect the performance of your ads. I'm going to leave you with this which is a super valuable tool which a lot of people don't know. So this is the ad relevance diagnostics. Go to your ads once you've ran them. Facebook will give you three different quality scores. They'll give you a quality ranking, engagement rate ranking and a conversion rate ranking. Again, I mentioned it earlier about if your store isn't converting. Facebook will give you these quality scores, average or above, below average and what you can do basically is just come into here and match it up against the result of that particular ad that you're running. So for example, let's say we're running an ad and we've got a quality ranking of average. We've got an engagement ranking of average. However, our conversion rate is below average. This is probably one of the most popular ones actually. The causes is the ad isn't producing conversions. So Facebook actually tells you what you need to do to improve it, increase that score and increase the deliverability and efficiency and performance of that one particular ad. So in this case it would improve the call to action of your ad. So this could be that you're not linking direct to the product page or the end of that ad. You're not telling people where to go or what to do. Your post click experience. So this is what I was talking about earlier on your Shopify store. If your Shopify store is really rubbish, really dodgy, unprofessional, your product's crazy expensive, you've got crap product images. This is gonna lead to people not trusting you and not buying you and therefore it's gonna harm your conversion rate ranking. If we come down to the bottom end, if you have any ads at this end then you're probably a bit inexperienced. I would recommend, as long as they're not producing a profit obviously, pause them all, go back to the drawing board, watch some more videos on YouTube and learn about how to create quality ads, how to create a quality Shopify store, how to target the right audience because as it says here, if you're below average on everything then that ad hasn't got much chance of making you any money. It says there's room for improvement across the board. Try testing basically different everything, different targeting strategies, different creatives, different optimization goals, different post click experiences and so on. It's basically saying that you're rubbish and you need to completely start again and do something different. And so with that being said, I'm gonna wrap that video up today so that covers Facebook ads total value. Hope you have learned something new. More importantly, I hope you take into consideration what I've said today. Consider all of these three things if your ads aren't performing, make some changes in the relevant places and then hopefully it will have a positive effect on that delivery of the ads for you and the performance of them. So today is actually Saturday. I'm gonna post this video on Sunday. What I'm gonna do is leave a gap in between each episode. It's gonna be four episodes, so make sure you tune in on Tuesday for episode two where we're going to be going over the learning phase. Thanks for tuning in, guys. Don't forget to check out the free training I've got. It'll be the first link in the top of the description and I'll see you in the next video tomorrow. Thanks.