 Hey what's going on guys welcome to a new video. So today I'm going to take you through the three biggest mistakes I see people making when it comes to running Facebook ads. When I say biggest I mean the mistakes in which I see that are costing people the most money. So I see it all the time people are super excited to jump into a new business, run Facebook ads and start seeing some results. They'll chuck a couple of hundred pounds at it and if they don't see any results or nothing really substantial then ultimately it leads to them being a bit disheartened and not really sure what to do next. So as long as you watch the video all the way through take the advice and avoid these mistakes then it's going to save you some time and it'll definitely save you some money as well. So with that being said that's the tub with the video thanks for tuning hope you enjoy it don't forget to comment like and subscribe and let's jump straight into point number one. So point number one is spreading the budget too wide slash too thinly so I see it all the time people don't really have a strategy in which they follow when they jump into Facebook ads they'll test maybe five or six different audiences give them all an equal budget run them all for the same amount of time and then expect to make money. For me at least Facebook ads have never really worked like that and what I'd like to kind of break it down into you're either testing or you're scaling and there should be a strategy for each. So if you're on a tight budget or a smaller budget anything under a thousand pounds or less then you need to save as much as your budget as possible for the scaling slash optimization phase. The reason being with numbers with a budget sorry less than a thousand pounds then during the testing phase you're not going to have enough money for each and every ad set that you test to optimize and essentially perform and it's most efficient so the best thing to do and make the most of your money in my opinion to give you the highest chances of success is to go super broad in the beginning test as many different audiences slash ad sets as possible on a small budget for two three days after those two three days just completely switch them all off evaluate the data i'll be covering data later on in the video and then take the top one or two best performing ad sets moving them into their own campaign where you're going to scale them and devote the majority of your budget. So to try and illustrate this and make it as clear as possible there's an example on screen so red is what you should not be doing don't just take 10 ad sets at 10 pound per day per two days and spend 200 pound or essentially all of your budget on that testing stage spending 10 pound per day you're never going to get that ad set to optimize it's never going to exit that learning phase which means you've ran a test which is good but then it doesn't really take you to the next stage or it doesn't give you the chance to try and make some of that money back through the scaling optimization phase and actually recoup those testing costs what you have to consider is it only takes one really good performing ad set to potentially make tens of thousands of pounds even hundreds of thousands of pounds and to find that one golden ad set if you like it might take 20 30 40 other ad sets which you have to test to find that one golden one which will then make you all that money and recoup all of those testing costs so what you're much better off doing is following the green example on screen now is devoting say 20 30 40 of your overall budget to the testing phase which is the 10 ad sets at 5 pound per day for two days and then taking the majority the remainder of your budget into the scaling slash optimization phase on say the best one or the best two performing ad sets the more money you can put through a single ad set better because the better chance it has of completing that learning phase optimizing performing at its most efficient and ultimately being as profitable as it possibly can perhaps what I could do if you guys think it will help is just do a single video devoted on this topic where I can go into a bit more detail and actually break down those scaling and those testing stages moving on to point number two then is the expand interests box so in the detail tagging section of your ad set where you can define the interests and essentially pinpoint the audience in which you want to target too many people leaving the checkbox which you see on screen now ticked in my opinion you must leave this unticked especially if you are new to Facebook ads what this does is it gives Facebook permission you can double check this so tick it and untick it and then just keep an eye on the potential reach on the right hand side and watch it go up and down by the millions and essentially what it's doing is it's allowing Facebook to go off and show your ad to people outside of the targeting parameters you've chosen so if you've chosen to target people who are linked to the dog's interest if Facebook think they can get conversions elsewhere outside of that targeting parameter then by ticking that box you're given Facebook permission to do that now while you may think that is a good thing I'm going to go through a couple of reasons of why it isn't and why I think if you especially if you've got a new ad account then you shouldn't be leaving this ticked number one in the beginning you need to develop your own personal skill set when it comes to running Facebook ads so if you leave this ticked then the targeting that you've picked is pretty much irrelevant it's not 100% irrelevant but to some degree it kind of is and if that ad set performs well then there's no real true way of knowing whether it's because of what you've done or what Facebook have done and it works on the on the flip side too if it does really badly then you don't know whether it's because Facebook has ignored your targeting criteria and gone elsewhere to to test your ad or whether it's stuck to your targeting criteria so there's no real way of knowing the the results you get are because of you or because of Facebook so if you leave this unticked Facebook will stick to the exact targeting requirements in which you've picked and therefore you'll know whether you've done a good job or a bad job and therefore you'll be able to review it you'll be able to develop your skill and over time you'll get better at picking different audiences the second point and arguably the most important one in fact in my opinion is is if you have a brand new pixel or a pixel which isn't really optimized isn't really matured then it's not really going to know who your ideal audience is and it's going to cost you a lot more in terms of your time and a lot more budget too to optimize a pixel that has an audience of 10 million people versus an audience of 100,000 people the more specific you go the higher quality your audience will be the faster Facebook will learn and then the more optimized and matured it will then become if you then want to tick this box and use broader audiences later on down the line so in the beginning in my opinion you're much better off going for smaller audience sizes of under a million try and get those 50 purchases as a minimum coming through your pixel to optimize it as quickly as possible and then you can start being a bit more broader and a bit more aggressive and when it comes to the audience sizes in which you're targeting moving on to the third and final point then and a super super important one I see too many people making this mistake is I've seen people spend thousands of pounds on Facebook ads and not even know what cpm means or not know what cti is which in my mind is just absolutely crazy you wouldn't go and spend five grand on a car if you didn't know like what engine it had in it what size engine how much it was to ensure and those sorts of things so you certainly wouldn't throw that sort of money at something like Facebook ads without knowing the pieces information the data in which you can get back from it in which you can learn which ultimately is invaluable if you can understand the information and kind of link them together you'll start to see the correct patterns you'll start to know what you should and shouldn't be looking for which ultimately will help you make better informed decisions when it comes to whether you should switch an ad set off or whether you should put more budget into it compare and ad sets against each other and so on so forth so so in this video I'll go through the three main ones in which you see on screen now which ultimately should help lead you to make in those better informed decisions and ultimately helping you save some money too so first up we have cpm this is cost per 1000 impressions every time your ad is shown to somebody appears on somebody's screen whether that's on their phone on their desktop or on a third party site if you've included those spaces then that counts as an impression now what exactly does this mean so facebook ads think of it as like the ebay but for bidding space on the newsfeed or in a certain space in which you get to define when creating your ad set so obviously the more competitive a particular product is on ebay i.e the more people bidding on it then the more expensive price you'll have to pay for and it's the same on facebook if you stick your ads purely on a mobile news feed and then compare that to pretty much any other placement then the news feed on a mobile device is going to be the most expensive it's going to have the highest cpm versus any other place because that is the space in which most people are tagged in and most people are spending their money and therefore it's going to drive the prices up what people forget all the time is facebook is essentially a bidding marketplace you are bidding to show your ad versus somebody else's and the person with the highest bid typically wins but there are other factors to bring in as well so for example if you have a really poor quality ad then even if you have a high budget facebook isn't going to show your ad to as many people or to the highest quality audience as possible because if they did that and the people with the highest bid always win that space then people would always be seeing low quality ads and ultimately that would drive users off the platform which would ultimately lead to less people advertising which would ultimately lead to not as good profit margins for facebook so you have to have a high bid a high budget ultimately and a high quality ad too and you can measure the quality of your ad using the quality rankings next up we have a link click through rates so a super important one because this is basically a direct kind of relevant piece of information in terms of sorry a directly relative piece of information to how interested people are in your product so the higher this is essentially the higher percentage of the audience are interested in your product again what a lot of people forget to do is actually break down what exactly it is they're doing as silly as it sounds so if you show your ad to somebody and somebody is interested in your product then what are they going to do they're going to comment on it possibly they're going to share it possibly they're going to engage with it possibly and if they're really interested they're going to click the link so the more link clicks you have on your ad versus the amount of impressions the cheaper your cost per link click will be which is also the next one therefore the more interested that particular audience is in the product which is obviously a good thing so when it comes to comparing audiences against each other for the same product and the same ad you have a black and white kind of piece of information which tells you which audience is most interested in your ad and this is super important when it comes to things like testing what i mentioned earlier if you're testing 20 different audiences against each other you can use the information which i've just discussed which i've just gone through to clearly identify which are the best audiences to then progress into that scaling and optimization phase and with that being said then guys i'm going to wrap the video up there i really hope you learned something new if you did let me know in the comment section below i'm always interested to know kind of what stages you guys are at if you enjoyed the video please do make sure you leave a like and of course if you want to see more info more videos from me please do make sure you subscribe too and then one final thing before you do go i get asked quite a lot whether i run a course being from the uk having that kind of uk's perspective they want to kind of invest in training from somebody from the uk with that sort of experience i do have a course called the econ academy there's some kind of background information on screen now there's callback service too so if you want to hop on the phone with me and go through any questions about what it involves before you do commit to it and sign up then of course we can hop on the phone and do that as well so if that is the kind of thing that interests you check out the first link in the video description below thanks again for watching and i'll see you in the next one