 What is going on guys welcome to a new video. So today is actually episode number one of a new series I'm starting called Facebook ads Friday and pretty much every week then every Friday We're going to be covering a new topic that's purely related just to Facebook ads So in today's video week number one episode number one We're going to be covering when to kill and when to scale ad sets So I've got some actual ad sets I'm running at the moment to show you guys and actually go through with you And we're just going to be going through the kind of numbers you need to be looking out for then In order to decide then whether you should kill an ad set or whether you should scale one So next week then it's going to be completely new episode completely new topic And I want you guys then to decide what that topic is going to be All you've got to do is leave a comment down below and then whichever one gets the most comments or the most likes Whatever it is will be the topic of next week's video. So that means sitting guys Thank you for tuning in and let's get straight into episode number one What is going on then guys welcome to my computer So let's jump straight into then and Facebook ads Friday episode one. So as I said in the intro We're going to be covering when to kill and when to scale ad sets In fact, before we get into it, let me know if this is something that you think you will enjoy At the end of the day, I'll do these videos for you guys So if you think this is a bad idea for a series or whatever I always appreciate your feedback. So just make sure you let me know One way or the other So when to kill or when to scale your ad sets has been quite a popular topic I've been asked to cover and I've never actually got around to doing a video on it So I'm finally going to do one When before we actually get into the numbers and kind of like the thick of it, we need to know There's a couple of things we need to know them before we get started So firstly, you need to know your worst case Break even return on and spend so what that means then is when When you're running your ads Facebook will give you a row S And you need to know what that number is in order for you to make a profit If you don't know what that number is then essentially you're fishing in the dark How are you going to know if you're making money or not? Now the reason it says worst case in brackets there is because obviously depending on what product you're selling Or what products Customer decides to add to cut it's going to affect it So if you take your worst case break even row S Then you know that as long as it's above that number regardless of what product they're buying or What upsell offer you're using then you're always going to be making money So the way we work this out then is we start with the price in which we're selling the products for We subtract the cost of the product to us including shipping And then that leaves us with essentially how much we can afford to spend per purchase on facebook In fact, it's not very clear. What I'll do is I'll write it out Just so it's easier to follow along. So we have to start with we have our product price In fact, we'll call it the selling price We take away the cost of the product to us including the shipping cost. So minus the product cost And then that leaves us with essentially how much we can afford to pay per purchase on facebook And then what we do from there on is we again, we take the selling price and we divide that then By this cost per purchase, which we've just worked out and that's going to give us our break even row S And as you can see in this instance for this example is 1.42 Now the reason this is important then is because unless you know this number in fact, I'll put it in bold Unless you know this number, then essentially you're going to be fishing in the dark You're not going to be know if you're making any money or not now facebook actually gives you your ROAS so On I'll show you in a second in my ad manager account, but On an overview you can tell straight away whether that ad set is actually making you money or not So unless you know that number, you're going to be fishing in the dark You're not going to know if you're making any money So just to highlight then why it's so important you need to know where your break even row S is We're just going to jump into my ad manager account And these are all the ad sets. I'm currently running for this account and as you can see there's quite a few So unless you know what your break even row S is it's just going to be a nightmare going through each and every ad set And not essentially knowing which ones are making you money and which ones aren't so As you can see if you look at Like the order in which they're switched on from this point onwards You can see they're all switched on upwards and then below that They're all switched off and what I've done is I've filtered them by How they've performed in terms of the row S as you can see as we move up the row S increases as we move down It decreases and at this point then Anything above kind of like 1.36 is still running because it's making me money So I've been able to work out that my break even row S is about 1.36. I think it's a bit higher in this account It's more like 1.4 Um and anything above that then is still making me money and therefore I want to keep running their ad sets And anything below that as you can see it's switched off because they weren't they haven't proven to be profitable And one thing to notice as well is that there's a lot more ad sets that don't work out than there are ad sets that do work out So for every five ad sets you test even if like all five of them just completely like Be complete failures, then that's not a bad thing. You are going to have more failures than you are successes It's just part of the process. So don't get disheartened It's all about testing finding which ones that work and you scale them and being able to notice Which ones are going to work which we're going to talk about in this video And even more importantly then being able to notice which ones aren't working And killing them before they waste any more of your money So if we go back to the second point then which is know your target cost per purchase We've had to find that working out this first one. So as we can see our cost per purchase In this section is seven pounds And then thirdly you need to know the purpose of your ad set. So If you're running traffic or if you're running a purchase ad set or if you run in a PPE campaign Then obviously the purpose of the ad sets are completely different. So you have to gauge the results differently So for example, if you're running a PPE campaign Then you're not going to base that on what your cost per purchase is you wouldn't compare that against a wc campaign It just doesn't work like that So i'm guessing that most people watching this then are typically going after purchases So all the information that I talk about from here on then is going to be based around That fact So these tend to be the general kind of parameters that i'm working against when i'm looking at my ad sets Now because there's so many different variables And there's so many different people that watch this channel There'll be people selling five pound products 50 pound products Different audiences etc then it's really difficult to kind of put exact numbers on but these these are kind of Pretty good guidelines. I've kind of I spent a lot of time actually going through my ad sets and kind of looking at the numbers And coming up with a strategy that's going to apply to most of you guys So when you've spent three times the target cost per purchase and you have zero purchases Then to me that is a signal where you need to stop the ad set and start looking at the numbers and see exactly What is happening and whether you think you can Like build something out of it or whether it's just a lost cause and you need to switch it off completely So taking our example back here put it of seven pound cost per purchase If you've spent over 21 pound and you've got zero purchases and zero add to carts Then to me that's a red flag like that's a really bad sign You should be able to spend three times that cost per purchase and at least get some add to carts So if you're at this stage then if you have spent that much And you've got zero add to cart zero purchases. What do you do? So first things first switch the ad set off and look at the numbers and the breakdowns So numbers first you want to be looking at things if we go back to my ad manager account actually One of the things I look at Is cost per link click so as you can see at the top the better performing ones are you can see The we're looking at around 50p so 55p 50p 35p 45 and then as we move down they tend to get a bit more expensive So 75p 78 60p 94p 2 pound 25 And that again, it's it's more like rough guidelines when it comes to facebook as one thing you've got to consider Is it's all about looking at things as a whole you can't just take one specific number And then base all your judgments on that it's about looking at the whole picture So look at your cost per link click because if that's expensive then that's telling you that What your advertising isn't necessarily resonating with the audience very well They're not very interested and therefore there there's not many people clicking on it and therefore your cost per link click Is going to be expensive So another number then that I look at when considering whether what to do with an ad set when building up that fuller picture Is looking at the relevant score so relevant score is quite a good way of gauging then of how well Your ad and your product is resonating with the audience So anything typically but like lower than a five or six Then it makes me give it even more attention and consider changing up that ad copy Or even the tags in now Like I mentioned earlier, you can't just look at one number And base all your findings on that one number because I've had ads that are really profitable And they've only had a relevant score of five or six So it goes back to that that probably like the main point is well You've got to build up a bigger picture of your ad set So if you've got a really high cpc And you've got a really low relevant score if all the numbers add up to what looks like a bad ad set Then you can make a better judgment than just basing it on one set of numbers if that makes sense Moving on to the next point then which is your breakdowns. So I've got an ad I want to show you guys Um, if we just go back into my ad manager account What I've done is I've just split it down by age and gender. So if for example, you've ran an ad And it's not performing very well before you kill it and just write it off completely Then go through the breakdown. So age and genders you can do regions platform and devices depending on what your tag team is and you want to see if there's any Potentially profitable segments that you can duplicate this ad set into so for example then with this ad What I'm looking at here is my ROAS and we know for this ad account that about 1.4 is profitable So we can see straight away that all these ones that have a dash and no number at all It tells me that they're not profitable. So What I could do in this case is duplicate this ad set and target only the ages and genders Of people that are producing good results. As you can see this one's 2.73 So that's definitely a potential one I could go for which is 35 to 44 female This one's pretty good as well. This one's pretty good. This one's pretty good In fact, it looks like to me that the generally anyone over the age of say 35 seems to be responding quite well to this product So what I would do is just duplicate this ad set 35 plus male and female And then that way I'm spending all of my budget on the genders and the age ranges that are the most profitable So that being said then hopefully that gives you some sort of idea of when To kill an ad set and if you do have to kill it then what you can potentially do with it to make it profitable And that being said then if you asked to watch in the video and hopefully you guys are enjoying it If you are please do leave a like And that being said then let's move on to when to actually scale an ad set So the kind of signs you want to look for in an ad set that shows that has potential and it's ready to be scaled So going back to the whole three times the target cpp that's typically how long are we running ad set before before I even look at it to be honest because Facebook works on past data and it needs a bit of time to optimize the more you can give it the better and the Higher the budget you can give obviously nor data the faster or optimize etc So what I tend to do then is give it at least three times the target cost per purchase before even consider killing it or scaling it So I've spent three times the target cpp. I've got between one and two sales Now am I going to scale this so if I spend three times the target cpp then and I get two sales Then yes, I will scale that ad set now anybody who does the math on this will work out I'm still making a loss here if I spend three times the target cost per purchase So if I spend 21 pounds based on this example and I get two purchases Then that is obviously a 10 pound cost per purchase Which is still more expensive than the seven pounds we can afford to Technically I'm making a loss But the reason I will choose to actually scale this ad set and put more budget into it then Is because I'm spending so little at this point There's not going to be a lot of data going through that ad sets the more data I put into it Facebook will optimize it better spend it more efficiently and I've got a better chance of Actually proving it has potential and making more sales if that makes sense When it comes to facebook ads Then there's a sweet spot in terms of how much you spend before you're either spending too much or you're spending too little and spending say three times the cost per purchase so spending 20 pounds is not enough to adequately test something so Basically in these stages. We're just looking for signs So if we get two sales from spending that to me that's enough And that's enough for me to want to put more money into it and actually find out if it has the potential because there's obviously Customers within that audience making purchases if that makes sense. Hopefully I've explained it well enough If I haven't I do apologize. Please do Anything you're not clear on then obviously leave a comment down below And I will get back to you Moving on then if you have one sale and the full budget is spent Then I'll leave it to run for another day or two before making up my mind and it kind of goes back to this point of Because we've only spent so little I haven't given it a proper fair chance But the fact that it's shown one sale means that I want to give it a bit more of a chance before I just completely write it off or before I go say doubling or tripling the budget So I'll let it run for another day or two and if I see more sales then again, that's a great sign It shows that that one sale wasn't just part luck And there's more potential within this audience and therefore I want to go ahead and scale it And that being said then guys are that pretty much wraps up the video Just to go through it quickly then because I'm not satisfied with how well I explained it I do apologize any questions at all. I've said it before but just make sure you leave as many as you want down below I always do get back to every single person So I'm just going to run through it pretty quickly then went to kill an ad set So when you've spent three times your target cost per purchase and have zero purchases Then that's time to switch your ad set off and start looking at the numbers Start looking at what your cost per link click is start looking at your relevant score And if they're both poor then that signals that whatever product you're advertising is not resonating with your audience And therefore you need to change one or the other you either need to change your audience or you need to change your product Look at the breakdown. So look at Within this ad set then that isn't performing very well Is there an age range or a gender in there that is performing well? And if there is duplicate the ad set and only target those profitable ages and genders When you scale an ad set then if you've got one to two sales then that particular audience has potential But it depends on the cost per purchase So if you get two sales then that's a good sign and you want to start scaling that ad set But again, keep an eye on it to see if it still stays profitable And then if you only get one sale then there's signs there that that audience has potential So what I'll do is let that ad set run for a couple more days And if it gets more sales then to me, that's even a better sign that the ad set just needs a bit more time Maybe a bit more budget as well And therefore it's one that i'm going to scale And that being said then guys that is it went to kill went to scale if you're still watching I really do appreciate it. The support recently on the channel has been absolutely awesome We're approaching 3000 subs, so i'm thinking of something that's pretty special to do I'm not quite sure yet any ideas then getting touch And before you go then don't forget to leave a comment down below on what topic you want me to cover in next week's episode And that being said then thank you for tuning in. Thank you for watching and i'll see you in the next one