 So in this video, I wanna show you how Facebook ads actually work. If you go into YouTube and search for Facebook ad strategy, it says thousands of different videos. However, if you use that strategy and it doesn't work for you, then it will often leave you kind of stuck, confused, out of pocket and not really sure where to turn. So in this video then, my objective is to give you a deeper understanding of exactly how Facebook ads work. So if you do ever come across a situation like that, then you'll be more informed and have a better understanding of what to do next. So I've put together this presentation then, a very short and brief introduction of exactly the different kind of things that Facebook would look at when you're running ads to determine how successful they're going to be. Perhaps if you want me to do a further video that kind of builds on this, goes into a bit more of these elements in some more depth, then make sure you hit the like button. I tend to kind of go on your feedback and the more likes video gets, and then I tend to do more videos on that topic. As it says there at the bottom, this keynote is downloadable for free in PDF format. So if you're a Mac or Windows, it doesn't matter. The format will work for you. So just simply head down into video description below and there will be a link there. So to kick the video off then, I want to start with the fact that Facebook ads is a bidding auction. Think of it as like the eBay, but we're bidding for impressions. Impressions being when somebody sees our ad. So what that means essentially is that the more people that are bidding for that audience that we want to show our ad to, the more competitive it becomes, and therefore the more expensive. However, Facebook doesn't just give that impression to the person who's willing to spend the most amount. For the following reasons really, you have to kind of take into account that Facebook is a business at the end of the day. They want to make money and they want to survive. So there's kind of like two main things in which you have to consider from Facebook's point of view. And if you give them those things, then in return they'll give you good results. So number one is obviously Facebook wants to make money, being a business, the more money they make, the better. And number two is they want more people to use their platform. And the way they get people to use their platform is by only kind of providing the best content that's gonna keep people on their platform because the longer people stay on their platform, the more time they have to show ads to them, the more kind of advertising space there is, which ultimately is gonna lead to them making more money. So you might be thinking then that to succeed with Facebook ads ultimately you need to have the biggest budget. However, that isn't the case. On the right here, we have a screenshot which is taken from the Facebook.com. The link there is at the bottom from the business help manager I call it. And the way they pretty much explain it is that the winner of the auction is determined on the total value of that ad. And that total value then is made up of three different things. So number one is the bid. So obviously this is how much you or me as an advertiser is willing to pay for that impression. Number two is the estimated action rate. So this is basically the engagement rate, how relevant your ad is to the audience you're tagged in. And then number three is the ad quality. So this is the actual creative itself, the way you display it, the way you word things. Is it high quality? Is it kind of baity and spammy? Depending on which one it is will affect the total value of your ads and therefore the results that you get. So what I want to do in this video then is just jump into these three individual elements, just dive into them a bit deeper, go through them with a bit more explanation, a bit more information. So the next time you do come to the point where you're gonna run some ads or perhaps some ads outperforming well, then you know exactly where to look and you'll have some good ideas of the changes you need to make. So number one then is obviously the bid. Like I mentioned previously, Facebook ads is a bidding platform and to kind of illustrate how it works and how the price can affect you as an advertiser, we have an example here on the left. So at the top we obviously have our audience. Number two in the middle is Facebook here in the center and then obviously we have our advertisers at the bottom. If, for example, there's one advertiser advertising to a particular audience, then you're gonna have a low CPM, a CPM being the cost per 1000 impressions. Whereas if we compare this to the example on the right, we can see this five times as many advertisers all competing for that same audience and what that's gonna lead to is a higher price so a higher CPM. So the way to kind of translate this into your own business and your own strategies is that the more money essentially that you're willing to spend on Facebook looks more favorable to them. Now this isn't me saying by any means go out there and start spending 500 pounds a day but what I am saying is that, for example, if you go into YouTube and search for Facebook strategies, the most popular and common one you'll probably see is $5 per day or five pounds per day. So next time you're designing a strategy or perhaps running some ads, perhaps run them for six pounds per day or six dollars per day or perhaps even 10 pounds or 10 dollars because in Facebook's eyes as they've said themselves, the bid in which basically how much you're willing to spend directly affects the total value of your ad. So the more you're willing to spend, the more favorable you look in Facebook's eyes and therefore the more favorable your results are going to be. Moving on to the second element which is action rates, a poor engagement rate on your ads will lead to a lower chance of winning the bid. So here's the kind of two main ways of increasing the engagement rate on your ads. Number one is the quality of your audience. If you go out there and tag an audience of say 10 million people, the chances of every single one of those persons being interested in your product is going to be quite low and therefore your engagement rate is going to be quite low and therefore so is your action rate and therefore that decreases your chance of winning the auction. So if you have been running some ads to some pretty broad audiences of like two, three million people plus, then my advice would be to reduce that audience size, keep hitting that narrow button and increasing the amount of interests to the point where you get it down below a million at least, closer to half a million than the better because what that's going to do is obviously the more interests somebody is linked to within your niche then obviously the kind of stronger connection they have to that niche, the stronger interest they have in it and therefore that increases the likelihood of how interested in your products they're going to be. It increases the chances of them engaging with it which as we've just spoken about and seen increases your chance of winning the auction and winning the bid, that's obviously our main objective. Point number two then is to advertise a more interesting products. This is kind of one of the biggest faults I see beginners making, they don't necessarily choose poor products, rubbish products, they just choose products that aren't really suited for Facebook. So you can go into AliExpress, find products that have thousands and thousands of orders but if they're not interested in products that perhaps some people haven't seen before, people aren't going to take notice of them, they're just going to glaze straight past them, it's going to lead to a low engagement rate and therefore a decreased chance of winning that bid. And obviously this goes hand in hand with your creative too. If you have a really interesting and cool product but you advertise it in a really boring way that doesn't capture people's attention, then you're not going to get the eyes on, you're not going to get the engagement and it's going to reduce your action rate. So just keep those two things in mind. Moving on to the third and final aspect then is the ad quality. So a few kind of practices to make sure that you avoid and this will improve the quality of your ad and therefore increase your chances of winning the bid. Starting from left to right then, number one is we have text overlaying images. You might have seen this before as you go to hit that publish button there'll be like an error message warning you about the amount of overlay text which obviously decreases the quality of your ad which in Facebook ads, eyes is a bad thing. So just make sure you avoid that as much as possible. The second thing to avoid is engagement bait. One of us started Facebook ads four years ago now. I used to do this all the time to be honest. I used to say tag a friend that needs this. However, nowadays Facebook don't want people to be using that as a common practice. So it hinders your results, it goes against you. So if you're asking somebody to comment, somebody to tag, somebody to like, then ultimately it's just going to harm your chances of success. And then the third and final one, there's loads more of these by the way. However, like I said in this video, I just want it to be kind of like a brief introduction to test the waters. See if you guys are interested in this as a subject and if you are just comment below. Let me know one way or the other and then I can go a bit more deeper and delve with a bit more information into these topics. So the third one is exaggerated headlines. We have two ads here, advertised in exactly the same thing. However, the one on the top right, just in case you can't see it, if you're watching on a mobile device, it says seven mind blown uses of carrots with mind blown being in capital. So it's quite emphasized. It's quite over exaggerated. Whereas the second one is a bit more sophisticated. Just says seven uses of carrots that will have you rethinking your diet. You must check these out. So even though there is kind of like a call to action in the second one, it's more preferred because there isn't just over hyped. Facebook hopefully don't want to be that kind of platform. They want it to be just a bit more sophisticated, a bit more kind of informative and relevant and just less hype and less click bait and less kind of spammy looking posts. They want it to be somebody, somewhere people can come on to spend a lot of time, read a few different articles, watch a few different videos, engage with their friends, et cetera. Not just it be full of these engagement and spammy posts that over hype everything. So they are the three main things then that Facebook consider next time you're running Facebook ads. If you're still watching, I hope you enjoyed it. If I taught you anything new, please do make sure you let me know. Comment it down below, hit that like button. I'd love to hear from you guys. Any comments or questions? I read every single comment by the way. So if there is something you want to ask me, make sure you just post it down below. I will get back to you. And just one final thing then. Thank you much for watching. If you are currently looking for a course or some sort of program that comes with somebody's full guidance and support, please do check out my Ecom Academy on screen now. It's just kind of like the four main things you'll get full access to as soon as you join. But for more information, head to the video description below and there will be a link there taking to the page with all the information and testimonials, et cetera. Apart from that, thanks very much and I'll see you in the next one.