Managing Facebook Ads with +1,876% ROI

Managing Facebook Ads with +1,876% ROI

Hey, it’s Rashid 👋

Facebook Ads Campaign with a +1,876% ROI

image

In 2015, the objective was to sell affiliate products using Facebook Ads. The challenge was not only to generate sales but also to ensure a strong ROI while managing media buying efficiently.

Marketing Strategy:

This is a Paid Traffic Conversion Funnel that involved a dynamic marketing strategy that utilized demographic targeting, ad creative testing, and day-parting to reach potential customers. The campaign started with a lower budget to test the waters and incrementally increased spend as data on ad performance was collected and analyzed.

Lets start with Facebook ads

To analyze the Facebook ads, we need to look at several key metrics:

  1. Number of views: This is the total number of times the ad has been viewed. This can be a raw count of views, or it can represent unique views depending on how the platform tracks them.
  2. Impressions: This refers to the number of times the ad was on screen. It’s similar to views but can include multiple impressions by the same user.
  3. Engagement: This includes likes, comments, and shares, which are crucial for understanding how users interact with the content.
  4. Reach: The total number of people who saw the ad. Reach is different from impressions as it doesn't count multiple views by the same user.
image

Metrics from the image above:

  • 93K people use this (possibly referring to the product or service advertised).
  • 3.3K reactions, which include likes, loves, and other Facebook react options.
  • 289 comments which show user engagement and can give insights into user sentiment.
  • 844 shares which indicate how often users are sharing the ad with others.
  • 860K views, which shows how many times the ad has been watched.
image

Metrics from the image above:

  • 4,336,097 people reached, which is a substantial number of individuals who have seen the ad.
  • 1.7M views, which likely indicates the number of times the ad video has been watched.
  • 2,588 shares, demonstrating the ad’s virality factor.
  • 520 comments which show user engagement and can give insights into user sentiment.
  • 7.2K reactions, which include likes, loves, and other Facebook react options.

Overall Campaign Performance:

  • The campaign generated a total of 56,488 website clicks.
  • The total amount spent on the campaign was $24,056.73.
  • The overall cost per website click (CPC) was $0.43.

Audience Demographics

  • The ads were targeted exclusively at men.
  • The age groups targeted ranged from 13-17 to 65+, with the most significant amount of interaction occurring in the 18-24 and 25-34 age groups. This suggests that the product or service is most appealing to a younger male demographic.
image

Geographic Performance

  • The campaign ran in several countries, with varying results:
    • Chile produced 9,967 clicks at a CPC of $0.32.
    • Colombia generated 16,150 clicks at a CPC of $0.30.
    • Mexico saw 21,158 clicks at the highest CPC of $0.59.
    • Peru contributed 9,202 clicks at a CPC of $0.37.
    • The United States had only 8 clicks, which may indicate either minimal targeting or low engagement, at a CPC of $0.06.
image

Hourly Breakdown

  • The ad performance varied throughout the day:
    • The highest number of clicks occurred between 23:00 – 24:00, which suggests that the audience is most active online during late-night hours.
    • Other significant peaks in clicks were observed during midday and early afternoon times, specifically between 11:00 – 13:00 and 19:00 – 21:00.
    • The cost per click fluctuated throughout the day, with the highest CPC occurring during the late-night peak at $1.66, which suggests that while this time had the most engagement, it was also the most costly to advertise.
image

Metrics from Facebook

Lets break it down to its metrics

Actions Over Time:

image
  • The 'Actions' graph shows a significant increase in user actions over time, peaking on April 6th. This suggests a successful engagement with the ad campaign, leading to a high number of actions (which could be clicks, likes, shares, etc.).

Click-Through Rate (CTR) Over Time:

image
  • The CTR started strong, fluctuated slightly, but remained relatively stable until a sharp decline after April 4th. This could indicate ad fatigue among the audience or a change in the ad content or targeting that was less effective.

Cost Per Thousand Impressions (CPM) Over Time:

image
  • The CPM graph shows variability with a general increase over time, peaking around April 2nd. This suggests the cost of impressions rose as the campaign progressed, which is common as the audience that is easiest to reach is exhausted, and reaching additional users becomes more expensive.

Reach Over Time:

image
  • The 'Reach' graph shows a steady increase in the number of people who saw the ads, with a peak around April 4th-6th, which correlates with the peak in actions. After this peak, there's a sharp decline, which may indicate the end of the campaign or a significant reduction in ad spend.

Cost Per Action (CPA) Over Time:

image
  • The CPA shows a dip at the beginning of the campaign, suggesting that initial actions were relatively cheaper. This might be due to the audience being more responsive to a new campaign.
  • There's an uptick in CPA as the campaign progresses, peaking around April 1st, which indicates that the cost of getting actions (such as conversions) increased over time.
  • The significant drop in CPA after April 4th could be attributed to the campaign's cessation or a drastic decrease in ad spend.

Average Cost Per Click (CPC) Over Time:

image
  • The average CPC graph shows a decrease after an initial peak, stabilizing for a period before a sharp increase and then a decrease around April 4th.
  • The peaks and troughs in the CPC could indicate adjustments in bidding strategies, changes in the audience targeted, or shifts in the competitiveness of the ad auction environment.

Clicks Over Time:

image
  • The clicks graph correlates with the actions graph, showing a steady increase until a peak on March 31st, followed by a sharp decline.
  • The peak in clicks suggests that the campaign was most effective at this point, potentially due to optimization of the ad creatives, targeting, or increased ad spend.

Amount Spent Over Time:

image
  • The spending graph shows a rise in ad spend coinciding with the increase in clicks, peaking around March 31st. This suggests that the campaign's budget was scaled up as it gained momentum.
  • After the peak, there's a sharp drop in spending, which likely explains the subsequent decrease in clicks and actions.

Let’s now focus on the website

Sandwich pages, like the one in this case, are a pivotal component in a paid marketing funnel, especially for campaigns targeting specific demographics and geographies. Let's break down how this sandwich page fits into a paid marketing funnel.

image

1. Audience Demographics:

  • The ad content on the sandwich page is crafted to resonate with the younger male demographic, which is most active in the 18-34 age range. By focusing on muscle building and celebrity endorsements, the page aligns with the interests and aspirations of this group.
  • Men in this age bracket are often looking to improve their physique, which makes the angle of getting "Jacked fast" with minimal effort highly appealing.

2. Geographic Performance:

  • The sandwich page likely features language and cultural references that are tailored to the specific geographies where the ads performed best. For instance, Chile, Colombia, Mexico, and Peru had high engagement, suggesting that the ad and page content were effectively localized for these Spanish-speaking countries.
  • The low clicks in the United States could indicate a need for different marketing strategies or that the offer might not be as competitive or appealing in this market.

3. Hourly Breakdown:

  • The varying ad performance throughout the day indicates when users are most likely to engage with the content. The sandwich page must be optimized for high traffic during these peak hours, ensuring server stability and page speed.
  • The higher CPC at night indicates more competition for ad space, suggesting that other advertisers are also targeting this demographic during these hours. It’s critical for the sandwich page to convert these more expensive clicks effectively.

How the Page Works in the Funnel:

  • Capture Attention: The ad leads with compelling copy and visuals to draw in the target demographic, prompting them to click through to the sandwich page.
  • Engagement: Upon arrival, the sandwich page provides a more detailed narrative, including user testimonials, product benefits, and special offers to keep the user engaged.
  • Conversion: The page includes clear calls-to-action (CTAs), such as "CLAIM MY FREE BOTTLE NOW," which are designed to convert interest into action immediately.
  • Data Capture: Even if a sale isn't immediately made, the page may capture email addresses or other user information for retargeting and follow-up campaigns.
  • Optimization: Insights from ad performance data, like peak hours for clicks, are used to optimize the timing of ad displays to maximize visits to the sandwich page.
  • Localization: Adapting the content for different regions ensures that the messaging resonates culturally, increasing the likelihood of conversion.

Copywriting elements and techniques

let's break down the copywriting elements and techniques used to attract users to buy, formatted for clarity:

  1. Headline and Subheadline:
    • Headline: Makes a bold claim about rapid muscle gain, tapping into the user's desire for quick results.
    • Subheadline: Positions the article as an authoritative exposé, promising insider information.
  2. Celebrity Endorsement:
    • Mentions celebrities known for their physique to leverage their influence and establish trust.
  3. Problem-Solution Dynamic:
    • Identifies common muscle-building challenges and frustrations.
    • Introduces the supplements as a straightforward and effective solution.
  4. Benefit Highlights:
    • Lists specific benefits of the supplements, such as increased strength, muscle definition, and improved sexual health.
    • Shares user success stories and testimonials for relatability and proof of efficacy.
  5. Urgency and Scarcity Tactics:
    • Creates a sense of urgency with limited-time offers.
    • Uses scarcity by stating that the free trials are running out to prompt quick action.
  6. Clinical Proof and Claims:
    • Asserts that the products are clinically proven to reinforce their legitimacy and effectiveness.
  7. Special Offers:
    • Promotes free trials with direct calls to action, encouraging users to claim their free bottle immediately.
  8. Product Descriptions:
    • Describes the supplements as safe and natural alternatives to steroids, aiming to appeal to health-conscious consumers.
  9. Visuals and Structured Layout:
    • Utilizes before-and-after images to visually suggest the effectiveness of the products.
    • Arranges content to guide users toward the calls-to-action strategically.
  10. Social Proof:
    • Includes quotes and reviews from purported users to demonstrate the product's impact on others.
  11. Conclusive Call to Action:
    • Ends the copy by reinforcing the product benefits and nudging the reader to act now by trying the product.

Web Analytics

Ad Campaign Management: Daily management of the ad campaign was crucial. It involved:

  • Monitoring the CPC to ensure budget efficiency. The campaign saw a CPC as high as $12.33 drop to $2.51, demonstrating effective ad optimization.
  • Adjusting the CTR by refining ad copy and visuals to improve engagement. The fluctuating CTR suggested ongoing experimentation with ad elements to find the most compelling combination.
  • Balancing the budget across different days to capitalize on peak engagement times, which is evident from the increasing ad spend correlating with rising impressions and website visits.
image
image
image

ROI Analysis

The ROI from the campaign was significant, with the highest ROI reported at 1876%. This was achieved by:

  • Increasing ad spend in a controlled manner based on performance data.
  • Enhancing the website's conversion rate, as indicated by the conversion data, which did not always directly correlate with clicks or visits, showing that website optimization was also a key factor.
  • The profit figures highlighted the financial success of the campaign, with revenue generation far exceeding the ad spend.

Conclusion: The case study of the 2015 Facebook Ads campaign for selling affiliate products showcases a strategic approach to ad campaign management and media buying that resulted in a high ROI. The success was attributed to meticulous data analysis, continuous optimization, and a thorough understanding of the audience's behavior. This case study demonstrates that a data-driven approach to Facebook advertising can yield substantial financial results in affiliate marketing.

Recommended reads

Selected case studies