You are doing Google Ads wrong!
What’s that? What did you say? What are you doing wrong?
First of all, I know some of you guys noticed my little friend there, here he is. Let me introduce you to him. He’s called Buddy and I got him eight years ago for my wife and I would like him explain to you what are Google Ads.
Hello, they are the Ads sort of Google based on their platforms like YouTube, Googles, you’re surfing videos, search key phrases and banner ads.
I love you too, Buddy. First, the proof of concept. Let me tell you about one ad I did on Google that managed to do 10x on my investment. This is what this video is about.
As you can see here in my currency which is 1.7. If it’s in Euros, it’s 1.7 thousand euros invested, you get 31,000 in my currency or 60,000 euros return which is a 10x return on investment , obviously thats revenue, not profit. My profit is about double the amount I invested. But there’s one mistake, one thing that I was doing wrong for a long time that prevented me from doing that. Let me show you some other ads that I ran before this ad became profitable.
So I opened two screenshots, I have here from some ads I ran. And the first one is you can see on the screen here, I invested 1.3 thousand of my currency which is around 650 euros or 700-ish doors and got a return of basically $700 in revenue, which made me lose over $600 on this ad. So that was not successful and I wasted around 700 bucks on this ad. And the reason why I’m showing you this ad is that you can learn from my mistake and I’ll tell you in a bit what it is exactly. The second ad that I’m going to show you that I took a screenshot off and you can see it on the screen here is I spent 2.2 thousand of my currency which surround let’s say $1.3 thousand. This is approximate, I lost over 1,000 bucks on it. Still a big mistake.
As you can see, the average click is off, like it’s-it’s really bad. As you can see the difference between those three ads is huge, volume wise, and profit wise, but in reality, the detail that I missed on the first two ads was pretty simple. Do you want to know what it is?
Video ads. Let me explain what I mean.
Let’s say that one click on my app costs $1 and out of $10 spent, I get at least one sale of $100. And which I make 20 bucks on. What’s my return? I spent 10 bucks and again got a revenue of 100 with a profit of 20.
This is front-end sales meaning, the exact return on the investment, you get right away instant gratification from your ad. But sometimes you’re wondering, well, I spend 100 bucks on this ad and I got $50 of revenue, and like 10 bucks of profit, meaning that I lost 90 bucks, 90% on my investment. And because Google Ads is an action-based or bidding-based advertisement platform, which means companies are bidding for your traffic for the keywords searches, for the YouTube ads, and so on, some company finds value in spending 100 bucks and getting 10 bucks and 90% loss.
How can this be? The world is unfair? I’ve been lied to all my life.
Yes, you have. But you’re thinking that for the wrong reason. You have front-end sales, the sales you get initially from running your ad, and then you have back-end sales or the value you can get out of your customer. How much can you milk him? If I have to be brutally honest, that’s exactly what companies are thinking of your view on your traffic.
So let’s say that the person you pay 10 bucks, and you got only $1 in return, but you get those leads from those 10 people. Leads is basically an email, some contact info you have on that customer. Even though in the initial sale, you only made $1 out of this guy. You then have his information that you can upsell him with, push notifications on your website, email marketing and so on.
Do you know that many companies like fast food companies lose money on the first french fries or whatever. They say– I don’t want to say any brands here but you probably know which brand I’m talking about. So the value you get from your customer is not just from the first sale.
So Nik, what does that have to do with Google Ads?
Well, it has to do with two things. First, do you want to get the most out of the front-end sale and then you want to get the most out of the back-end sale? How do you get the most out of the back end sale? I’ll tell you a few things and you need to search them up or if you need help, please comment in the comment section down below. I’ll try to help you and/or I’ll just make a video about it. But you need a Facebook pixel, you need good re-targeting structure, you need email marketing and push notifications setup. This is at least four things you need. Let me explain each of those.
So why do we need a Facebook pixel?
The Facebook pixel gathers data from everyone that went on your website and did some activities, any activity. If you need some help setting it up or help on re-targeting, again, comment in the comment section down below, I’ll try to help you. The other thing you need is the right re-targeting ad, which means having the structure where if someone clicked on your website did this or based on the behavior, or interaction he had with your ad, you’ll re-target him with a second ad. That way, you are optimizing your back-end structure. Also, you need email marketing, email like sending your customers to our email letter. You do not want to pay someone on Fiverr for a scraper list, but you might pay someone Fiverr and you can check the Fiverr’s link down below in the description for someone helping you with email marketing or whatever, or I can do it for free for you, if you tell me in the comment section down below, I’ll make video guide on that. Also, I have something new that a lot of people are doing is push notifications, which is the do you want to get a receive notification from this website or also chat bots.
So to summarize, what is the key thing that delivers profitability on your Google Ads that separates you from everybody else. First, using video ads. If search ads or banner ads are not working, you can try banner ads in different sites. You can have a mobile. There’s different banners you need to have to optimize where Google positions your ads. You can test it with a few things, but you should really be careful when you’re using the display network of Google with banners becauseI lost like 500 bucks overnight in expenses on one of my ad. I don’t know, it went crazy and it target a bunch of people and my budget maximum was 300 bucks or 400, I don’t know how it charged me 500. So you really got to be careful with that, with the banners. But you get a video, if banners and search terms aren’t working, there’s different search terms by the way. You don’t just test the main ones, you can use a tool like Ubersuggest or something to narrow down some cheaper pay per click keyword and when you have that the right ad set for the right people, there’s a few things you got to do. First, re-target them then get the most out of the back-end via Facebook pixel, by email marketing, via re-targeting ads, by push notifications or chat bots.
So at the end of this videos, to wrap this up, first, I want to welcome the new people that joined our community. We had four or five new subscribers less 24 hours and that’s really overwhelming. I want to thank you from my heart because growing this YouTube channel is my passion and I’m really happy when I get good feedback from you guys.
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