Ali AlAbbas - Paid ads How to Make Them Work

Facebook and Google Combined make more money from advertisement than any TV channel in the world. They are undoubtedly huge. What it means is that paid ads work, because if it were not true, they would not be able to make hundreds of billions of dollars each year.

Hello everybody, in this article I am about to teach you the secret of how to make paid ads to work.

How to do things the right way

Alright now, here is the secret; are you ready to find out what it is? It is “using a funnel”! The reason that for most of the people paid ads do not tend to work sometimes is that they drive traffic to some product and then expect it to convert. You could be doing things such as looking at what your competitors are doing and their ad copy, or using stuff such as Facebook libraries.

What you need to do is to use tools like Ubersuggest to see the most requested keywords by other people; because if you do not do this, you may go after the wrong keyword. However, even if you do all of that, this means that you have the right landing page and product. But no matter how much you tweak your landing page or your paid ads, over time you will be struggling to make money.

Customers lifetime value

Do you know why it is like this? Because it is a funnel. Funnels are vital because they optimize the lifetime value of customers. This fact is the reason that when Amazon tracks its customer who for example, has bought a DVD, they figure out what other DVDs they should email that person so that they might buy them. Amazon knows that when people purchase some product, they can do stuff to get them to buy some other very similar products as well and that will bring you excellent user experience. Even when Amazon spends money on paid ads, it usually loses some money right away in the first transaction. However, its funnel optimizes for the lifetime value of its customers. That’s why it’s so important. You cannot merely optimize for what you are making on the front end. You’ve got to do it for lifetime value.

Company figures

I remember when somebody told me the difference between a seven-figure company, an eight-figure one, and a nine-figure one. She said that a seven-figure company spends money on paid ads and they want to make two or three times that money right away. So for each dollar they spend, they expect to make two or three dollars immediately.

She said that an eight-figure company is a company which wants to spend some money on paid ads and make at least the same amount of money over time. They are going to end up making more money than the seven-figure companies. However, they want to make sure that at least they break even in the beginning.

But a nine-figure company or beyond that is a company which is ready to lose some money; since they are aware that after a long time, finally, the lifetime value of their customers will be so much more.

How do funnels help?

The reason is not that people will keep coming back and continuously buy more from them. If you want to do this, You have to optimize for the lifetime value of your customers. And the way to do this is by creating a funnel. A funnel will help you increase the cost. Because a funnel allows you to do things such as upsells, downsells, checkout bumps or sending trigger-based emails to people that are relevant to them. Doing each of these will cause you to get more conversions. You can also do things such as push notifications. So if somebody visits your checkout page and add some stuff in there and do not complete their purchase, you can send them a push notification via their browser to remind them to come back to that page and so you will convert more.

How it all works

These things that I mentioned are not going to change your customer’s lifetime value so much or double sales immediately. They make small changes; however those tiny changes add up and this way, you will make your paid ads to be very profitable, especially if you also create a remarkable customer experience similar to what Zappos or Amazon or any of these big companies such as Apple do. This way, you can get people to keep coming back, increase your customers’ lifetime value and make your paid ads work.

The secret for your paid ads to work is not how you optimize the campaigns for your paid ads; it is the funnel you have. It opens new doors to you and enables you to spend more money on paid ads; because the costs will continually grow over time and they will not ever get lower.

If you ever felt like you need help for handling paid ads, don’t hesitate to check my other articles on this website. If you enjoyed reading this article, do not forget to share it with others who may like it as well. Thank you.

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Paid ads: How to Make Them Work

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