The Ad Engine:

Hey 👋,

By this stage I’m sure you’ve seen me talk about the 6 Pillars… (Mindset, Sales, Product, Marketing, Operations and Finance.) In my opinion - after working with 28,000 business owners - this is fairly close to a universal law of business.

Over the last 6 years I’ve been using it to help my clients to scale and the results have been amazing - below you’ll find the list of the clients I’ve helped to add over $101 million to their businesses that I know of by doing so…

www.testimonial.to/systems-for-business/all

I value these ‘macro models’ more than any tactic you could ever give me - I value them because they last generations and I don’t need to chase my tail trying to figure anything else out…

This allows me to focus on what truly matters.

I can focus on depth while the market in general and my competitors attempt to find and sell bright shiny objects.

So In essence of this - Let’s dive deep into the marketing pillar together and explore some of the principles therein.

These are the only 4 metrics to track and improve in your advertising 🙂 - they combine together to produce your ROI’s!

You’ll notice they combine in a function to compound for or against you. Here’s the equation those interested in the math.

(CVR x AOV) / (CPM x CTR) = ROAS

The first two metrics are ad metrics - they define your cost centre. (output)

The last two are funnel metrics - they define your profit centre. (input)

You could even state this more simply and say the only two things to optimise for are Cost Per Click (output) and Earning’s Per Page View (input.)

Let’s explore them a bit more individually.

1. CPM - Cost Per 1,000 Impressions
   ($)

This metric defines how much it’s costing you to serve your ad to your target audience. Each time your ad is served this is counted as an impression.

Very few businesses that I’ve met try to optimise this to bring down the cost of traffic - meaning it’s one of the most poorly understood business metrics that exists.

Just like David Ogilivy said, almost 50 years ago (before online marketing even existed) - the key to improve ad results is to match your creative to the platform you’re using and to make your content as ‘native’ as possible.

*** Said another way - make your ads look like content ***

It will massively reduce your costs.

2. CTR - What Percentage of Those People Click to Your Website? (%)

For example let’s imagine you spend $30 to get 1,000 impressions on your ad.

If you get a 1% CTR (which is poor btw) - You’ll get 10 clicks on your ad and you’ll be paying $3/click.

2% is much better, 20 clicks 2x more traffic in your funnel!

> 3% is best!

In terms of running an ad the #1 indicator of the long term success of the ad is the CTR in my opinion.

Here it’s all about testing the Big 6 Creative Elements in order to find out which ones positively shift the CTR.

Slight tweaks to these elements can routinely increase your CTR’s by 200-300% and reduce your CPM’s by as much as 50% - meaning cheaper & higher quality traffic getting directed into your website.

3. CVR - What Percentage of the People Who See Your Offer Claim It?
   (%)

Now we’ve left your advertising platform of choice and your prospective buyers are on your website… 👀

Depending what you sell and the type of offer you’re running here the required %’s for you to be profitable will change.

If you’re in Ecom - 5% is the goal here.

If you’re in Service - 0.5% from traffic to client will suffice - the bigger problem here being time to conversion - how long does it take to achieve it… (a story for another day perhaps?)

Anyways, there are proven ways to increase the conversion on your landing pages that I’ve spoken about extensively.

Social Proof like this being one of the main ones >

Along with Bonuses, Value vs Price Now Drops, Strong Headline’s and Sub-Headlines, Urgency, Scarcity & Good Copy.

4. AOV - What’s the Average Order Value For the People Who Buy?
   ($)

The final piece of the puzzle is - the average amount in cash your customers spend when they purchase from you.

Again this metric is highly ‘optimisable.’

Just this morning on a group call with my clients we were reviewing a funnel from a great business who is selling tutoring resources to parents using ads.

Really simple shop just using shopify - but the checkout process was great. As we were testing the checkout they had a small popup in the corner that was adding bonuses if we added more value to the cart!!

Genius!

Improving the AOV is one of my favourite things to test because it’s so damn simple to do and at this point they’re already on the page so you may as well present as many relevant and helpful offers to them as you can.

//

So that’s the Ad Engine that can get your business from point A to point B - all of your ‘ad tactics’ should flow downline from this.

Literally the first thing I do when I look at an ad system is to look at the data - the data reveals the holes in the bucket, which in turn drives the strategy.

This is the real game of advertising…

It’s got little to do with which platform you use, messenger bots, ai chats or any other tactic people will try to ram down your throat… It’s about results and the scientific process of testing each of these 4 variables to find out what works.

For now… If you know your marketing system needs some tweaks - you’re either not getting enough leads/sales or you know you’re paying too much for the ones you do have…

Fill in this form below.

https://form.typeform.com/to/trB0Pizw

I’ll check out your system and we can jump onto a free zoom call and I’ll help you to map out a plan to solve it.

Spots are limited - I’ve already got 9 calls in this week, and I don’t like going over 12 calls per week - I do have to work on my own systems also!

First come - first serve to those who qualify.

Talk soon,

Ben.

Just got back from a great 3 week trip to Sevilla, Portugal, Nice & Corsica - Benefits of living in Europe and running an online business - worked a bit while there of course ;)

Here is the link again > https://form.typeform.com/to/trB0Pizw