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Facebook This Is Why 90% of Facebook Ads FAIL


90% of Facebook ads fail.

I know it’s a bold statement. But after running thousands of Facebook ad campaigns over the last five to six years I can say with confidence that the vast majority of all Facebook ads that are launched are not profitable.

In this tutorial I’m going to explain the #1 reason why a Facebook ad fails and what you can do about it.

If you have ads that aren’t performing or are underperforming then this blog post is going to be very helpful for you.

It All Comes Down to the Offer​

Successful Facebook ads have great offers

While there are some technical skills to running successful Facebook ad campaigns, the reality is most campaigns that fail don’t have a strong enough offer.

If your offer isn’t better than 90% of the advertisements out there than it’s almost certainly not going to work and the results won’t be where you want them to be.

This is a common trap that a lot of Facebook advertisers fall into.

There are a lot of gurus out there that talk about how to run winning Facebook campaigns based on campaign structure, who you are targeting, and campaign placement on the platform.

But they don’t often talk about the offer.

Which is weird. I guess it’s a good sales tactic. It just doesn’t reflect the on the ground reality.

I want you to do what works. That’s why I’m going to tell it to you straight.

The right offer can overcome all kinds of other problems with a campaign.

While it’s important to get campaign structure, targeting and placement correct to get the maximum value out of your advertising budget, none of those things will make up for a sub par offer.

A fantastic offer is especially important as you are getting started or if you are a smaller brand. The excellent offer can help you to compete against the big brands with massive brand awareness and built in trust.

The reality is that bigger brands can and do have more mediocre offers than what smaller businesses can afford to put out there. Don’t copy them. Make your offer unique and interesting and it will help you stand out from the crowd.

One more quick note. I’m not just talking about huge price discounts. I’ve got seven different techniques for how you can come up with fantastic offers. Here they are.

7 Types of Offers to Help You Stand Out and Be Profitable​

People don’t advertise to lose money. When businesses put ads on Facebook they want to be profitable. And most often profitability comes down to the offer.

But you don’t want to get into the habit of slashing prices and making that your go to for creating a compelling ad. Here are the 7 strategies that I work with our clients on to create offers that can do extremely well on Facebook.

Have a Better Product or Service​

Have a better product or service

You always want to be better than your competitors. This often requires some innovation and thinking outside of the box.

Perhaps you’ve added some functionality to your service or you’re able to deliver something that’s better than your competitors.

This might be an added feature on a product – like ultra concentration in a laundry detergent. It could also be attention to detail for a service.

In service industries especially, there are a lot of contractors who aren’t very good. And if you can demonstrate that you are better and how you are better in an ad, then that alone can be a winning offer.

Offer a Better Price Point​

Offer a better price point

I understand that a lot of businesses don’t like to drop prices. And if this is a stand alone strategy, it’s probably not a very good one. But it can work well as part of a long term strategy.

If you can blow away your competitors by acquiring a whole bunch of customers and either not make a profit and or even lose a bit of money initially because your price point is that good, then you can build a massive customer list.

You can then take that list and remarket new offers to them.

For this to be successful you must deliver a quality experience on your first discounted offer.

That way you can show how good your product and/or service is and have them coming back again and again. It also helps to have a variety of offers that they can purchase down the road.

I’ve seen lawyers do this by offering a highly discounted and affordable initial consultation. Then when they retain clients they were able to gather a retainer and charge their regular hourly rate because they trusted the lawyer after meeting with them.

Beat Your Competitors with Delivery or Installation​

Beat your competitors with delivery or installation

If you can get your product all set up in your customers home or have faster delivery than your competitors that can give you a competitive advantage.

Think of Amazon. They’ve been working on fast delivery for decades and it’s one of the key selling points of their Prime membership.

If you are in an industry that typically has very long lead times or if you create bespoke products and your items are shipped on an individual basis then figuring out how to streamline your process to create faster delivery can give you a serious edge on the competition.

You can also increase your level of service. If your competitor isn’t installing a product and you can include the install for them, then that can give you a real competitive advantage.

Better Ongoing Support and Maintenance​

Better ongoing support and maintenance

By including a longer or better warranty package on your product and/or service you can make your business stand out.

Maybe instead of getting people to buy the warranty, you include it in the price. Perhaps it’s a six month or annual checkup for the first three years of ownership. Or maybe you include some sort of support where people can get in touch with you and ask questions.

There are certain services where this approach can work very well. For instance, if a company buys a website design or build from you then they may be concerned that they won’t know what to do when there are updates down the road. If you can offer ongoing support then you can set yourself apart from your competitors who build the website and walk away.

You can also do this with physical products. Hyundai still offers one of the best warranties of any car company. You know that if you buy one of their cars it will be covered for 100,000 miles on the powertrain. That’s a huge competitive advantage for them.

Depending on your business you may be able to offer either better ongoing support, a better warranty, or both.

Better Payment Plans or Financing​

Better payment plans and financing

Better payment plans or financing options can give you a huge advantage. There are lots of products and services that people would like to purchase but can’t afford all at once.

If you can offer them an attractive financing option then that could potentially make a huge difference to you and you could massively increase your customer base.

My agency has worked with businesses where their entire business model is based on the ability to finance a purchase for their customer over time. If you sell a product or service that costs over $100 or so than having good financing can give you a huge advantage on your offer.

Better Bundles​

Better bundles

Better bundles can work particularly well in hobby based industries. Someone might be getting into a hobby and and they may not know what to buy.

If you can put together a bundle that does that curating work for them, it can give you an advantage.

For example, if you sell fly fishing equipment you could put together a starter bundle for fly fishing that gives people everything they need to get going with the sport.

Bundles like this dramatically reduce the uncertainty when people are starting out. They often want to get started, but don’t want to spend days doing research.

Now, when you are bundling you will also need to offer a competitive price and demonstrate the value of what’s in the bundle. This can be a highly effective strategy.

Better Design and Better Styling

Better design and styling

People like luxury. They also like items that function exactly like they are supposed to function.

Being able to produce an item that is sleek and has beautiful styling and feels luxurious and/or functions better than your competitors because of great design can be a huge advantage.

With better design and styling you can also justify a higher price point for the product.

One of the masters at styling is Apple. They have products that are consistently sleek and beautiful.

This isn’t for everyone, but if you can make a product that looks great in video and in real life then you can set yourself apart from your competition.

What Type of Offer Will Work Best?​

What type of offer works best depends a great deal on the kind of business you run. I encourage you to go through each of the types of offers on this list and ask yourself if you can apply it to your business.

Take some time and really think about this and you might come up with some angles that allow you to put a strong offer in your Facebook ads.

With a strong enough offer you can sometimes see your cost per conversion cut in half.

Once you have a strong offer nailed down then you can get into the other details of a Facebook ad campaign like targeting and creatives.

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