5 Key Elements for a Winning Paid Advertising Strategy
I jumped into the world of paid media back in 2010, working with DTC lifestyle brands that were eager to maximize their ad revenue. Facebook ads became my arena, with my CMO pushing me to maintain CPC below 2 cents and a sky-high CTR, driving me to swiftly master the art of creating ads that genuinely capture attention. A few years later, I took the reins for one of the fastest-growing kid's subscription box brands, steering them to an astonishing $40 million in DTC sales over two years. The secret sauce? Strategically investing across platforms like Meta, Pinterest, TV, Google, and more. Today, Pennock takes the helm of paid media for some of our team's cherished emerging brands.
Why is paid media such a game-changer? Well, let me tell you, for most brands out there, it's the ultimate growth accelerator and revenue generator. But here's the kicker—if it's not executed with finesse, it can also be the fastest route to hemorrhaging your hard-earned cash!
Let's keep things crystal clear: Paid media isn't the sole path to business growth. In fact, it's not a sprint to launch and dive headfirst into paid campaigns. Instead, you should focus on wooing your initial 1,000 customers through avenues like word of mouth, earned media, and good old-fashioned conversations. In doing so, you'll uncover the magic formula—what truly resonates with your audience, why they're drawn to your brand, and the best way to articulate your product's value. Once you've cracked that code, that's when it's time to unleash the power of paid media.
Here's a simple analogy: Imagine placing an image in a Google Doc. You have those four corners to stretch it, but the more you force it, the blurrier it becomes. If you jump into paid media too hastily without laying a solid foundation, it's akin to trying to stretch that blurry image—it won't yield favorable results. However, when you start with a high-quality image, symbolizing a well-established brand poised for growth, you can keep stretching without sacrificing clarity.
What should you track? Let's dive into what we at Pennock focus on within FB Business Manager:
CPM (Cost per 1000 impressions)
CTR (Click Through Rate)
CPC (Cost Per Click)
CPV (Cost Per View)
CPATC (Cost Per Add to Cart)
CPA or CPL (Cost per acquisition or cost per lead)
CAC (Customer acquisition cost or the cost to acquire a paying customer)
ROAS (Return on ad spend)
PRoAS (Profitable return on ad spend)
MER (Media efficiency ratio)
Sure, there are more metrics out there, but these are the ones that deserve your laser-like attention. They may not be 100% precise, but they're your guiding lights to pinpoint where your funnel might need a tune-up.
Low CTR? It's time to fine-tune your messaging and creativity. If ATC is lagging, scrutinize your offer. If Initiate Checkout isn't hitting the mark, you might need to emphasize your product's benefits more effectively.
Now, let's cut through the noise and get to the heart of what truly matters in the realm of paid media. Forget the notion that you need an arsenal of 46 SaaS applications and four ad account strategies to make it work. In reality, paid media is all about expanding your reach—getting more eyeballs on your content. Here are the five core pillars that you should focus on:
The Angle: Your hook to grab attention. Take, for instance, Pennock. If we said, "We can manage your paid ads," we'd appeal to a specific audience. But by saying, "We'll double your Black Friday revenue," suddenly, a broader crowd gets interested. The angle is often the missing piece in advertising. Established brands might skate by without it, but startups? They need a killer angle to make their mark.
The Audience: This is your channel and targeting strategy. Who's your audience? Where do they hang out? What interests or behaviors define them? And most crucially, what problem are you solving for them?
The Ad Creative: Your creative content's finesse, blending compelling copywriting, concise design, and an engaging punchline. All those golden rules about a killer hook, revealing the problem within three seconds, introducing the product within five seconds, and sealing the deal with a CTA? They're spot-on. But here's the litmus test: Would people watch your ad if it didn't have a paid boost? If not, you're already at a disadvantage.
The Web Experience: What happens after the click? Most users land on your homepage or product page, but those can be terrible places to send them. If your ad angle has hooked them, they should continue on a landing page that echoes that messaging. For instance, if they clicked on your body retinol, that landing page should still sing the anti-aging benefits.
The Offer: Some brands skip discounts, offering customers incentives for subscriptions. Consumable brands entice with trial offers. Fragrances—they make it easy for customers to sample various scents.
Now, let me share some quickfire tips to add to your toolkit:
If your click-through rate falls below 2%, it's time to revisit your creative approach.
If your CPM exceeds $20, it's a sign that your creative might require a refresh. Products with a higher average order value can tolerate higher CPMs, but exceptional creative can still help reduce costs.
When budgeting, consider allocating up to $1,000 per day for every million people in your target audience.
For budgets under $100k per month, during Q4, prioritize your efforts on Meta before expanding elsewhere.
If you're spending $500k per month or more, it's worth exploring TV advertising to supercharge your lower-funnel performance marketing.
Incorporate branded search as your secondary paid channel to safeguard your brand's online presence.
TikTok offers a cost-effective avenue for discovery and building awareness.
Give priority to comment moderation when your daily ad spend falls within the $1k-20k range. Handle negative comments by employing a three-step strategy: hide, block, delete.
Engage with every positive comment and question, as this strategy is a proven way to reduce your CPMs and ensure your ads maintain visibility.