Why Your Facebook Ads Don’t Work (and How to Make Them Profitable)
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Why Your Facebook Ads Don’t Work (and How to Make Them Profitable)


– You have amazing product. You have amazing service. You go out there, you
run some ads on Facebook because that’s what everyone is doing, but you find yourself just
spending all this money. No one cares about your ads. They’re not clicking on it. And if you do get some clicks, none of them convert into customers. Why could this be? Hey, everyone. I’m Neil Patel, and today I’m going to share with you why your Facebook ads don’t work and how you can make them profitable. (gentle music) Before we get started, make sure you subscribe to this channel. If you’re on YouTube, click
the alert notification. That way, when I go live, whether it’s on Facebook,
YouTube, or LinkedIn, you’ll get notified. Question: How much do you
spend per month on Facebook? Let me know. That’s part of the reason why
your ads may not be working. So, here’s the thing. There’s a few things that you need to do to ensure that your Facebook
ads are going to work and they’re going to be profitable. Number one. Make sure you’re not just sending
traffic to cold audiences. See, a lot of people want to go out there and just be like, “Let me go find random people
based on some interests “and target them and get them to buy.” I’m not saying you can’t make that work. It is hard. But what you should just start off with is let me re-market all
my existing audience and get them to buy. Let me show my ad on Facebook, bring them back to my
site, get them to buy. Let me do things that
create a lookalike audience and find all the other
people who are relevant, very relevant, right? Because you could do lookalike
audience on Facebook. You want to ideally pick 1%. And then find all the other people that you should be targeting because those buyers are similar to the ones that are like your audience, and Facebook will figure that out for you. If you’re targeting those people, it’ll help you generate more sales. Here’s the next tip. You need to spend enough when
you’re testing things out. When you start off with Facebook ads, spend $100, and you
can’t make things work. And this is why I ask you how much do you spend on Facebook ads? Well, if you’re not spending
enough to get the ball rolling, you’re not really going to get ROI. And on the flip side, you
could be like it used to work, but now that we scaled up our
campaigns to 10, 20, $30,000, it’s not working. Well, when it comes to
budgets in Facebook, it’s all about spending the right amount. You got to spend enough to test to figure out the audiences that work, the messaging, the ads. You also can’t spend too much too quickly because if you scale up your ads too fast, you’ll find that Facebook
give you a similar amount of clicks for the same amount of money. For that reason, you got
to gradually increase what you’re spending. The next thing you got to
do is you need to re-market all the people that almost
bought or almost signed up. And here’s what I mean by this. You got a checkout page. Someone has all these products
to their checkout page, but they don’t buy. Well, you should show on what
it’s like to be a customer through a video re-marketing ad, not just on Facebook, you
should also do that on YouTube. That converts so well. You can do the same with services. People go to your service page, they almost fell out of the lead, but they don’t convert, what do you do? Well, you go and create a video of what it’s like to be a customer, what it’s like to sign
up for your service, and show them that on
Facebook through re-marketing as well as on YouTube. That converts extremely well. Another thing that you’ll find is hey, your copy may not be doing well. Why is that? Well, your copy, your ads,
if you just create it, you can’t always just expect
it to randomly do well. You have to see what’s
working on for other people. Facebook has a library. Check out their library. It shows you all the
other ads in your space. If you can see that people
are spending a lot on ads that are competitors, they
have specific messaging, you know it’s working
really well for them, and there’s a good shot that
if you do something similar, it may work for you as well. That’s where I would start, especially if I’m creating campaigns. Next, what’s your funnel like? Everyone assumes that you
spend money on Facebook, if it doesn’t work, something
is wrong with Facebook. It could be your own site. If you don’t look at your
own site, your funnel, then you may not end up
maximizing your revenue. You can use tools like ClickFunnels. You can end up looking at
your competitors’ funnels because through Facebook’s library, you can see all their ads. Click over to their landing pages, see what their funnel looks like, and if you see two or
three of your competitors using a specific funnel,
specific sequences, with upsells, downsells, specific type of
copy, you now know that, hey, this is the stuff that works
really well in my space. Now if you start there,
that’s how you could end up figuring out how to make
your Facebook ads work. If you just end up going into like, hey, I’m going to just throw stuff
out the wall and see what sticks, and then go from there, you’re going to end up
losing a lot of money. Now, before we end this video, I do want to give you one final tip. I found through all my testing, video ads tend to perform better than text-based and image-based ads. Use videos. Don’t just optimize for a click. If someone spends time watching a video like two, three, four minutes, and then you get them, you make
it less people to your site, but more of those people
will end up converting. So don’t just optimize for a
click, optimize for a sale. That sale should be at the
end of your funnel, right? You’re looking at tracking revenue. How much are you spending? How much money you’re making? It shouldn’t be hey, I
spent all this money, how many clicks I’m getting? Clicks don’t matter. Sales matter. You optimize for revenue or leads. If you don’t sell a product,
you want to optimize for leads. If you have a service-based business and you can optimize for
revenue on the front end because someone can sign
up through self-service, that’s fine, too. But in other words, what I’m getting at is
optimize for revenue. Not for clicks, not for ad impressions. Revenue is the most important thing. Now, if you enjoyed watching this video, make sure you like it, share
it, tell people about it. And if you’re struggling
with your Facebook ads or scaling them up and
you need the extra help, always check out my ad
agency, Neil Patel Digital, where we help people
scale up their advertising not just on Facebook but Google, YouTube, and all the other major
platforms out there. Thank you for watching.

44 thoughts on “Why Your Facebook Ads Don’t Work (and How to Make Them Profitable)

  1. Thank you sir. I uses your statergies and I have sales now..🧡🧡🧡🧡🧡💖💖💖💖💖💖✔✔✔✔✔✔🔥🔥🔥🔥🔥🔥❤❤❤❤❤😍😍😍😍😍😍😍😍😍😎😎😎😎😎 I make video to help other too.

  2. I do Spend From $2000 to $10 000 every month most of that is on lead forms 🙂 I get a B2B lead for $10 in Poland 🙂 Now about your first Tip

    remarketing in B2B … personally, I don't recommend it 🙂 Second Tip budget you can start at $20/day 🙂 if your AD has 500 impressions and zero-click change it 🙂 if your AD has 1000 impressions and zero – lead or sale … change it … for a B2C budget is the most important part but for B2B conversion is more important … I don't want to make a long comment so I will stop here 🙂

  3. Hey thanks for the info. You look more like an Indian politician. 😇
    Quick quest.
    I'm running a e commerce site. Which is a better option click funnels or shopify product page.

  4. Hey Neil,

    Earlier people used to say: go for conversion campaign and even if your purchase pixel is showing red, still go for it.

    While nowadays, few people are coming up with their strategy: go for video views campaign & ppe campain and then retarget the 95% viewers.

    Which one do you think works best for getting sales? On a low budget.

    Also, an out of topic question, since I was creating funnels my landing page is like: domain[dot]com/fidgetspinner
    then I am taking them to the last part of the funnel which is using domain[dot]com/product/fidgetspinner
    Is it considered duplicate content by Google? If yes, then should use instead domain[dot]com/product/fidgetspinner-presale ? To tell google that both are different and only show my main landing page: domain[dot]com/fidgetspinner in search results.

    Thank you so much for all the free content on YouTube and Ubersuggest.
    Cheers,
    Soum

  5. I spend about $500 on Facebook Ads collectively every month. I should increase it but it's working for me for the services I'm selling.

  6. If they watch the video, should i retarget them (50-100% viewed) using another video? Such as Demos/ Reviews/Blog posts? Should I always be optimizing for conversions when I do this?

  7. Man, Im hitting that suscribe button just because your face on this video thumbnail is so damn friendly

  8. A good way to optimize for the sale, not a click
    is to create a disqualifying headline like
    "If you are dissatisfied with <specific pain point of ideal customer>
    and you are <specific qualification> than check this out."

    That's a way to 'turn off' people who
    wouldn't have bought anyway.

  9. hi, I am making ads for a gym but the audience I'm getting don't want to come to the gym they want just free tips what should I do to target the audience who wants to come to the gym

  10. So should we stop optimising for traffic and start conversion optimisation instead? You may know the main issue with the conversion optimisation is that, they need atleast 50 events. How should we overcome this?

  11. I am running both Google shopping and display ads for my new website. When I initially started running my shopping campaigns I made a few first conversions and then a week later it dropped off entirely. I have since added the display ads but even though I'm getting traffic nothing is converting. I've tried everything, any ideas? I am considering remarketing ads but due to the sudden drop off and since I'm not even making one sale, I wonder if it's worth trying that.

  12. Recently i've been watching your videos and also watched your affiliate summit video and now "I'm married to your content"

  13. You said that we should increase the budget on Facebook ADs gradually. I typically set my spend per AD group. I start with Rs.3,000/- per AD groups for testing. Generally, each AD group will have one AD so that I could A/B test them (Facebook allows A/B test only between AD groups). Once an AD is working is it fine to increase the budget to Rs.10,000?

    It will be great if you could make a video or share a blog on how to go about increasing the budget for a Facebook AD or how to optimise the budget for Facebook ADs.

  14. You know, learning about Facebook ads and mastering the tricks of the trade makes you incredibly valuable to companies. Just think about it, you would spend more for a common history community college class that gets you nowhere and has nothing to do with your aims in life than you would if you bought a sub $500 course that teaches you information about a trade that can make you even more money than people with Bachelor's degrees would hope to make. Next year, you could easily be earning yourself $10k+ per month advertising for businesses, or even your own business if you take the time to invest in learning how to set up Facebook ads alone.

  15. Exactly, this is what I've been saying!! Facebook Ads has increased over 122%. Make sure to target your current sphere of influence and people who are just like them… ie custom "look-a-like audience". This is the best way to get a higher conversion rate with the people who already know like and trust you. It's way more powerful!!

  16. Hi Neil! I was wondering, as someone who has just started a channel—so no subscribers, yet…could you share a good amount of money you think would be good to run new Facebook Ads?

  17. I have a client only has a budget of $200 A month for a product that cost between $8 – $24 dollars. Growing their page has helped but conversion is low. The plan is to build awareness and then try to get them into big name retailers.

  18. Thank you so much for sharing a great knowledge with us.
    I'm new on ecommerce please suggest me which one FB ad is more profitable for sales?

  19. Neil. This is off topic. But if someone's comment upsets you, do you ever respond in a negative tone? I believe it is an important aspect of digital marketing (online presence). Maybe you could actually do a video specifically dedicated to do's and don't's when interacting with difficult customers. I mean I realise you shouldn't swear and insult for example, but is it better to ignore or respond? I hope you see this. Best

  20. I have $2200+ if I am showing an ROI to my client. my issue is testing too much, we have no clear path because we can't pinpoint exactly what is working within the algorithm. Any insight on this? My thoughts are to test one variable at a time and scale from there on what is working and cut off what is not working.

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