- [00:00] - Intro
- [01:05] - Trends in the market
- [02:48] - Is it cheaper to get into ads today?
- [04:00] - Easiest way to get into paid ads
- Website: https://electriceye.io/
- COVID-19 made everyone pull back on marketing spend, especially if they aren't based on a digital platform.
- Because of this pullback, EE's clients experience cheaper CPC's and ROAS is skyrocketing.
- CPC's are down by 30% to 50% on the MOM compared to before COVID-19 stats.
- ROAS is also skyrocketing because most people are just at home, browsing online.
- Though unemployment is still on the rise, a large number of people aren’t affected and they even experience the opposite. They have a more expendable income because they don’t go out and do leisure buying. They then spend that money online.
- Get started on the Facebook Business Manager and Instagram Ads Manager. They may seem very hard but once you get used to them, you can pretty much easily get started with other platforms. Most platforms’ marketing tools are based on or similar to the Business Manager or Ads Manager.
- Facebook and Instagram are the best platforms to start because they have a large audience, they are one of the first ones to integrate advertising with their users, and they are still the best working platforms out there. It’s also fairly intuitive because most people already know how social media works.
- Google Ads might be the most intimidating for new businesses as it requires a fair bit of technical knowledge and set up for it to work correctly.
- Facebook makes it easier for businesses that are starting out to really figure out who their customers are since Facebook already has those data in place, i.e interests, demographics, similar businesses that they like, etc.
Hey everybody, welcome back to another episode of Unprepared. And today is the first time I've had one of my own team members on the podcast. I keep trying to get everyone on here, but this isn't even a podcast. It's a video. I don't know what I'm talking about. Anyway, welcome to the show, Ryan. Ryan's our newest team member over at Electric Eye. How are you doing?
I'm doing good, Chase. How are you today?
Apparently, I had way too much coffee if you can't tell.
I mean, it's a Monday and quarantine. So I guess that's all you can ask for.
Yeah, I know. So for those that don't know, Ryan joined our team a little bit ago and he has been managing Client Services for us and doing a lot of the marketing for us on the team.
So Ryan has some insights that we're going to jump into here about what actually has been going on within some accounts for some of our clients, what is working, what's not working, and just some suggestions on what you need to focus on during this time. Maybe where you should be spending your money during this time. Yeah, how's that sound, Ryan?
Yeah. I mean, let's get into it.
Awesome. So where do you wanna start?
Yeah, I guess just looking at some of the trends and stuff that we're seeing that's happening right now. You know, so I think the big picture, what's happening across the market is because of COVID-19. People are...the natural impetus to pull back on marketing spends, because people, maybe their traditional revenue streams aren't functioning the way that they used to.
If someone's got more of a brick and mortar type of location, if they've got something that maybe hasn't always been digital, they're pulling back a little bit more on that money that they would have been putting into social ads, into Google Ads, into wherever that is. When in actuality what we're seeing with a lot of our clients is...because people are pulling back it's cheaper, so the cost per clicks are going down to get in front of target audiences and also return on ad spend is skyrocketing because everyone's sitting at home, everyone's sitting on their phones. or sitting on their computers. And there's less, I think there's less noise, there's less distraction going on in the world.
In general, people aren't out and about and everyone's kind of confined into space. And so that return on ad spend is going up because more people are spending time on social platforms and less businesses are spending their money to advertise on social platforms.
So if you have the budget as a small business to start testing the waters right now might be the cheapest time to get in.
Absolutely. I mean, for some of our current clients that we're working with, the cost per clicks are going down in like, 30, 40, 50% on a month over a month when you're looking at a pre-COVID versus current COVID situation. And so, for those people that do have the budget, contrary do I think the mentality is that a lot of people are thinking, well, everyone is spending less money right now because they might be out of work.
But the percentage of people that were affected in terms of unemployment, though it is large and the unemployment rate continues to rise, there are still a lot of people who are fairly unaffected and have more money in their pockets now than they would have because they're not out spending it on bars and restaurants in a regular cadence the way that they used to or they're not traveling. And so where we're seeing people that have that expendable income are spending it on purchasing things online.
Yeah, so I guess if I'm a small business and I haven't really done this before, what are some of the easiest avenues to kind of get into getting into paid ads? I know that like learning Facebook is the monster. But if I was going to take the dive now and need at least wrap my head around it like where should I start?
Yeah, I mean, I think so business manager, ads manager is what the Facebook and Instagram platform is called. And it looks like a monster, and it looks really scary. But it is what almost every other platform based their ads management on. Facebook was kind of the first one in the game and they are still one of the strongest platforms. There are hundreds of millions of people that use those avenues every day. And so, Facebook and Instagram is definitely the place to start, because I think it's, for most people, those social media platforms are what they themselves are most familiar with.
And so it's a little bit easier to jump in and understand where am I placing my ads. So if I select Instagram, I know where it's going. And I know how that looks versus if you're someone who's like, well, Pinterest sounds cool. Like I think my audiences on Pinterest, that's a little bit of a different ad platform. It looks different. It's not as UX friendly. It's not. If you're someone who's new to paid media, it's not gonna be the place that's like, super easy for you to get to the same thing goes for Snapchat or Google ads. There's effectiveness and all of those places.
I would say Google ads, from my perspective might be the scariest. Especially if we're talking Google Shopping.
Yeah, there's a lot of setup pieces that go into that. That if you're not...if you're new to all of those spaces and even so like Google Shopping or Google search, if you don't understand how those things function, they're scary versus Facebook.
If I have no data, if I have no information at all, I can get onto Facebook, and very easily figure, guesstimate, on who my customer is. So if I'm a newer business that maybe don't have some of the traction on that, it's easy to get into Facebook and say, "Okay, I think my, my target audience is between 18 and 30. It's mostly male. They like watching ESPN, they're really into going to the gym, and all of these things", and it's really easy to kind of break each of those things down and kind of stair-step into Facebook and then figure things out as you go.
Yeah, I mean, I used to preach that a three-step funnel is the easiest thing to learn. But honestly, the other day, it made me realize, you can honestly just think about it in two ways, like as a funnel, you're gonna have your prospecting campaigns. And this is just introducing the brand new people, which is pretty easy to do on Facebook. You can do it with a look-alike audience, affinity audiences, like Ryan was just saying.
And then the other step of the funnel is the bottom of the funnel. If you only have two steps, you got a top and a bottom is just remarketing. Just show people that I've already engaged with you more of your content, and that's going to return at a higher rate because they're already familiar. You've done the hardest part, which was exposed in the first time then after that, it's printing money if you get good at it. But good funnels have a lot more steps into but that's the easiest way to think about it is like that's how you need to be able to have a thing you can do. And you can just turn it on to get more traffic to your site. And then you just gotta work in your experience and your offer to convert at a better rate.
Yeah, and especially to...so I've done ads in a lot of different spaces. So whether that's B2B, and B2C, all of those things. And where social ads are really great, specifically in working with Electric Eye, is people who are on Shopify that have an Ecommerce site, they're selling a product that like, I buy this ad and it's gonna come in and there's that sense of immediate gratification, even if it's like a digital product.
There is something really satisfying about that and people are more willing to put money into that right now. As a consumer where I can say, I buy this, retail therapy, or whatever it is, I buy this thing, I get it. And there's something really satisfying to that. And those types of products do really well with social ads. Specifically on Facebook and Instagram.
Awesome, Ryan, I'm trying to keep this under 10 minutes. But what this made me realize is we're just gonna do a podcast episode together because I'm sure we're just gonna get off go down the deep end talking about all this stuff.
Yeah, that's probably true.
Awesome. All right. Thanks so much, Ryan.
Yeah, thanks, Chase.