^{Estimated reading time: 2 minutes and 33 seconds}

Hey friends, today we will focus on something super important that most business owners miss when it comes to advertising their business online.

Is everyone ready?

Let’s dive in.

In a world where organic reach is very limited across all social media platforms, business owners turn to advertising to acquire clients.

However, the biggest misconception in the industry is that they will test with a small budget and then increase their daily spend once they see results.

I’ve seen this time and time again where business owners were allocating $5 per day for ads, but their cost per acquisition was $10, $15, or even more than that.

Ok, Alex, but what does this mean? Bear with me, and I will explain everything super quickly.

There is something called “the learning phase” (more on this in the Digital Marketing Simplified section below), and we need to provide enough budget so the ad platforms can find the people we are looking for.

If we restrict this process with a low spend, the learning phase will never be completed, and the ad platforms will take your money, and you will end up with nothing or just a few clients for which you paid a lot of money.

Meta has a learning phase in which you have to get 50 conversions (leads, purchases, add-to-carts, etc.) before the algorithm will optimize correctly, and you will see a reduction in the cost per acquisition compared to what you were getting before.

So this means that if you allocated $30 per day, you might have an initial CPA of $20, but this will significantly go down once the learning phase is completed.

Why? Testing. The ad platform will do the testing on your behalf, and it will optimize for better costs.

It’s that simple.

Same goes with Google.

I’m usually running campaigns with business owners who are ready to commit for 90 days in which we will collect data on their account and make strategic decisions based on that.

I don’t even want to be profitable in the first month. I just want to make Google work for them the best way possible, and I’ve been achieving some great results over there.

In conclusion, if you can afford $1,000 or more per month for ads, don’t start with $500 until you see results.

Find someone that’s competent to run your ads and ask for weekly reports to understand what’s happening.

An ad manager with experience will quickly identify opportunities and can guide you in this process easily.

Digital Marketing Simplified

What is a learning phase?

This terminology is being used on ad platforms when algorithms are collecting data and testing multiple things to help you reach your goals.

All ad platforms have this in one way or another, and their algorithms are getting better and better, so you should trust this process.

Good to know:

• Facebook now allows users to turn their followers into group members. This is great news if you want to create a Facebook group with your audience.

• Instagram is now showing, for some users, the saved post count for Reels. This again proves that saves and shares are the most important engagement types you can get on your content.

Thinking of running Google Ads or you need a second opinion on your current campaigns? Reach out to me by replying to this email and we can arrange a free consultation.

Do you know someone who can benefit from today’s newsletter? Forward this email to them, and let’s help each other.

See you online,

Alex.

If you were forwarded this newsletter and you enjoyed it, you can subscribe here.