Optimization is one of the most boring words in online marketing.
But I'm going to explain to you how to properly optimize online advertising campaigns in this
video so you can cut the red and grow the green or the profits in your online advertising.
Let's get it.
So, optimization is such a complicated word.
I think it's scares a lot of people away.
But a the end of the day, what we're doing in marketing is we are playing with numbers.
Pure and simple.
It's a number's game.
Thrown up thousands and millions of ads per day.
And we're hoping to make some profits from it.
It's all in numbers' game.
One and 100 people or whatever the percentage is will end up buying your product.
Most people will never spend any money with you.
And being able to look at those numbers and put the odds slightly in your favor so that
every dollar you spend equals $2 out or equals profits.
Allows you to tap to the one of the vastest amounts of wealth there is possible.
it's what's made me a millionaire in my business.
I'm working with zero employees.
All I'm working with is data.
And I'm going to be walking you through and showing you some examples of how I optimize
ad campaigns in this video.
So, overall, what you need to understand everything about the optimization comes down to this
statement.
Cut the red, grow the green.
All we're looking at is cutting out what's not working and doing more of what is working
so that we can make money.
And you do that over and over again.
Enough times you end up with a profitable add campaign where you put $1 into the machine
and out into your bank account comes $2.
So, let's go to my computer and I will show you exactly what I'm talking about here.
We'll go over this slide.
So first off, you need to understand your own numbers in your business.
What numbers are meaningful to your business?
Are you collecting email addresses?
Are you getting leads?
Are you trying to get people to purchase a product?
Are you trying to get people to make a phone call?
What number is important to you?
Know your numbers and know what cost per email address or per opt in or per lead or per phone
call or per sale is reasonable for you to work with?
Generally speaking, for most businesses, you want to work off the 2 to 1 R-O-A-S.
So if your product cost $3, you don't want to spend more of a dollar marketing in.
Also, in affiliate marketing, generally speaking, you're looking for 100% ROI.
It's great to just speak profitable.
But as you optimize, you want to be able to spend $1 to make 2.
That's good, okay?
That's where you should be generally with marketing.
So let's dive in to things.
Now, I do what's called keeping an optimization diary.
So, when I'm trying to figure out how to market a particular niche.
What I do is I just literally diary about my efforts of marketing my products.
So, I'm going to go through a couple of different examples of marketing my own product which
was ebook at the time called Internet Jetset back in 2017.
This is the last time I kept in optimization diary because I was just trying to get this
up and going.
I detailed every optimization I did so I could look back over things and work towards getting
that marketing profitable.
Again, this was a product that I just created.
I wrote e-book.
I did the whole marketing funnel.
I never done that completely before.
So, I don't even know if I could sell this product.
So, it was a long process to get this profitable.
It took me months.
I was really in the cut trying to make this work out because I want it to be able to spend
money to make money.
You'll see, I kind of detailed things by the add networks I used.
Exoclick is an adult ad network.
Internet Jetset was my product.
Now, here's an example of the sites that my ads were showing up on ExoClick.
Now, ExoClick is a fairly cheap ad network.
They're very affiliate friendly.
It's almost all affiliate's advertising on their platform.
Very lose on their strictions.
They show on lot of porn sites and torrent sites and...
So, I wanted to test my advertising here just because I wouldn't run in to any problems.
I could make any claims, say anything I wanted, marketing wise.
Just to see what worked.
And then I could tone things down for when I went to bigger network such as Facebook
or Google or YouTube.
So, here I am advertising.
And what's interesting though is I'm looking here at the click...Okay?
Now, if you notice each of these sites Talk With The Stranger, Pixel Host, they detail
my cost right here, okay?
So you can see the amount of money I spent with each of these sites.
Just about a buck, right?
So, I wasn't spending a lot of money per site.
Overall, I spent 20 bucks before I actually looked to optimize this particular advertising
campaign.
And the beauty of optimization is that if you know how to optimize well, you don't need
to spend that much money.
In fact, the better you are at optimization and spotting trends in the data in making
sense of things, the less money you actually have to spend in order to make a campaign
profitable.
Now, there is an art an a science to optimization.
On one hand, you are looking at...
You're looking for statistically relevant data.
And on the other hand, there is a bit of an art to things.
You're looking at categories.
Or you're trying to make judgement calls on why something work and why some site didn't
work.
So, understanding the data is hypothesized.
And you can tell if something works of if it doesn't.
But making sense and figuring out what to do next generally requires some sort of artistic
or creative thoughts.
So, here I am with this $20 dollars worth of spent, okay?
What I am looking at; Because I don't have any conversions yet, we can see there aren't
any conversions here because I haven't gotten any sales from this advertising.
So, the only metric I can actually look at is clicks.
And within that, what I want to optimize for is the cheapest cost per click.
Now, when you're an affiliate, you're optimizing generally by the cheapest cost per conversion.
You want to spend less to make the same amount.
Where as in this case, since I don't have many conversions yet, I want to spend less
to get more clicks.
So, that's what optimizing around.
What I'm really optimizing around is I'm optimizing around cost per click or the click through
rate.
So what we notice here is some of these sites I'm getting, my overall average, total amongst
all sites is .27%.
If you can see that right here.
That's my overall average amongst all sites.
But this is...
But there's a problem here, is a lot of the sites that I'm spending money on (Look, I
spent 17 cents here.
I spent 13 cents here.) are getting absolutely zero clicks, okay?
Now, this is a problem.
Okay?
And a lot of these sites, you'll see 0%.
Here's a site where I spent $2 on.
And I didn't...
I only got one click.
So, my average cost per click is 3 cents.
Whereas my average cost per click on this site is $2.
So that's a big problem because I want to be paying only a few cents per click.
Whereas on this site, I'm paying $2.
So, what I...
And on this site, I'm not even getting clicks but I'm spending almost $2 as well on PXL
host.
So, I want to get rid of all of these sites.
And what I do is I basically exclude all of these sites.
--Mobilevids.org, imagep2p because I'm spending money and I'm not getting results from it.
I'm not getting enough clicks.
So, I get rid of all these sites to save my costs.
That's optimization.
Because I can tell I should be paying 3 cents per click and on these sites, I'm paying way
more than that if I'm even getting any clicks at all.
So, that's optimization in action.
I hope that makes sense.
Now, this second example of optimization is an example from one of my YouTube advertising
campaigns in 2007.
Now, what you'll notice here is also once again, I spent roughly about $20 dollars before
I decided to go in and optimized.
At this point, I don't need to spend a lot of money to optimize.
Sometimes, I do, sometimes I don't.
But generally speaking, I like to get the data quick.
I like to spend as little amount of money as possible before I go in and start tweaking
things in my advertising campaigns.
So, what you'll see in this advertising campaigns is I'm advertising on 3 different sources.
I'm advertising on 3 interests which are in-market audiences.
The first audience is advertising & marketing services.
The second audience is SEO & SEM Services.
And the third audience is Web Design & Web Development.
Okay?
So, we have the 3 audiences within YouTube ads that I'm advertising on.
Now, what you'll see is...
You know, I don't have a lot of data here.
But we do see some clear trends.
We see...
I'm looking at my view rate right here and we see, I have a .18% view rate.
I have a .46% view rate.
And I have a .26% view rate.
Now, the one that stands out is obvious, okay?
This number right here is much higher than the others.
And it's because it is in this category.
SEO & SEM Services.
So, what that tells me immediately is that, this market, this specific audience works
much better than my other audiences that I've been...
That I'm advertising on.
For whatever reason.
Now, they seem very similar.
Advertising and marketing services.
Web design, web development, SEO & SEM services.
They seem very similar.
But one performs twice as good as the others.
That's very telling data.
And what that leads me to...
What that leads me to do is actually cut the other audiences until I further test things
out.
So, I would focus all of my efforts on this one audience and getting that profitable.
So, that's optimization.
One again, in action.
Let's dive into the 3rd example of optimization in action.
And I hope some of you are getting it.
If you're getting this, type in "I'm getting it" in the comments below.
Again, the reason why I'm optimizing by view rate here is because I don't have enough data
on actual conversions.
So, if I don't have enough data on sales yet, I'm optimizing based on clicks, if you're
on YouTube, it's views, etc.
Anything can be optimized.
Now, in this 3rd example of optimization.
What I'm doing is I'm actually optimizing by demographics.
I'm looking...
I'm in YouTube ads and I'm looking at the ages of the people I'm advertising to.
So, when I'm starting off advertising to.
So, when I'm starting off advertising, I was advertising to people of all age ranges.
You see 18 to 24.
You know, 18 to 65 plus.
And even people I didn't know about.
So what I'm seeing on here is my average cost per conversion across all age ranges is $5.02,
okay?
That's how much I'm spending to get people to opt in for my email list.
But what I'm also noticing is that, amongst 18 to 24 year olds, I'm spending $17 dollars
on an average to get an email address.
That doesn't make sense.
Again, I'm still not making money from sales yet.
But I am looking at something that will indicate.
You know, I'm looking at...
If I'm collecting email address is cheap.
And that doesn't work out.
So what I would do is I would turn off 18 to 24 year olds so I could spend more money
with people on other age ranges.
Okay?
That are working.
What I'm also noticing is that I'm not...
Is that I'm not making money with people who are of an unknown age range.
I'm making, you know, I'm spending money.
I spent 15 bucks and I made zero dollars.
So, that's something I'm going to be turning off...
I'm turning off the unknown age category.
Now, the reason why...
What you may notice here if you zoom in is people 65 and over, I haven't made any conversions
with.
They haven't entered any email address.
But the reason I'm not turning this age range off yet is because I haven't spent enough
money with that yet.
I've only spent a couple bucks.
So, I'm actually going to...
In this case, I'm going to wait for more data to come in before I decide to turn off this
entire age group.
That's where I'll just wait.
But what I do know is that these ages are working very well for me.
Okay?
I know that 35 to 64 year olds are performing very well for my particular product.
As you can see, it's only costing me about a buck or 2 bucks to collect an email address
amongst these age ranges.
And what's interesting about this data is people who are in their 50's or 60's are...
They're...
It's costing only...
You know, it's costing even less than 2 bucks to get their email address.
And that's why I'm hopeful that the 65 year olds will...
Or people older than 65 will be a good marketing segment for my product.
And that's why I haven't decided to turn that off.
I'm just turning off 18 to 24 and unknown.
So, this may have been a bit heavy for you.
But hopefully, this gives you a bit of an idea of optimization.
Now, if you enjoy this video, if you enjoy learning about optimization, let me know in
the comments.
If you want to see more videos, like this.
Let me know in the comments and I will do more videos like this.
But on note, I try not to do too many of these videos because they're a bit complicated for
the average person to understand.
And I don't even know if people on YouTube will like seeing this videos.
So you really have got to let me know if you want to see more videos like this.
Now, if you like to learn more about affiliate marketing and how I make my money online,
you can subscribe to my channel, hit that notification bell and you will get access
to a free course on my channel homepage about affiliate marketing.
I'm teaching it.
It's about 10 videos long.
You'll be learning the ins and out of this industry and how you can get started.
Also, make sure you like this video if you enjoyed it.
Leave a comment below.
Let me know what your thoughts are.
Thanks for watching.