MBA2302 How To Get Started with Paid Ads in 2023

Summary

The $100 MBA Show: MBA2302 - How To Get Started with Paid Ads in 2023

Release Date: May 4, 2023
Host: Omar Zenhom
Duration: Approximately 15 minutes

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Introduction

In Episode MBA2302 of The $100 MBA Show, host Omar Zenhom delves into the intricacies of leveraging paid advertising to scale and grow businesses in 2023. Drawing from over two decades of entrepreneurial experience, Omar provides actionable strategies tailored to different stages of business development, emphasizing efficiency and cost-effectiveness in ad campaigns.

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Understanding the True Cost of Paid Ads

Omar begins by challenging a common misconception about paid advertising costs. He asserts that the primary expense isn't merely the ad spend but "running the ads effectively, efficiently, in a way that has your money going a long way" (01:11). He highlights that many businesses allocate substantial budgets to acquisition experts without achieving a satisfactory return on investment (ROI). For instance, spending upwards of $10,000 monthly on paid acquisition without seeing proportional returns indicates inefficiency.

Key Insight:

• Primary Cost: Inefficiency in ad management often outweighs the actual ad spend.
• ROI Focus: Ensuring ads are optimized to stay below the customer acquisition cost threshold is crucial.

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The Evolving Landscape of Paid Ads in 2023

Omar discusses how the landscape of paid advertising has matured over the past decade. With algorithms and ad managers stabilizing, the playing field has leveled, diminishing the previously high value placed on ad experts. Instead, the focus has shifted to creative excellence—developing eye-catching and engaging ads that capture attention.

Notable Quote:
"What's really valuable in the ad world is the creative... if you're going to spend money on creating ads outside the cost of ads themselves, you really should invest in great copywriters and great graphic design." (04:30)

Key Points:

• Stabilized Platforms: Algorithms and ad tools have matured, reducing the comparative advantage of ad experts.
• Creative Priority: High-quality copy and design are now paramount for successful ad campaigns.
• AI Advantage: Tools like ChatGPT empower copywriters and designers to scale their efforts efficiently.

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Three Approaches to Running Paid Ads

Omar outlines three distinct strategies for managing paid ads, each catering to different business needs and budgets:

1. Hiring an Agency (Most Expensive)

   • Pros: Comprehensive service from A to Z—market research, ad creation, management.
   • Cons: High cost with potential ROI uncertainties. Suitable only if a clear, substantial ROI is guaranteed.
   • Recommendation: Not ideal for most businesses due to expense and lack of control.

2. Hybrid Approach (Preferred)

   • Pros: Cost-effective and balanced control. Business owners manage ad spending while outsourcing creative tasks.
   • Cons: Requires learning to run ads effectively.
   • Implementation:
     • Ad Spend Management: Owners handle the strategic aspects of ad placement and budgeting.
     • Creative Outsourcing: Utilize platforms like Upwork, Fiverr, or Design Pickle for copywriting and graphic design.
     • Tools: Leverage tools like AdEspresso to optimize and automate ad performance.

   Notable Quote:
   "You get to optimize your ads yourself, you get to learn about ads, you get to save money where you're spending the most money, and you spend your money where you would spend your most time and effort with creating the ad creatives." (07:45)

3. Do-It-Yourself (DIY)

   • Pros: Full control over the ad process and maximum learning.
   • Cons: Time-consuming and requires a steep learning curve.
   • Implementation:
     • Ad Creation: Utilize tools like Canva for designing ads.
     • Copywriting: Use AI tools such as ChatGPT to generate and refine ad copy.
     • Optimization: Monitor and adjust campaigns using analytical tools to improve performance.

Key Insight:
The Hybrid Approach offers the best balance between cost, control, and efficiency, making it the most recommended strategy for small to medium-sized businesses.

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Learning to Run Effective Ads

Omar emphasizes the importance of education in mastering paid advertising. He recommends investing in continuous learning to ensure ads are both effective and efficient.

Recommendations:

1. Online Courses:

   • Udemy: Offers a variety of affordable courses on Facebook, Instagram, YouTube, and TikTok advertising. Practical for those seeking structured learning without significant financial investment.

2. Community and Coaching:

   • Laurel Portier’s Program:
     • Cost: $7 per month.
     • Features: Comprehensive training on multiple ad platforms, monthly coaching calls, and ad teardown sessions.
     • Advantages: Cost-effective access to expert knowledge and ongoing support.

   Notable Quote:
   "Laurel is very, very legit... with that $7 a month program, you can learn what you need to learn to start running ads." (10:20)

Key Points:

• Affordable Learning: Utilize platforms like Udemy and specialized programs to gain foundational knowledge.
• Expert Guidance: Engage with communities and coaching services to receive tailored advice and feedback.

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Maximizing Ad Efficiency and ROI

Omar concludes by reiterating the importance of optimizing ad campaigns to ensure maximum ROI. He underscores that efficient ads not only reduce costs but also enhance the overall effectiveness of marketing efforts.

Final Recommendations:

• Hybrid Approach: Combine self-management of ad strategies with outsourced creative tasks.
• Continuous Optimization: Use tools like AdEspresso to automate split testing and campaign adjustments.
• Monitor Landing Pages: Ensure that the destination of ads—the landing page or website—is optimized for conversions.

Notable Quote:
"If you've nailed it and you're able to acquire customers at a low cost, this means you can just bring in customers over and over and serve them." (14:50)

Key Insight:
Successful advertising is not solely about spending more but about spending smarter—focusing on creative excellence and continuous optimization to drive sustainable growth.

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Conclusion

Omar Zenhom's episode on The $100 MBA Show provides a comprehensive guide to navigating the complexities of paid advertising in 2023. By advocating for a hybrid approach, emphasizing the significance of creative quality, and recommending cost-effective learning resources, he equips entrepreneurs with the tools necessary to run successful ad campaigns that deliver tangible ROI.

Final Quote:
"It's worth the investment to learn how to make money with ads." (14:55)

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Timestamps for Notable Quotes

• 01:11: Introduction to the true cost of paid ads.
• 04:30: Emphasis on creative quality over ad expertise.
• 07:45: Benefits of the hybrid approach.
• 10:20: Endorsement of Laurel Portier’s program.
• 14:50: Importance of low acquisition costs for sustainable growth.
• 14:55: Final endorsement of investing in ad education.

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This summary encapsulates the critical discussions and actionable insights presented by Omar Zenhom in the episode, providing a valuable resource for entrepreneurs seeking to harness the power of paid advertising in their business strategies.

Transcript

[Ryan Reynolds]

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[Mint Mobile Representative]

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[Ramp Representative]

See full [e-mail] got a 7am meeting on a Monday expensing breakfast because it's in policy wasting all afternoon submitting an expense report for that breakfast. If your company used Ramp, you could submit expenses with just a text.

[Omar Zenhom]

Yay.

[Mint Mobile Representative]

Free your team from expense reports today. Switch your business to ramp.com.

[Omar Zenhom]

Hey oh. Welcome to the hundred dollar MBA show. Your daily entrepreneur workout every single day with our daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm. I'm also the co founder of Webinar Ninja, an independent software company I started with my co founder back in 2014 and in today's episode you'll learn how to Started with paid ads in 2023. A lot has changed when it comes to acquiring customers via paid ads, but in my opinion, it's still a very viable way to scale and grow your business. But depending on what stage your business is at, your options when it comes to your strategy and your approach to paid ads will be different. A lot of people think that the cost of paid ads is in how much money you spend on the ads, how much money you give Facebook or Instagram or TikTok or whatever it might be. I'm here to tell you that for most businesses this is not the biggest cost. The biggest cost is actually running the ads and doing it effectively, efficiently, in a way that has your money going a long way. I've seen entrepreneurs spend 5, 6, 7, $10,000 a month, sometimes more on paid acquisition experts and they still don't get a return on investment. Their ads are not working. So what's the answer? How do you get paid ads to work for you and your business in 2023? Well, that's what we get into in today's episode. So let's get into it. Let's get down to business. So like I mentioned at the top of the episode, what you really need to concern yourself about is the money you spend the time you spend, the time you waste, the money you waste. When it comes to running your actual ads, hiring that expert, getting somebody to put them up on Facebook, Instagram, Twitter, whatever it might be. You see, it's two things you need to be concerned about. One is who's going to do the work and if not an expert, who, if you're going to do them, how you're going to do them. We'll talk about that in a moment. Then secondly, how much money are you losing by not running efficient ads, by not optimizing them properly? Let's say in your niche, the optimum ad, the one that's doing really well, the one that is performing at its peak possibility, costs, let's say $50 to acquire a customer. Anything above $50 is basically money out of your pocket. If $51, $60, $100, that's double your money being wasted every single month not running ads properly. You see what I mean? Then you have the cost of actually running the ads, getting the experts to create, the creative, the copy, all that kind of stuff. So in today's episode, I want to approach ads in a different way, one that actually works for 2023. So what's different about 2023? Many people believe that paid acquisition, paid ads on social media have reached a level of maturity. Meaning for the last 10 years or so there's been a lot of changes. Meaning a lot of things have changes in the algorithm, the way paid ads work, the way the ad managers work, what's allowed, what's not allowed. Things kind of have settled down now for the last, let's say, 12 months. And rapid change and fluctuation in running ads is not really that common anymore. This sort of levels the playing field, making those ad experts not as valuable as they used to be. And now what's really valuable in the ad world is the creative creating things that are eye catching, that are noteworthy, that actually grab people's attention. And I'm a big believer that if you're going to spend money on creating ads outside the cost of ads themselves, the ad spend, then you really should invest in great copywriters and great graphic design for the actual images or videos for the ads. This is great news for business owners because the cost of getting copywriters to help you out, getting graphic designers to help you out, is far less than the typical digital advertising expert. Especially now with the power of AI and ChatGPT, helping copywriters scale their business, helping creatives scale their designs. So this is where I actually would invest the Money. So I'm going to give you three avenues, three choices when it comes to running paid ads. Let's start with the most expensive one. The most expensive one is just hiring an agency to do it for you. They'll do everything A to Z. They'll learn about your market, they'll run the ads for you, they'll create the creatives, they'll do the copy. You'll pay, you know the fees that they offer. And this is the most expensive option, it's the least headache option, it's the least work option and time option. So you're going to pay a lot. Okay? And most businesses, I don't recommend starting here because it's really expensive and you don't really understand what they're doing. And if it's worth your money, unless there's a clear ROI like they charge you, let's say $5,000 a month and your ad spend is another $5,000 a month. So you're spending $10,000 on this ads thing and it generates your business, let's say $15,000, then it's a no brainer and you can run this over and over again. But if it's not a clear cut, no brainer, let's say you're making 11,000 or $12,000. Yeah, it's a profit, but barely. And if anything changes or moves or it's not as effective as it used to be, your ads, that is, you're in the danger zone, right? So that's option number one. Option number two, I call it the hybrid approach. It's my favorite option, especially for small business owners that are running ads online. And that's you run the ads. You learn what you need to learn to be able to run ads effectively. And I'll give you some really good resources for that. You're going to pay the ad spend, but you hire out for the graphic design and the copy. So you can hire a writer off upwork or fiverr. You can get graphic design done again upwork or fiverr or freelancer.com or any place that offers design work. Design Pickle is another one. Automation Agency is also another one that you can use to get all this stuff done, to get the creative stuff taken care of and you just put them together in the ads you create. And option number three is you do everything yourself. You learn how to run ads. You create your designs in Canva using templates. You use the help of ChatGPT to create some great ideas and some alternatives to your headlines and your ad copy. You make some Edits, you make some changes and you run the whole thing yourself. It's gonna take a lot of time because you're doing all the time consuming things you see. Creating the actual ad and running them isn't actually the most time consuming. It's creating the copy, it's creating the images, it's creating the work that actually gets put into the ad. Because once you start running your ads, you can optimize them. You can use tools like adespresso, when I really recommend that split test things and just goes with the most successful ad, creates all the different variants for you, and then you just monitor the success and you can just shut off the ads that are not working or the campaigns that are not working. In fact, adespresso, the app I just told you about, does this for you. One of the best apps for running, you know, Facebook, Instagram, Google Ads. And this is why I really love option two, because you kind of get best of both worlds. You get to optimize your ads yourself, you get to learn about ads, you get to save money where you're spending the most money, and you spend your money where you would spend your most time and effort with creating the ad creatives. Now, I know you're thinking, Omar, I don't know anything about running paid ads. Where do I learn? How do I get started? Is this hard? Is this something that I can do quickly? Yes, yes and yes. Let me give you the answers. So there's a lot of options when it comes to learning paid ads, but I like to look for options that are up to date or at least the content is updated regularly. So there are two options I would recommend. If you're looking for just a cheap standalone course to give you an overview of how to run ads on Facebook, Instagram, YouTube, that type of thing, then you can just pick up a course on Udemy. Udemy has a lot of best selling courses. Just take a look at the courses that appeal to you, read the reviews, find an instructor that makes sense to you, and you can get a course with 20, 30, 40 bucks and it's going to give you enough to get started and start experimenting with ads. And I know a lot of entrepreneurs, a lot of my students have done this and had success. Another option is going with a model where you have a bunch of tutorials, a bunch of knowledge that you can consume, videos, all that kind of stuff, but some coaching as well to help you and your specific needs in your business. There's a lot of communities and courses that offer this and there's ones that are really, really expensive. But I'm not going to share any of those with you because want you to do this as cost effective as possible with the maximum results. So what I'm going to recommend is a program by Laurel Portier@l Laurelportier.com that's L A U R E L Portier P O R T I e dot com. I've watched a lot of her content, I have seen her training and she's very, very legit. She runs a $7 a month program. It's literally $7. There's no gimmicks here. It's actually $7. And she has tons of training on all kinds of paid ads. Facebook, Instagram, YouTube, TikTok, you name it. Okay. She also does monthly calls so that she can kind of do some coaching and tear downs of your ads. And I actually wanted to share her program with you guys today because she's one of those people that's up and coming. She's very good at what she does and she hasn't really become really big and famous yet. So you're actually gonna get a great deal. But I wouldn't be surprised in 12 months that she is charging far more than that. So this is a good time to get in. I'm not getting a kickback or any kind of affiliate commission. She doesn't even know that I know her. But I love recognizing great work and she's got a great program. Just with that $7 a month program, you can learn what you need to learn to start running ads. And you don't need a whole lot of money, a huge spending budget for your ad budget. You can actually get started for $50, $100 and start experimenting with the stuff that you're learning and start converting and making sales. She's very big on helping you get a win quickly and work on the low hanging fruit in your business so that you make some sales off your ads. So I really think you should check her out. Now you might be thinking, why is it only $7 a month if it's so great? Well, it's kind of part of her funnel. It's kind of how she markets. She just sells this incredible offer that's $7. If you want to do it yourself and learn yourself, she's going to give you tons of training and coaching. But she knows that people that will take this training will say, hey, I love doing this but you know, I want to do other things. Why don't you take over? So she has obviously services that she offers to People that want their ads to be taken care of or they want her to consult for their company. And I can go on and on about this program, but I just wanted to give you something easy that you can follow and you could do what I do. If I want to see if somebody's really good at ads, I actually go to their website, spend some time, watch their videos, and then leave and then see how well they retarget me, how well they send me ads on Facebook and Instagram, things like that. Are they good enough to know how to do that really well and draw me back in? I do this with anybody to see if they're good at advertising, and she does it well.

[Narrator]

And we're back, folks. It looks like Jim from sales just got in from his client lunch and he's got receipts.

[Jim]

His next meeting is in two minutes. The team is asking, can he get through his expenses in that time?

[Narrator]

He's going for it. Is that his phone? He's snapping a pic. He's texting Ramp.

[Jim]

Jim is fast, but this is unheard of.

[Narrator]

That's it. He's done it. It's unbelievable.

[Mint Mobile Representative]

On ramp expenses are faster than ever. Just submit them with a text. Switch your business to ramp.com.

[Omar Zenhom]

So there you have it. I highly recommend going with the hybrid path. Learn how to run ads. Take a course, take some training, hire out for the creative work. That's really what the ads about. It's the advertising, right? It's the billboard, it's the images, it's the copy that's going to help you convert that sale. And then use some tools like ad espresso to optimize your ad so that you can then get the highest conversion on your landing page. A lot of the ads that you're running are not doing well because of where you're sending them. The landing page, the website, the offer. That's why it's not converting. And this is where the education piece comes in. So this is what I recommend going with the hybrid approach to maximize your dollars in 2023 with digital ads. Thanks so much for listening to the $100 NBA show. If you love what you hear, hit subscribe, hit follow right now on your favorite podcast app. Whether you're on Spotify or Apple podcasts or Stitcher, Radio Overcast or Tunein, go ahead and follow us so that you get the next episode automatically. Before I go, I want to leave you with this. I normally am a big believer in, like hiring out for expertise. And if you have the money to hire out an expert to do your ads. Fantastic. But in this case, where the skill actually makes you money, Right. If you know how to do ads really well and you have a formula where you can have a very low cost per acquisition versus your, you know, lifetime value of a customer, it's basically printing money. You basically can do this over and over and over if you know how to do. If you've nailed it and you're able to acquire customers at a low cost, this means you can just bring in customers over and over and serve them. Especially if your product scales like a digital product or a software or ebook or a course or whatever you sell. But of course, this is just as brilliant on E commerce and other types of businesses. So it's worth the investment to learn how to make money with ads. Thanks so much for listening and I'll check you in tomorrow's episode for Ad Friday. I'll see you then. Take care.

[Narrator]

And we're back, folks. It looks like Jim from Snails just got in from his client lunch and he's got receipts.

[Jim]

His next meeting is in two minutes. The team is asking, can he get through his expenses in that time?

[Narrator]

He's going for it. Is that his phone? He's snapping a pic. He's texting Ramp.

[Jim]

Jim is fast, but this is unheard of.

[Narrator]

That's it. He's done it. It's unbelievable.

[Mint Mobile Representative]

On ramp expenses are faster than ever. Just submit them with a text. Switch your business to ramp.