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A Simple But Powerful Strategy to Make Your Products More Profitable

DimNiko Marketing | Make Your Products More Profitable
DMINIKO_RESOURCES-BLOG

A Simple But Powerful Strategy to Make Your Products More Profitable

Today I’m going to provide a different mindset. 

Take it as you will. 

Sometimes you just can’t see a different way to make your ads more profitable. 

You’re doing the same thing day in and day out. 

You’re used to it. 

You need to STOP what you’re doing and follow what I’m about to share.. 

Especially if you’re promoting multiple products that are mediocre. 

Use a One Product Mentality… 

Read More: Why Your ROAS Going Down While Scaling Can Be More Profitable

Focus on only one product during this test. 

This will help you understand how much it really takes to get a true winner. 

Some winners are just not ‘big big’ winners. 

But, we can make them pretty ‘cool’ winners 

A ‘cool’ winner for me is a B or C type winner. It’s doing okay, but hard to scale quickly. 

If you have 5-10 ‘cool’ winners, they can bring in the same revenue or more as one very ‘big big’

But you need to understand the concept of ‘one product’ mentality. 

If it will work for one product, then you can apply this strategy to all your products. 

PREPARATION

Overview your account for the last 90 days.

Pick one product that you see is outperforming all the others.

Here we aren’t looking for type A winners, but the ones that are always somehow around breakeven or 10% above.


Select 2 or 3 of the best creatives you have data for, where you see that CPC is below average, where CTR is more than 1.0, and where CPA is under your KPI (or breakeven).

Focus on this product and follow ROUND 1 – 7 as explained below.

Round 1 – Create 10 test campaigns.

Each campaign will have 3 adsets and one top creative you selected.


Dupe the creative so you have 2 for each adset and change the thumbnail.


So it’s one creative with 2 different thumbnails.


Upload a good pic for thumbnails if you can’t get it from the video.


On adset level, try all kinds of interests that you might think of. 


Think about your product and very obscure and usual buyers.


Do Google research. Find magazines, websites, online stores, etc. 

Make a list of different interests and then put them into adsets.

Only one interest per adset!

Don’t do LLAs yet, just interests.


Create 10 campaigns with just one pretty broad interest per adset.


Now duplicate all these test campaigns and test NARROW down interests.


Pick a more broad niche and narrow down with combined magazines, tv shows, websites, celebrities interests.

Try to get 10 campaigns with all sorts of interests narrowed down.


Put all campaigns budget to $20-40 if top 5 countries, and $10-20 if EUR and others.


Wait 3 days.


On day 3 select all campaigns and go to ADSET LEVEL. 


Turn off all interests where you see ROAS below your KPI.

Wait 2-5 more days.


Turn off all interests where you see ROAS below your KPI.

Go to ads level and turn off all ads with ROAS below your KPI.

SCALE budget 20-30% on best performing campaigns where ROAS is above your KPI.


You need to kill all campaigns with zero purchase and 2x your KPI spend!!!


Don’t wait for a miracle!

Check campaigns every 2-3 days and scale the budget by 20-30%.

If you see awesome performance, scale by 50% or 100%.



Round 2 – If you got at least 5 of 20 campaigns with ROAS better than your KPI (or breakeven), this is a success.

Work on them and slowly scale them.

At the same time repeat Phase one with no.2 creative of your winning product.

Dupe all 10 or 20 of your test campaigns and change ID to second best creative.

Round 3 – Now dupe all again and test ID no.3!

After all these tests, you will have at least 10 campaigns that will have ROAS above your KPI.

And you can find them in 7-10 days if you follow the above steps.


Round 4 – After you see success in one product, do the same thing for PRODUCT 2, PRODUCT 3 and PRODUCT 4.

Replicate the process of ROUND 2-4.

Round 5 – Dupe all successful campaigns and try CAROUSEL ADS!

Compare results with solo ads IDs.

Round 6 – Dupe again all best performers and try COLLECTION ADS!

Compare results with solo ads IDs and Carousel ads.

Round 7 – Scale what is working and create more INTERESTS campaigns.


If enough sales now, start testing PUR 30 LLA 1-2 OR 1-3%.

RETARGETING

MOF

Make a dynamic campaign for one PRODUCT and put 3-5 images and videos into ads.

Retarget 30 days engagers on FB+IG together.


You can also just dupe the TOFs and retarget with the same ads also FB+IG 7d.


Then create more TOFs for product 2, 3 and 4.


Try also Catalog sales campaigns here.

BOF

Do the same thing for BOF.


Plus Catalog Sale campaigns all product feed or just special sets.


It can perform very well.

NOTE: All retargeting campaigns you need to make on day 1 or 2!!!

BOOK YOUR STRATEGY CALL

Additional Resources

eCommerce Titans Podcast

eCommerce Titans by Dim Niko is the industry-leading podcast that brings together the cutting edge growth strategy, tips, and approaches of 8-9 figure eCommerce Entrepreneurs, Founders, CMOs and CEOs.

listen to podcast

EPOCH Facebook Community

A Facebook community for top-level marketers to discuss and share hyper-advanced online marketing strategies. Network and learn from the best in the industry.

Join Facebook Group

Daily Scale Newsletter

The Daily Scale newsletter is delivered directly to your inbox discussing top insights and strategies our agency uses every single day on our 7 figure DTC brands. 

Subscribe to Daily Scale
listen to podcast
Join Facebook Group
Subscribe to Daily Scale

ARE YOU READY TO SCALE YOUR ECOMMERCE BRAND?

Want In On The Juiciest Brand Building Strategies? Subscribe to Our Daily Newsletter

Hong Kong:
Unit 1102
11/F 29 Austin Rd
Tsim Sha Thui KL
Hong Kong

Pretoria:
60 Glenwood Road
The Aviary, First Floor, Office 2
Glenwood
Gauteng - South Africa
0081

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How to Build an Instagram Plan – Part 2

DimNiko Marketing | How to Build an Instagram Plan - Part 2
DMINIKO_RESOURCES-BLOG

Value How to Build an Instagram Plan - Part 2

Zsoka here from DimNiko Agency. 

As promised, I’m back with part 2 on building a stress-free instagram plan. 

If you haven’t read my first article, you already know the importance of creating a solid base for your content strategy. 

It takes time, but it’ll be the cornerstone of sustainable growth. 

From the first article, you already learned how to create a monthly instagram plan and what type of content to create to keep your feed interesting and engaging. 

Read More: FACEBOOK VS INSTAGRAM, What is best for your business?

In part 2, I’ll provide insight into the Instagram Algorithm and how it works. 

Not that anyone knows exactly how it works since it’s a well-guarded secret to keep the playing field even. 

After working with 100s of eCommerce brands, we’ve learned a thing or two about how the algorithm works. 

Let’s start with Hashtags

Hashtags: 

If you don’t have a significant follower base, it’s very important what hashtags you choose. 

Hashtags will help increase visibility and show your post to your target audience. 

How do you find the best ones to use? 

Research – research – research!

For example, let’s say you’re selling a digital course on painting. 

  1. Start typing your main keywords into the search field of Instagram. Make a list of the best ones. Select not only the big follower based hashtags (these will be the most competitive), but also the medium sized ones as well. Perhaps even less, this will depend on your niche.

    Save your selection into a note on your phone, so next time when you post it can be easily selected and choose a mix of relevant keywords for the day. 


Tip: Don’t forget to mix the hashtags. Use a mix of keywords so your content can be seen further. 

Never use hashtags like ‘follow4follow’, ‘like4like’, etc. These are red flags telling Instagram that you want to grow fast and not necessarily organically. 

  1. Look at your competitors, famous influencers, brands, or industry leaders who are working in your niche. Their top posts will have insight into hashtags to use and might allow you to reach their followers. 

  1. Build your own hashtag! Use your own keywords with all your posts. For example: #learn2paint – then encourage your followers to post with the hashtag for a chance to be featured in your stories. This is an easy way of spreading your main message. 

Now let’s say you followed everything above and your post was displayed to a bunch of people – who are your future customers. 

What’s next? 

These people can do a variety of things which will tell Instagram how good your content is. 

The more visitors engage, the better. 

They can like, comment, share, or save – all of these actions will tell the IG algorithm to show it to more people since it’s considered valuable content. 

And, if more engagement continues – IG will place your post at the top of similar hashtags or the explore page bringing a huge influx of followers. 

And what about content? 

Again, you already learned from our “Stress-free Instagram” post, which post types you can use to keep your Instagram feed fresh and diverse. 

Once you’ve started this strategy, you’ll want to start analyzing results. 

Check what posts received the most likes, comments, shares, and try to understand what caused the success. 

Was it the ‘behind the scenes’ post? ‘Tip of the week’ post? Personal Insight? 

Knowing what caused the engagement will help you create similar posts that your followers will resonate with to the same degree. 

The quality of your account will grow and will cause more publicity from the Instagram side. 

More followers = more business. 

Next time, I’ll share some tips on dynamic content, video posts, and will come back with some IGTV tips – stay tuned! 

If you followed our instagram plan outline, hit the reply button and let us know! 

 

BOOK YOUR STRATEGY CALL

Additional Resources

eCommerce Titans Podcast

eCommerce Titans by Dim Niko is the industry-leading podcast that brings together the cutting edge growth strategy, tips, and approaches of 8-9 figure eCommerce Entrepreneurs, Founders, CMOs and CEOs.

listen to podcast

EPOCH Facebook Community

A Facebook community for top-level marketers to discuss and share hyper-advanced online marketing strategies. Network and learn from the best in the industry.

Join Facebook Group

Daily Scale Newsletter

The Daily Scale newsletter is delivered directly to your inbox discussing top insights and strategies our agency uses every single day on our 7 figure DTC brands. 

Subscribe to Daily Scale
listen to podcast
Join Facebook Group
Subscribe to Daily Scale

ARE YOU READY TO SCALE YOUR ECOMMERCE BRAND?

Want In On The Juiciest Brand Building Strategies? Subscribe to Our Daily Newsletter

Hong Kong:
Unit 1102
11/F 29 Austin Rd
Tsim Sha Thui KL
Hong Kong

Pretoria:
60 Glenwood Road
The Aviary, First Floor, Office 2
Glenwood
Gauteng - South Africa
0081

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Launched an App – Now What?

DimNiko Marketing | Launched an App - Now What?

Garyth here from DimNiko Agency

Are you thinking of adding an eCommerce App to your brand? 

There’s tons of benefits to having an App where your customers can go and purchase items from your online store. 

Everything from the ease of the customer journey, easily trackable, and in-app push notifications. 

Today we’re going to discuss app development in eCommerce and how to position it to build your customer base.

Read More: This Is What We’ve Learned from Launching a Brand New E-Commerce Brand and Store in Late 2020!

Developing, designing, and testing an app is a long journey, 

Your creative team has been put through the wringer, app updates are happening a lot more often than envisioned, you’re growing but it’s a slow process. 

At this stage many start-up founders and investors come to an impasse: 

Do you continue making things look and feel pretty or do you invest time and resources into building out your app community?

The answer: BOTH.

Developing your app is a journey that never stops. 

There’ll always be room for improvement, always a bug to squash, and the design and testing process itself can take months.

The question is, when do we focus our energy on building out a community that engages with our app?

The answer: RIGHT NOW!

An app is meaningless without an engaged user base, all of your monetization streams mean nothing without users. 

All that hard work, months of development, countless hours of testing is all in vain if you don’t have consumers using your tech.

At Dimniko, we advise our app clients to budget for acquisition early on. 

That way, while you’re grabbing attention, developing interest you’re also building our desire in your community, to ultimately attract ACTION.

An active, engaged user base means you have another platform to promote your eCommerce product and showcase the value of your brand. 

Testing, optimizing and scaling your customer acquisition strategy is fundamental to any business’ success, however, it’s paramount when developing an app!

Focus on adding value to your user base, just never forget that building out that user base, expanding to new territories and captivating market segments will become your primary objective.

If you’ve been building your app and have some customer acquisition tips, we’d love to hear them!

Until then, cheers!

Garyth

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Do You Know Your Customer’s Lifetime Value?

DimNiko Marketing | Customer Lifetime Value

Today we’re going to talk about Customer Lifetime Value (LTV). 

Even though it’s one of the most important metrics, most companies ignore it. 

I can’t stress enough how important it is to know your LTV. 

Some of you who aren’t newbies in business, you already know how important it is to keep track of your LTV. 

But, those who are just joining, can’t answer why it’s critical to know. 

Read More: 3 Ways of Increasing Your Revenue By Communicating With Your Customers

Your LTV helps you determine the worth of your customers and allows you to make the right decisions for KPIs – especially for acquisition since you’ll understand the real costs to acquire new customers. 

It helps with maximizing the value of existing customers, determining revenue generated from specific customers, and segmenting the categories of customers by identifying patterns that your most profitable customers have in common. 

And all of the above helps with better aligning your messaging to acquire more valuable customers. 

So how do you calculate your LTV? 

There are few metrics that contribute to the calculation of CLV: 

  • Average Order Value (AOV)
  • Purchase Frequency (PF)
  • Customer Value (CV)
  • Average Customer Lifespan (ACL)

You need to look at each metric individually to understand what ones need more attention to maximize profitability. 

Generally, when doing these calculations you look back 1 year or a lifetime, depending on how long you are running your business.

  1. AOV = Total Sales Revenue / Total Number of Orders
  2. PF = Total Number of Orders / Total Number of Unique Customers
  3. CV = Average purchase value * Average purchase frequency rate
  4. ACL = averaging the number of years a customer continues purchasing 
  5. CLV = Customers Value * Average customer lifespan

This will give you your revenue you can reasonably expect an average customer to generate for your company throughout their relationship with you.

Customers Lifetime Period

It’s also good to calculate the Customers Lifetime Period, however for this you’ll need to calculate the Churn Rate as well which is a bit more complicated, but taking the simple calculation it would be:

 Dividing the total customers beginning of x period – customers end of the x period/customers beginning of the x period. 

Customer Lifetime Period = 1/Churn Rate

Knowing your customers LTV is highly valuable on your acquisition strategy. You’ll know exactly how much you can spend to acquire a new customer. 

Once you’ve calculated your LTV, the next step is to improve the number. 

To improve, you need to look at your average order value and customer loyalty. 

Customer loyalty takes time to build and depends on the business model, but there are other ways to encourage customers to spend more. 

One is to increase AOV. A few ideas are: free shipping, bundles, upsell/cross-sell. 

While increasing repeat Customers Loyalty generally reward programs work well.

I hope this post was helpful for those who never calculated the Lifetime Value of their customers. I would love to hear your opinions on this post, or your input if you are already implementing the above so those who are missing out will hear more feedback on the true values of calculating LTV. 

If you are spending over $500 a day and want to scale your brand.

Book a call below https://dimniko.com/msp-apply

Have a Great Day!

Ago

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Don’t Trust Your Facebook Rep, Always Trust the Testing Data

DimNiko Marketing | Always Trust Your Testing Data

Facebook Reps are beneficial to the success of our client’s accounts. 

They warn us on specific changes, latest policy updates, and the structure of our campaigns so they can perform better. 

Sometimes, they even provide the ‘perfect’ testing budgets or how long the campaigns should run for (longer the better). 

Read More: Best Practices When Ads Manager Is Recording The Wrong Data.

Throughout my career as a Facebook Media Buyer, I’ve heard this tip more than 20x from different reps: You need to run your campaigns for 7 days and not touch it! 

For me, this never made sense since all the money that should be profitable was lost in the first 3-4 days if I didn’t touch it. 

Even if the campaign ‘magically’ would turn on the good side, I still wouldn’t be able to break even because of the money lost on day 1-4. 

Of course, there are campaign budgets and the CPA needs to be considered since not all campaigns and accounts will perform the same. 

But, generally speaking, if on day 1-4 I don’t see good results (especially on day 2-3), I will kill the testing campaign regardless of the Facebook Rep. 

I trust my data and I know my process of killing, tweaking, and re-launching test campaigns. This has shown me better results.

Much better than setting the budget and allowing automatic performance to optimize in the next 7 days.

I believe I can compete with any Facebook rep with my testing process since I probably have more ‘hand-on’ experience when it comes to ads. 

But, I’m always open to testing the ‘latest’ suggestions from our new and old reps!

I believe you can’t be a nerdy-greedy human who thinks he knows all about FB ads. 🙂 

As I don’t. 

I’m always open to learn and test new things and recommendations.

However, I know my data and the KPI my clients need to be profitable. 

So I’d prefer to kill the test before it reaches the point of no return. 

Last week, I did a new test. 

I calculated the best testing campaign budget for a specific account, set the structure exactly like the FB rep told me, and put it on auto for 7 days.

After 5 days, I was so curious about what was going on with my ‘big test’, that I checked it and killed the whole campaign immediately.

The budget was $650 per day and my KPI is $25 CPA in this account. 

After around $3k spend, the overall CPA was $45.

So don’t tell me now that FB will optimize the whole campaign magically in the next 2 days and the CPA will drop by $20.

Even if it decreases 2x, it won’t remove the damage that was already done. 

So I killed ‘the big test’ again and said a few bad words in my mind to this rep.

Although the structure she suggested was very interesting and the budget calculation was on point.

She recommended reducing the number of campaigns and combining budgets to get out of the learning phase and use the budget more efficiently. 

This was a recommendation for Prospecting Campaign – (maximum 4 ad sets) 

Ad Set 1 – Broad Audiences 

Ad Set 2 – Lookalike audiences 

Ad Set 3 – Detailed Targeting audiences with Audience expansion on 

Ad Set 4 – Custom Audiences 

To get out of the learning phase, each ad set needs to get at least 50 purchases every 7 days. 

If your average cost per purchase is $40, the budget she recommends should be at least $286 per ad set ($40 x 50 (purchases) = $2000 (weekly budget) => daily budget $3250/7 = $286 (per ad set, just to get out of the learning phase). 

If you were going to set up all 4 ad sets, the minimum daily budget to get out of the learning phase will be $286 * 4 = $1144 daily budget.

She recommended allocating enough daily budget at the campaign level to get out of the learning phase and to scale. 

For example, if you move forward with the recommendation above, she recommended a daily budget of $1716 for a campaign with 4 ad sets (approximately daily budget of $429 = ($286 x 1.5).

The same recommendations apply to lower-funnel campaigns as well.

Any time you’re setting up a campaign, keep in mind the average cost per conversion (purchase) in the past 30 days and use that cost per conversion to do the math above.

What’s my point of this article?  

Test on your own!

I’m not saying this strategy might not work. I believe that in some accounts where higher CPA or margins are possible, or where branding is more important than conversion, it can work for sure.

We tested this strategy in 4 of our client’s accounts and only one account had decent results.

All other 3 were a big failure.

But maybe it was just the time of the year. 

Or an algo hick-up that ruined the performance.

All a 3rd party FB issue that is hidden from us.

If you did some similar test, please let us know how it goes!

We want to figure out for what type of accounts and/or products this strategy might work well. 

If you want us to run your ad account for the best ROAS, you can book a call with us here https://dimniko.com/msp-apply

Have a successful and awesome day!

Matej 

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Do You Need a Digital Marketing Plan?

DimNiko Marketing | Digital Marketing

Hi All, Monika here from the DimNiko Agency. 

Today we’re going to discuss the importance of a digital marketing strategy. 

Nowadays, new ecom startups often don’t use a marketing strategy nor a business plan. 

Can you succeed without one? Of course. 

Read More: Does Your Team Have a Marketing Roadmap?

We’ve seen several success stories of someone selling from their garage and building an empire within 6 months without any plan. 

So of course it’s possible..

But unfortunately, the majority of eCom businesses aren’t going to succeed from a garage. 

That’s just the reality. 

Sometimes they’re real reasons businesses work without a marketing plan. 

It can be the product, competition, timing, market limitations, cashflow, or external factors, leaving things like conversion rate, CTRs, CPA’s not matter.

To make it harder on entrepreneurs, these circumstances can change so rapidly that keeping up is a challenge itself. 

From the agency side, I often see brands who don’t have a strategy apart from wanting to scale. 

But, figuring how to scale is left to the agency. 

In my opinion, this is a HUGE risk to hand over responsibility and control to an agency because ultimately your business plan will determine if you brand will succeed or not. 

So where should you start the planning? 

I’ve studied marketing and created hypothetical marketing plans based on models and frameworks that sound very professional.

 When it comes to real life, most of the time these plans can’t be executed. 

These plans are useful and a must have, but I understand not all brands need it or can have one in order to start. 

We can leave these on the table to discuss on a later date. 

If you want to learn more about hypothetical plans, I recommend SOSTAC model. 

Back to the actual strategy now… 

Usually with ecom businesses, the main objectives are to acquire new customers profitably. 

The key goals are already there, but without numbers they don’t really mean much. 

As you know, it’s important to know your numbers. Not just on media buying, but having a financial model to look ahead on the year and reflect the numbers for your whole business. 

This can include operational cost, product development, human resources, projected revenue based on LTV, AOV, frequency, etc. 

The marketing budget should be calculated bsed on these bnumbers and not the other way around. 

What works today may not work tomorrow, especially in online marketing. 

After knowing your numbers and goals, the big question is how to reach your goals, what the strategy will be, and how to execute and measure the goals. 

This is where strategic thinking is important. 

Who are your customers? What are their needs? Why are they buying your product or service? What are their motivations? Can your product be replaced? Is loyalty a question or just price? Why is your product or service better than another? 

All these need to be part of your plan. 

Because once you know the answers, it’ll be easier to plan your strategy. 

Next: 

Which platforms do your customers use? Where should you spend the marketing budget? What content would engage them the most? How will you get that content? How much should you spend on the content?  Which offer would be the best fit? 

Soon a step by step digital marketing strategy will fall into place. 

You’ll need to separate your customer acquisition strategy, use experience strategy, social media strategy, retention strategy, customer satisfaction, and have a clear value proposition. 

An agency can help you execute your strategy and help put a tactical plan into place. 

But it all needs to come together on a business level seupport by actual facts not projections. 

Uploading campaigns on Facebook or Google is only just a small part of digital marketing. 

If on a whole, it’s not synchronized, it’ll be muc more challenging to succeed. 

Here at DimNiko Agency, we help clients cale their business and support them with their strategy. 

If you’re spending over $500 a day book a call below:

https://dimniko.com/msp-apply

Cheers, 

Monika

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What You Need to Improve to Increase Your Conversion Rate

DimNiko Marketing | What You Need to Improve to Increase Your Conversion Rate

At DimNiko Agency, we deal with a lot of different clients.  

Therefore, we see many different ecommerce websites, products, unique offers, landing pages, creatives and the list goes on..

For us to get the best results, we have to make sure everything inside and outside the Ad Account is at it’s best and optimized accordingly. 

We always see the same items being neglected or need improvement for better results. 

Some of them seem like a no-brainer, but are still left neglected…

Read More: How Does Your Landing Page Affect Your Campaigns Performance?

Here are the top areas we always need to help our clients improve: 

Landing Page Colours 

Clients usually have very dark landing pages. 

They can look really nice, fancy, and quite luxurious.

Although it might look ‘cool’, a change to white or soft-colour landing page can instantly improve results. 

If you have a dark landing page, we suggest testing a lighter color background and see how it performs. 

The same applies to blue, green, and other colored backgrounds. 

A softer, more friendly approach can bring in a few extra conversions. 

Website Navigation Menus

When a customer visits your website, it should be easy to navigate. 

Your customer must be able to easily find what they’re looking for, or what your best sellers are. 

The text must be clear, concise, and easy to read, in simple or plain font that is well structured. And, the important menu links must show first. 

We often see clients neglect this. 

It can look very unprofessional and result in a poor user experience. 

It’s best to keep it as simple as possible to help lead your customers to the important pages to browse your products. 

Also – avoid having too many unnecessary links. This will distract your customers from the ultimate goal. 

Shipping Policy

Shipping is one the most important parts of the customer experience when online shopping. 

Regardless of the shipping & delivery times you offer, clearly communicate with your customers to provide full transparency. 

Shipping prices need to be communicated to the customer early on – whether it’s free or paid. 

Nobody wants to find out about a hefty shipping fee just before they submit their payment. 

Communicate shipping details, such as delivery time and prices in the header / banner on the top of your website. Or, make sure that it’s easy to read and simple shipping policy in your website’s footer. 

Benefits of Products in the Ad Copy

What makes your product stand out from competitors? 

If your product / service has a specific benefit that is unique to your offer, communicate this with your customer in your ad copy. 

Many advertisers focus on the benefits as a whole, but focusing on one key benefit will make your offer stand out and lead to more conversions. 

Instead of listing all benefits, use bullet points. 

Start with the main key benefit, highlight in it’s own to provide emphasis. 

Then you can mention the rest of the benefits your customers may be interested in. 

If you’re like the majority of eCommerce brands, then at least one of the items listed above needs to be improved. 

Try out one of our suggestions and start seeing the conversions flowing in! 

Until next time, 

Jaco 

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Scaling an Ad Account to $17,000 / Day While Reducing CPA by 25% for a Coffee Company

DimNiko Marketing | Scaling an Ad Account to $17,000 / Day While Reducing CPA by 25% for a Coffee Company

Today, I wanna share something crazy.

It’s the results from a campaign we ran for one of our premium agency clients, Vitacup.

Vitacup is a company from San Diego, California that make vitamin and superfood infused coffee and tea products.

They were on a mission to grow their company… but they were stuck.

Vitacup were past 7 figures in revenue, but their cost to make a sale was well over $50 and super inconsistent.

Worst of all, they were burning through investor cash fast… with a 3 month payback period on LTV (lifetime value of a customer).

From an ad perspective… they were having issues scaling their account.

The goal was to keep their CPA (cost per acquisition of a customer) under $50 and scale to $140,000 / month.

So – before we started – we did an audit of the account to get clear on the best strategy moving forward… and there was 4 key issues:

The client had way too many different offers & landing pages running at the same time.

It was virtually impossible to know which was working.

As we all know… 80% of sales come from 20% of your marketing efforts – but we didn’t know which 20%.

The conversion value wasn’t set… so the ROAS (Return on Ad Spend) data was irrelevant – making it impossible to optimise.

Next to no lookalike audiences were used… only interest targeting.

Rules were not used in the ad account to optimise the campaigns… and overall – the account lacked structure.

Oh and here’s the crazy part:

Over 400 campaigns were uploaded in the previous month alone.

This was a recurring pattern, where 50 campaigns would be uploaded every few days to try and stop campaigns from dying off.

As you can imagine… that’s a lot of work, it’s super annoying, and most of all… it’s not necessary to get great results.

Now – just to be clear:

This is absolutely no shot at whoever had run this account before… 

It was simply the situation we were in.

We identified the quick wins we could see to help Vitacup dominate and scale as quickly as possible.

Here’s what happened next:

We created 2 landing pages with clear offers and prepared to only run ads to those.

Based on the historical performance of the account, we created a clear & coherent structure for the campaigns to follow.

Here’s what it looked like:

We launched high budget CBO (campaign budget optimisation) campaigns.

Inside them, we used dynamic creatives, so we could test multiple ad images, videos, and versions of ad copy at once.

Spend was at $800 – $1000 / day per campaign with 10 adsets each inside them.

We put the best performing audiences from the past in the adsets… and included Lookalike audiences throughout.

Madgicx was harnessed so we could find new audience pools to further optimise the CPA.

Now – why did we do these things here?

Well firstly, we wanted to cover off a common mistake people make when it comes to scaling ads.

So many media buyers, and companies, struggle with scaling their campaigns.

But one of the easiest ways to scale is simply start your campaigns at a higher budget.

Sounds way too easy – but trust me, it works.

By starting our campaigns at higher budgets, and combining the best audiences and creatives, we were able to reach the 50 conversion per day threshold fast… which stabilised delivery.

Dynamic ad creatives helped with avoiding ad fatigue.

Plus – with the bigger pool of audiences we now had, the ads weren’t fatiguing nearly as fast.

Through the first month of working with Vitacup:

We increased the ad spend by 60%, and reduced the CPA to $33 using rules inside the account.

As we scaled the account – we were able to quickly learn the ad account specific signals.

This helped us know how many conversions to expect each day – so we could set up rules based on how the account performed each day.

For example:

On any given day, if the CPA was under $55 by 8am – we knew we’d have a great day and would scale the account that day.

If it looked bad initially, we would slow the spend and reset it at midnight.

As mentioned, when starting the account, we were spending $800 – $1000 / day.

As results started coming in below KPI, we scaled.

From $2k per day, to $5k and over $9k per day regularly, just using automated rules.

In the second month with Vitacup, we doubled the adspend and kept the CPA around $44.

On the biggest day of spend throughout the campaign, we spent $17,000 at a $39 CPA.

Now, whilst this all sounds great – here’s the truth:

This wasn’t easy.

It’s not as simple as getting all your best audiences and creatives and just launching CBO’s at $1000 / day.

You need to deeply understand your customer.

Know the best ad account structure for your niche and offer.

You must have a proven offer that converts.

And you need to know what campaign structure will work best for your application.

When you nail these 4 things (plus tons more)… you can do amazing things.

Now, if you’re reading this…

And you’d like your company to be the next EPOCH success story – listen up:

We’re currently looking for just 2 new clients to take on this month. 

We have a strict criteria for the clients we work with. 

If you fit this, we will scale your company using Facebook & Instagram advertising, to dramatically grow your revenue and create similar results.

If you’re interested in working with us, click here and schedule a call today.

>> https://dimniko.com/msp-apply 

Do not hesitate. These positions will fill up fast.

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Why Your ROAS Going Down While Scaling Can Be More Profitable

DimNiko Marketing | Why Your ROAS Going Down While Scaling Can Be More Profitable

Hey!

I had a call this week with a food company that was hitting a 7x ROAS, which for them was extremely profitable as their breakeven ROAS was just over 2x.

They were doing about $170K in monthly revenue and his problem was ‘SCALING’.

Read More: How We Improved Our Client’s ROAS Using Story Ads

He mentioned to me, “I don’t want my ROAS to go below 5x as I scale up the ad spend and it does that everytime I increase ad spend”

I understand where he is coming from. We spend more on ads we want our ROAS to maintain or improve but that is very rarely the case with most brands.

BUT….

Even with a lower ROAS your brand can be more profitable.

You might think that sounds a little whack but hear me out.

This business owner I was speaking with was spending about $500 a day on Facebook ads with a 7x ROAS. 

I explained to him that even if your ROAS drops to 5x or 4x when you increase the spend you will increase your revenue, your number of customers and your overall profit.

Let’s say he increases his ad spend to $1,000 a day and the ROAS drops to 5x, his daily revenue is now $5,000 instead of the $3,500.

A $1,500 increase in your revenue, with a $500 increase in costs and a reduction in ROAS.

Let’s expand this further to scale.

Let’s say he is spending $5,000 a day and the ROAS drops to 3x.

He would be making $15,000 a day, ad costs would be $5,000 and there has been a significant increase in customers.

Brand owners need to understand that volume of customers is more important to profit vs profit per customer.

For example: You could acquire 1x customer with a $20 profit per customer and total profit would be $20 

OR

You can acquire 100 customers with $10 profit per customer and the total profit would be $1,000.

Even though you are making less profit per customer, because you are acquiring a higher volume of customers you make more profit overall.

I haven’t even mentioned the fact that because you have more customers now you will get more repeat business and overall profit will grow even more on the backend.

In summary, don’t be scared if the ROAS goes down when you scale and understand volume of customers is more important than profit per customer.

Now that you fully understand this concept it is important to note, it is not easy to scale to $5K or $10K a day in ad spend. 

That is why our clients choose to work with us because we have significant experience scaling brands to these levels and beyond.

If you want to have a chat with us to see if we can help you, book a call below: https://dimniko.com/msp-apply

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Squeezing Revenue Out of Q2 eCom Holidays

DimNiko Marketing | Squeezing Revenue Out of Q2 eCom Holidays

Hello everyone,

Q2 has just started!

And let’s be honest, it might not seem as exciting as Q4 or even Q1.. 

But the truth is, there are plenty of opportunities to increase your sales over the months of April, May and June.

Read More: How I Scaled Pinterest Ads From 0 to 300k in Revenue in Less Than 3 Weeks – Part 2

Let’s go over some of the main holidays that are happening over the next quarter and how you can take advantage of them:

The major holiday during this period is probably Easter. Dates vary every year depending on the paschal full moon.

However, it is celebrated around the month of April.

This year, it just passed last week. 

Easter is not known as a big gift-giving type of celebration, but more and more businesses use this event to promote special offers or bundles.

You can push an “Easter basket” bundle offer or even create your own “Find the egg” promo.

It depends on the type of your business. It can be applied to many different products and especially those businesses selling items for kids. This could work really well!

Earth Day, happening on April 22nd

Is a celebration that is hugely growing, as more people are becoming environmentally friendly and conscious about the products they purchase, as well as their origin and manufacture.

If your audience has an eco-friendly lifestyle, this is your holiday! 

You should not miss running a small promo for Earth Day, a sale, or even just an email marketing campaign with a nice reminder of the day that is it and to show that you care!

Mother’s Day

Celebrated on the 9th of May in the USA. Dates vary depending on the country.

It is the main holiday to honour the mother of the family.

It is not only the children who buy gifts for their moms anymore, many husbands also buy gifts for their wives during this day.

Something that can work very well for this day are gift cards!

Memorial Day

Happening on the last Monday of May is a federal holiday in the United States for honoring and mourning the military personnel who have died while serving in the United States Armed Forces.

If this is a holiday that is relevant to your ecom brand and decide to create a special promo for it, both ad copy and creatives should reflect appreciation. 

Inspiring quotes and thank you notes can work very well in a special promo for Memorial Day.

Father’s Day

Dates vary based on the country, however in the USA it is celebrated on the 21st of June.

Father’s Day is a day of honoring fatherhood and paternal bonds, as well as the influence of fathers in society.

Same as Mothers Day, Gifts cards or discount codes with ‘Love you Dad, Father, Husband, Amazing Dad, Best Human” theme can work very well on this day.

And these are some of the main holidays and celebrations happening in the next three months.

If you have any questions about any of the above or if you’re interested in working with us to grow your eCommerce brand. Find out if we’re the right fit for you!

Book a call below: https://dimniko.com/msp-apply

Until next time 😉