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Facebook Profit Jumps 71% Year-over-Year

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Re: Facebook Profit Jumps 71% Year-over-Year

#291
post #59

Earlier quoted context omitted.

Not surprised. My wife started a local franchise that provides a service and I've been doing the Internet marketing. I ran local ads on Google...lots of clicks and cost lots of money...but no one came in saying they were referred by Google. Other owners I've talked to told me to use Facebook, it's more effective.

Respectfully without knowing your background, I hear this sort of anecdotal story a lot. Often times it is from people who ran a tiny amount of spend, didn't have their account properly setup, didn't have solid conversion tracking setting for the areas that matter, and then arrived at the conclusion that it failed because it "drove lots of clicks and cost lots of money" without any mention of whether they reached sta…

You're right, my advertising experience is limited. My background is software engineering and only touched advertisement with placements on my blogs, and advertising on Facebook back in like 2005 when they were still college only...those were the days you paid a flat fee, based on the number of users at a university, to advertise at an entire university!

In regards to measuring performance - discounts were offered if they mentioned the 'web special'. Zilch. We actually spent money on Direct Mail, and mailing out coupons within those packs in an envelope. Direct Mail...is not cheap...thousands of dollars. Other franchise owners said word of mouth will drive the most customers.

We only had 1 customer come in with a coupon, and she was already with communication with my wife prior and just wanted to know if she could stack it with another promotion.

My wife has been up and running for 3 months, and every customer is by word of mouth. It is a franchise, so their friends and family have used it. They would drive by and see the pylon sign, or searched online and found our location. The amount of customers is say, 60 over 3 months. It is a service that families pay reoccurring.

The service, without being specific, is tutoring. So the customer base would be say, within 5 mile radius with kids in elementary - high school. Ads were targeted to the 3 zip codes that surround and specific key words were used, including generic "math classes", to competitor's brand, to the local school names. We've had luck by sponsoring a school, as well.

I don't know what metric is most telling, or if you have time. But I pasted some censored metrics here (http://imgur.com/a/j69Qv). I would be open to giving Google ads another shot if you feel I can tweak it for better performance...and any resources you feel would help would be appreciated.

Thanks!

Re: Facebook Profit Jumps 71% Year-over-Year

#292
post #291

Earlier quoted context omitted.

Respectfully without knowing your background, I hear this sort of anecdotal story a lot. Often times it is from people who ran a tiny amount of spend, didn't have their account properly setup, didn't have solid conversion tracking setting for the areas that matter, and then arrived at the conclusion that it failed because it "drove lots of clicks and cost lots of money" without any mention of whether they reached sta…

You're right, my advertising experience is limited. My background is software engineering and only touched advertisement with placements on my blogs, and advertising on Facebook back in like 2005 when they were still college only...those were the days you paid a flat fee, based on the number of users at a university, to advertise at an entire university! In regards to measuring performance - discounts were offered if…

Without knowing more about how many prospective customers are in a 5 mile radius it is hard to advise.

That said, right off the bad I get concerned when I see zero data on conversions, CPAs, click-to-call conversions, etc. You can't really measure performance for this sort of thing just by spend and clicks, particularly at that low volume.

Get tracking setup first and foremost. And even if they can't pay online, look for other events you can tag as "micro-conversions" that that help form a funnel. Maybe it is checking pricing, maybe it is submitting a form for more info. Just get SOMETHING there to make a more informed decision off of. And then make sure you actually keep at it until you get a decent amount of data with which to make a decision.

That's the best I can suggest to start. Everything else stems from that.

Re: Facebook Profit Jumps 71% Year-over-Year

#293
post #291

Earlier quoted context omitted.

You're right, my advertising experience is limited. My background is software engineering and only touched advertisement with placements on my blogs, and advertising on Facebook back in like 2005 when they were still college only...those were the days you paid a flat fee, based on the number of users at a university, to advertise at an entire university! In regards to measuring performance - discounts were offered if…

Without knowing more about how many prospective customers are in a 5 mile radius it is hard to advise. That said, right off the bad I get concerned when I see zero data on conversions, CPAs, click-to-call conversions, etc. You can't really measure performance for this sort of thing just by spend and clicks, particularly at that low volume. Get tracking setup first and foremost. And even if they can't pay online, look…

Thanks for your reply. Just to clarify - when you say, zero data on conversations, you are referring to some way to track if any Google ads customers, take action on the ad?

After clicking on an ad, a potential customer is brought to the website that explains pricing. The website then says if you mention the 'web special' you get $50 off the first month.

Also, this kind of business, typically has active ~150 customers to make $100k. In a month, you may have 20 sign up, 10 drop, etc. So, we're not going to have huge data set similar to an app download or an online store.

# of potential customers...well a student between 1st grade and 12th grade are potential customers. With 4 elementary schools, 3 middle schools and 2 high school near by...back of the napkin (I don't have the #'s on me right now) would be 7000...in reality, no one in the USA has more than 1,200 customers, and that is in major city like Los Angeles (which we are not in).

Re: Facebook Profit Jumps 71% Year-over-Year

#294
post #293

Earlier quoted context omitted.

Without knowing more about how many prospective customers are in a 5 mile radius it is hard to advise. That said, right off the bad I get concerned when I see zero data on conversions, CPAs, click-to-call conversions, etc. You can't really measure performance for this sort of thing just by spend and clicks, particularly at that low volume. Get tracking setup first and foremost. And even if they can't pay online, look…

Thanks for your reply. Just to clarify - when you say, zero data on conversations, you are referring to some way to track if any Google ads customers, take action on the ad? After clicking on an ad, a potential customer is brought to the website that explains pricing. The website then says if you mention the 'web special' you get $50 off the first month. Also, this kind of business, typically has active ~150 customer…

Yes, that's what I'm referring to. Mentioning a web special is not a great way to track. People don't remember those things, get confused by the question often, and it doesn't get you the data in the places you need it to be.

Instead, look to track micro-conversion events around things like maybe creating an onClick() event that fires a conversion when someone clicks to reveal a code for a web special. Or do call tracking, or track address link clicks, or things like that. You'll have a much higher volume of these things than you will actual new customers, so you can make some optimizations sooner than you would if you needed to wait for sufficient data with a limited budget.

Beyond that, you can use similar thinking to get offline data back into AdWords and Google Analytics via uploading of offline conversions[1,2].

Beyond that, Google Analytics has a beta for tracking Lifetime Value which is CRITICAL for any subscription-based business like this.

Also, correct me if I'm wrong, but I'd be willing to wager that students are actually not your customers. Rather, parents are. So think about what keywords parents might be using. Search might be a good channel for you here, but well-targeted FB ads might be as well.

[1] https://support.google.com/adwords/answer/2998031?hl=en [2] https://support.google.com/analytics/answer/3191589?hl=en

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