Hey there, Ezra Firestone here from SmartMarketer.com for Shopify's E- Commerce University and we're here about to get deep on Facebook ads. If there's one platform that you want to use to market your business, it's Facebook, and you will understand Facebook after this session with me. This session is long but it will give you the tools that you need to understand how to leverage Facebook advertising and in the next video I'm going to show you a process, like step-by-step, how to market your content using Facebook, but I want to teach you how to get set up and get you rolling and I want to have you understand how Facebook works and how powerful it is before we actually do that.
So this is a 63-slide session, so prepare yourself, get a cup of coffee, and get a drink and sit down, get ready to dig in. This is going to be a really, really informative, powerful, and life-changing session for you. So we're talking about Facebook. Now everyone is stuck on the query, right? This is what I told you about how you know when I started in e-commerce it was only query-based advertising, it was all we had, and query-based marketing was all we had, when someone actually types in a query on Google; that was the only way we had for generating visibility. But now with Facebook, it offers multi-data-point-contextual-targeting so we can target people on Facebook who are between a certain age, are a certain gender, or are interested in certain topics, and connected to certain things so they have so much data on us it's unbelievable. It's kind of scary. But it allows us, as advertisers, to target the exact people who would be interested in our products and services and I'm going to show you how to do that right now, it is so, so powerful.
It's pretty unbelievable. We live in a very special time, never before have a group of people been able to access every other group of people on the planet immediately. We have this special ability, it's the first time in history that we as people, we don't need newspapers, we don't need television, we don't need these other distribution channels, radio, that we used to have to jump through hoops to distribute messages. We can now distribute messages to groups of people all over the world ourselves. So how does it work? Well, when someone's scrolling around Facebook there's these little advertisements that come up, right? So like, this is a picture of my news feed and you can see there's a little sidebar and there's sidebar ads, and these were the kinds of ads that were available when I first started with Facebook advertising four or five years ago. And that's one type of ad.
There's now news feed ads, right? Which is like, when you're scrolling through your news feed on Facebook, it's this giant ad right in news feed. If you look right now at my screen on Facebook you can see that almost all of my screen is advertising during this particular scroll as I'm scrolling through Facebook because there's news feed ads and there's sidebar ads. Here's another example of one of my videos being shown as a newsfeed ad. You can see, over on the right-hand side, there's ads on the right-hand bar as well.
There's also ads through the video manager, so as people are scrolling through and looking at other peoples' picture which is kind of what we do, you know, it's a fun thing to do on Facebook is to look at other peoples' pictures and friends' picture, well you know your advertisements show up there as well. So all of these different places on Facebook as people are scrolling around, there are advertisements. And these advertisements are put together by people like me and people like you to target people on the internet.
So here's how it works. The process is that you want to setup a Facebook Fan Page, you just got to Facebook.com/pages/create and you should have a Facebook Fanpage for your business or your store already, so if you don't have one of these please set one of these up because we're going to run all of our ads as a Facebook Fanpage. That's how we're going to do our advertising. We'll want to setup a Facebook.com advertising account, and that's just really easy to do, they make it super simple and super step-by- step. It's Facebook.com/advertising, Facebook.com/ads, and you can setup a Facebook Ads account and hook up your payment method like your credit card, however you're going to pay for your ads. And this is just an example of one of our videos on our fanpage that's posted to our Fanpage that I'm going to show you, how promoted posts work. I'm going to talk about the kinds of ads that you have available to you, and the kinds of ads that we use, and then, in the next video, I'm actually going to show you a step-by- step, screen-by-screen, click-by-click process for building out your Facebook ads to market your content.
This is an ad, a video... sorry this isn't an ad, this is a video that we posted to our Facebook profile, and you can see it here right on our Facebook profile, uploaded to Facebook, you know has the tiny URL and the hash tags and all that stuff we talked about. So you go onto your Facebook Ads account and you select your Ads account, and you select the destination that you want, the fanpage that you want to promote. You click on promoted posts, which is basically you promoting posts from your fanpage. So when you make a post on your fanpage it's called a post, it's just like if you do a blog post but you're doing a Facebook post on your fanpage, click Promoted Posts, you select the post that you want to promote; in this case I've selected one of our posts about bad hair days, and it's going to automatically create a sponsored story for you.
So a sponsored story is, and this is if you're scrolling down, this is all one page, so from here, to here, to here, this is all one page in the Facebook Ads manager; as you scroll down you'll see all of these things. So it's going to create a sponsored story, a sponsored story is basically just an ad that creates a second ad for anyone who engages with your post. So it says, you can see, "Jane Doe like Boom by Cindy Joseph's Video," so if someone's friend has engaged with your video, they will see it. That's what a sponsored story is. Then you've got your targeting, and for this we're just doing people in the United States who are women who are 25 and older, who's friends are connected to our fanpage.
So that's 640,000 women in the United States who are 25 and older who's friends are our fans. So we only have 5,000 fans, by the way, we have a very small fan-base because it's geared toward baby-boomers and there's not a lot of them on Facebook so we don't have the huge fan-base for this company, but still with only 5,000 fans that's 650,000 people who's friends are fans of our company. And I'm going to show you how to get real specific with your ads in a little bit, in our next video here, but I just wanted to show you what the advertising, what it looks like, when you're creating an ad from the Ads Manager.
I'm also going to show you another way of creating ads, a very cool way of creating ads. This is what it looks like when you create an ad from the Ads Manager. And here you can see one of my ads from my Behind the Scenes videos at Shopify. I targeted people who live in the United States, New Zealand, Canada, or Australia who are 25 or older, who like OS Commerce, or E-Commerce, or Presta-Shop, or Yahoo, or Magento, or Shopify, or Big Commerce, or Practical E-Commerce which is a very prominent E-Commerce blog, or Valusion, so I basically targeted all of the different e-commerce people in our community, right; all of the people who like one of the e- commerce platforms, because I wanted to show them my video and send them over to Shopify to get a free trial of Shopify.
I wanted to promote Shopify and promote my brand, and that's how I did that targeting. But when you're targeting, I want you to start with one interest, so pick one interest and start there, because you want to make sure that you have an audience group of at least 20,000, and usually one interest is enough to get you that. And you can see here that once you've put in interests, Facebook will recommend other interests for you. So if you put in an interest like, you know, "Canines" or a big, "Chihuahuas," or some specific type of dog if you're selling dog supplies, Facebook will suggest other interests for you and you can see here how phenomenal they are at suggesting related interests. It's pretty unbelievable. It's because they have so much data on us that they can suggest these interests; you can see the interests that they suggest, Etsy, Wordpress, Jumla, Droopl; those are very very related interests to e-commerce, so Facebook is really smart with their recommended interests.
Now, if you want some extra help, you can go to OptimalSocial.com, OptimalSocial.com, set up a free account and you can use their keyword expander tool. So OptimalSocial.com keyword expander, what it does is it allows you to put in a keyword and basically you put in something like "yoga" so I put in "yoga" here and it pulled up a list of other interests that who are into yoga might like on Facebook. So Facebook only lets you use these things called interests, they have to already have an interest, Facebook already has to have an interest category for you to select it; you can't just make something up. And so, what Optimalsocial does, is it allows you to put in one interest and get a list of other Facebook interests that are similar, so it's a cool little keyword tool to use. I want you to do this Adwords style, and when I say Adwords style, what I mean by that is you can target by location, you can target by age, gender, specific group. If you look at your analytics and you see, for our business here, our best state is California, so we target people only in California for that content.
So just don't get lazy with your targeting. The reason why people fail at advertising is not because they're bad at advertising it's because they don't do enough targeting. That is the number one reason why people fail at advertising, because they are not targeting properly. It's very easy to target properly, you can start really, really small with a budget of five dollars a day in one specific city or one specific zip-code, or with one interest. So start small, and as you get better, you can grow and you can grow your budget. Another thing that you can do that I want you to know about is conversions. So if you keep scrolling down the page, Facebook will give you the option to track conversions, and what that means is basically like, if you're sending people to a website and on that website you're trying to collect email address, you can set up a conversion tool for that.
I set up conversions for sales on my e-commerce site, so I take this code and I put it on the thank you page from Shopify, and so when people come from my Facebook page and they buy something, when they come from my Facebook ad and they buy something, I'm able to track that. So I click on track conversions, next thing I do is I click on create new conversion pixel, right, it'll give us this little thing that allows us to create a new conversion pixel. You put in the name and the pixel, you know, select a category, and click "Create Pixel," and it's going to give you this little pixel that you can use. And I just wanted you to know about these conversion pixels so that you can track conversions.
You can also track conversions in Google Analytics, obviously. If you're using the URL-builder URL's, then it will track the people that come over from your Facebook ad over to your website and buy. So this is just another little thing that Facebook offers so that you can track conversions in your Facebook account, might as well set it up but it's no big deal because you're using the URL builder to build our URL, but I just wanted you to know about it.
Now the next thing you would bid, right? The next step is to bid. I usually, and I'll show you in our process, I'm not going to go through this right now because in the next video I'll have an actual step-by-step process for how to create and market your content, but this time I just want to talk to you about how I run Facebook ads because I don't only run Facebook ads to my videos, I don't only run Facebook ads to my pieces of content, I also run Facebook ads directly to my products which I'll show you a little bit later. So the different ad types that we have when we're running Facebook ads are video ads, image ads, and link ads. So a video ad is the one that I just showed you where we upload our video to our Facebook page and we're running an ad to that specific video. An image ad is where we upload an image to Facebook and we have a link back to our website above that image and we're running as that image. And a link is basically when we share a link on our fan page that leads directly to one of our products, right, or leads directly to an offer or some piece of content. So we share a link that leads off of Facebook and we run ads to that, and that's called direct response advertising because we're running an ad from Facebook over to our website where we want people to take a direct action like buying our products.
So do we video ads, image ads, and link ads. Those are the different types of Facebook ads that we use and you can see how well this works. It's a pretty unbelievable. I mean, this is a video that we've been running for the past three weeks, you can see that we have 3,900 clicks we've spent $676 dollars on it, and we have forty-nine hundred engagements. So we've basically had 4,500 people watch our video, for 600 bucks. So that's $0.14 for every person that's watched this video. Fourteen cents, for each person that's watched this video. That's pretty incredible how easy it is, and how cheap it is.
Let's say you don't want to... this is over the course of a couple weeks by the way, we spend about a thousand dollars a month on advertising this business, but if you wanted to spend $10, then you could generate 140 views of your video, for ten bucks. So it's really cheap to generate views and you can see over here on the left-hand side people share it, that little image is a bunch of people who've shared our video. If you look over here for the same time-period, you can see Facebook.com referral, and it's $739 in revenue. So even though we're not advertising a product, we're just advertising this video, we have that tiny URL link right above the video that leads back to our website, and people are clicking that link, going to our website, and buying our products.
Now, of course, $739 in revenue is not $739 in profit, but it does help pay for some of that advertising cost. We're building our email list, we're building our community, we're building a relationship with our customers through this content, and we're making money at the same time. And we make even more money, this all ROI's when we send an email, do a promotion, run an advertisement that's directly for a product; so we also do, along with our, marketing of our content through Facebook ads we also do marketing of our products. But you can see how well this works, here's just another example of that. This video had 627 views for like $150. It says $286 at the top, but that's just because that's for this particular time period for all of these ads and we're getting thousands of hours of face-time with our community. Thousands of hours, for hundreds of dollars, so it's pretty unbelievable how much reach we have with the Facebook advertising platform.
You can change up your ads post-purchase. So what that means is, you can just click Edit on that video and change the title of the video or change where it links to. That's just kind of cool, even after you're running an advertisement you can go back and edit the advertisement that you're running, you can edit the video so you can come back over here and... Let's go back all the way to the part where we're showing the ad, yeah, you see where it says behind the scenes at Shopify? So I could change that text, I could change where the link links to, I can change all that stuff after I've started running the ad.
So let's keep moving here. This is an example of some links, right, this in the top left and the bottom right hand corners, those are the link ads that I was telling you about where we share a link to one of our products. This is a link to our lubricant product, this is a link over to one of our interviews that we had done. So we run ads that link off of Facebook as well to our different products and different places that we want people to go. So we don't just do links to our content but I do want you to know that direct-response advertising is also something that we do, but what I'm teaching you about is how to market your content so let's keep going so that we better understand the Facebook advertising platform.
Dark posts. This is a very, very fun type of post, and it's the kind that we're going to use in our advertisement. So, basically what a dark post is, is it allows you to create a post that you're using just for advertising and it doesn't show up on your fanpage to your fan, it's only used for advertising so it's invisible, it's an invisible post. The reason that we do an invisible post is because we want to set up multiple posts, we want one post to go to our fans, one post to go to a targeting group, and so we want to have multiple posts and what was happening was people were getting annoyed because a company would be posting the same thing over and over and over on its fanpage and so Facebook released this thing called Dark post. This is just an example of a Dark post, which I'll show you about in a second, another example of one, I'll also show you in the next video. Video ads, images, and direct links, those are the type of ads that we have available to us.
Audiences. This is another cool feature in Facebook. It allows us to create audiences, so we can like upload a list of all of our customers, and Facebook will match that, Facebook will match those email addresses to Facebook users so we can actually target our existing customers on Facebook. We can scrape groups, like we can find a Chihuahua Facebook group, people who are fans of Chihuahuas, and we can scrape that group and upload it, and target ads to that particular group. So it allows you to create these custom audiences so you basically just, this is in the Power Editor which you'll learn about in just a second here. Click on audiences, click create the audience, and then choose the type so maybe it's emails or user ID's. If it's emails that's your email list if it's used ID's that a group that you've scraped and you have the user ID's, and you just name it and create the audience. So you can use email, user ID's, and phone numbers. So you can basically create these custom audiences of people, which is pretty powerful.
And this is just showing you some different Facebook pages and some different Facebook groups; so these groups and pages are out there, and there's different pieces of software that will allow you to scrape them. Now here's something that takes it to the next level, this may be the craziest thing that I have ever seen in advertising. Basically you can upload your customer list, you can upload everyone who's ever bought from you, and Facebook will create an audience of those people. It'll create a custom audience like we just talked about so that you can target your customers on Facebook. Well you can select that audience, and you can click this little button that says "Create Similar Audience", and what Facebook will do is it will create an audience of people who have six data-points in common with your customers.
So this is basically everyone who is not already your customer, who's just like your customer. So it's Facebook saying, "Oh, here's your customers, here's everything we know about them, we're now going to create an audience of people who are just like these people, but they've never engaged with you before." So it's basically like a way to get access to all of the people on Facebook who are very, very similar to your customers, and I take it another level, I layer on top of that. So you can see that this ad here is targeted toward women who live in the United States who are 35 or older, who are interested in beauty, who are in the audience "Boom Customers Look- A-likes". So basically what I did was I uploaded an audience to Facebook of my recent customers, and then I created a similar audience of people who were similar to my customers, and then I said I want to target those people who are similar to my customers and who are also interested in beauty. So it's not just anyone who's similar to my customers, it's everyone who's similar to my customers, who are also interested in beauty, so it's a little more segmented.
And you might want to listen to this little section two or three times to fully understand the power of what I just told you, it is the most incredible targeting that exists on the planet Earth today for advertising. It's unbelievable how crazy targeted you can get with your ads using these custom audiences. So go back, listen to that a couple of times, so you can fully grasp the power of these custom audiences. Something else that Facebook has is these things called "Partner Categories". Basically there's companies like Data-Logix and Axiom, who are like, these companies who generate all this data on people so they knew all of the people who buy from online catalogs and shopping networks, and they can tell you if this person is interested in pets, or if this person is a baby-boomer, I target affluent baby-boomers often in my business so I use these partner categories as well.
So that's just some stuff on targeting, that you better understand about how Facebook advertising works and you'll learn. All this stuff might be overwhelming, don't worry, I'm about to give you a process and a step-by- step on exactly how to use it. One thing that you should know about news feed ads which are ads that show up in the news feed, is that they tire quickly so you're going to want to reset your ads after every week, or every couple of days. You'll learn about news feed ads in just a second in this next video, but you know ads on the right-hand side-bar last a little longer than ads in the news feed, third contact direct response advertising. So what is that? Well, third contact direct response advertising is the type of advertising we do. So we do three weeks where we're running an ad to a piece of content, to a video that we've uploaded to Facebook, and then the fourth week we do a direct response ad to one of our products.
So we target the same exact people that we've been targeting those three weeks before, with an ad for one of our products. So we've been engaging with them for three weeks, showing them content for three weeks, and then we target them with an ad back to one of our products and it works really well. Agencies are not doing this stuff, nobody is doing this stuff, nobody is targeting this way and really going about and sharing content and creating communities and engaged subscribers, then running direct response ads, so you guys will be the only ones in your markets who are doing this. Nobody's getting this sophisticated. Your social community will come from your direct response ads, so you don't have to worry about running like ads or trying to generate new fans. All of that will come through this advertising that we're doing, and now I want to get you real high, so let's get high.
And it's kind of funny to say that, I'm actually just joking, here's what I mean by that. We're going to take it up a level here, which is that you can do layering and segmenting, so for example you might have a business that targets men and women. Well, you can have separate funnels and separate messaging and separate sales copy and separate product pages for men and for women, because you're setting up an ad targeting men who are interested in X, Y, Z and women who are interested in X, Y, Z, and they respond to different types of messaging. So don't worry about this now, don't start with this. I'm only doing this now after a couple of years, after I've gotten all the other stuff sorted, so layering and segmenting is a very powerful style of advertising I just want you to know that it's available to you, that you can change your sales funnels based on the people that you're targeting. It's a very powerful thing to do, but it's not something that you should start with, but I did just kind of want to drop it in there so that you knew that was sort of a next-level thing you're going to get to after you get all of these ads off the ground and you get comfortable with your advertising.
I wanted to tell you about splash-post, it's just a cool piece of software that allows you to do some cool stuff, like collecting email addresses on Facebook, embed videos into Facebook, and calls to action, things like that. Really fun piece of software that I use, SplashPost.com. I really want you to get good at this, if there's one thing that you get good at, if there's one thing that you learn in your business that you become an expert at, have it be advertising. Have it be Facebook advertising, you will be one of the few people in the world who understands how to take any product, any service, any business, any message and connect it with a group of people who are interested in it and monetize that. It's a very powerful tool, so I recommend that you get good at it, and you learned everything that you need to know to get out there and test. You can start out with a small budget in this video.
So this has been Ezra Firestone from SmartMarketer.com for Shopify's E Commerce University, teaching you the fundamentals and basics of Facebook advertising. I hope that I've gotten you excited because it really is a very special time, and we're very lucky to be the group of people who are paying attention to this. Not very many people are paying attention to this stuff. We are a very unique part of the population who's looking at this kind of stuff, and we have a lot of power and we can use it for good and we can use it to spread ideas, products, and messages.
Meet me in the next video, where I kind of distill this down into a step-by- step process that makes it a little easier to digest and a little easier for you to market your content, so this was kind of the overview, teaching you all about Facebook advertising and how to use it, and now I'm going to show you a step-by-step process on exactly how to leverage it to market your content. Thanks so much, and I'll see you in the next video.