Hello, Growth Hackers! Your trusty guide, Colin Finger, is back with yet another explosive issue of Growth Labs. Prepare to unlearn what you thought you knew about Facebook ad strategies.
In today's edition, we break down Facebook advertising mastermind, Nick Terrio's, audacious "no retargeting" strategy. With over $80M in online revenue driven by Facebook ads, his insights are worth their weight in Bitcoin. Buckle up, and let's dive in.
🔍 THE UNORTHODOX PATH TO ROCKET FUEL ROI
In January 2022, Nick cut the cord on retargeting campaigns. He went cold turkey. Not a single retargeting ad set, not a single retargeting campaign. Here's why:
1/ Stale Revenue: While retargeting campaigns flaunt higher ROAS, the revenue they generate often makes up just 10% of your profits.
2/ iOS 14.5: Tracking specific people for retargeting became increasingly challenging due to Apple's privacy updates.
3/ Facebook's Hidden Retargeting: Your top-of-funnel campaigns may already be retargeting. Any ad frequency above 1.0 signifies you're hitting people more than once, doing the job of retargeting for you, no dedicated campaign needed.
👀 BEHOLD THE "ONE CAMPAIGN PER BUSINESS OBJECTIVE" STRATEGY
What Nick advocates is a single campaign for each business objective with broad targeting only—meaning, just age and location, no interests, no lookalikes, no custom audiences. But if you think retargeting is still your golden goose, keep reading.
💌 EMBRACE EMAIL AND SMS
For your repeat hits, why not switch to email and SMS? They offer more precise messaging based on the customers' stage in the funnel.
💡 TOP-OF-FUNNEL ADS: YOUR GOLDMINE
Focusing on retargeting ads may only bring a 5-10% difference in your revenue, while a better top-of-funnel ad could boost your business by a whopping 100-500%! In Nick's words, "Why focus your time and attention on an ad that's going to give you about 10% improvement to your business when you can focus on an ad that's into 100-500% improvement on the business?"
Nick further insists that top-of-funnel ads need to connect with the customer, highlight their problem, and position your product as the solution.
🚦 WHY SAY NO TO RETARGETING
Nick shares four primary reasons:
1/ Customer Experience: Repeated exposure to the same ads can be annoying.
2/ Business Efficiency: As mentioned, top-of-funnel ads are a more profitable focus.
3/ Consolidation: Simplifying your ad account improves control and reduces auction overlap.
4/ Facebook's Stealth Retargeting: As said before, Facebook may already be retargeting through your top-of-funnel ads.
SIGN OFF
That's a wrap on this explosive issue of Growth Labs. Thanks to Nick Terrio for shaking up our understanding of Facebook ad strategies.
Remember, in the fast-paced world of growth hacking, it's all about "Test, Optimize, Repeat."
Until next week, keep scaling!
Colin Finger, Editor of Growth Labs