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Apr 25, 2017
Wondering why some companies spend $50K, $100K or $200K a day, just on Facebook, while you can’t even spend $1000/day and keep your cost per sale in the desired range?

Here’s the secret — it’s not just about CPC, CPM, CPA or other C-words showing the correlation between the price and desired action.

I’m not saying the ad distribution isn’t important, in fact, the ad distribution is the plays the biggest role in every successful sales machine, but…

If your ad isn’t communicating a message relevant to a potential customer, even the CPC of $0.01 won’t save you from a financial disaster.

Imagine if you’d have to explain what CPC is to a group of 1000 people consisted of men and women, aged between 8 and 88, and make sure that all of them understand it.

It would be merely impossible to explain CPC to 1000 different people by using the same approach or communicating the same message.

But, if you segment the market correctly and communicate the message accordingly to the prospect’s interest and awareness of the problem, your chances for success will drastically increase.

In this essay, we’ll tackle some of the most common digital advertising problems — like market segmentation and addressing the right audience with the right message.

The 3 Rights Rule or ‘T3RR’

Most people consider successful advertising some kind of black voodoo magic that wraps a piece of shit in the shiny paper which ultimately leads to hundreds of thousands or even millions of $ in sales in a period of one night. I won’t lie, I thought that too. But in reality, it’s the exact opposite of that.

T3RR methodology is what we use to increase the efficiency of split testing process and keep the message clear and simple at every stage of the marketing funnel.

1) Communicate the right message
2) Get in front of the right audience
3) At the right time

The Internet and social media gave advertisers something that traditional ad placements could never give — two-way communication and direct (on spot) engagement.

When you look at the billboards, read the newspapers or watch the TV, direct engagement, occurs only if you have 2 or more people physically present at the same location.
On the other hand, internet and social media didn’t just give us a two-way communication between the advertiser and potential buyer — it gave us a way to express our reaction, comment on the situation and share it with our friends and family, all of that, in just a few clicks away.

In past, advertisers couldn’t directly control to whom their showing their ads, what did a specific person see or when did they saw it. In 2017, we can control and see who saw it, how much times, how did he or she engaged with it, but more importantly — we can serve the next ad based on the interaction with the previous ad. Cool, ha?

Ok, delivering the message to the right audience isn’t a problem, and the timing isn’t a problem, but how to determine what’s the right message?

5 Stages of Market Awareness

Theory of 5 Stages of Market Awareness was originally introduced in the first edition (1966) of Breakthrough advertising by Eugene Schwartz, one of the world’s greatest direct response copywriters ever. Schwartz outlined how to create your communication based on customer awareness of your product or a service and overall market awareness of a problem or the solution.

Stages of market awareness range from ‘Most aware’ to ‘Completely Unaware’, where ‘The Most aware’ audiences require direct-response approach and indirect approach works better on ‘Unaware’ audiences.


The Implementation

Don’t mistake the 5 stages of market awareness for brand awareness, even though they overlap and have a mutual connection, it’s not the same thing. Don’t even try to build a demand. It’s not your job. Your job, as a business owner, executive or an advertiser, is to recognize the market opportunity and seize your share of the market.

This powerful methodology can be used at every stage of your funnel, whether it’s cold traffic or re-targeting prospect who visited your website.

For example, let’s assume you’re selling a course which helps people to lose weight and regain their health, and you want to sell in the U.S..

You’ve conducted a market research and found out that your target audience are women, aged 25 to 60. By investigating further, you’ve found that 60% of women in the U.S. are obese or overweight. There’s no need to seek further — you’re dealing with a mass market opportunity. By looking at the audience insights on Facebook, you can easily spot there are 70–80 million women aged 25 to 60 who are active on monthly basis on Facebook. By crossing that number with the fact 60% of women in U.S. have problems with weight — we get the exact potential of buyers in our market, which is 42–48 million women.

When you cross that audience with an interest in dieting, weight loss, healthy diet and other big interest related to weight loss, that number drops — to 20–25 million.

So ok, our potential market on Facebook is 42–48 million women, but Facebook says there’s only 20–25 million women that showed interest for weight loss, which accounts for around 47% of your potential market.

Those users fall into the 3 different groups of awareness, The Most Aware, Product Aware and partially Solution Aware. They’re definitely aware of the problem and in most cases – they’re aware of the solution.

We’re left with around 53% of the market consisted of women who haven’t shown a direct in weight loss. Those women mostly go into the Solution Aware, Problem Aware, and Completely Unaware group.

Now, since we’ve partially segmented the market, it’s time to start working on the how to communicate your message and decide which audience you’re going to tackle first. My suggestion — tackle only one at the time, start with the split testing of creatives, copies, and videos. In parallel with that, start split testing process on your website — even an amazing ad with CPC of $0.01 won’t get you a sale if the landing page or the offer sucks.

Once you have that done, start tweaking the funnel, aim for the highest possible conversion rate, scale, and work on increasing the average cart value.

Then, repeat the whole process with the second audience, and so on.

What about statistics?

I’m not gonna go through some complicated average cost of Facebook ads stats

Statistics aren’t hard to read — they’re hard to understand. I’ve once read that 92% of business advertising online never see a return on their investment.

That doesn’t mean you should hope you’re the 93rd person reading this blog in order to be successful.

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