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👉 Apply for the Meta MBA - https://www.disrupterschool.com/MBA?w... --- Is your business struggling to grow? It might be because you're tracking your results all wrong. In this video, we'll show you the common mistakes entrepreneurs make when using metrics like ROAS and M.E.R, and how to fix them. So let's debunk & ditch Vanity Metrics and start seeing real growth in your business. Don't forget to like the Video and Subscribe today! CharleyBot.ai is Free 24hrs a day ► Education Resources The Facebook Ads MBA Program: https://bit.ly/JoinTheMBAStandard Disrupter School (Trial for $100): https://bit.ly/DisrupterSchoolEnroll Facebook Disrupter Group (free): https://bit.ly/DisrupterFacebookGroup ► Newsletter & Merchandise Shape of Disrupt: https://bit.ly/DisrupterNewsletterSignUp Disrupter School Merch Store: bit.ly/DisrupterMerch ► Connect With Me On Other Platforms Twitter: / ctthedisrupter Instagram: / ctthedisrupter LinkedIn: / charleytichenoriv #FacebookAds #MarketingStrategies #OnlineAdvertising #BusinessGrowth #ScalingBusiness #SocialMediaMarketing Let's challenge traditional Facebook advertising metrics like MER, ROAS, CPC, and CTR, advocating for a focus on actionable data like spend, revenue, and conversion volume. This lesson emphasizes Facebook's OCPM model, where ad performance is based on earning attention efficiently. The concept of Profitable Scaling Margin (PSM) is introduced as a more effective metric, considering factors like LTV, CPA, COGS, and repeat purchase likelihood. A case study of an LA-based alcohol delivery brand demonstrates the practical application of these principles, showing significant profit growth by focusing on ecosystem ROAS and PSM. 1. Discrediting Traditional Metrics: Let's challenge the traditional reliance on metrics like MER, ROAS, CPC, and CTR in Facebook advertising. It argues that these metrics are not actionable and often lead to confusion rather than clarity. Focusing on these metrics is a waste of time and can hinder business growth. 2. Emphasizing Actionable Data: The focus shifts to actionable data, which includes spend, revenue, and conversion volume. We cannot stress the importance of understanding long-term trends and directional improvement, rather than getting bogged down in vanity metrics. This approach is the key to scaling a business effectively. 3. Facebook as an OCPM Platform: Facebook operates as an Optimized Cost Per Mille (OCPM) platform, where ad performance is based on earning attention efficiently. Better ads result in cheaper CPMs, and broad audiences typically yield the cheapest CPMs. The meritocracy of earning attention on Facebook is emphasized as crucial for efficient advertising. 4. Profitable Scaling Margin (PSM): The concept of Profitable Scaling Margin (PSM) is a more effective way to measure advertising success. PSM is described as a formula that considers Lifetime Value (LTV), Cost Per Acquisition (CPA), Cost of Goods Sold (COGS), and the likelihood of customers taking bribes (repeat purchases). This metric is a practical tool for determining how much more can be spent on advertising while maintaining profitability. 5. Case Study and Practical Application: By shifting focus from ROAS to ecosystem ROAS and PSM, an LA-based alcohol delivery brand significantly increased its profit. For The Algo: Discover why traditional Facebook ad metrics like MER, ROAS, CPC, and CTR are misleading in our latest video. We delve into the inefficiencies of these metrics, highlighting how they often lead to confusion and impede business growth. Instead, we advocate for actionable data focusing on spend, revenue, and conversion volume, crucial for scaling your business effectively. Learn about Facebook's unique Optimized Cost Per Mille (OCPM) platform, where ad success is determined by efficiently earning attention. We explain how superior ads result in lower CPMs and why broad audiences typically yield the most cost-effective CPMs. Understanding this meritocracy is key to mastering Facebook advertising. We introduce the Profitable Scaling Margin (PSM) concept, a practical metric considering Lifetime Value (LTV), Cost Per Acquisition (CPA), Cost of Goods Sold (COGS), and repeat purchase likelihood. PSM provides a clear guide on how much more you can invest in advertising while maintaining profitability. Our video features a case study of an LA-based alcohol delivery brand that shifted from focusing on ROAS to ecosystem ROAS and PSM, resulting in a significant profit increase. This real-world example demonstrates the effectiveness of our approach. Finally, we introduce the Facebook Ads MBA program, designed to teach these innovative advertising strategies. This program has helped numerous businesses scale profitably and efficiently. Join us to transform your Facebook advertising approach and drive substantial growth for your business.