The Secret to Making Paid Advertising Work

The Secret to Making Paid Advertising Work


– Google and Facebook
combined generate more money from ad dollars than any
television channel out there. They’re huge. That means paid advertising works, because if it didn’t, they wouldn’t be making hundreds of
billions of dollars a year. Hey everyone, I’m Neil Patel, and today I’m going to share with you the secret to making paid advertising work. (upbeat music) Before we get started,
make sure you subscribe to this channel. And if you’re on YouTube,
click the alert notification. That way when I go live on YouTube, Facebook, any of the social channels you’re watching this video
on, you’ll get notified. Question, what industry did you try paid advertising in? I’m curious because the solution is going to be the same for
almost every single industry and eventually it’s going to go to this exact solution/secret for every single industry, but by knowing what industry you’re in, I
can give you specific advice. Now here’s the thing, here’s the secret, are you ready for it? It’s a funnel. The reason paid advertising doesn’t work for most people is they’re driving traffic to a product and expecting it to convert. Now, I could tell you that yeah you need to look at what your competition is doing, look at their ad copy, use things like Facebook libraries. You need to end up doing things like using tools like Ubersuggest’s
to see the keywords that other people are going after, because you may not be going
after the right keywords. But look, even if you do that, you have the right product, you have the right landing page. Over time no matter how
much you tweak your ads, no matter how much you
tweak your landing page, you’re going to struggle
to end up making money. And do you know why this is? It’s a funnel. The reason a funnel is important is because it optimizes for
lifetime value of a customer. And that’s why when Amazon tracks its user and you buy a DVD, they
know that they should email you other DVDs that you
should end up buying. They know that when you buy a product, that they can end up getting you to buy other products as
well that are very similar that’ll get you a big user experience. Amazon themselves, when
they end up spending on paid advertising, they
usually lose money right there in that first transaction. But their funnel optimizes for
lifetime value of a customer. That’s why it’s so important. You can’t optimize for
hey, what am I making on the front end? You got to optimize for lifetime value. Someone once told me, you know what the difference between seven-figure, eight-figure, and
nine-figure companies are? And I’m what, and they told me. Seven-figure companies spend money on paid ads and they want to make their two, three-X return right there. So for every dollar they spend, they want to make two,
$3 right then and there. He was saying that eight-figure companies, what they want to do is when they spend a dollar on advertising, they want to make a dollar back right then and there and over time, they’ll
make more but they want to at least break even on the front end. But nine-figure companies
and even beyond that, they’re willing to lose money because they know in the long
run the lifetime value of the customer is so much more. And you can’t just assume that
someone’s going to keep coming back and buying more from you. You’ve got to optimize for a
lifetime value of your customer. You got to create that funnel. That funnel’s what helps
increase that number. Because with funnels, you can do things like checkout bumps. You can do things like upsells. You can do things like downsells. You can do trigger-based emails that are very relevant to them, which causes them to convert more. You could do things
like push notifications, so that way when someone
goes to your checkout page, they add stuff in there,
but they don’t complete, you can send a push notification through their browser to get them to come back and then convert more. All those little things won’t drastically change your numbers and get you double sales, triple sales. But what will happen is
all those little things will add up and that’s what will make your paid ad campaigns
extremely profitable, combined with you creating an
amazing customer experience like Zappos does or Amazon does, right? Or all these other big
companies like Apple do. That’s how you keep getting people to come back, increase that lifetime value and make paid advertising work. In essence, the secret to
making paid advertising work isn’t how you optimize
the paid ad campaigns, it’s your funnel. That’s what opens up doors
so you can spend more on paid advertising because over time, the costs will continue to rise, they’re not going to go lower. If you need help with your
paid advertising campaigns, check out my ad agency Neil Patel Digital. If you have any questions,
leave a comment below, I’ll answer it. Make sure you subscribe to this channel. If you enjoy the video, like it, tell other people about
it, thanks for watching.

65 COMMENTS

    What industry did you try paid advertising in?

    I'm curious because the solution is going to be the same for almost every single industry and eventually it's going to go to this exact solution/secret for every single industry, but by knowing what industry you're in, I can give you specific advice.

    400,000 Subscribers in 2 years of uploading/video creating/ editing. Wow a lot of work must have been done. Congrats Neil and Team on the effort and hope the channel is here for long term! – Shaggad

    Great advice and usually many marketers don't pay enough attention to create a funnel in 1st place before launching any campaigns, so they miss so many upselling opportunities! I loved the part of the video that explains the difference between 6, 7 and 8 figure businesses, that's so true! Keep sharing great content!

    im making thousands per day with my secret funnel for affiliate marketing. Im one of the industry leaders in paid ads + affiliate marketing

    Paid advertising in marketing is difficult as a lot of people don’t see the value in marketing and a lot of people don’t think they need it. However if don’t correctly it works well, just takes longer to grow. Unless you have a USP takes longer to grow

    What to do u if u are on a low budget? U can't afford to lose money at-front! Pls tell us how to advertise(eCommerce) on a low budget.

    Thanks for the Guidance!
    This the best creator for seo &search engines!
    I actually created my own channel called JohnVianny to show even MORE making money methods, come check it out and i will always follow back!

    The best and fastest way to scale your business is with paid advertising – period. The key is doing it in a way where you don't go broke. I agree with you Neil 100% on the lifetime value of a customer. Many people focus on just the one time sale. The smarter marketers understand this fundamental concept. Make it a great day.

    Hi Neil. Great video. Quick question.. apart from having a Digital Marketing certification, what other certifications can help one stand out and possibly earn more.?

    Can you give some suggestions on running ads for a SaaS company that serves b2b clients in real estate. It helps agents to automate their follow up process. How can we get more booked demos for that?

    Sometimes it seems people reinvent the wheel! It's obvious that Google and Facebook using funnel. Great job Neil

    I'm just starting as a digital marketer and I tried Facebook ads for a gym which didn't work the owner was impatient I stopped the work.

    I've been working online since 1995 and this is the first time this concept has truly crystallized and has given me the aha moment thanks to this video. Sad to say I have probably fallen into the one camp that has always tried to convert directly from ads. I would love to see more videos on this topic 🙂

    Hi Neil , I m I tried with Facebook & google ad for yoga training courses & retreats but not converting .. any advice ?

    Hi Neil, I have never been involved in direct marketing. However I have been out work for sometime now. What is the best way for me to build a sustainable business and how do I know what is hot or not? Affiliate marketing, drop shipping, blogging, arbitrage etc. Thanks regards Martin

    Hey Niel, we are planning to target Product Managers and Product Leaders in Fortune 500 companies with a service around user research. But before that we want to conduct a landing page experiment with problem they currently face and solution we would be offering. We want to leverage paid ads for this test on LinkedIn, Facebook and Google. How would you approach this? Would creating a funnel be an overkill for a test?

    Currently running FB and IG paid ads for handmade and unique bags (Authentic Wayuu Bags). No results yet. Besides these and IG feed, any other way to promote them?

    great video from the best channel on utube. we do home improvement advertising. thank you and keep up the good work

    Bro can you please make video for youtubers I have tried a lot but most of them fail.
    Plz more videos for small youtuber.

    I used to run Facebook ads to promote Internet marketing products and would always spend way more money than I ever made back. I thought it was my ads, but then I realized it was because I wasn't using a funnel. I was just sending traffic to a bridge page and then on to the sales page. Wow, big mistake!

    Spa industry , i am running google ad word but not at all satisfied with keyword selection & how to make a perfect ad on google & facebook both

    We are a medical tourism company based out of India. We get patients from countries where healthcare is not good. We provide them end to end service. Any suggestions on channels to use for getting more relevant traffic and how can we boost traffic?

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