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Facebook Ads Case Study: From Losing Money on Ads to Nearly 10x Return

Facebook Ads Case Study: From Losing Money on Ads to Nearly 10x Return

In late 2018 a client approached us about marketing via Facebook ads. This case study outlines the results that client saw from our efforts in early 2019. In short, their ads generated 16.28 ROAS and the entire campaign resulted in 945% ROI.

About the Client

This client sells a physical product via an ecommerce website.

This client, prior to enlisting our services, had a cumulative ROAS of .31 on their Facebook ads. This means they were losing money on ads. For every dollar spent, they earned only $.31 in revenue. They were pushing single sales ads to a cold audience based only on interests/personal demographics.

The Successful Ads Campaign: 16.28 ROAS

After Homeschool dot Marketing’s implementation of a complete Facebook ads strategy, this client saw a dramatic turnaround in results, garnering over $16 in revenue for every dollar of ad spend (16.28 ROAS).

3-month Facebook ads results (Feb. 9 to May 10, 2019) are pictured in the screenshot below:

$3,663 spent on ads (approx $1200 per month)

$59,629 revenue from those ads

16.28 ROAS … or 1628% return on ad spend… For every $1 spend on Facebook ads, this client generated $16.28 in revenue.

Click to enlarge

Other metrics of interest

  • 2291 link clicks
  • $1.60 CPC (cost per click)
  • 0.69 CTR (click through rate)
  • $5.20 cost per purchase

What We Did for This Facebook Ads Client

Beyond the ad spend paid directly to Facebook ($3,663), this client also invested $2,650 in the services of Homeschool dot Marketing:

  • ad strategy—campaign funnel outline {5 campaigns • 12 ad sets • 16 ads}
  • ad creation—research, copywriting, and video/graphics creation
  • custom audience set up
  • 2 lead gen offers —In this particular case, the client had no existing lead gen offers. So we helped the client not only with the ideas for two offers but also helped the client create them, including the lead gen offers themselves, copywriting and graphics creation, and landing page copywriting. (In this case, the client did their own landing page set up, connection to EMS, and email follow up sequence.)
  • 3 months ads management—monitoring and tweaking as necessary

Numbers Overview

$3,663 TOTAL AD SPEND DIRECT TO FACEBOOK

$2,650 TOTAL CONTRACT LABOR TO HOMESCHOOL DOT MARKETING


$6,313 TOTAL SPENT ON THIS CAMPAIGN

$59,629 revenue / $6,313 TOTAL SPEND = 9.45 ROI •  944% return

For every dollar this client spent on the campaign (ads and labor), they saw $9.45 in revenue. The client saw a return of almost 10x.

These ads are continuing to generate revenue for this client without any added cost for services from Homeschool dot Marketing. Once we set them up and monitored them for three months, we passed the baton to the client.

How Can You Get These Results?

Of course, every client is unique, and we cannot guarantee a 16 ROAS for every project. But we can probably increase your Facebook ads revenue, especially if you are below 4 ROAS. Before getting started, we’ll assess your Facebook ads account and let you know if we think we can achieve better results for you.

What do you need to get started? There are a few prerequisites to launching a Facebook ads campaign.

  • A product of interest to the homeschool market
  • A few customer testimonials
  • Facebook Ads Manager (or Business Manager) account
  • Facebook pixel installed on your site with conversion tracking connected
  • A Facebook ads budget of at least $1000/month plus budget for our services
  • EMS (email management system such as MailChimp or Hubspot)
  • A way to create landing pages that integrate with your EMS and redirect successful leads to a success page

When you are ready, reach out by emailing info@homeschool.marketing or by scheduling a 20 minute appointment here.

CAVEAT

This case study is presented as an example of one particular campaign with one particular client. Strategy varies from situation to situation, and our rates may change at any time. This case study is not a rate sheet, a price quote, a proposal, or guarantee of similar results.

When Homeschool Marketing Backfires

No one hires a marketing consultant or launches a campaign with an expectation for failure. Yet sometimes marketing ventures do flop.

Even worse, some efforts may backfire, putting your business on worse footing with homeschoolers than it was before! Here are mistakes I’ve seen that cause a marketing project to backfire. The good news is that every single time, these problems are avoidable!

When You Are Too Optimistic with Timelines

Optimists are wonderful people to be around! They smile, they look on the bright side, and they encourage you when you’ve done something stupid. I love optimists! But optimists should not be the people setting work timelines. Why? Because they tend to underestimate how long things will take to accomplish.

  • The website will not launch on the projected date.
  • The products will not come back from the manufacturer when promised.
  • Your plans to work on some aspect of your business will get dashed by a case of the flu, a broken dishwasher, or a family crisis.
  • Your graphic designer can’t get those ads done as quickly as you’d like them.

Whatever timeline you are thinking, add another few weeks to it. It’s better to have things done sooner than you promise than to keep going back to the folks in your marketing project with delay after delay.

When You Don’t Follow Through on Promises

Holding a contest or giveaway? Makes sure you follow through on what you promised. Winners expect their prizes, and when you don’t fulfill them as promised, they become instant enemies of your business.

If your free trial offer promises not to automatically renew or charge the credit card, but it does anyway, you’ve just created a customer who is now a hater.

When your name comes up in a Facebook group of homeschool moms, guess what these two disappointed people are going to say? They won’t say a word about how great your product is (even if it is). All they will remember (and share) is how dishonest you are.

“But it wasn’t dishonest! It was an honest mistake!” you cry. Sorry, Charlie. To the customer, you are sneaky and a liar. In case you didn’t know, people are highly suspicious of being taken advantage of. Their radar is up, so you don’t want to send any signals that you might be less than 100% honest.

When You Lack Email Follow Up

I get it! You’re excited! You want to tell the world about your amazing product. You want to collect subscribers, too! That’s all smart. But make sure you have your email follow up in place before you even begin collecting emails.

Email subscribers are milk not yogurt. Milk lasts in your refrigerator for about a week while yogurt will last for a full month.

Email subscribers are milk not yogurt.

They expire if you don’t follow up 
immediately.

You can’t stockpile email subscribers for some future date when you get your act together to start sending them messages. Just like milk, if you let them sit too long, your email subscribers expire,

  • forgetting who/what you are
  • not remembering ever signing up for your emails
  • no longer caring who/what you are
  • becoming irritated that some stranger is emailing out of the blue

What happens when you email a list of rotten milk subscribers who have never heard from you before? They delete your message, they unsubscribe, or—worst of all—they mark your message as spam. When your emails are marked as spam, your deliverability decreases even for the people who do want to hear from you.

The solution is to have your follow up sequence (or at a bare minimum an effective welcome email) in place and ready to fire as soon as you add new subscribers. To clarify, as soon as means immediately upon sign up—within seconds.

When Your Landing Pages Are Weak

Facebook ad campaign? SUPER! That’s a great place to reach homeschoolers. But an effective Facebook campaign is about a lot more than what you put on Facebook. You can create custom audiences and have incredible ad copy and creative that’s reaching all the right people, but if when they click to your landing page the experience is poor, you’re wasting your marketing dollars. And worse, you’ve just given potential customers a bad impression.

The biggest culprits with poor landing page experience:

  • bad mobile experience
  • too text-driven with too few visuals
  • unclear messaging
  • typos and grammatical errors
  • language that turns off homeschool parents
  • distractions that keep visitors from taking the one action you have in mind

You got exposure from your Facebook ads, yes. But the ultimate opinion based on that exposure was negative. Your Facebook ads campaign just backfired.

For this reason, we require all our Facebook ads clients to first go through a personalized marketing strategy assessment and design so any weaknesses can be corrected prior to launching a marketing campaign.

When You Treat Bloggers Poorly

Let’s say you are working with a team of 12 bloggers, and your project goes sideways. You make extra demands mid-stream, inject a few delays, ship the wrong products, don’t follow up on customer service requests, and ignore the team’s constructive feedback.

You may think, “Well, it’s just 12 homeschoolers. Who cares? There are thousands more out homeschool families out there.”

Wrong. These are influencers. That’s why you wanted to work with them in the first place. They have a voice that people listen to. If you turn them off, you can guarantee they are not saying positive things about you. They may even publish a positive blog post, but in private groups, they are telling folks how you were hard to work with, didn’t follow through on your promises, had poor customer service, etc.

Bloggers talk. Homeschoolers talk.

Making 12 homeschool bloggers upset means you just moved backwards in your marketing game—do not pass go, do not collect $200. It backfired.

Aim at and Hit Your Target

Don’t let your marketing efforts backfire. Take your time to think through the campaign from start to follow through… even 6-12 months after the work of the campaign is complete. Think through all the elements that need to work synergistically to bring your desired outcome:

  • email
  • social media
  • influencer content
  • free trials or other free opt-in offers
  • landing pages
  • ecommerce
  • product fulfillment
  • customer service

If you need help seeing the big picture for homeschool marketing, that’s what we do. Get started here or here. Then ask for a free 20 minute call to discuss the details of working with Jenn and Jimmie.

Bundle Sales for Homeschool Marketing

Homeschool dollars are competitive, and knowing where to press into the market is vital to making money for your business.

Whether it’s a bundle sale or the day-to-day operation of your business, it’s critical to know your Ideal Client Avatar—that homeschool mom or dad who has money in hand to buy your product. Are you reaching your ideal client? How can you know?

  • If your emails, social media posts, and sales are echoing with the sounds of crickets, you’re missing your target market.
  • If you’re confident in your content and social media efforts, and sales are still lagging, you could be missing your target market.

Will a bundle sale help? If you don’t know your target niche, and you’re relying on the broader niche of homeschooling to cast a wide net, a bundle sale may create traffic spikes to your site, but those new visitors may not necessarily result in sales.

Things to Consider When Evaluating a Bundle Proposal

If you’re participating in a bundle sale, it pays to have your strategy well thought out in advance of the sale.

  • How will you transition buyers from free or low bundle pricing to your product’s regular price?
  • Can you keep your brand from being diluted among the glut of so many other competing resources?
  • Will the high quality of your product shine through despite the extremely low price or is your product actually devalued by the steep discount?
  • Will you create a wait for the bundle/sale mentality among your ideal customer, decreasing chances of future sales?

Think of a bundle sale as a sprint in your marketing efforts. It may launch you quickly to some short-term success, but keep your eye on a long-term strategy that builds your business, not just that of the bundle organizers.

If you’re committed to participating in a bundle sale, you need comprehensive data about your market and a strategy for applying it to your particular business.


About the Author

Gina Glenn has her own thriving content creation and strategy business at GinaGlenn.com but also helps at Homeschool dot Marketing with various projects, especially those that entail copywriting. She says that the content in The 2018 Report on the American Homeschool Market revolutionized the advice she gives her clients in the homeschool niche.