Thursday, July 18

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How to 10x your ad-creation and testing process

Hello Marketers,

The post was cut abruptly on Tuesday because of a technical glitch.

Here's a refined and full version of the post.

"How to 10x your ad-creation and testing process”

Always remember to test & Scale the ads using the ad-variable isolation method. It's about isolating one variable at a time and then testing it.

Here's an example:

Pick a simple creative format like the Apple notes to test your headings & sub-headings. Run the ad to test for clicks.

In the above example, you can see the variations of the sub-heading.

Once you know the heading/sub-heading that generates the highest clicks, Create iterations of the same using Brand Assets.

Here's an example from Huel.

3 different ads, Isolated Test of the Headline with the brand assets.

When you know, a headline ticks the right nerve. Move the same headline to test with different brand assets.

Check out this test by Curology

After figuring out heading-x with subheading-b and asset-10 on creative ticks your customers' nerves, Create more iterations of the same combination.

At this point, every static ad you create with this killer combination will be a winning ad.

How about videos?

Use the same killer hook lines and product combinations to expand into videos. So, instead of wasting a ton of time, effort and resources on videos, you can now create video ads with hook lines that resonate with your customers.

However, video dynamics are different from statics. I'll cover this in a post later.

Ad-variable isolation is the faster, repeatable and highly cost-effective way of testing and scaling ads.

Don't you think, this technique will actually 10x Your Ad-Creation Process?

IBRAHIM’S NUGGETS

The Most Important Metric in All of eCommerce

I strongly believe that traditional CAC and ROAS numbers don’t matter as much as we think. Instead, I believe the most important metric in all of eCommerce is: Net Contribution Margin or Net Contribution Profit.

I personally like to view business as a math problem, and like to know every single detail about the true cost and benefit of every dollar spent and earned. To calculate Net Contribution Profit, you need to consider every single expense on your P&L.

Not only does this include all of your standard COGs for manufacturing, shipping, packaging, etc. + all of your standard marketing costs for creative, ad-spend, team spend, and your 3rd party vendors, but that’s not all.

It also includes payment processing fees, any sale discounts you might be running, calculations on expected returns and exchanges, and all the other fun and sometimes “hidden” expenses for your brand.

The reason that I like to do this and often discuss this with my Founder is because it gives you a much, much more accurate picture of profitability for your brand. ROAS simply tells you how much revenue you generated in proportion to how much you spent on digital ads. Whereas, Net Contribution Profit tells you how much PROFIT you generated on a product-by-product basis (with every possible expense considered).

If you can understand these metrics and see where all of your costs are coming from, you can quickly identify initiatives that can move the needle on driving more profit for your business over time.

Alright folks, that’s it for today! What’s the most important metric for you?

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Have any questions that you need help with?

Ask here - and look out for Friday’s Issue where Ibrahim will answer them.