Andrew Faris, former CEO of 4x400 turned advertising consultant, shares insights on running high-performing Meta ads. He believes that the best ad managers are writers. Faris argues that brands under $50 million don't need attribution tools. The podcast also covers solo freelancing, working with entrepreneurs, and optimizing ad campaigns through bid and cost caps.
Clear communication and thinking are crucial in advertising, with writers playing a crucial role in developing effective ad campaigns.
Instead of narrow audience targeting, allowing the machine learning of meta ads to find the right audience based on creative performance is recommended.
Deep dives
Redefining E-commerce Success: Freelancing and Finding the Right Clients
Andrew Faris left his position at a company to pursue freelancing. He found success by working with clients who were a perfect fit for his skills. His focus is on growing e-commerce brands and helping them with performance marketing on meta ads. Faris believes that clear communication and thinking are crucial in advertising. He emphasizes the importance of writers in creating ad campaigns that effectively communicate ideas. Faris recommends running ads with bid caps to let the machine learning of meta ads optimize spending within the target threshold. He suggests focusing on the bank account as the ultimate attribution tool and using data from meta ads dashboard for decision-making.
Optimizing Meta Ads Targeting: Rethinking Narrow Targeting and Creative Strategies
Faris highlights the shift in targeting strategies for meta ads. Instead of using narrow audience targeting, he suggests allowing the machine learning of meta ads to find the right audience based on creative performance. He recommends focusing on clear and compelling communication in ad campaigns, with writers playing a crucial role in developing ideas and conveying them effectively. Faris advises using the one-day click optimization and compares attribution between one day and 28-day click windows. He also acknowledges the importance of bid caps in optimizing spending and generating results within the desired cost per acquisition.
Setting Clear Goals and Budgets: Unit Economics and Forecasting
Faris emphasizes the importance of analyzing unit economics and setting clear goals and budgets for e-commerce brands. He suggests evaluating margins, including variable costs associated with each product sale. Additionally, he mentions the significance of customer lifetime value (LTV) and how it impacts budget allocation. Matching goals with LTV and unit economics can determine the target cost per acquisition (CAC). Faris advises leveraging the meta ads dashboard to monitor spend and revenue, and adjusting bid caps based on performance. He also highlights the value of having a clear financial objective and understanding how it aligns with business growth.
Making Informed Decisions: Evaluating Meta Ads Performance and Budgeting
Faris discusses making informed decisions regarding meta ads performance and budgeting. He discourages the use of third-party attribution tools for small to medium-sized businesses, as the meta ads dashboard is accurate and reliable. Faris suggests running ads with bid caps and relying on the budget spend to determine if the target cost is achievable. Adjusting bid caps based on spend can help optimize performance. He emphasizes the importance of looking at actual revenue generated in the bank account as the ultimate attribution tool. Faris also provides insights on gradually lowering bid caps and optimizing spending to hit target CAC.
Andrew Faris is the former CEO of 4x400, an ecommerce aggregator. He left that job in 2021 and now consults with merchants and manages their advertising campaigns, mostly on Meta. I asked him for his keys to successful Meta ads, having spent nine years on that platform.
"The best ad managers are writers," he told me. And "there's no reason a brand under $50 million in revenue needs an attribution tool."
Faris first appeared on this podcast in early 2022. In our recent discussion, he addressed the joys of solo freelancing, working with entrepreneurs, and, yes, how to run high-performing Meta ads.
For an edited and condensed transcript with embedded audio, see: https://pec-ly.com/?6p2Q
For all condensed transcripts with audio, see: https://www.practicalecommerce.com/tag/podcasts
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The mission of Practical Ecommerce is to help online merchants improve their businesses. We do this with expert articles, podcasts, and webinars. We are an independent publishing company founded in 2005 and unaffiliated with any ecommerce platform or provider. http://www.practicalecommerce.com
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