4-Phase Facebook Ad System Research Analysis
Hey everyone, we did an analysis of the companies that have used our 4-phase Facebook ad proven system.
Here are some of the key findings and insights we found from the companies that implemented our proven system.
In case you don't know what the four phases of our system is composed of here is a quick breakdown:
Phase One: Data Intake (7 days)
Data Intake is for front loading everything. It's responsible for identifying optimal baseline targets, first-mover audience advantages and effective creative assets to use for testing.
Phase Two: Testing (34 days)
Testing is for failure and success. It's responsible for launching thousands of ad variables, media placements, and audiences to weigh all possible KPI outcomes.
Phase Three: Optimization (30 days)
Optimization is for cutting ad losers. It's responsible for identifying underperforming ads, cutting losing ads, and artificial selection of top performing ad variables.
Phase Four: Scaling
Scaling is for returning paid investments. It's responsible for scaling high-performing ads, exploiting audiences, and bringing consistent returns on ad spend.
Now that you know what each phase is responsible for in the system here is the analysis and findings that we gathered from the companies who went through each of these 4-phases over a 4 month period.
The chart you see below is the average amount spent on Facebook ads per month in comparison to the average ROI these companies made from each month during the 4-phases.
Key insights:
- It took exactly 34 days on average for the companies to complete their 'testing phase'.
- On average they spent $1,492.25 during the first month of testing.
- Every company lost money during the first month of the testing phase.
Now, you might be wondering why would they lose money during the first month of testing on Facebook ads...
It's because you have to test a significant amount of ad variables and audiences to find out which combinations yield the highest ROI before you start cutting the combinations that don't.
And that's why you'll notice in the chart above that on average people went from a 0.58x ROI in the first month to a 3.85x ROI in the second month.
That means out of the $2,683.28 spent on average in month 2 they generated on average $10,330.62 back in revenue. Which makes up not only for the loss in month 1 but they all where able to generate an ROI by month 2 with the system...
Here are some more key insights and findings:
- On average 1,804 ads were created by companies who scored an ROI greater than
- On average 248 ads were created by companies who scored an ROI less than >3x.
So for the companies that got an ROI greater than 5x they tested on average 7.5x more ads than the comparison companies who got less than a 3x.
The main takeaway here is the more ads and ad sets you can come up with and test... The greater the chance you'll have at finding a winning combination that generates a higher ROI than what you've previously been able to achieve.
Here are some more interesting findings that could be of value to you or interesting to know...
- On average 82 ad sets were created during the testing phase.
- Out of the 82 ad sets created on average only 8 ad sets were left 'active' after the testing and optimization phases were completed (month 2-3).
- On average 1026 ads were created during the testing phase.
- Out of the 1026 ads created on average only 23 ads were left 'active' after the testing and optimization phase were completed (month 2-3).
- By month 4 all companies who stayed advertising saw consistent ROIs.
- On average companies got their greatest ROI during the 3rd month after they had completed the testing/optimization phase.
- 15% of companies quit advertising before they completed the testing phase.
- The other 85% of companies who completed the testing phase all were able to achieve an ROI.
The key takeaway from here is that if you can prevail and get through the testing phase you'll more than likely be achieving an ROI that you can depend on and scale your business with.
Those are just some of the insights and findings we've found from our research.
If you would like to start generating a consistent ROI with your Facebook ads then check out our free training or schedule a strategy session with us below to see if you qualify for the program.
Want to get consistent Facebook Ad Results...
Schedule a 1-on-1 coaching session with Chase here.
Or...
Get started with the Facebook Ads Expert Mastery Class.
To your success.
- Chase