CJ has been holding live webinars regularly with different dropshipping mentors on CJ's Facebook group. And on April 12th, CJ invited Ethan Dobbins, a serial entrepreneur and eCommerce expert who is proficient in teaching advertising methods, to be the mentor. Ethan carefully prepared a detailed PowerPoint, and it mainly covered a quick startup for Facebook ads. He also answered some valuable questions from the audience, and we believe it was a meaningful event for everyone. This article will cover some of the most important perspectives discussed during the webinar.
How to use the RMS method to create winning ads?
RMS stands for refined marketing statement. It can be used to create winning ads for any kind of product you are selling. The picture below shows the formula for RMS. Ethan gave an example of using the statement to create a winning ad. If you are selling the heated knee brace, then the niche audience would be people with knee pain. Their desires would be to get rid of the sore, stiff, and aching knees. And the pain point would be the expensive injections or surgery and any discomfort brought by the surgery. To sum all of them up, the RMS would be like this: I help people with knee pain get rid of sore, stiff or aching knees without expensive injections or surgery by using the heated knee brace. The RMS method aims at the pain points of all niche audiences, make it a highly effective marketing tool to use. However, the problem now becomes how to find the niche audiences and the desires of your products.
How to find the niche audiences and desires of your products?
You can learn your target audiences and what your customers want in your products with just one search. If you are selling the resistance band that belongs to the home exercise niche, then the best way is to watch customer reviews on similar products online. After you have read through some reviews, you could then use the RMS method to create your ads. For instance, this is a customer review on the resistance band set. The niche audience is people who like to workout. Their desires would be to keep the shape or healthy, and the pain point is when the audience cannot go to the gym due to time constraints but still want to workout. It will look like this: I help people who like to workout to exercise at home conveniently even when they don't have enough time to go to the gym by using this resistance band. The key point here is to do the research and find the right information. Ethan recommended finding reviews on Amazon because it has overall the most descriptive customer reviews. And make sure you look for similar products and find the desire and pain points of the potential customers.
How to find the right demographic for target audiences?
Once you come up with your RMS, writing your winning ads becomes infinitely easier…even if you're a complete beginner. And now that you know how to make winning ads, it doesn't matter what Facebook ad strategy you use to test products, winning ads will ALWAYS work no matter the strategy. Now let's go into finding the right demographic for our target audience. Let's take the heated knee brace as an example again. If you want to find the demographic for your target audiences of this product, pick the first word that comes into your mind. "Knee" would probably pop up first as the keyword for this product. And you could search the word "knee" on Facebook Audience Insights. Below is the result Facebook shows us about our audiences under the keyword "knee". The gray area represents people on Facebook and the blue area is the new audiences. As you can see, people under 35 are less likely to search knee-related content, but people between 35 to 65+ are more likely to do so. And there's no big difference between genders. For this product, you should do all genders between the age of 35 to 65+. Usually, if over 75% of your audience is one gender, specify by that gender; if over 75% of your age demographic is covered by 2-4 age pillars, specify by that age bracket.
How to setup and test a product?
When you are done with all preparation, it's time to test the products. Ethan created a tree diagram to show his way of testing products.
Campaign: Top level of your advertising, this is where you choose what the objective is for your advertising. In this case, it's to get purchases, which means conversions.
Adset: The second level of your advertising. This is where you choose who you're marketing to, where you want your ads to appear, and how much you want to spend.
Ad: This is where you create your image, video, or carousel ad, along with writing the headline and primary copy. This is what your adsets will see when you promote your product to them. Ethan also provided his own testing process, it's shown in the picture.
When to kill or scale adsets?
There are some rules Ethan suggested that you should follow for killing or scaling the adsets.
Firstly, rules for killing the adsets:
1. If an adset has spent $5 without 5 link clicks or an add to cart/purchase, you kill it
2. If an adset has spent $10 without an add to cart or purchase, you kill it
3. If an adset has spent $15 or 50% of your breakeven price, you kill it.
Breakeven price = Your price – your supplier price
If you are selling a necklace for $50 and the supplier is charging $5. Your breakeven price is $45. So in the adset scenario, if your adset spent 50% of your breakeven price ($22.50), without a sale, you kill it.
Rules for scaling the adsets:
1. After the first two days of testing a product, if you have multiple adsets with a purchase, you should continue to run ads for that product.
2. Every day, Ethan would create 2 new audiences at $5 a day that test new interests. For every winning product, you want to test at least 50 interests, the name of the game is finding as many profitable interests as possible. Make sure to kill adsets that aren’t meeting the guidelines mentioned.
3. If an adset has 2 or more purchases above your breakeven point, you should duplicate that adset and double the budget on the new adset and make no changes to the original adset.
Ethan also did a real campaign during the webinar, and if you unfortunately missed the live session and still want to see the campaign or the complete video, we have it recorded here. Please join CJ's Facebook group first before accessing the video: https://www.facebook.com/groups/cjdropshipping. Additionally, CJ will regularly host free live webinars in the future, and we plan to have the next event on April 19th, 2021. The detailed information for the next live webinar is shown below in the poster. Please come and join us to share and learn. Hope you will have an easier and better dropshipping career!