Jeffrey Katz is the Founder and CEO of Quarter Muffin, a social media advertising agency that works exclusively with eCommerce businesses. Jeffrey specializes in helping small to medium-sized businesses increase ROAS utilizing strategic Facebook and Instagram ads. Jeffrey’s strategy produces a home run every time with proven results in helping companies generate and nurture leads. Most companies show a 36% increase in quarterly revenue and significant ROAS when utilizing Jeffrey’s unique strategy. Today, he explains the best way to implement his framework so you can see your revenue soar and realize an increase in ROAS with the right social media ad campaign.
Jeffrey didn’t start off doing paid ads. He came from a freelance background with Fortune 500 companies, where he did social listening. His interest in creating a long-term solution for short-term gains, using automation tools to grow followers and sell products, led him to start Quarter Muffin. The rest fell into place.
In a world where you have to pay to play to get ad space on social media platforms, enter newer platforms like Tik Tok, where your cost per impression is significantly less. But there’s a downside to the lower cost per acquisition – the lower conversion rate. The product or service you sell determines which platform is best for you. Products that don’t require a lot of education or do well with short funnels perform great on platforms like Tik Tok. However, a product that requires more education or nurturing will do better on established platforms such as Facebook, Linkedin, and Instagram. The same applies to creators and paying them to use your product on their profile. The conversion rate is not as great as Facebook or Linkedin because the audience may not have the buying power or may not be like the warm leads you can reach when you target your audience directly.
At the heart of Jeffrey’s strategy is understanding your product and how your audience searches for it. If you’re a locksmith, Google ads are your best bet. Why? Because your audience wants the best one closest in proximity – that’s their focus. How fast can you get to them? Whereas, if you’re looking for a flux capacitor for your space-age vehicle, you’re willing to wait for the best item, and it may be willing to exceed your budget if you feel it’s the best one out there. For a product like that, you would want to advertise on Facebook because a Google search or Google ads won’t give you the conversion you’re looking for. That kind of advertising requires education and a funnel.
When it comes to advertising costs, it’s difficult to succeed if budgetary constraints drive you. Social media advertising is more akin to the scenic route, you’ll get where you want to go, but it won’t happen overnight. If you’re new to the industry, you need to start with inbound marketing. Creating awareness around your brand, product, and the benefits it provides. Think of it as casting a wide net and then constantly culling it down. The best way to view digital marketing is to have the budget for a six-month campaign and then jump in with both feet.
One such example of Jeffrey’s unique strategy to lower ROAS can be seen in his work with a recent client. Initially, they were spending $1,000 a month in ad spending. As time passed, they pivoted and wanted to scale relatively quickly. Instead of pumping money into more ads, they looked for untapped markets that were already warm and targeted them. This yielded a quick return and positive results, boosting sales online to a million dollars in just six months. This is the result that most clients are after.
If you’re a company looking to increase revenue and experience higher ROAS, you need to understand the complexities of advertising on different social media platforms. Knowing how your audience searches for your brand can help you better target them with ad spending, yielding increased revenue.
In this episode:
[2:45] Jeffrey shares his journey to creating his own company
- ROAS is something that you can track and see the results from
- Using proper platforms and having patience is integral for companies, big and small
[7:12] Marketing budgets need to be realistic
- You’re not going to win if you don’t spend
- You need to know where your market is
- You need to know the approach you want to take – sometimes casting a wide net is beneficial
[15:01] Know the platforms and the costs associated with each
- Your marketing budget should be something you can afford to lose if it doesn’t work out
- Social media platform advertising is the scenic route, immediate results are unrealistic
[17:56] Know the different options for ad spend
- If a platform can’t handle your ad due to engineering limitations place your ads elsewhere
- Using creators may be a better return on investment if they have warm leads
[20:16] Look for untapped audiences for your client
- They are easy to target
- Don’t require a significant investment