Facebook Ad Strategist Chris Chung Answers 3 Important Questions

Did you know that when ads showing people chewing two gums at once aired, the sales of chewing gums doubled? THIS is the power of advertising. Facebook is a giant when it comes to ad spending by businesses.

Have you ever wondered what goes behind creating and running ads on these platforms? Several such questions of mine were answered by expert Facebook ad strategist Chris Chung.

#1 How Do You Decide Your Target Audience When Placing Ads

There's no hard and fast rule to this. While some believe that layering will add to the accuracy of your targeting, others say that it's not an efficient way to increase Return On Ad Spend (ROAS). Chris realized very early in his life that not academics but people were his strength.

Drawing on his expertise with customer behavior, he pointed towards 3 things that must be considered when deciding your target audience.

Buying behavior

Before you present an offer to your supposed clients, analyze their buying behavior with respect to the car they drive, the food they buy, etc.

Commuting patterns

Which places do the majority of your target clients go to? Is it Walmart or a gym? How would you modify your offers based on the answer to this question?

Who influences your target audience?

If there's a common celebrity or influential Facebook profile that a number of your target audience follows, it'd be wise to take advantage of that.

#2 What Should Your Facebook Ads Budget Look Like?

Chris Chung has helped many celebrities and popular businesses increase their revenue by spending 6-figures per month on ads. Chris has dealt with such huge investments and he's of the opinion that your spending should be determined by the value that your leads bring in and your willingness to bargain that value for a fresh lead.

For example, if your revenue is $50,000 per month and you have 25,000 customers, then each customer is worth $2 to you. Having determined the per customer value, you need to ask yourself how many customers' worth of value would you be comfortable spending to bring in one additional customer.

If ten customers' value (i.e. $20) is your bid per new customer/lead, is it below, at par, or above the industry standard? If it's below, you're not winning the ad (Facebook ads are won by people with the highest bid). If it's well above the industry standard and you're still profitable, consider that number as your golden number and apply it to all your ads.

#3 When To Stop The Ads

Chris Chung spells out an easy method to know when to stop your ads. Look at the last 3, 5, and 7 days and if your per customer spending crosses your golden number for more than 2 or 3 days, it's time to stop the ads. Remember that just one bad day is not a definite sign that your investment was a wrong one. You can also set a pre-decided per day investment level - maybe 3x or 5x your golden number. However, you can always choose to spend more or less than this, depending on the return you're getting.

In addition to being a Facebook ads strategist, Chris Chung is also a digital content creator (you can check out his Instagram @chrisichung) and an e-commerce business owner. You will always get opportunities to grow and build step-by-step. Chris Chung, for instance, started by advertising small businesses and now has personal testimonial videos from the likes of Kevin O'Leary and Bethenny Frankel.