Professional Documents
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Zeus Almanac
Zeus Almanac
Zeus Almanac
com
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The first part of the Almanac talks about launching campaigns from scratch. This
isn't the most innovative section, but it will be beneficial for beginners who need
to start building their foundation as a media buyer. Experienced media buyers
may also pick up a thing or two and learn from some of the in-depth
explanations of certain nuances that I discuss.
What you'll find in the pages to follow are an explanation of Zeus Launch 1.0 and
Zeus Launch 2.0. The difference between these is that one is for "low budget"
and one is for "high budget." Low budget means you have a day-1 budget per
campaign of between $50-150. High budget means you have a day-1 budget of
$150-$500+.
A question I get asked a lot is: "how much money do I need to start dropshipping
or running Facebook ads." People don't seem to understand that there is no
minimum or maximum budget to start your first campaigns. Let me explain...
Think of each ad set you launch as a "shot on goal." This ad set consists of an
audience/interests you are targeting plus your ad, which is a combination of
copy and creative. When you launch a product with 5 ad sets, you essentially
have 5 "shots on goal," with a "goal" meaning finding a profitable ad set. In
other words, you now have 5 chances to find a winning combination of audience
and ad.
The more ad sets you have the budget to launch, the more chances you can find
a profitable ad set to scale up. Who do you think has more chances of finding a
winning ad set - ad combination... someone who launches only 1 ad set on day 1
or someone who launches 30 ad sets, testing all types of variables ranging from
videos, images, copy, descriptions, headlines, as well as audiences/interests?
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Another common questions about the launch phase is: "what daily budget
should I set my ad sets to?" The succinct answer: the higher the price of the
product, the higher the budget needs to be.
Let's say you are running a $100 product that has a cost of goods sold (COGS) of
$40. Doing quick maths, that's a $60 breakeven cost per purchase (CPP).
Naturally, your target cost per purchase will fall around $40 to maintain 20%
profit margins ($100 Price - $40 COGS - $40 CPP = $20 Profit).
For this $100 product, does it make sense to use a $10 daily budget? No. It
would take 4 days to see if you can get to your target CPP. Moreover, it would
take even longer to see if you can achieve an AVERAGE CPP of $40 over the long
term. Sometimes a $40 CPP happens by getting a purchase within the first $10
spent of the ad set, and then not getting a second purchase until $80 spent.
Other times, you might not get any purchases for the first $70 spent, but end up
getting 2 purchases by $80 spent, resulting in the $40 average CPP. The
takeaway is that it would take over a week to see if you can achieve the CPP you
want in each ad set at $10/day.
This is why for higher price products, you must use a daily ad spend that can
surpass the target CPP within 2 days. For example... if you are selling that $100
product with a $40 target CPP, it would be best to start with a daily budget of at
least $25/ day. You can reasonably decide if each ad set is still worth running at
the latest by the end of day 3. That being said, if the leading metrics (Click-thru
rate, Cost per Click, Cost per Add to Cart) look obviously poor prior to $50-60 of
spend, feel free to turn off the ad set.
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In other words, by selecting interests, you are striving to increase the overall
relevancy of the ad to your target audiences. With increased relevancy, you will
be able to find your target customers more cheaply.
The flip side is that you might be completely wrong in determining your target
customer avatar, meaning that there is a chance you're narrowing down into an
audience that is NOT interested in your FB ad and/or product offering. This is
why we should utilize a wide range of audience sizes, from broad to narrow. This
effectively splits the targeting between your personal decisions (narrow) and
Facebook's machine learning algorithm (because FB can hone in on your target
customer, even with a very large/broad audience).
To illustrate these concepts, let's walk through a real life example. Say we want
to run 5 interests to launch our product. Let's first choose a sample product to
sell... a portable espresso making device. If you don't know what it is, just google
the keywords and view the images (it's just a device that brews coffee on the go).
The goal here is to choose a wide range of audience sizes. I like to go broad (up
to 100M people in the audience) and narrow down until around 2M. Obviously,
for a coffee making product we're going to select the coffee interest (72M). This
is just the most broad interest that captures 99% of people who would
potentially be interested in this product. As we select more narrow audiences,
we'll have to be a bit more crafty with how we think & select (you'll see shortly).
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For each of the next 4 interests, we're going to select interests that relate closer
and closer to our envisioned customer avatar. The most broad interests will
never be that closely related with the customer avatar. For example, it's very
likely that someone who would purchase this product is within the coffee
interest category. To dig deeper, we must build our customer avatar out more.
With this in mind, we'll select the espresso interest (10M). Why? Because
someone who is into espresso is probably more passionate about coffee. The
more passionate someone is about the niche, the more likely they will purchase.
Someone in the FB "coffee" interest could literally be someone who just googled
the Starbucks coffee menu or liked an influencers photo on Instagram that
mentioned their new coffee mug (in other words, non-passionate about our
beloved portable coffee maker).
Next, we'll utilize a strategy I call "interest flexing." This is when you select two
interests where the audience must be in both. To do this, first choose an
interest in the ads manager, then click "Narrow" and pick the second interest.
This effectively narrows the audience size down even more.
Coffee
Coffee + Gadgets
Gadgets (12M)
(72M)
(7M)
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In the Venn diagram above, we've selected the coffee interest (72M), then
narrowed down by the gadgets interest (which has 12M). This makes our
effective audience size 7M. Let's think about why we did this.
Obviously, coffee was our more broad interest and serves as a good "base" to
narrow down from. How did we determine that gadgets would be a good
interest to narrow down "coffee" with? If we think about our customer avatar,
it's probably someone who is familiar with coffee (coffee interest) and is also
interested in gadgets of any type. The resulting audience we've selected is
someone who has interests in both coffee and gadgets, which may include an
interest in our coffee gadget!
Next, let's think about our customer avatar again. We've decided that he/she is
probably into "coffee + gadgets", but how about some auxiliary lifestyle choices
that could relate this person to purchasing our product? People who need a
portable coffee maker could be people who travel a lot, or perhaps work in an
office. People who travel could bring this coffee maker to their hotel or
camping. People who work in an office might bring this coffee maker to use at
their desk at work (technically not right now due to COVID, but you understand
the point...) We can now choose 2 interest flexes of "coffee + travel" (67M) and
"coffee + office" (3.3M).
There many other ways you can select interests as well. What is the target
audience watching? Reading? Consuming? How about any popular magazines
in your niche? Public figures? TV shows? If you think deeply about your
customer avatar for even 15 minutes, actually selecting the interests will take
only a few minutes.
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4-7 Ad Sets
Purchase Conversion Event
Daily Budget: $10-$30/day
Start Time: next day, 12:01AM
Location: US/CA/UK/AUS
Age: 18-65+
Gender: All genders
Detailed Targeting
Detailed Targeting Expansion: OFF
Automatic Placements
No cost control
3-4 Ads per Ad Set (see section on ads during launch phase)
1 video (see section on how ad creatives in appendix)
1 image
1-2 ad descriptions (see section on how I write my copy in
appendix)
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2 Campaigns
Conversions Objective
Campaign Budget Optimization: OFF
The campaigns are identical EXCEPT location
Campaign 1: US only
Campaign 2: US/CA/UK/AUS
5-8 Ad Sets
Purchase Conversion Event
Daily Budget: $15-$30/day
Start Time: next day, 12:01AM
Location: Variable (see above)
Age: 18-65+
Gender: All genders
Detailed Targeting
Detailed Targeting Expansion: OFF
Automatic Placements
No cost control
3-4 Ads per Ad Set (see section on ads during launch phase)
1 video
1 image
1-2 ad descriptions
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A lot of people ask what to do after getting a few sales in the initial
interest test campaign, so I'll write a bit about what I do in the
middling phase between test & massive scale.
Here are a variety of strategies to scale up a bit after the first 5-10
purchases:
Duplicate the best ad sets into a $100-200 CBO
Test new creatives + copies into duplicated ad sets at the same
budget
Start killing ad sets that are substantially above the average Cost
per Click (CPC) of the rest of the ad sets
eg: if you have 4 ad sets with an average of $0.80 CPC, and 1 ad
set with a $1.30 CPC, you can go ahead and kill it.
Launch new interests if the original interests are doing well
Start running 1% Lookalike audiences (LAAs)
Time Spent 25%
50% Video Viewers on your ads
View Contents
Add to Carts
Start running remarketing/retargeting campaigns at $20-50 / day
Custom Audience: View Contents in the past 30 days
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One concept I want to share is the concept of how to consistently test ads during
a product run (product run meaning: the process of launching a product and
attempting to optimize & scale it up).
In the first phase of testing, the bolded variables are the ones that you will be
testing and optimizing around.
The Strategy
I launch product runs with different combinations of creatives, primary texts,
and headlines. Each ad set will look something like this:
3 ads per ad set....
Video 1 - Copy 1 - Headline 1
Video 1 - Copy 2 - Headline 1
Image 1 - Copy 1 - Headline 1
Side note: you are probably wondering why I don't test Image 1 with Copy 2. It's because at lower
budget ($10-20 / day), I prefer to let FB test less variables. We're still testing Copy 2 with Video 1, so
let's just funnel our spend into less ads to get a more statistically significant test.
Assume that you are now getting sales and picking up momentum. You CANNOT
stop testing these variables. I mentioned in the last page that a way to scale up
is to test new ads in duplicated ad sets that "won" in the initial launch. When
you duplicate the ad sets, instead of running the same ads from the initial
launch, you will now try to outperform those ads. You can do this by running
new copies, a new video, or a new headline.
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3 Campaigns
Conversions Objective
Campaign Budget Optimization: ON
Ad set 1:
Detailed Targeting: Interest Stack (30M+)
Detailed Targeting Expansion: ON
Ad set 2:
Custom Audiences: LAA Stack (30M+)
Ad set 3:
Broad, no targeting
All ad sets exclude
3s Video Views 30d / Website Visitors 30d / Purchase 30d
Ad set 1:
Custom audiences:
3s Video View 10d
Exclude: 50% VV 30d / Website Visitors 30d / Purchase 30d
Ad set 1:
Custom audiences:
WV 180d / 50% VV 30d
Exclude: Purchase 30d
Here it is... the OG Zeus Method 1.0. This is the method that
popularized the Zeus movement. We launched it in the summer of
2020 and the results were outstanding. Thus, I decided to share it
with the rest of the world. Let's begin.
SCALE BY BID
The overarching concept of the Zeus Method is that we are scaling
by BID, not by BUDGET. If you want to increase your scale, then the
only thing you can do is increase the size of your cost cap. You may
not know exactly what a cost cap is at this very moment, but it will
become more apparent as we learn more about the strategies.
CAMPAIGN GROUPS
The Zeus Method ad account structure is made up of what I like to
call "campaign groups." Each campaign group consists of 1 product
& 1 angle (how you sell the product), utilizing a 3 campaign structure.
The following structure is one campaign group.
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How many campaign groups can you make? When can you make
more campaign groups? You will make a new campaign group when
you want to test a new angle for your product. For one moment,
let's go back to our portable coffee maker example from the launch
section. If you are able to scale out your first campaign group, which
has a bunch of creatives and copy about using it while camping, then
you can simply duplicate the entire campaign group and choose a
new angle to market with. Maybe the second campaign group will
utilize creatives targeting usage of the product at the office.
Then, if you want to sell another product on that store, you would
make a new campaign group and start selling that product using any
given angle. If you want to sell your new product with more angles,
then make more campaign groups, so on and so forth.
The first ad set in your TOF campaign is your broad ad set. In this ad
set, you will not be narrowing down using custom audiences or
detail targeting. Leave it completely open. This should result in a
200M+ audience. By the way, when I mention audience sizes from
now on, just assume it will be US because it's our best point of
reference.
The final ad set in the TOF is a 10% Lookalike (LAA) stack. You'll have
to put in some leg-work to make this audience, but trust me, it's
worth it.
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Your LAA stack consists of 10% LAAs made from several custom
audiences. The audiences you will create and make 10% LAAs from
are as follows:
View Contents 90d
Add to Carts 180d
Initiate Checkouts 180d
Pixel Purchasers 180d
Shopify Customer List 180d
Shopify Customer List Value-based 180d
Time Spent 25% 180D
Video view 50% 90D
Video view 95% 180D
A concept that I use for LAAs in general is that when you are using
more weaker audiences in the sales funnel (50% VV, website
visitors), you should restrict the source audience to more recent data
(using 30d, 90d, instead of 180d). The theory is that you don't want
to use an inherently weak audience AND outdated data at the same
time. The shorter the lookback period is for your source custom
audience, the more recent and relevant the data is to your current
operations.
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EXCLUSIONS
In each of these ad sets, you are going to exclude many audiences.
The point of TOF is to prospect for new customers only. Your goal is
to utilize this campaign to search and attract brand new customers
that have never heard of your brand or have visited your store in the
past. In order to do this, we must exclude several custom audiences.
For each of these exclusions we will use audiences that consist of the
past 30 days. The reason for this is that once people are outside of
the 30 day window, then they are ripe to be targeted again as a
"new, prospecting customer." After 30 days, most people will have
forgotten what they saw in the past, so you can treat them as fresh
sets of eyes again.
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SETTINGS
Now that we've discussed the audiences we are targeting in TOF, we
can talk about the specific settings in this CBO campaign.
BUDGET = $1k-$10k+
To determine budget, you're simply setting it to the max your supply
chain can handle. There's a good chance that you won't spend the
entire budget, so don't totally be spooked by this setting.
Remember the overarching concept from the beginning of the Zeus
1.0 discussion? SCALE BY BID, NOT BY BUDGET. The point of this
budget setting is that we don't want to cap our maximum scale by
the budget setting. Instead, we are capping the maximum scale we
can achieve by the bid strategy setting.
PROFITABILITY
Before we move on to the MOF campaign, we should look at how the
entire funnel is set up to achieve a target profit margin. Say we want
to achieve around 20% profit margin. This is somewhat complex so
don't worry if you can't follow the maths, it's just a calculation of how
our entire funnel is built out with variable profitability.
TOF = 5% margin with 50% weight (50% of total traffic coming in)
MOF = 15% margin with 20% weight
BOF = 25% margin with 30% weight
SMS+Email = adds 5-10% margin through LTV (lifetime value)
AUDIENCE
1 ad set
3s Video View 10d
EXCLUDE: 50% VV 30d / Website Visitors 30D / Purchase 30d
By running TOF ads, yes, you are getting day-1 purchasers. BUT, an
important thing to note is that you are still advertising to a lot of
people who are not day-1 purchasers. These people could watch
your ads, visit your website, add to cart, and thus be added into
"retargeting buckets," of warm and hot traffic. Now, you can utilize
these buckets of warm traffic to and hit them with ads to achieve
lower CPPs.
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The prior concepts apply to the MOF audiences. Yes, the main goal
is to get day-1 purchasers, but MOF also functions as a way to get
semi-interest people into the hot, BOF audiences buckets.
Think of it like this. With TOF, you are advertising to a very broad
audience and saying "hey, buy our product if you like, or at least
watch the ad or visit the website." With MOF, you are taking the
people who have shown slight interest in your product and saying "I
know you only watched like, 10 seconds of our video, but why don't
you check out this different video/image and see if you wanna
purchase, or finally click on the ad to visit our website and learn
more?"
AUDIENCE
Custom audiences
Website Visitors 180d
50% VV 90d
EXCLUDE: Purchasers 30d
Our warmest audiences are Website Visitors and 50% Video viewers.
These are the audiences that we milk for super high return on ad
spend (ROAS) relative to the rest of the funnel.
CAMPAIGN FREQUENCY
Another factor to take into account is campaign frequency.
Frequency is the average number of times someone in the audience
has been targeted by that campaign. Oftentimes BOF campaigns will
reach higher frequencies than you're used to seeing. 4-7x frequency
in the past 7 days is normal for these campaigns. These are your
hottest audiences, so it's okay to target them several times until they
purchase, especially if you have 5-7 ads in the ad set. Ideally, each
single ad will be served only 1-2 times (meaning 1.0x-2.0x frequency)
to each member of the audience, even if the entire campaign/ad set
frequency is 4.0x-7.0x. It's optimal to show someone various angles
of ads and different creatives/copies over time, because we hope
that they will "click" with at least one of them and finally make the
purchase.
1 Campaign
Conversions Objective
Campaign Budget Optimization: ON
Daily Budget: $2,000-$20,000
5 Ad Sets Settings
Purchase Conversion Event
Age: 18-65+
Gender: All genders
Automatic Placements
Cost Control: Cost Cap
Ad set 1 (TOF):
Detailed Targeting: Interest Stack (30M+)
Detailed Targeting Expansion: ON
Ad set 2 (TOF):
Custom Audiences: LAA Stack (30M+)
Ad set 3 (TOF):
Broad, no targeting
First 3 ad sets exclude
3s Video Views 30d / Website Visitors 30d / Purchase 30d
Ad set 4 (MOF):
Custom Audiences: 3s VV / Page engagers
Exclude 50% VV 30d / WV 30d / Pur 30d
Ad set 5 (BOF):
Custom Audience: WV 30d / 50% VV 30d
Exclude Pur 30D
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AD SETS
The budget for the ad sets is determined by the CBO, so the only
variables between the ad sets are the audiences, and cost caps.
The TOF ad sets retain the same settings as Zeus 1.0. Broad/Interest
stack/LAA stack are the 3 audiences, along with setting the cost cap
to achieve between 5-10% net profit margins for those ad sets alone.
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The MOF ad set retains the same settings and audiences as well.
The BOF set up is the ad set that has the biggest change. We are
now utilizing a cost cap on it, setting the cost cap to achieve between
20-25% net profit margins for just this ad set.
CAMPAIGN GROUPS
The goal of the initial campaign group is to sell one product using
one angle. The entire CBO has 5 ad sets, tailored to selling just one
product.
Every time you want to launch a new set of creatives that showcase
your product off in a different way, create a new campaign group.
Let's take a look at Zeus Method 2.0 in a real life scenario. The
screenshot is too wide for the PDF but just click below or copy and
paste the link into your browser.
https://drive.google.com/file/d/1xMz4nBRm5IArvI379Pl5yd7hlyJm8agk/view
Now that you hopefully have it open, let's take a closer look.
For any veteran media buyers, you'll quickly realize the gravity of
Zeus Method 2.0. You'll also immediately be impressed by the
ACTUAL CPP compared to the Cost Cap that was set. It's honestly
quite scary if you think about it....
Mindblowing, eh?
Please take a look at the far most left column "Bid Strategy." Notice
how it lines up with actual the Cost per Purchase. Every single ad set
except the Broad interest is perfectly in line with what the long term
cost cap target was set to.
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Imagine you are running a Campaign Group from Zeus 2.0. The bid
strategy is set to cost cap. You can begin Zeus 3.0 by duplicating the
original campaign group and setting it to bid cap. You now have 2
campaigns, one where all the ad sets are cost cap, and one where all
the ad sets are bid cap. Increase the cost control by 20% and launch.
For example, if your cost cap is set to $40, then duplicate to bid cap
and launch a $48 bid cap campaign. Bid cap is more restrictive, but
has different properties than cost cap at the actual FB auction.
The next step you can take to increase ad spend is duplicate the
original campaign group again and set your conversion window to 1
day click. You don't have to touch cost control in this duplication.
Simply change over your optimization window from 7 day click 1 day
view.
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Lastly, take the campaign group and duplicate it one more time.
This time, change the bid strategy to Minimum ROAS. The minimum
ROAS for the TOF ad sets should be set to the ROAS number that
achieves similar results to the TOF cost caps from the original
campaign group. That means your TOF Min ROAS should be
calculated to achieve around a 5%-10% profit margin.
Set up an ad set that targets purchasers within the past 180 days,
but excludes purchasers within the past 14 days, effectively making
the audience "purchasers between the past 14 and 180 days."
If you have several SKUs, then you can use a carousel of every
product you offer so they can see their options and potentially be a
repeat purchaser. If you only have 1-2 products, then you can
advertise those SKUs again, but use different copy along the lines of
"remember XYZ product? Grab another one as a gift for your
friends!"
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The Setup
1 CBO
3 ad sets
WV 3d
exclude PUR 30d
WV 10d
exclude WV 3d + PUR 30d
WV 30d
exclude WV 10d + PUR 30d
The longer it's been since a customer has visited your website, the
more of an incentive they need to come back.
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Zeus Method 5.0 is the absolute simplest way of running ads. It also
benefits from massive data aggregation into less ad sets. This also
has the added benefit of escaping the learning phase faster.
Zeus 5.0 uses campaign groups much like Zeus 2.0... but condenses
5 ad sets per campaign group in 2.0 down to only 2 ad sets per
campaign group.
CAMPAIGN GROUP
CBO
Budget: $10k+
2 ad sets
TOF - No targeting, BROAD
Exclude 50%VV 30d / WV 180d / Pur 30d
BOF - 50%VV 30d / WV180d
Exclude Pur 30d
And lastly, you need to end with a call to action. It helps that Nectar
can tie in a nice catch phrase that has a ring to it.
"Sleep better. Shop now."
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This ad from Averr Aglow is another great image ad. Again, the
image is skewed vertical. It has a clear image of the product with a
few words describing why someone should pay attention. The
image is very easy on the eyes. You see exactly what the product is,
plus the main reason why you should purchase right now, which is
free shipping in 2 days on certain orders.
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This ad from Igloo Coolers was created for story placement. You can
tell by the call to action at the bottom: "Swipe up to shop." The
aspect ratio is also very skewed vertical, instead of the more classic
4:5 for normal feed placements. I've tested creatives specifically
designed to run on a story, and they work extremely well. One thing
I do is something I call the "story method." It's when you split out
another campaign for IG story placement only, put a cost cap on it
separate from the main ad sets, and run it by itself with story-
focused creatives. It won't get massive spend, relative to feed
placements, but it will usually perform very well.
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Video ads are hard to show in text form, so I'll share 5 companies who
consistently run high-converting ads. Click the link to look them up.
https://www.facebook.com/ads/library
Averr Aglow Skincare
Nectar Sleep
iRestore Hair Growth System
Lumin
My Name Necklace
Here's a little tactic you can do for your display links, which in this
example is "CA.MAVI.COM/NEW-ARRIVALS."
Try changing the display link to
"DOMAINNAME.COM/SPECIALOFFER",
"DOMAINNAME.COM/OFFER", or
"DOMAINNAME.COM/DEALS."
The theory behind this subtle change is that people will react more
positively to these trigger words, so you will achieve higher CTRs.
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