Optimized Ecommerce EP 047 – The Ecommerce Ad Amplifier: A Multi-Step Approach to Advertising
This week on The Optimized Ecommerce Podcast, Ralph Burns joins Tanner Larsson to talk about the Five-Level Ecommerce Ad amplifier approach. Listen to this week's episode as Ralph discusses how the Ecommerce Ad Amplifier helps scale your product campaigns and double your ROI with Facebook and Instagram. If you think you’re guilty of
Welcome to Episode #047 of Optimized Ecommerce – The Ecommerce Ad Amplifier: A Multi-Step Approach to Advertising. I’m your host, Tanner Larsson, CEO of BGS.
BGS means Build Grow Scale! It is a community that we founded where eCommerce entrepreneurs and physical product sellers come to learn how to take their businesses to the next level.
Our special guest this week is Ralph Burns, Founder and CEO of Tier 11—and it’s his second time on Optimized Ecommerce!
Tier 11 is an Ad agency that helps scale and grow businesses faster through Facebook and Instagram ads. Ralph and his team has been running ads since 2010—bringing more sales, leads, growth, and traction to dozens of industries!
Here’s just a taste of what we talked about today:
Ralph discussed in detail the five levels of Ecommerce Ad Amplifier.
- Level 1: Cold Traffic
In most cases, the majority of Ad spend is cold traffic. For the entire year, our Ad spend is 70% to 80% on cold traffic because that’s what matters the most. It doesn’t matter that you can convert to people who have added to your cart because they already know who you are. They’re already about to buy.
- Level 2: Engage and Page Views
At this level in the product campaign, people have watched a certain percentage of your video and possibly even clicked through to your site. This is your “Lightly Engaged” audience.
- Level 3: View Content
At level 3, you need to speak to your customers differently depending on their level of awareness. Your audience should be seeing reminder ads for related products they’ve already engaged with.
- Level 4: Add to Cart
At “Add to Cart”, your consumer is close to making a purchase. It’s extremely important that the messaging you give to this kind of audience inspires them to take that final action and become lifelong customers.
- Level 5: Purchases
The final level is your Level 5 audience members. These are your purchasers—the customers who’ve already bought your product. They should see messages reminding them to purchase again, restock, or become a VIP.
We also discussed a few other fun topics, including:
- Behavioral Remarketing in the back end.
- How to dial-in on the communication between buyers and maximize the money that comes from them.
- The different personality types of buyers.
But you’ll have to watch or listen to the episode to hear about those!
How To Stay Connected With Ralph Burns
Want to stay connected with Ralph? Please check out their social profiles below.
- Website: TierEleven.com
- Facebook Profile: Facebook.com/tiereleven
- Linkedin: Linkedin.com/company/tiereleven
- Instagram Handle: Instagram.com/tier_11/?hl=en
Also, Ralph mentioned the following items on the show. You can find that on:
Tanner Larsson 0:07
Hey, everybody, welcome back to the Optimized Ecommerce Podcast. I’m Tanner Larsson. And today we’re joined by a returning guest, Ralph Burns, Ralph owns Tier 11. An Ad agency that specializes in scaling the crap out of good brands. That’s the best way to say what he does. So Ralph’s been on the show before, one of my favorite people to talk to we did an episode, a few months back, and then we’ve been trying to connect ever since then, to get back on again, where we alluded to his secret sauce in terms of how he runs his ads and how he makes them work so well for ecommerce stores. And it’s called the ad multiplier, the e commerce ad multiplier. And it’s just crazy, whole schematic of flowchart thingamabober that we’re gonna go through. But it’s awesome and the cool thing about what Ralph does is he approaches advertising, the same way that we approach optimization. It’s a multi step approach, it’s multi layered. There’s no such thing as just getting the one click and calling it good. And then, hoping everything’s gonna work after that. So the cool thing is that if you follow the way that we optimize a store and the buyers journey, Ralph optimizes, so we optimize the buyers journey from the time to click lands on the site to the time that click leaves the site, Ralph optimizes the pre buyers journey from the time the interest is generated, or the visual is shown to the person and all the myriad of different encounters that need to happen in between the time they actually land on the site, or they do land on the site, but they don’t buy and they got to come back. And it’s this multi layered approach. So very cool process, Ralph, thanks for being here.
Ralph Burns 1:50
Yeah, man. Glad to be back. I mean, we’re like peas and carrots, when it comes to this sort of stuff. I just watched Forrest Gump the other night. So that’s the first thing that works. But yeah, I mean, this works perfectly well, with your system. It’s just everything before the click, and then you guys take care of everything after the click. But it’s the whole way in which we approach it works really, really well. I mean, when you spend 100 million dollars a year in Facebook and Instagram ads, you have to have a framework to manage those campaigns. And the e commerce amplifier certainly does that.
Tanner Larsson 2:23
Absolutely. Obviously, this is a audio podcast for those of you on, Spotify, or YouTube, or iTunes, or whatever. But we also have the video version on YouTube. And today, I’m actually going to share an image of the ecommerce ad amplifier as we walk through it. Now, if you’re can’t see it right now, don’t sweat, you’re still going to understand it, he’s going to talk through and explain it all. But if you want to hop over later to the YouTube channel and check that out, you can see the whole framework in a visual representation. And fill in the missing pieces that you missed while you were listening. If you need the link to hop over there, just go to buildgrowscale.com forward slash podcast, and you’ll have it. Alright, so let me go ahead and share my screen. And then Ralph, let’s go ahead and dive into it.
Ralph Burns 3:08
Yeah for sure. This is the way that we look at this. I mean, this is not really nothing original in marketing ever really happens. Tanner, I think, you know that, we steal stuff all the time. But make it our own. And I think one of the things that this is a combination of is sort of Eugene Schwartz breakthrough advertising the five levels of engagement, but also, like the digital marketers, customer value journey, it’s all basically the same. But the point is that you’re meeting that customer or that prospective customer exactly where they’re at in your journey. And that journey, when it comes to ecommerce, and especially your listeners, it starts with the initial engagement with the ad. And those are people that ideally, in most cases, and the majority of ad spend are cold traffic. So if you look at our entire ad spend for an entire year 80% of it 70 to 80% of it is on cold traffic, because that’s what matters the most, it doesn’t matter that you can convert to people who have added to your cart. It doesn’t matter though, they already know who you are, they’re already about to buy. But the key to the e commerce ad amplifier is level one traffic or cold traffic, and then taking them all the way through to a purchaser and a repeat buyer. And the way that the framework works is that it meets them exactly where they are on the journey. So if y’all are either looking at this or sort of watching it with certainly I can leave a link where you can get an image of this as well if that’s helpful for the listeners Tanner. But it all sort of starts with levels. So we’ve got five levels of traffic when it comes to e commerce. And we’ve now realized that this worked really well for e commerce and now we use it for all our non e commerce businesses inside tier 11 is an agency so it’s universal. But it started with ecommerce. So if you’re all familiar with the standard event, pixel are the standard events that happen within Facebook, there’s different levels on every set of your site. So if you’ve got a Shopify store, you can incorporate the native integration with your facebook pixel really easily and create all the audiences that I’m going to go through here. So at a basic level, it’s in essence, taking pixel fires for events, and then showing ads that are relevant to those pixel fires based upon where they are in the journey. So somebody who hasn’t fired a pixel yet on your site hasn’t engaged with you, if somebody doesn’t know who you are, that’s cold traffic. So that’s your look alike audiences. That’s your interest based audiences will usually have exclusions in there for website visitors or buyers. So we’re not commingling traffic sources. But in essence, a level one is cold traffic. So at level one, we use, probably about anywhere between five to 15 types of ads. The one of the ones that we use the most is video ads, video ads, we find work really, really well, certain subset of video, ad types, which is what we refer to as the teaching pitch video, which is basically we have movement, and we have the spokesperson teach something and then we pitch the product at the end. That’s a really good sort of formula for a front facing cold traffic level one and video ads. So those people are the ones who don’t know who you are. So you have to engage with them in some way in order to pull them into your world. So we love video ads at level one, because you can create custom audiences. From there percentage of view of that video, let’s say 25% 50 75%, even through play, which is 15 seconds or three second video view audiences. The point is, when you show video to cold traffic, you’re capturing that audience without them clicking anything, as long as they hover over the video for long enough, you’re paying for that impression. So we create audiences for all of those engagements at level one. And then we then create level two traffic audiences based upon that engagement. So level two is somebody who’s watched a video of yours in the newsfeed maybe hasn’t clicked, maybe you’re showing an image ad, or a link click ad and they click to your landing page, they fire the page view event, which I’m sure your listeners are pretty familiar with. They’re not they should be if they are on ecommerce. fires that pays you event. So those people are I’ve watched a little bit of your video, I’ve clicked to your landing page, your collection page, your sales page, whatever it happens to be, but I haven’t gone any further. So those people are in level two audiences. So we show we gather those audiences, those engagement video engagement audiences and then the page view audiences. And we’ll show them a different asset. Now that they’ve gone that far in the journey. Those are people that are cold traffic level one, I’ve clicked, I’ve landed on a landing page collection page sales page, maybe I’ve watched a percentage of video, I’ve gone no further, we’ll show them different assets there. So we might show them sort of educational short videos, we might show them longer videos, we might show them product ads, maybe product carousels we might even do testimonial type of videos at level two. The point is, is we’re talking to them a little bit differently because they’ve engaged with your brand in a very sort of light way. They haven’t not actually selected a product yet. They haven’t collected anything and added it to cart. They’re not there yet. So we want to show the messaging that’s in alignment with where they are in the customer journey. Does that make sense?
Tanner Larsson 8:45
Absoluteljy, yeah, great stuff.
Ralph Burns 8:47
So cold traffic audiences super important. Like I said, those are level one audiences that’s 80% of our spend a lot of different video types for use. There are a lot of different image types we use there. But then when we get them into level two, we show these other assets. So once we show them those assets at level two, this is retargeting again. Like if you’re doing top of funnel middle of funnel bottom of funnel, that’s great. That’s a good segmentation. What we’re doing here is refining it just a little bit more to really speak to the audience where they’re at. So level two I kind of know Tanner Larsson and his weightlifting supplement line a little bit here but I’m not really quite sure whether or not I like the whey protein or the pre workout or whatever it is I’m creating a fictitious supplements.
Ralph Burns 9:36
So but let’s say I click on the whey protein. Now, because I’ve selected a product I now fire and Facebook will fire and your site if you’ve installed this correctly, the view content event. This is a really important event because this now shows that you’ve self selected a specific product out of the entire portfolio. So, from your collection page, maybe they self select from there, maybe from your sales page, they self select there. The point is, is they’re a little bit deeper in the journey. So you don’t want to talk to them like they’re at level one. Because they now know a little bit more of who you are, you don’t really want to talk to them like you do at level two. So level three, this view content event, we typically will show dynamic product ads, in many cases. So these are alright, so I selected the whey protein, we might show like a subset of the catalog for protein, maybe it’s a three pack of different protein, different flavors, maybe there’s the pre workout that’s in there as well, whatever it happens to be in the the Tanner Larsson supplement line that’s relevant to the product that I’ve selected. So dynamic product ads, there’s like, so important, like a secret weapon of Facebook. I mean, I know, you know, this, preaching to the converted here. But anyway, so that view content event triggers these types of ads to be shown, they might still see some of the level one and level two ads, but predominantly, Facebook is gonna optimize that audience for the ad that’s targeting them specific to that event. So view content event, what we’re trying to do is we’re trying to get them to get to the next level, which is to get them to add that whey protein to the cart. That is then level four. And as you know, this is where it all falls apart. Usually, this is where you get 70 to 90% cart abandonment rates. Of course, if they work with Build Grow Scale, it’s way less. The point is you just accept the fact that people are going to bail out on Add To Cart. So you don’t want to show them another ad about like that they don’t know who you are, you don’t want to show them a level one or level two ad, you want to just kind of gently remind them, Hey this is waiting in your cart. Hey time to check out simple language there. That’s different than view content and level three, and different than page view at level two, and very different than cold traffic at level one. So those ads are specifically targeted for add to cart, we typically will have a shorter time frame. And those may be three to five days, that kind of things create your audiences and short spans as we refer to them to ultimately get them to convert. And then next level of conversion is level five, which is now purchases. So congratulations, you’ve gone you’ve bought the whey protein, that’s great. So most people stop there. They say, all right, well, I’ve got the buyer, I don’t really care. Well, if you’re a supplement brand, well, if Tanner’s working out, and he’s squatting 405, like we know that he can do, like he’s gonna need lots of whey protein, he’s probably gonna, at 30 to maybe 60 days out gonna need another ad to remind them to buy it again. So we have other ads there that are reminder ads, maybe we cross sell them with different dynamic product ads. Hey, if you like the whey protein, you’ll love our pre workout. If you love our pre workout, then you’re gonna love our creatine blend whatever it happens to be. Point is the journey doesn’t end there. level five, we typically will see less than, you know, point 5% or maybe less than 1% of your total spend. But enormous return on adspend at level five. So that’s in essence, the whole sort of journey level one all the way through level five. I think people do approach traffic as cold and then retargeting. What this is is a more refined way of retargeting so that you really meet people where they’re at in the journey. And it’s the system that we use, as soon as we onboard a new customer inside tour 11 will immediately within the first week superimpose this structure on what they’re currently doing. And we immediately see a lift. And I would say in all cases, just because the segmentation of the targeting is really so good. So does that make sense?
Tanner Larsson 14:06
Makes super sense. Guys, I just want to point out, if you’re listening to this, and you’re going, well, man, that’s a lot. But think about it. If the most competitive area that you’re trying to optimize in your ecosphere of running your business, is the advertising aspect. on your store, you’re not competing with anybody else, you optimize that Yeah, there’s a lot that we teach you. But you can do that. Okay, and you can even get by with maybe not be I would break my heart if you were doing it but you could get by with a little bit less in terms of your optimization there. But if you’re going to try to compete with other ecommerce brands, and they’re putting the effort into their advertising strategy to segment down all the way through and really dial into their different buyer types. And you’re just running a you know, I’m running five ad five ad sets and two retargeting ads. And you’re saying, Well, why can’t I compete? Well, this is why, yeah,
Ralph Burns 15:05
Yeah, it definitely helps. Now, I mean, if you’re spending $1,000 a month or a million dollars a month, this does work, it works better at higher volumes, because your audiences as you go down from level one to level five, are smaller and smaller, which makes sense, your cold traffic audiences are huge, there are multiple millions of people, your level two audience, somebody who’s watched a video or clicked on a landing page, or maybe clicked to your page, for that matter. Those are slightly smaller. But the more spend you have, the larger these audiences are. And the larger the audiences are, the more Facebook has the ability to serve them. So what we sometimes will do, if you’re a smaller advertiser, you might not need to separate out five levels, you might want to do something like level one, then level two, but then combine level three and four together. Because view content I’ve selected, I’ve looked at a specific product, and or I’ve added that product to the cart, they’re very similar and messaging, so sometimes we will kind of merge them together. And then oftentimes, people will have sort of a separate buyer’s list at level five. So the good thing about the e commerce ad amplifier is that it’s modular, you can alter it, you can even combine level two, three and four probably together. But ideally, you want to separate that messaging out because they really are distinct audiences, somebody who’s added to cart is far more along in the customer journey to ultimately become a buyer than somebody who’s just watched a percentage of your video. And maybe in that video, you haven’t even shown the product yet. So we even know like our audiences on level two traffic. For example, if we’ve got a two minute video, but the product doesn’t appear until minute one, we know that the 50% video view audiences and or the 75% are far more valuable than the ones that are 25%, because they haven’t seen the product yet. So it’s you can get really granular with this if you really dissect it all. But I would submit that if you’re in a competitive space, you need to get this granular, or at least have the goal to get that granular, because the ones who really think this through are the ones that ultimately win. And I will say this is like you know, we’ve got some stuff right now coming up in early spring, according to Facebook, with Apple iOS, where you’re going to lose visibility here. And the point is you might not be able to segment out your audiences as much as you can, at the current date of this recording, as you might be three months from now. But don’t worry about that think about this as the messaging that you’re trying to do is the highest most valuable event, which you can still target to, even with iOS, you’re going to want to have ads that are specifically aligned with where people are in the journey. And if that means they’ve added to cart, and they’ve gone no further, you want to show them, maybe you might want to throw a discount code out there a coupon code out there, depending on what your finances are, you might want to just sort of give them a reminder or maybe some sort of juicy deal, talk to each level slightly differently. And you’ll see a lift in your conversions. And we’ll hand out this template here. So you can have sort of an idea as to what some of these assets might look like to help everybody listen to the show.
Tanner Larsson 18:31
Yeah, guys, the other comparison I want to draw here for you guys, especially if you’ve been following us for any length of time we talked about behavioral remarketing in the back end and how we really dial in the communication between our buyers to figure out, create, repeat buyers create whales and basically maximize the money that you’re making from your buyer. And behavioral remarketing, there’s about 13 different main campaign types, four main customer segments and different things behavioral aspects. It’s the same thing you’re going through, you’re setting that up, because you’re wanting to speak to that person who’s bought products, A and B, you don’t want to tell them A and B again, you want to tell them about product, C someone who has spent who’s bought three products, you don’t want to say, Hey, thanks for making your first purchase to someone who’s already bought three different times. Right. And that’s very basic segmenting that you can set up in your back end, whether you’re using klaviyo, or whatever it is. It’s taking that same concept which most people, whether they do email marketing or not, they understand and take it as like, yep, that’s what you’re supposed to do when it comes to marketing to an existing customer. But what Ralph is showing you here is how to take that exact same concept, but do it on the front end, pre customer, okay? and treat them the same way. Give them those those different segments because they’re going to interact with you differently. And every one of these different levels just because, Ralph is showing you five levels and it’s like, Hey, we’re trying to get him to purchase by level five. That doesn’t mean you won’t make purchases on level. One traffic or level two traffic or anything like that, right?
Ralph Burns 20:03
Yep, absolutely, that’s a great point. I mean, we approach cold traffic as we want the conversion right then and there. That’s why we sell the product as much as possible in the newsfeed. So they make that decision that buyers decision. I mean, if you’re getting, one to 5% conversion on cold traffic, I would submit that’s a pretty freakin good conversion rate. But the ecommerce ad amplifier, let’s say if you’re getting 1% conversion on your cold traffic ad, the e commerce ad amplifier picks up on the other 99% it because you’re meeting them in a different way, all the way through the process. So yeah, we go for the conversion 100% on every single step. And I think just logistically, taking people step by step by step i think is logical. But even at level two, if somebody has watched a video of yours, 25%, you want to go for the sale, you don’t want to just to view content just to add to cart like you want to go all the way to the purchase. So all the ads and the templates that we use in each level are geared towards the ultimate decision, which is the buy decision. So really good point there.
Tanner Larsson 21:11
Yeah, I want to make sure you guys are aware of that. Because there’s a lot of different schools of thought, especially some newer ones that have come out recently in terms of like, do a bunch of advertising upfront to just build up the audience and things like that at different levels and then sell to them later. But don’t sell them any sales mature. And yes, that can work. There’s there’s ways it can work. But from my perspective of ecommerce, I kind of go with the Glen Ross type of always be selling aspect of things. This is why I like it, what you guys do is because yes, you’re you’re treating them all differently at different stages, but it’s, if someone’s ready to buy, they can buy, you’re not going to stop them or make them wait, we want to take that money while we can get it. And then the other piece of this guys is that the reason there are these levels, if you’re still wondering why it’s the same thing, when you’ve heard that, the average purchase takes multiple points of contact seven to 10 points of contact before the sale happens. That’s part of it. But it’s also different types of buyer types, different personality types, you’ve got people like me, who are kind of more ready fire aim, and that kind of aspect. Like, Oh, that’s cool, I’ll buy it and it was like shit I should have see if it was the right size. You know, like, that kind of thing. That’s what happens all the time. My wife’s the same way. She was buying some shelves for my daughter’s closet, and she thought these are perfect. But they’re a foot too long, right? I’m like, I don’t want to cut these things? But she thought they were perfect the right color, the right size, but she didn’t actually look at it. Right. So there’s that person, and they’re the people that will buy on level one and level two, right? But then you’ve got people who. We love them. Yes like the ideal Matt, my business partner. He is the perfect consumer. He buys everything. It’s like, why did you buy that? Not really sure. But I bought itm, that happens. But then you have another segment of your market that is the ones that like, okay, I’ve seen it. But I’m busy. I’m not really right, the impulse, but then I think about it, if I see it again, I’ll buy it. Okay, that’s another thing, then you’ve got the analytical type that wants to take what you’re looking at, then go compare it to the other stuff in the marketplace and do all their research. And then they’ll come back and then they’ll potentially buy it. But the problem is, life gets in the way. Right? So even if they’re intending to buy it, life gets in the way Get back to work, whatever, then they forget about it where Ralph’s, ad amplifier comes into play is he’s constantly following up with those people. And if someone is analytical, and I guarantee you in their stuff, they have content that is like explaining the benefits, the pros, the cons, they’re showing different aspects of the product. So the first video ad maybe just like the normal like, hey, buy this. It’s awesome. It’s cool. The next video ad they see maybe something along the lines of Hey, this one feature is really what makes this product unique, or here’s how it compares against the competition. So you’re speaking to these different buyer types, because not everybody reacts to the exact same kind of stimuli to create a purchase. And this five level process doesn’t account for 100% of the personality types out there. But it definitely the 80/20 of it, right?
Ralph Burns 24:22
Yeah, for sure. And it’s it’s all designed for conversion ultimately, like the you and Matt and your wife. Level One ads are perfect for them and then once they’re buyers they don’t see level 2,3,4. Correct. The purchaser ads which is cross selling them and restocking and reordering like all those so it’s the way that it works. It does actually sort of self fulfill based upon those different buyer types. But absolutely, the seven to 10 touch points. I get it but and that we sort of assume that and that’s how this whole thing is set up but sometimes it’s one or two And that’s pretty killer. And I will say this is that the ad amplifier and the e commerce amplifier, whichever way you want to say it, it works really, really well in the five distinct levels, especially if you have a higher price point. And I don’t know, whoever said this, maybe it was me, I’m not sure. But the level of touches that you need to have, prior to the sale is in direct correlation to the price of the product. 100%. Yep. So the ecommerce Ad amplifiers, we’re looking at it here, it’s like one through five, well, if you’ve got, a knife for some cool thing that sells for $1. Like you don’t need five level, what you need is really killer front end, show me how cool is frickin thing is and then maybe jumble level two, three and four together and a retargeting like a middle of the funnel, just to get them to purchase. But because it’s a it’s an impulse buy. You don’t need to get too in depth here. But if you’ve got, a $400 medical device, like that is discounted to $300, which we use the e commerce amplifier to sell millions of them. Like there is a longer buy cycle to this, from level one all the way to level five might take a couple of months. So it depends on what your product is, if you’ve got an under $10 product versus $1,000 product, this thing works in different ways. But always sort of keep that in mind. But think to yourself, well, the biggest thing that you should really focus on is the front end, is the level one traffic like what am I going to do up there to get as many conversions as possible? Once you figure that out, once you crack the code on that. All the other levels are relatively easy. They’re just like icing on the cake. is really it so batten cleanup? Yeah, for sure.
Tanner Larsson 27:00
One other point I want to make on this and actually how you elaborate on is this ad amplifier is per product. Right? You’re not just running at once. Like if you have multiple products, you’re advertising, you set this up multiple times correct?
Ralph Burns 27:19
Yeah, what we’ll typically do is we’ll have either a product or a series of products, but because of dynamic product ads, especially at level two, all the way down, we do use dynamic product ads at level one, too, which isn’t really included on this graphic, but which is catalog sales, which is in essence showing people your entire catalog to cold traffic, those work really well level one, but to your point, the dynamic product ads will help self select in the product catalog itself, like what you’re interested in. So if you’re interested in the like we said before, maybe you watch the video on the whey protein and then the pre workout, and then maybe you click through and maybe viewed content on both dynamic product ads would show you both at that level, to ultimately bring you to become a buyer. So yeah, it’s you can do it by individual product, which is typically how we do it. But then if you have related products to that primary product, the dynamic product ads, and the levels, two through four ads will help sort of sort that out. So as long as you have all your tracking setup correctly, as long as you have your facebook pixel installed correctly on your site, this makes it a whole lot easier. And we’ll also when we do our audits, like you guys do, your audits will find like that sometimes that pixel fire isn’t firing. So they’re missing entire swaths of warm audiences, that there’s just money, just leaving on the table. So that’s sort of the basics of it is make sure that pixel is set up correctly. And if it’s not, like hire a dev to do it, or learn how to do it yourself, and then, install this process, but the I would say 90% of our effort, and 80% of our spend is really focused on level one and cracking that code there. And once you can do that, like the combat amplifier will really help you to profitability.
Tanner Larsson 29:16
So is the goal still to be. I’m obviously breakeven, but are you trying to turn a profit consistently on level one, or?
Ralph Burns 29:26
Yeah, when we look at it, like we were looking at an added account last night like late, .It’s a women’s maternity company, and they’re a very good sign for us as they have very, very low ad spend and an ideal customer for us and an ideal customer to superimpose this strategy on this that they have cold traffic audiences that are converting right now at a two x return on adspend. So which is great, like we love that. Now, it depends on your finances depends on your cost of goods sold and all the other things like what you can pay to acquire a customer. But if you can break even at level one traffic, you’re in a really good spot. And then level two through level five will make up the additional row ads, or additional return on adspend. So, but we use that as a benchmark, if you can break even on the front end client acquisition to cold traffic, and you have a business model where it’s a recurring consumer. Consumable. exactly consumable like if you can acquire a customer for relatively breakeven to cold traffic, and you’ve got ways to sell them continuously after you acquire that customer. Like that’s a good business model. Yes, and all your retargeting your level twos, who level five is just going to be icing on the cake there and relatively lower ad spends versus level one. So you do have to have like for this to work really, really well, you should have a product portfolio. I’ve seen it work with one product companies, though, surprisingly, like how well it is and one buy so it depends. But that’s not an ideal, you want more than one product. Otherwise, you just sort of have an offer. You don’t really have a business. But I’ve seen one offer companies do really well, which is surprising to me.
Tanner Larsson 31:15
We see it too. And it’s just like, you’re kind of breaking all the rules right now.
Ralph Burns 31:20
I know. I know. It’s the exception. But I hate those guys.
Tanner Larsson 31:26
Me too, couldn’t find that one product. I wonder I could have sold the pet rock. Right. We could have been done.
Ralph Burns 31:31
Yeah. Why didn’t we do that? Yep.
Tanner Larsson 31:35
Awesome, Ralph. This was good stuff. So how can people best find you and learn more about the e commerce ad multiplier, obviously, you run an agency where people can hire you. But there’s obviously a lot of other stuff you guys have you also have the perpetual traffic podcasts and stuff like that. So where can they find you best?
Ralph Burns 31:52
Yeah, perpetual traffic podcast is a good one. That’s hosted by digital marketer, I do that in concert with them. So if you’re a digital marketer fan, it’s definitely a good podcast for you to listen to. That’s over an iTunes and now Spotify, I think we actually have almost as many people listening to it on Spotify, as we do on iTunes, check it out there perpetual traffic. And then of course, if you want to learn more about what we do, head on over to tiereleven.com. Let’s just spell it all out. Or you can Google it.
Tanner Larsson 32:21
Don’t do it like me and always type in the number 11. And then it doesn’t go where it’s supposed to go, you actually have to type out the word 11.
Ralph Burns 32:29
Yeah, that guy’s holding me ransom for like too much money to get that domain. So I don’t know, maybe I’ll pull it up. Not worth it. When I get Tanner Larsson though, maybe I’ll. So yeah, teareleven.com. And even if you Google it will show up first, and you can figure out how to work with us over there.
Tanner Larsson 32:48
Perfect. So guys right now. And what I want you to do is, well, first of all, actually, we will have a link to the image that we were talking about the whole episode below in the show notes. If you need the show notes, go to buildgrowscale.com forward slash podcast but what we need you to do is please subscribe. If you’re on iTunes, Stitcher, Spotify, whatever, subscribe there. Also hop over to YouTube, and subscribe there because again, like today, we sometimes share things on the screen that you’re going to want to be able to see or go back and reference. Again, if you want the links, go to buildgrowscale.com forward slash podcast, or you can also get the show notes and leave us review. We’d love to hear from you guys. And Ralph. Hey, thanks for being here, buddy.
Ralph Burns 33:27
You bet man. Thanks for inviting me happy to come back anytime.
Tanner Larsson 33:30
Yeah, we’ll do it again. For sure. Thanks, guys. We will see you all in the next episode.
Ecommerce Store Audit
Want us to do an Audit on your e-commerce store and show you how you can make some quick changes that will dramatically increase sales and profits without increasing your traffic?
Ecommerce Store Audit
Want us to do an Audit on your e-commerce store and show you how you can make some quick changes that will dramatically increase sales and profits without increasing your traffic?