In this informative episode of Money Talk With Tiff, Tiffany Grant welcomes Zaid Ammari to the show. With 300+ episodes under her belt, Tiffany is thrilled to delve into the realm of digital advertising for small businesses—an untouched subject on her podcast until now!

Zaid, an expert in online advertising, divulges the essentials of setting up and running successful Google and Facebook Ads. From understanding costs, margins, and conversion rates to practical steps in creating ads, this episode is packed with indispensable insights for entrepreneurs eager to explore the vast opportunities digital ads offer.

Zaid also shares handy tools like the Google Keyword Planner and offers a free audit for listeners. Tune in to discover how to navigate the complex world of Google and Facebook Ads and maximize your business's potential!

About Our Guest

Zaid is a leading expert on data-driven digital marketing, focusing on analytics and actionable insights from data. As the founder of PPC Masterminds, he helps businesses build and run profitable data-driven digital campaigns.

Connect with Zaid

Zaid’s Website: http://ppcmasterminds.com

LinkedIn: Zaid Ammari

Connect with Tiffany

Website: https://www.moneytalkwitht.com

Facebook: Money Talk With Tiff

Twitter: @moneytalkwitht

Instagram: @moneytalkwitht

LinkedIn: Tiffany Grant

YouTube: Money Talk With Tiff

Pinterest: @moneytalkwitht

TikTok: @moneytalkwitht

Timestamps

[00:00] Assess margins, calculate ad costs, plan ahead.

[03:53] Analyze conversion rate, costs, and tools for advertising.

[08:56] Google offers keyword targeting or product uploading. Facebook's targeting options range from broad to specific. Mistake: too many or too broad campaigns.

[12:05] Invest in optimized account for higher returns.

[14:09] Facebook and Google Ads daily budgets explained.

Key Topics

• Types of Google and Facebook ads
• Importance of profit margins
• Calculating conversion rates and costs
• Setting up and tracking ads
• Budgeting for ad campaigns
• Specific targeting strategies

Additional Links & Resources

Google Keyword Planner

Spreadsheet for Ad Cost Calculations

Support this Podcast

Make sure to subscribe and leave a review if you enjoyed this episode! See you next time on Money Talk With Tiff!

You know what it is. That's right. It's time to talk money with your money

nerd and financial coach. Now, tighten those purse strings

and open those ears. It's the money talk with Tiff

podcast.

Hey, everyone. I'm super excited because I have Zaida Mari on the line,

and he's here to talk to us about something that we haven't talked about on

the podcast yet and 300 something episodes, but

that is using ads for your small business, and

particularly Google Ads and Facebook ads. So. Hey. Hey. How are

you? I'm great. Thanks for having me, Tiffany. I appreciate it.

Yeah, thank you for coming on and talking about this important topic.

So let's just hop right in for the audience. Let's just

set the groundwork here. What are Google Ads and what are Facebook

ads? Google Ads are

ads that you see when you go onto Google search or Google

shopping. YouTube's also part of the Google network,

so video ads are also part of Google Ads.

Facebook ads are some of the promoted posts that you see in your

feed, and then they also appear on the right hand

side whenever you're on Facebook

or even Instagram. Perfect. Perfect. Okay, so

Facebook ads covers Facebook and Instagram, and then

Google Ads covers YouTube, Google search, Google shopping, things

like that, right? Correct. You can even do Google

local ads, which is somewhat new for

contractors and lawyers and things like that. And you can also advertise

on Google Maps. So pretty much any

Google property. Gotcha. Gotcha. Okay, so now that we have that out the way,

if a business owner is like, oh, this sounds interesting, or maybe they've

thought about doing ads before, but they're like, I don't know if this is right

for me or my business. What are some things you think that they should

consider when they're thinking about. Getting into ads, the

first thing is definitely their margin.

So when you're doing ads, you're going to have to pay,

whether it be per click or per view or whatever, you're going

to have to pay Google or Facebook for that

ad. So you want to kind of look at your margins and

see if your margins are good enough for you to be. To be

even profitable doing ads. So,

for example, if you're selling a shoe, let's say,

and your margin is around 40%, and

say you're making $150 per sale,

you could do some math and figure out, okay,

how much should I pay per click for me to even be

profitable. So you could do some math before you even start

and then figure out if it's even feasible for you. To

do it. And after that, you would just need

to plan ahead for it. A lot of business owners, you

know, they're juggling a lot of different things all the time, so

they kind of wing it. So they'd be like, okay, well, I want to spend

like $2,000 or $3,000, but they don't have a

timeline in mind. So it's easier if you just plan

ahead for at least six months and have a budget that you're going to spend

in that six months, assuming

that you are, you're gonna make profit and your margin

is good. Okay, so let's pause there for a minute.

Cause there's some questions that I have for you. All right, so with

the first point, when we're trying to figure out the numbers,

what numbers do we need to look at in order for this to make

sense? So, I know you said something about looking at your

margins and looking at how much pay per

click and things like that, but if a business owner is listening

and they're like, okay, I have a marketing budget, how do I know

if this is worth it for. Me, that's

a great question. So I can send you a spreadsheet that

I use to do some calculations, and you can share it with your audience if

you want to. But basically, the first thing you want to do

is look at what your current conversion rate is.

So if you're selling a product or if you're in a service

or doing a service, what is your conversion rate? And by

conversion rate, I mean, how many purchases do you get or how

many leads do you get from the visitors that come to your website?

So if you're getting a thousand visitors and

ten of them, you know, convert,

that's, that's, you know, that's like a 1%

conversion rate, you know, so you take that into

consideration, and then you

look at, you know, how much are you making per sale,

right? And you look at the

expected cost per click, and that one's a little tricky for business owners

because they don't know what to expect. But in my spreadsheet, for example,

if you're selling a product and you're running shopping ads, usually the

cost per click is less than a dollar. So just to be

safe, I usually use like $0.60 or sixty five cents

per click. For service businesses, it's a

little harder to figure out the cost per click. So you could

use Google's free tool. It's called the Google

Keyword Planner. And if you type in your

keywords, they will tell you what your estimated cost per click

is. So once you plug all these three metrics

in with your projected monthly budget, you'll

get your estimated number of clicks, you'll get the

estimated number of sales, the cost per sale, and

then you could from that you can deduce the expected revenue and the

expected profit. Very cool, very cool. And especially that point

about the keyword planner. I had no idea that was out there. So

I'm like, I want to play around with that myself.

Yeah, so just so you know, it's not 100% accurate. It's just

estimates. That's still good information. Yeah, it's good information. But

just saying that so that you could add like

a percentage on top of it just to be safe

when you're doing estimations. So let's say we have our numbers

down. We're like, yeah, this makes sense for my business.

What do we do to start? Like, is it something as simple as a click

of a button or do they need to fill out something? What does that process

look like when we're looking at Google or Facebook ads? I

wish it was very simple.

It's a little simple, but it could get complicated

if you get into the weeds of it. For example, for

Google, you could sign up for a Google Ads account. It's pretty easy. You just

fill out a form and you just log in. But then

you would have to set up your campaigns, set up

tracking, make sure that you're tracking your leads

so that you know how much money you're making

from what keywords and what ads are doing better. You have

to figure out where you're going to send the traffic to. When you're

paying for ads, you want to send the traffic straight to the page

that you want that person to land on. So you could skip the homepage

where an organic traffic, obviously you can't control where they go. So

that's kind of like the benefit of paid ads. So signing up is

easy. Setting up an account could be a little

difficult, especially if you're not very code savvy and you

don't know how to set up tracking and all that stuff.

But if you want to start, if you have time to do it

yourself, you could definitely watch a couple of YouTube videos and

learn how to set up campaigns on your own and then go from there. But

if you are to do that, I would definitely start slow

and learn as you go. So start off with a small budget

and just build up slowly if that's the route you

want to go. I know firsthand just from doing Facebook

ads and stuff. It can get very, very complicated as far as the

things that you can target for and all the parameters you can put

in. So for the audience, though, what are some things that they

can target when they're looking for their particular

audience? What are some options they have? So

if you're just starting out with ads, I would definitely recommend starting off

with Google Ads. It's an

easier learning curve. And the intent of

the person on Google is much higher than that on Facebook, because

when someone goes to Google, they're typing in what they're looking for in the search

bar. So they're telling you, like, I'm looking for this thing.

And so if you have it, show it to me, you know, and I'll click

on it and then hopefully I'll purchase it. When they're on Facebook,

they're kind of, like, scrolling through the feed. They might be distracted.

Maybe they're just reading, like, what their friends or family are doing. So it's a

little bit different mindset.

So on Google, you could do keyword targeting, or you

can just upload your products to Google Merchant center and they will do the heavy

lifting for you. If you're doing products on Facebook, you have

to kind of narrow down your audience to,

if you're selling something gender specific like women's clothing, you

can go down to women, you can, you can go so

deep with Facebook, it's crazy. So

the biggest, I think the biggest mistake people do when they do Facebook

ads is they set up either too,

too many campaigns because they go so specific with the

targeting, or they set up

too broad of a campaigns. Like, they'll set up either, like, two campaigns targeting a

lot of people, or they'll set up like 50 campaigns targeting a very

small segment of people. So what ends up happening is you either spend

too much money on the two big campaigns targeting a lot of people, or

you spend no money dividing all your budget

on 50, that it takes you forever to collect the data and figure out

what's working and what's not working. That's a really good point.

And as business owners, we cannot waste money.

We cannot waste money. And speaking or time. Right. Or

time. Because it sounds like it's quite a bit to set up and to go

through all of that and it's not set up

correctly, or you setting up too many things at once and not

getting the return on investment, it just sounds like it could be a mess.

Yes. So, but with that said, going back to

the money piece, because of course, that's where my brain always goes.

I always get questions about budget.

So sorry, I want to go back to budget real quick when it comes to

ads, like what will make it worth, like what budget

would make it worth running ads? Like, I know, for instance, to give you an

example, I've done like $20 in Facebook and didn't really

get much return on investment. But you

know, I'm the type where I'm like, like, oh, I don't really want to spend

money. Let me try to be cheap. But of course, cheap is not always the

way to go. So what budget makes sense if we're talking about

Google Ads or Facebook ads? That is a

great question and hopefully I will not butcher it because there's so

many nuances to it. It depends

on like how much money you're making at the end of the day.

So if you're selling products, it's easier to

track that when you're doing a marketing because you

know exactly the sale value, you know, your expenses and all that

stuff. So when, when you want to spend

budget, you have to think, okay, well, if I'm not spending money,

I'm losing value by not attracting new customers to my

website. That's, that's number one. So you could be losing

on the potential of making money.

The second thing is you have to think about it. Like if you're spending a

dollar in as you should be getting back

$5. So if you think like that and your

account is pretty optimized, why not spend

5000 and make 25,000 back, you know,

so if you're spending and you're making money money

like your return on ad spend return on investment, there's no reason why you shouldn't

be spending more to get more clients. And then later on,

once a lot of people recognize your brand, you wouldn't have to spend that much

money. You could diversify and go into like SEO, social media,

all that other stuff. Now, if you're in the service industry,

it's a little harder to track how much money you're going to make from

the ads because you're going to get a lead first. Then you're going to have

to close the lead depending on how much time it takes for that lead to

pay you. You know, it's just a little harder to figure out like,

okay, this keyword got me $10,000 in sales or, you know,

$5,000 in sales. So

at the end of the day, it really depends on how much money you're making

from your business and if your account

has potential to get a return on ad spend

or a return on investment that should determine your budget.

But it's also important for business owners

to budget for, like, at least six months so that they don't spread

themselves thin and they'll, you know, sleep good at night.

Because if you're tripping about your budget and like, oh, my God,

Google Ads is like, eating up my. Eating up my account. They just

debited me $500, like, yesterday. Now they're debited me another

$500. Like, what's going on? I, like, just don't do it, you know,

like, sleep well at night. A budget for the long term,

just do some calculations in the beginning, and then just

do a budget that you're comfortable with. And speaking of

budget, like, do these platforms have the ability to

put in, like, this is how much I want to spend per day. So a

business owner could budget for it, or is it just they serve the

ads and then they bill you later?

So with Facebook, you can do daily budget, and with Google Ads,

you can do a daily budget, or at least they call it a daily

budget. But in reality, in Google Ads, the way they do

it is, let's say you want to spend dollar 20 a

day, so you put in your daily budget as

$20. The way they do it is they

basically take that budget and they multiply it over the month.

They would try to spend. So the total would be

$600 a month. So they'll try to spend that $600 in

30 days because they're just trying to

maximize the amount or the chances that you get a sale. So on one

day you could spend $30, on another day you could spend

$15, but in 30 days, you'll spend $600. That's kind of

how they do it. They do call it a daily budget, but

in reality, it's not really like a daily. So

you might go a little bit over, you might go a little bit under, but

they calculate it on a 30 day basis. Well, that's good to know.

And, you know, all of this sounds like a lot, and I know

we can't go over all of it here on the podcast. I'm

sorry. So if people are interested in

learning more about ads or learning more about you, how could

they find you? You can find me on

ppcmasterminds.com, and I'll be happy to do

a free audit. If you do have a Google Ads

account set up already, I'll do a free audit and I'll send you a video

of what exactly you need to fix in your account. Or you can

find me on LinkedIn. Zaid Amari Perfect, perfect.

So I'll make sure that I have that spreadsheet available that

you mentioned earlier in the episode and all of the links to where people

can find you in the show notes as well. So if you're listening and you

didn't catch everything, make sure you check the show notes. That's where I put all

of that pertinent information. And thank you so much for coming on the

podcast to talk about this. I know we could go on and on and

on because honestly, I have so many more

questions, but we can't give it all to the people right now.

So I appreciate you coming on talking about this

topic because honestly, I get these questions a lot. No

problem. Thank you for having me and happy to jump on another episode if

you have any more questions for me. Perfect. Well, thank you so much. Have

a good day. Bye. Thank you for

listening, joining and being a part of the Money Talk with TIFF podcast this

week. You can check TifF out every Thursday for a new Money Talk

podcast. But if you just can't wait until next week, you can listen

to previous podcast

episodes@moneytalkwitht.com or

follow tiff on all social media platforms at Moneytalk

with t. Until next time, spend wise by

spending less than you make a word to the money wise is always

sufficient.