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In this series of "Extreme Ads Makeover", I will be facing off against Adcreative.ai, an AI platform that generates hundreds of ad creatives in seconds. I am excited about this faceoff because this is a battle between human and machine (code). The goal of this post is to compare who would generate ads with better conversions. The test subject will be Nike's shoe. Here's the plan: I will be using Adcreative.ai platform to generate ads based on the Nike Case Study Validate new ads generated by Adcreative with paid traffic Tally up results Compare with ads generated by the Bionic Framework vs Adcreative to see who is better. About Adcreative.ai AdCreative.ai is an AI platform that generates hundreds of ad creatives in seconds. The AI can decide the best image, font, color scheme, and copy for ad banners. The creatives have a score that indicates the probability of the creative doing well in an ad campaign. You can download the creatives or push them directly to your social media ads. AdCreative.ai is a data company with one of the largest databases of high-conversion-rate ad creatives. It can help brands create higher-performing ads for campaigns on Facebook, Instagram, Google Ads, LinkedIn Ads, Twitter Ads, Pinterest Ads, and other display advertising platforms. About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Nike's ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Challenging Ad Promoted Product: Training shoe Landing page: https://www.nike.com/t/air-monarch-iv-mens-training-shoes-G5Xn1k/415445-001 Facebook Ads: The Nike team created one ad set to promote. Ad set #1 (see link) Analysis While Nike is a powerhouse in shoe and has already achieved its status as a household name, the increasing competition from brands like Adidas, Under Armour and Lululemon should be taken seriously because any mistake like the above ad creates an opportunity for Nike's competitors to sneak in and steal market shares. The ad "Shop Fall Styles to start fresh and members get free shipping on orders $50+" covers a basic promotion, but there are several elements that could be optimized for better performance. Here's what's missing and how it might affect the ad's performance: Emotion: The ad lacks a strong emotional pull. While "start fresh" might resonate with some, it's relatively passive. Tapping into emotions can help create a more profound connection with potential customers and drive action. Urgency: There's no sense of urgency or a compelling reason to act immediately. Without a prompt, like a limited-time offer, viewers might think, "I'll check it out later" and then forget entirely. Value Proposition: Besides free shipping, the value or benefit of the Fall styles isn't clear. Why should someone shop these styles? Are there special deals, unique designs, or other compelling reasons? Target Audience Definition: The ad is relatively generic. It could benefit from a more targeted approach. By identifying and speaking directly to a specific demographic or lifestyle, the message might resonate more powerfully. Clarity: The phrase "members get free shipping on orders $50+" could be clearer. Does this mean only members get free shipping? Do non-members get free shipping at a different threshold, or not at all? Testimonials or Social Proof: People often rely on others' opinions and experiences when making a purchase decision.

Incorporating ratings, reviews, or testimonials can boost trust and conversion. Although Nike is a well-known and universal brand, it pays to keep repeating the brand equity and values continuously. Differentiation: What makes these Fall Styles different or better than competitors? The ad doesn't specify. Effect on Ad Performance: Reduced Engagement: Without emotional appeal or a clear value proposition, the ad might not capture attention or resonate with viewers, leading to lower engagement rates. Lower Conversion Rates: Without urgency, viewers might not feel compelled to take immediate action, leading to lower conversion rates. Less Memorability: Without emotional triggers, the ad might be less memorable, meaning consumers might not recall the brand or offer later on. Broad Targeting: Without specifying a target audience, the ad might reach individuals who aren't interested in the offer, leading to wasted ad spend. Lower Click-Through Rates (CTR): Without a compelling reason to click, viewers might just scroll past. Lower Conversion Rates: Even if they do click, they might not be as motivated to purchase without clear value, differentiation, or emotional resonance. Less Retention: Without a clear connection or reason to remember the brand or offer, even those who click might forget about it shortly after. Ads Makeover Similar to the Nike Case Study, I will be using AdCreative.ai to generate "Ad Texts" instead of ad creatives to ensure consistency because the case study only features ad copies instead of ad creatives. Headline Options from "Extreme Ads Makeover" "The Reliability You've Been Looking For: Nike Air Monarch IV" "Exercise with Assurance: Proven Comfort & Durability" "Workout Shoes That Last: Step into a Legacy" "No Gimmicks. Just Proven Performance with Nike Air Monarch IV" "Tired of Trendy Shoes That Fail? Experience Monarch IV’s Timeless Design" "For the Ones Who Value Substance Over Style: Nike Air Monarch IV" "Ready for the Sneaker Game’s Best Kept Secret?" "Ever Felt the Heartbreak of Worn-Out Shoes Too Soon?" "Guess What’s Changing the Workout Shoe Game?" "Tired of Mediocre Sneakers Letting You Down?" "Envious of Premium Shoe Comfort Without the Price Tag?" "Stand Defiant Against Subpar Shoe Standards!" Headline Options from Adcreative.ai Using the "Ad Texts" feature, I generate some ad headlines using frameworks provided by AdCreative.ai One thing I noticed is that AdCreative.ai doesn't generate any ad headlines. Ad 1: Using the GATE Framework to generate the ad Experience ultimate performance and comfort with the Nike Air Monarch IV Men's Workout Shoes. Designed to meet the needs of fitness enthusiasts like you, these shoes are a game-changer. Don't wait any longer, shop now and unleash your true potential! Facebook Ad: Since AdCreative.ai doesn't generate a headline, I'll leave the "Headline" field blank. As a result, the CTA in the ad just doesn't appear to resonate and amplify the ad message. Ad 2: Using the AIDA Framework (Attention, Interest, Desire, Action) Ready to crush your fitness goals? Step up your game with the Nike Air Monarch IV Men's Workout Shoes. Designed with your performance and comfort in mind, these shoes are a must-have for every fitness enthusiast. Shop now and unleash your full potential! Facebook Ad: Ad 3: Using the PAS Formula (Pain-Agitate-Solution) "Looking for high-performance workout shoes? Look no further! Introducing the Nike Air Monarch IV Men's Workout Shoes. Designed with fitness enthusiasts in mind, these shoes provide unparalleled support and comfort. With a sleek design and cushioned sole, they'll keep you going strong during any workout. Don't wait, shop now and take your fitness to the next level!" Facebook Ad: Ad 4: Using BAB Formula (Before-After-Bridge Style) Struggling to find the perfect workout sh

oes? Introducing the Nike Air Monarch IV Men's Workout Shoes. Designed for performance and comfort, these shoes are a game-changer. Shop Now and experience the support and stability you need to crush your fitness goals! Facebook Ad: Ad 5: Using FAB Formula (Feature-Advantage-Benefit Style) "Maximize your workout performance with the Nike Air Monarch IV Men's Workout Shoes. Designed for fitness enthusiasts, these shoes provide the perfect combination of comfort and support. With their sleek design and cushioned sole, you'll stay comfortable and stable during any exercise. Shop now and take your fitness to the next level!" Facebook Ad: Ad 6: Using 4C's Principle (Clear, Concise, Compelling, Credible) Step up your workout game with the Nike Air Monarch IV Men's Workout Shoes. Designed for performance and comfort, these shoes will support you during all types of exercises. Get the stability you need to reach your fitness goals. Shop Now! Facebook Ad: Ad 7: Using SLAP Method (Stop, Look, Act, Purchase) Act now and gear up for success with the Nike Air Monarch IV Men's Workout Shoes. Engineered for fitness enthusiasts like you, these shoes deliver unparalleled support and stability. Don't settle for anything less, shop now! Ad 8: Using QUEST method (Qualify, Understand, Educate, Stimulate, Transition) Take your fitness journey to the next level with the Nike Air Monarch IV Men's Workout Shoes. Engineered for support and stability, these shoes are a must-have for any fitness enthusiast. Shop now and conquer your workouts. Facebook Ad: Ad 9: Using KISS Principle (Keep It Simple and Straightforward) Calling all fitness enthusiasts! The Nike Air Monarch IV Men's Workout Shoes are here to revolutionize your workout experience. With their sleek design and cushioned sole, these shoes offer unparalleled comfort and support. Shop now and take your fitness to the next level! Facebook Ad: Ad 10: Using PPPP Formula (Picture-Promise-Prove-Push) Elevate your workout experience with the Nike Air Monarch IV Men's Workout Shoes. Designed to deliver performance and comfort, these shoes will help you maximize your fitness results. Featuring a sleek design and cushioned sole, these shoes provide optimal support and stability for all your fitness activities. Take your fitness game to the next level. Shop now and step up your performance with the Nike Air Monarch IV Men's Workout Shoes. Facebook Ad: Ad 11: Using OATH Formula (Old-Annoyed-Thorough-Hesitant) Attention fitness enthusiasts! Elevate your workout experience with the Nike Air Monarch IV Men's Workout Shoes. Designed for performance and comfort, these shoes offer a sleek design and a cushioned sole that provides optimum support and stability. Don't settle for anything less - shop now and seize your fitness goals! Facebook Ad: Ad 12: Using PAIS Formula (Problem-Agitate-Invalidate-Solve) "Attention fitness enthusiasts! Discover the ultimate workout companion - the Nike Air Monarch IV Men's Workout Shoes. Engineered for performance and designed for comfort, these shoes will revolutionize your exercise routine. Experience unparalleled support and stability with their sleek design and cushioned sole. Don't wait any longer. Shop now and take your fitness journey to new heights with the Nike Air Monarch IV Men's Workout Shoes." Facebook Ad: Body Copy Options from "Extreme Ads Makeover" "Step into a realm where simplicity reigns supreme. The Nike Air Monarch IV is the culmination of decades of commitment to lasting comfort and trusted durability. Perfectly designed for the man who values practicality. Order a half size up for a perfect fit. Plus, enjoy free standard shipping for orders over $50. Don’t just take our word for it, read our glowing reviews." Models Used: Capability (Does, True), Proof (Credibility, Social Proof), Numbers (Price, Free, Shipping), Time (N

ow). "Longing for a shoe that matches your lifestyle? Meet the Nike Air Monarch IV. Its no-frills design is crafted for men who appreciate reliability in every stride. Lightweight, supportive, and crafted for the long haul. Fits small, consider ordering half a size larger." Models Used: Relationships (Avatar), Imagery (Visual), Capability (Is, Does), Numbers (Savings, Size), Time (Now). "Embrace a workout companion that shares your values. The Nike Air Monarch IV is synonymous with long-term comfort, resilience, and unadorned efficiency. Dive into the legacy of trust and ensure every step is backed by Nike’s promise. Recommendation: Go half a size up for unmatched comfort." Models Used: Relationships (Your customer), Imagery (Kinesthetic), Emotions (Trust), Capability (Is, Ensure), Time (Now). "Reject fleeting trends. With the Nike Air Monarch IV, you're investing in a legacy of uncompromising comfort and steadfast durability. Built for the genuine man leading an active life. Consider ordering a half size up for a snug fit." Models Used: Relationships (Avatar), Emotions (Rejection, Trust), Capability (Is, Built), Time (Now). "Choosing Nike Air Monarch IV means choosing a timeless design that doesn't fade with trends. A shoe that understands your need for relentless comfort and unwavering quality. Get yours and be part of a lineage that values genuine performance. Tip: It fits slightly small; order a half size up." Models Used: Relationships (Your customer, Avatar), Emotions (Trust, Desire), Capability (Means, Understands), Time (Now). "Don't settle for style without substance. The Nike Air Monarch IV offers the stability, durability, and comfort that the modern man craves. Wear it daily, wear it proudly. Ordering tip: Runs a tad snug, so order half a size up for a fit that's just right." Models Used: Relationships (Your customer, Avatar), Emotions (Pride), Capability (Offers, Wear), Time (Now), Numbers (Size). "Yo, you think you've seen it all in sneakers? Think again! Dive into the anticipation of unmatched performance with the Nike Air Monarch IV. Don't be the last to catch on to the next big thing in durability and comfort. And here’s a promise: You're about to experience a sneaker revolution. Note: They run small, bro – cop a half size up!" Models Used: Emotions (Anticipation, Surprise), Types of Statements (Question), Future (Promise), Language Devices (Slang), Shame (Stupidity), Capability (Does), Numbers (Size). "Ever felt that sinking feeling of a shoe giving up on you? We get the tragedy. It's time for a sneaker that doesn't leave you high and dry. The Nike Air Monarch IV promises not just comfort, but a future where sadness over shoes is history. Question is, are you ready for the change? Heads up: Sizing’s a bit tight – go half a size up." Models Used: Emotions (Sadness, Anticipation), Types of Statements (Question), Future (Promise), Language Devices (Tragedy), Shame (Vulnerability), Capability (Does), Numbers (Size). "Surprise! Thought all workout shoes were the same? The Nike Air Monarch IV is here to shatter that myth. For those tired of the usual, anticipate a shift in the sneaker paradigm. We predict you won’t just like them; you’ll be telling all your mates about ‘em. Pro tip: They’re snug, so size up a smidge!" Models Used: Emotions (Surprise, Anticipation), Types of Statements (Question), Future (Prediction), Language Devices (Slang), Shame (Stupidity), Capability (Is), Numbers (Size). "Had enough of shoes that just don’t cut it? Feel the anger when they wear out way before their time? If you're sick of the usual tragedies in the sneaker world, the Nike Air Monarch IV has got your back. This ain't just another shoe; it's a revolt against the mundane. Warning: Be ready to be the envy of every gym-goer. Side note: They fit like a glove, so snag a half size up!" Models Used: Emotions (Anger, Envy, Disgust),

Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat), Numbers (Size). "Ever looked at someone’s sneakers and felt that sting of envy? If you want shoes that get everyone green with jealousy, Nike Air Monarch IV is the way to go. The tragedy of settling for less ends here. Warning: Once you lace these up, going back to your old kicks might just feel like a defeat. Yo, and remember, these bad boys run a bit snug - you know what to do." Models Used: Emotions (Envy, Disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat), Numbers (Size). "Say no to mediocre. Stand defiant and choose a shoe that matches your spirit. If you’re fed up with the disgust of the same old, same old, Nike Air Monarch IV is your war cry. But here’s a warning: Once you experience this level of defiance in footwear, there's no going back. FYI: For a winning fit, upsize a tad!" Models Used: Emotions (Defiance, Disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang), Shame (Defeat), Numbers (Size). Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: Shoe Targeted audience: Target with interest in Nike Placement: News Feed Optimization: Optimized for Traffic Adset for "Extreme Ads Makeover" Adset for AdCreative.ai Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers for "Extreme Ads Makeover" (EAM) Ad budget: $15.80 Total Impressions: 2,869 Total Reach: 2,569 Total Clicks: 38 Cost Per Click (CPC): $0.42 CTR (all): 1.32% Campaign Numbers for "AdCreatives" Ad budget: $15.26 Total Impressions: 2,531 Total Reach: 2,216 Total Clicks: 27 Cost Per Click (CPC): $0.57 CTR (all): 1.07% Campaign Verdict ❌ Ad budget: EAM has 3.5% more budget than AdCreative.io ✅ Total Impressions: EAM has 13% more impressions than AdCreative.io ✅ Total Reach: EAM has 16% more reaches than AdCreative.io �� Total Clicks: EAM has 41% more clicks than AdCreative.io ✅ Cost Per Click (CPC): EAM's CPC is 36% cheaper than AdCreative.io ✅ CTR (all): EAM has 23% higher than AdCreative.io Ad results Reach and Impressions: The maximum reach in Dataset 1 (EAM) is 585, while in Dataset 2 (Adcreative) it's 575. The maximum number of impressions in Dataset 1 is 611, and in Dataset 2 it's 628. Amount Spent: The highest amount spent in Dataset 1 is $3.46, while in Dataset 2 it's slightly more at $3.58. Cost Per 1,000 Impressions (CPM): Dataset 1 has CPM values ranging from 2.63 to 6.45, with an average around 5.5. Dataset 2's CPM values are between 5.26 and 8.74, with an average around 6. This indicates that, on average, the cost of reaching 1,000 people is slightly higher for Adcreative than for Nike. Link Clicks: The highest link clicks recorded in Dataset 1 is 12, whereas in Dataset 2 it's 5. This suggests that ads in Dataset 1 are potentially more engaging or better targeted. Cost Per Link Click (CPC): Dataset 1 has a CPC range of 0.24 to 0.90, while Dataset 2 ranges from 0.20 to 1.63. Dataset 2 seems to have a more varied range, with some ads being more cost-effective than others. Ad #6 from Dataset 2 has the lowest CTR of $0.20 (17% lower than that of from "Extreme Ads Makeover" Click-Through Rate (CTR): The CTR in Dataset 1 varies between 0.61% to 2.73%, while Dataset 2 has a range from 0.38% to 3.28%. This shows that some ads in Dataset 2 have a higher engagement rate than those in Dataset 1, though the range is broader. Ad #6 from Dataset 2 has the highest CTR of 3.28% Summary

Deciding on the preferred dataset depends on the business objectives and key performance indicators (KPIs). Here's a breakdown: If the objective is higher engagement: Dataset 1 (Extreme Ads Makeover) has a maximum CTR of 2.73% and a maximum link click of 12, indicating that some of its ads are potentially more engaging than those in Dataset 2. If cost-effectiveness is a priority: Dataset 1 has a slightly lower average CPM compared to Dataset 2, meaning it might be more cost-effective in terms of impressions. Additionally, some ads in Dataset 1 have lower CPC values. If the objective is to reach a broader audience: The maximum reach and impressions are somewhat comparable between the two datasets. However, Dataset 1 has a slightly higher maximum reach. Given these considerations: For higher engagement and cost-effectiveness: Dataset 1 (Extreme Ads Makeover) may be preferred. Winning Ads: If the goal is to get maximum reach and impressions, For "Extreme Ads Makeover", 'Headline 6' is the top performer. Ad: "Don't settle for style without substance. The Nike Air Monarch IV offers the stability, durability, and comfort that the modern man craves. Wear it daily, wear it proudly. Ordering tip: Runs a tad snug, so order half a size up for a fit that's just right." Total Impressions: 611 Total Reach: 585 Clicks: 12 CPC: $0.29 CTR: 1.96% For AdCreatives, ad #8 using QUEST framework stands out Ad: Take your fitness journey to the next level with the Nike Air Monarch IV Men's Workout Shoes. Engineered for support and stability, these shoes are a must-have for any fitness enthusiast. Shop now and conquer your workouts. Total Impressions: 628 Total Reach: 575 Clicks: 5 CPC: $0.72 CTR: 0.80% The verdict Ad #6 from "Extreme Ads Makeover" is the winner. ✅ 140% More clicks ✅ 148% cheaper in CPC ✅ 145% higher in CTR If the objective is to get the lowest clicks, For "Extreme Ads Makeover" (EAM), 'Headline 3' stands out. Ad: "Embrace a workout companion that shares your values. The Nike Air Monarch IV is synonymous with long-term comfort, resilience, and unadorned efficiency. Dive into the legacy of trust and ensure every step is backed by Nike’s promise. Recommendation: Go half a size up for unmatched comfort." Total Impressions: 110 Total Reach: 102 Clicks: 3 CPC: $0.24 CTR: 2.73% For AdCreative.ai, Ad #6 using the 4C framework stands out. Ad: "Struggling to find the perfect workout shoes?Introducing the Nike Air Monarch IV Men's Workout Shoes. Designed for performance and comfort, these shoes are a game-changer.Shop Now and experience the support and stability you need to crush your fitness goals!" Total Impressions: 122 Total Reach: 116 Clicks: 4 CPC: $0.20 CTR: 3.28% The verdict Ad #6 from AdCreative is the winner ✅ 17% lower in CPC compared to that of EAM ✅ 20% higher in CTR compared to that of EAM Takeaways/Insights In the overall campaign, the winner is from Extreme Ads Makeover Ad #6 from "Extreme Ads Makeover" wins by a huge margin (triple-digit margins) ✅ 140% More clicks ✅ 148% cheaper in CPC ✅ 145% higher in CTR Meanwhile, one of the ads from Adcreative.ai wins as the lowest CPC (17% cheaper & 20% higher in CTR). This campaign is not entirely fair for Adcreative because it doesn't get to use its feature to generate ad creatives. However, when they bill themself as "Implement AI in your ads", I expect better than this. As you realize, even AdCreative with AI capability still loses the performance battle to a triple-digit margin. Next Step If you are using AdCreative.ai to generate your ads and need a second-opinion to improve ads generated by AdCreative, order my "Second Opinion" package below. https://michaelnguyen.me/extreme-ads-makeover-adcreative-part1/?feed_id=382&_unique_id=6516f9e6e557e

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michaelnguyendotme · 2 years ago

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In this series of "Extreme Ads Makeover", I will be tearing down ads of Natural Made ads and have them completely remodeled to have better targeting and ROI. Check out more ad makeover case studies such as Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. About Nature Made Nature Made is a leading dietary supplement brand in the United States. It was founded in 1971 and is the #1 Pharmacist Recommended Vitamin and Supplement brand in nine product segments. Nature Made products are manufactured in the United States and are verified by the United States Pharmacopeia (USP), an independent third party that verifies products that meet stringent quality criteria for purity and potency. About Nature Made's marketing agency The current marketing agency for Nature Made is Leo Burnett Chicago. They have been the agency of record for Nature Made since 2021. Leo Burnett is a global advertising agency with offices in over 90 countries. They have a long history of working with major brands, including Coca-Cola, McDonald's, and Nike. In 2023, Leo Burnett Chicago created a new marketing campaign for Nature Made called "The Start of Something Great." The campaign features a 30-second ad spot that showcases the ways vitamins can impact day-to-day activities, like time spent with loved ones. The ad spot has been running on TV, online, and in print. About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Nature Made ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Magnesium Gummy Landing page: https://www.naturemade.com/products/magnesium-citrate-gummies Facebook Ads: The Nature Made team created one ad set to promote. Ad set #1 (see link) Analysis I am disappointed to see the lack of effort in promoting the Magnesium Gummy from Nature Made when there is only one control ad. Moreover, the Nature Made team doesn't even bother to add any headlines & ad copies to emphasize, educate, entertain, or interact with the prospective buyers in their ads. Instead, they jumped to the call-to-action "Get your daily vitamins..." with a BIG assumption that people are already familiar with the brands and the product. Unless the Nature Made team does a retargeting campaign focusing on existing buyers who already bought and knew the brand, this campaign will have a tough time "entering the existing conversation" of prospective buyers. Here are the disadvantages when having only one control ad: Lack of A/B Testing Limited Insights: With only one ad, you won't be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren't. Targeting Limitations Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities. Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover) Creativity and Message Fatigue Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect.

Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility. Risk Management Higher Risk: If your one ad doesn't perform well, you don't have other ad sets to fall back on. This all-or-nothing approach can be riskier. Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility. Optimization Challenges Limited Learning: If your single ad isn't performing well, it's harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize. Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can't take advantage of this feature. Data and Analytics Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics. Attention: If you had multiple product lines and currently ran paid ads, there's a 97% chance that you had less than 3 ads based on my experiences of remodeling ads from Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. Maybe you are perfectly okay with one control ad and burn your ad budget without ROI. But if you would like to have a second-opinion ads critique so that you can see the gaps and areas where you can extract MORE juice out of your ads, click on the link below to have me critique your ads. Gaps Analysis The Landing Page (see link ) Audience avatar: I don't know exactly what the avatar Nature Made is targeting for this offer. By analyzing the landing page, here's what I think the avatar Nature Made is targeting: Meet Emily, a 35-year-old working professional who is health-conscious but has a hectic lifestyle that makes it challenging to maintain a balanced diet. She's gluten-sensitive and prefers natural products. Emily is already on medication for a minor health condition and is cautious about adding new supplements to her regimen. She's been advised by her healthcare provider to increase her Magnesium intake. Emily loves fruity flavors and hates swallowing pills, making her the perfect candidate for Nature Made® High Absorption Magnesium Citrate Gummies. Unlike the approach I used to analyze Chase Bank, for Nature Made, I think their landing page is quite decent. Any additional improvement can lead to a marginal result. Meanwhile, a huge improvement can be made from the ad creatives. As a result, I'll use my 17 analysis model to come up with 9 different ad angles. Ads Makeover Here's the disease that most marketing agencies and businesses running paid ads: "They think they've tested 20 ads but they really just tested 2 ads 10 different times." The best analogy for this is if you play the game "Battleship". Battleship is a strategy-type guessing game for two players. It is played on ruled grids (paper or board) on which each player's fleet of warships are marked. The locations of the fleets are concealed from the other players. Players alternate turns calling "shots" at the other player's ships, and the objective of the game is to destroy the opposing player's fleet. Using the context of the Battleship game, the fact that you just tested 2 ads 10 different times is like you are calling "shots" for the same spot 10 different times at the other player's ships. The lack of ideas for ad angles is making your ads dull and boring and ultimately leads to ad fatigue. Using the proprietary Bionic Framework leveraging 17-layer analysis to come up with ad ideas touching different aspects of human relationships, fears, shame, language structures, and pop culture rather than the boring feature/benefit-driven ads that most marketing agencies default to.

Next is the fun part where i am going to do a makeover on Nature Made's existing Magnesium Gummy ad by coming up with 9 new ads. Headline Options "Unlock Wellness On-the-Go with Nature Made® Magnesium Gummies!" "No Time for Pills? Try Nature Made® Magnesium Gummies!" "Elevate Your Health Without Slowing Down!" "Nature Made®: The Busy Professional's Secret to Balanced Health!" "Get Your Daily Dose of Relaxation, No Pills Required!" "Say Goodbye to Stress, the Nature Made® Way!" "Tired of Being Defeated by Pills? Take Control with Nature Made®!" "Don't Let Your Health Routine Make You Angry—Switch to Nature Made® Gummies!" "Envious of Easy Wellness Routines? Make Them Green with Nature Made®!" Body Copy Options Body Copy 1 We get it. You're a busy professional juggling a lot but still committed to your health. Meet Nature Made® Magnesium Citrate Gummies, your new best friend in wellness. Imagine the relief of not having to swallow another pill, but instead, savoring a delicious mixed berry gummy that's gluten-free and all-natural. Feel the joy and anticipation as you elevate your health without compromising your lifestyle. "Why didn't I find this sooner?" you'll ask. Act now and secure this game-changer for your health regimen. Recommended by pharmacists and approved by healthcare providers. Limited offer: Subscribe and save 10% + Free Shipping! Models Applied: Relationships, Imagery (Visual, Kinesthetic), Emotions (Joy, Anticipation), Statements, Time (Present, Future), Towards/Away From (Desire), Future (Promise), Capability (Can), Proof (Credibility, Social Proof), Numbers (50% off), Language Devices (Questions), Direct Marketing Offers (% Discount). Body Copy 2 Are you tired of the pill-swallowing routine? Nature Made® Magnesium Citrate Gummies are here to revolutionize your health journey. Visualize a stress-free life, powered by these delicious, gluten-free gummies. Feel the ecstasy of making a smart choice that aligns with your values and lifestyle. "A small change for a big impact," says our satisfied customer Jane. Hurry, offer ends soon! Models Applied: Relationships, Imagery (Visual), Emotions (Ecstasy), Types of Statements (Quotation), Time (Present), Towards/Away From (Desire), Future (Warning), Capability (Are), Proof (Personal Endorsement), Numbers (Ends soon), Language Devices (Quotation), Direct Marketing Offers (Deadline). Body Copy 3 Imagine a world where your health supplements don't feel like a chore. That's what Nature Made® Magnesium Citrate Gummies offer. Listen to the sound of stress melting away as you chew these fruity, gluten-free delights. Feel the courage and determination to take on the day, every day. "It's like a mini-vacation in a bottle," says wellness guru Sarah. Act now, and we'll throw in a free consultation with a healthcare professional. Models Applied: Relationships, Imagery (Auditory), Emotions (Courage, Determination), Types of Statements (Quotation), Time (Present), Towards/Away From (Both), Future (Promise), Capability (Will), Proof (Personal Endorsement, Credibility), Numbers (Free), Language Devices (Quotation), Direct Marketing Offers (Consultation). Body Copy 4 Are you ready to defy the odds and take control of your health? With Nature Made® Magnesium Citrate Gummies, you can. Feel the love and compassion we've poured into creating a gluten-free, all-natural supplement just for you. "This is the future of health supplements," declares Dr. Smith. Don't miss out; your future self will thank you. Models Applied: Relationships, Imagery (Kinesthetic), Emotions (Love, Compassion), Types of Statements (Declaration), Time (Present, Future), Towards/Away From (Both), Future (Promise), Capability (Can), Proof (Credibility), Numbers (None), Language Devices (Declaration), Direct Marketing Offers (None). Body Copy 5 How would you like to turn your daily health routine into a delightful experience? Nature Made® Magnesium Citrate Gummies make it possible.

Savor the mixed berry flavor as you chew your way to better health. Feel the joy and generosity in every bite. "It's a game-changer," says Emily, another satisfied customer. Limited offer: Subscribe and save 10% + Free Shipping! Models Applied: Relationships, Imagery (Visual, Kinesthetic), Emotions (Joy, Generosity), Types of Statements (Questions), Time (Present), Towards/Away From (Desire), Future (Promise), Capability (Make), Proof (Personal Endorsement), Numbers (30-day), Language Devices (Questions), Direct Marketing Offers (Money-back guarantee). Body Copy 6 What if you could get all the Magnesium you need without adding another pill to your day? Nature Made® Magnesium Citrate Gummies are your answer. Picture this: A gluten-free, all-natural gummy that fits seamlessly into your busy life. Feel the anticipation and elegance as you uncap the bottle. "It's not just a supplement; it's a lifestyle," says health expert Mark. Subscribe and save 10% + Free Shipping! Models Applied: Relationships, Imagery (Visual), Emotions (Anticipation, Elegance), Types of Statements (Questions), Time (Present), Towards/Away From (Desire), Future (Promise), Capability (Could), Proof (Personal Endorsement), Numbers (20%), Language Devices (Questions), Direct Marketing Offers (% Discount). Body Copy 7 If you're sick of the tragic defeat of swallowing pills, it's time for a change. Nature Made® Magnesium Citrate Gummies are the real deal. Feel the anger turn into defiance as you take control of your health. "Don't get played by pills," warns fitness coach Mike. Act now, or forever hold your peace! Models Applied: Relationships, Emotions (Anger, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang, Tragedy), Shame (Defeat). Body Copy 8 If you're disgusted by the synthetic junk in most supplements, we've got your back. Nature Made® Magnesium Citrate Gummies are as natural as they come. Feel the disgust turn into defiance as you say no to artificiality. "Don't let fake stuff mess with you," warns nutritionist Lisa. Time's ticking, so make your move! Models Applied: Relationships, Emotions (Disgust, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang), Shame (Defeat). Body Copy 9 If you're envious of people who effortlessly maintain their health, your time has come. Nature Made® Magnesium Citrate Gummies are the game-changer you've been waiting for. Feel the envy turn into defiance as you level up your wellness game. "Don't get left in the dust," warns health influencer Tom. Miss this, and you'll regret it! Models Applied: Relationships, Emotions (Envy, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang), Shame (Defeat). Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: Magnesium Gummy Targeted audience: Target with interest in Nature Made (who else is better than prospects already interested in Nature Made?) Placement: News Feed Optimization: Optimized for Traffic Here are all the 9 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $12.71 Total Impressions: 1,845 Total Reach: 1,637 Total Clicks: 44 Cost Per Click (CPC): $0.29 CTR (all): 2.38% Ad results Summary Reach and Impressions: "Headline 7" has the highest reach and impressions, indicating that it was the most viewed ad among the list.

"Headline 1" has the lowest reach and impressions, suggesting it was the least viewed. Frequency: Most ads have a frequency close to 1, which means most of the audience saw the ad only once. "Headline 9" has the highest frequency at 1.16, indicating that on average, the audience saw this ad a little more than once. Amount Spent: The highest amount was spent on "Headline 7", which correlates with its high reach and impressions. The least amount was spent on "Headline 1", which also had the lowest reach. CPM (Cost Per 1,000 Impressions): "Headline 8" has the highest CPM, suggesting it might be more expensive to reach the same number of people compared to other ads. "Headline 1" has the lowest CPM, making it the most cost-effective in terms of impressions. Link Clicks: Both "Headline 7" and "Headline 6" have the highest number of link clicks, indicating they were the most engaging or had the most compelling call-to-action. "Headline 1" did not register any link clicks. CPC (Cost Per Link Click): "Headline 9" and "Headline 3" have the lowest CPC, making them the most cost-effective in terms of driving user actions. "Headline 8" and "Headline 2" have a higher CPC compared to others. CTR (Link Click-Through Rate): "Headline 9" has the highest CTR, indicating that it was the most effective in terms of getting users to click on the ad relative to its impressions. "Headline 5" has the lowest CTR, suggesting it was less effective in this regard. In summary, while "Headline 7" had the highest reach and impressions, "Headline 9" was the most effective in terms of engagement, with the highest CTR and one of the lowest CPCs. On the other hand, "Headline 1" seems to be the least effective across multiple metrics. Advertisers should consider these insights when planning future campaigns and optimizing their ad content. Analytics: Winning Ads: If the goal is to get maximum reach and impressions, 'Headline 7' is the top performer. Headline: "Tired of Being Defeated by Pills? Take Control with Nature Made®!" Ad body: If you're sick of the tragic defeat of swallowing pills, it's time for a change. Nature Made® Magnesium Citrate Gummies are the real deal. Feel the anger turn into defiance as you take control of your health. "Don't get played by pills," warns fitness coach Mike. Act now, or forever hold your peace! Models Applied: Relationships, Emotions (Anger, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang, Tragedy), Shame (Defeat). Total Impressions: 557 Total Reach: 506 Clicks: 10 CPC: $0.37 CTR: 1.8% If the objective is to get the most clicks at the lowest cost, 'Headline 9' stands out. Headline: "Envious of Easy Wellness Routines? Make Them Green with Nature Made®" Ad Body: If you're envious of people who effortlessly maintain their health, your time has come. Nature Made® Magnesium Citrate Gummies are the game-changer you've been waiting for. Feel the envy turn into defiance as you level up your wellness game. "Don't get left in the dust," warns health influencer Tom. Miss this, and you'll regret it! Models Applied: Relationships, Emotions (Envy, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang), Shame (Defeat). Total Impressions: 145 Total Reach: 125 Clicks: 7 CPC: $0.16 CTR: 4.83% Takeaways/Insights So in this thorough case study, I extensively analyze, examine, and audit Nature Made's ads relating to the Magnesium Gummies, then come up with new ad ideas based on 17 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the wi

nning ad. Use bundling to increase the AOV instead of one bottle. For ex, Nature Made can offer a bundle of 3 bottles or 6 bottles. My assumption is the buyer can stay subscribed for 3 months. With my Churn Buster Kit system, we can stretch the longevity to 20-50%. Having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get "stuck" with boring and mediocre "features & benefits" angle. Ideas & creatives are the name of the game. As you notice the top 3 winning ads, I introduced a "Shame" element in those ads to bring up the "defeat" emotion (a very complex emotion) as an angle. The result speaks for itself that those 3 ads are winners I'd recommend Nature Made create more ad angles for each of their products. The path of "Extreme Ads Makeover" doesn't stop and should be continuously evolving with the market. What-If Revenue Impact Analysis What If Nature Made went ahead and ran another campaign based on what i suggested below, what would be the revenue impact? Let's make some assumptions: The conversion rate is 1% (given the normal conversion rate of 2%) The price of a subscription for one bottle of Magnesium Citrate Gummies is $20.33 Double down on the winning ad by increasing the number of clicks on winning ads to 10,000 clicks (Cost = 10,000 clicks x $0.16 = $1,600) Let's calculate the potential revenues Assuming a buyer would stay subscribed for an average of 3 months. At 0.5% conversion rate, 10,000 x 0.5% = 50 buyers signed up Revenue = 50 x $20.33/mo x 3 months = $3050 ROI = 91% ($3050- $1,600) / $1,600 At 1% conversion rate, 10,000 x 1% = 100 buyers signed up Revenue = 100 x $20.33/mo x 3 months = $6,099 ROI = 2,811% ($6,099- $1,600) / $1,600 At 2% conversion rate, 10,000 x 2% = 200 merchants signed up Revenue = 200 x $20.33/mo x 3 months = $12,198 ROI = 6,624% ($12,198- $1,600) / $1,600 Next Step Double down on the winning ad and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I've used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That's why I want to introduce the... "Second Opinion" Package If you are a 7-figure business owner and already run paid ads and need someone to critique your ads for a potential makeover, go ahead and order my "Second Opinion" package. https://michaelnguyen.me/extreme-ads-makeover-natural-made/?feed_id=374&_unique_id=64fe3e831e841

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In this series of "Extreme Ads Makeover", I will be tearing down ads of Nike and have them completely remodeled to have better targeting and ROI. Check out more ad makeover case studies such as Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. About Nike Nike is the world's largest athletic footwear and apparel brand. It has seen steady growth since being founded in 1964. In 2021, Nike reported annual revenues of $44.5 billion, up 19% from the previous year. Net income was $5.7 billion in 2021. Nike has an estimated 100,000 employees globally. The Nike app and website have over 100 million members. Nike products are sold in over 190 countries through wholesale customers, Nike-owned stores, and ecommerce. Nike continues to dominate the athletic footwear and apparel market through product innovation, brand recognition, and celebrity/athlete endorsements. About Nike's marketing agency Nike handles most of its marketing in-house, though it does work with some external agencies for certain projects and campaigns. Some key facts about Nike's marketing: In-house marketing team: Nike has an internal Global Marketing team based out of its headquarters in Beaverton, Oregon that handles core marketing functions. Some key agencies: While Nike relies mostly on internal staff, they have collaborated with agencies like Wieden+Kennedy, Mindshare, AKQA, and R/GA on various initiatives over the years. About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Nike's ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Training shoe Landing page: https://www.nike.com/t/air-monarch-iv-mens-training-shoes-G5Xn1k/415445-001 Facebook Ads: The Nike team created one ad set to promote. Ad set #1 (see link) Analysis While Nike is a powerhouse in shoe and has already achieved its status as a household name, the increasing competition from brands like Adidas, Under Armour and Lululemon should be taken seriously because any mistake like the above ad creates an opportunity for Nike's competitors to sneak in and steal market shares. As you probably read other "Extreme Ads Makeover" cases, I loathe having one ad. Here are the disadvantages when having only one control ad: Lack of A/B Testing Limited Insights: With only one ad, you won't be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren't. Targeting Limitations Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities. Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover) Creativity and Message Fatigue Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect. Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility.

Risk Management Higher Risk: If your one ad doesn't perform well, you don't have other ad sets to fall back on. This all-or-nothing approach can be riskier. Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility. Optimization Challenges Limited Learning: If your single ad isn't performing well, it's harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize. Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can't take advantage of this feature. Data and Analytics Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics. As a global brand like Nike, I am in shock when there's only one ad created to promote this popular training shoe. Moreover, the Nike team doesn't add any headlines & ad copies to emphasize, educate, entertain, or interact with the prospective buyer. I am sure there are many angles to talk about this training shoe but what I saw is the generic CTA "Shop Fall styles to start fresh and members get free shipping on orders $50+." as if this ad is printed from a catalog. For example, Adidas's ad TERREX Free Hiker 2 at least takes the time to educate prospective shoppers that the TERREX helps them tackle the trails and enjoy moments of adventure. Every opportunity to showcase your product counts. But Nike didn't take the time to maximize this opportunity and waste the ads money. Attention: If you had multiple product lines and currently ran paid ads, there's a 97% chance that you had less than 3 ads based on my experiences of remodeling ads from Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. Maybe you are perfectly okay with one control ad and burn your ad budget without ROI. But if you would like to have a second-opinion ads critique so that you can see the gaps and areas where you can extract MORE juice out of your ads, click on the link below to have me critique your ads. Gaps Analysis The Landing Page (see link ) Audience avatar: By analyzing the landing page, here's what I think the avatar Nike is targeting for this shoe is: A middle-aged, likely male shopper seeking affordable, durable workout shoes. This customer leads an active lifestyle and values proven comfort and functionality over style. They want a shoe that will hold up to regular use for exercise or daily wear. Brand trust in Nike and word-of-mouth drive purchase decisions rather than trendiness. The marketing and reviews focus on long-term comfort, durability and a basic, simple design. Defects like squeaking and poor fit are major frustrations. Overall, the Monarch IV caters to male buyers around 30-50 seeking no-frills workout shoes they can rely on long-term. I will keep Nike's landing page the same. because any additional improvement can lead to a marginal result. Meanwhile, a huge improvement can be made from the ad creatives. Ads Makeover Here's the disease that most marketing agencies and businesses running paid ads: "They think they've tested 20 ads but they really just tested 2 ads 10 different times." The best analogy for this is if you play the game "Battleship". Battleship is a strategy-type guessing game for two players. It is played on ruled grids (paper or board) on which each player's fleet of warships is marked. The locations of the fleets are concealed from the other players. Players alternate turns calling "shots" at the other player's ships, and the objective of the game is to destroy the opposing player's fleet. Using the context of the Battleship game, the fact that you just tested 2 ads 10 different times is like you are calling "shots" for the same spot 10 different times at the other player's ships.

The lack of ideas for ad angles is making your ads dull and boring and ultimately leads to ad fatigue. Using the proprietary Bionic Framework leveraging 17-layer analysis to come up with ad ideas touching different aspects of human relationships, fears, shame, language structures, and pop culture rather than the boring feature/benefit-driven ads that most marketing agencies default to. Here are possibilities for ad makeovers: Headline Options "The Reliability You've Been Looking For: Nike Air Monarch IV" "Exercise with Assurance: Proven Comfort & Durability" "Workout Shoes That Last: Step into a Legacy" "No Gimmicks. Just Proven Performance with Nike Air Monarch IV" "Tired of Trendy Shoes That Fail? Experience Monarch IV’s Timeless Design" "For the Ones Who Value Substance Over Style: Nike Air Monarch IV" "Ready for the Sneaker Game’s Best Kept Secret?" "Ever Felt the Heartbreak of Worn-Out Shoes Too Soon?" "Guess What’s Changing the Workout Shoe Game?" "Tired of Mediocre Sneakers Letting You Down?" "Envious of Premium Shoe Comfort Without the Price Tag?" "Stand Defiant Against Subpar Shoe Standards!" Body Copy Options "Step into a realm where simplicity reigns supreme. The Nike Air Monarch IV is the culmination of decades of commitment to lasting comfort and trusted durability. Perfectly designed for the man who values practicality. Order a half size up for a perfect fit. Plus, enjoy free standard shipping for orders over $50. Don’t just take our word for it, read our glowing reviews." Models Used: Capability (Does, True), Proof (Credibility, Social Proof), Numbers (Price, Free, Shipping), Time (Now). "Longing for a shoe that matches your lifestyle? Meet the Nike Air Monarch IV. Its no-frills design is crafted for men who appreciate reliability in every stride. Lightweight, supportive, and crafted for the long haul. Fits small, consider ordering half a size larger." Models Used: Relationships (Avatar), Imagery (Visual), Capability (Is, Does), Numbers (Savings, Size), Time (Now). "Embrace a workout companion that shares your values. The Nike Air Monarch IV is synonymous with long-term comfort, resilience, and unadorned efficiency. Dive into the legacy of trust and ensure every step is backed by Nike’s promise. Recommendation: Go half a size up for unmatched comfort." Models Used: Relationships (Your customer), Imagery (Kinesthetic), Emotions (Trust), Capability (Is, Ensure), Time (Now). "Reject fleeting trends. With the Nike Air Monarch IV, you're investing in a legacy of uncompromising comfort and steadfast durability. Built for the genuine man leading an active life. Consider ordering a half size up for a snug fit." Models Used: Relationships (Avatar), Emotions (Rejection, Trust), Capability (Is, Built), Time (Now). "Choosing Nike Air Monarch IV means choosing a timeless design that doesn't fade with trends. A shoe that understands your need for relentless comfort and unwavering quality. Get yours and be part of a lineage that values genuine performance. Tip: It fits slightly small; order a half size up." Models Used: Relationships (Your customer, Avatar), Emotions (Trust, Desire), Capability (Means, Understands), Time (Now). "Don't settle for style without substance. The Nike Air Monarch IV offers the stability, durability, and comfort that the modern man craves. Wear it daily, wear it proudly. Ordering tip: Runs a tad snug, so order half a size up for a fit that's just right." Models Used: Relationships (Your customer, Avatar), Emotions (Pride), Capability (Offers, Wear), Time (Now), Numbers (Size). "Yo, you think you've seen it all in sneakers? Think again! Dive into the anticipation of unmatched performance with the Nike Air Monarch IV. Don't be the last to catch on to the next big thing in durability and comfort. And here’s a promise: You're about to experience a sneaker revolution. Note: They run small, bro – cop a half size up!"

Models Used: Emotions (Anticipation, Surprise), Types of Statements (Question), Future (Promise), Language Devices (Slang), Shame (Stupidity), Capability (Does), Numbers (Size). "Ever felt that sinking feeling of a shoe giving up on you? We get the tragedy. It's time for a sneaker that doesn't leave you high and dry. The Nike Air Monarch IV promises not just comfort, but a future where sadness over shoes is history. Question is, are you ready for the change? Heads up: Sizing’s a bit tight – go half a size up." Models Used: Emotions (Sadness, Anticipation), Types of Statements (Question), Future (Promise), Language Devices (Tragedy), Shame (Vulnerability), Capability (Does), Numbers (Size). "Surprise! Thought all workout shoes were the same? The Nike Air Monarch IV is here to shatter that myth. For those tired of the usual, anticipate a shift in the sneaker paradigm. We predict you won’t just like them; you’ll be telling all your mates about ‘em. Pro tip: They’re snug, so size up a smidge!" Models Used: Emotions (Surprise, Anticipation), Types of Statements (Question), Future (Prediction), Language Devices (Slang), Shame (Stupidity), Capability (Is), Numbers (Size). "Had enough of shoes that just don’t cut it? Feel the anger when they wear out way before their time? If you're sick of the usual tragedies in the sneaker world, the Nike Air Monarch IV has got your back. This ain't just another shoe; it's a revolt against the mundane. Warning: Be ready to be the envy of every gym-goer. Side note: They fit like a glove, so snag a half size up!" Models Used: Emotions (Anger, Envy, Disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat), Numbers (Size). "Ever looked at someone’s sneakers and felt that sting of envy? If you want shoes that get everyone green with jealousy, Nike Air Monarch IV is the way to go. The tragedy of settling for less ends here. Warning: Once you lace these up, going back to your old kicks might just feel like a defeat. Yo, and remember, these bad boys run a bit snug - you know what to do." Models Used: Emotions (Envy, Disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat), Numbers (Size). "Say no to mediocre. Stand defiant and choose a shoe that matches your spirit. If you’re fed up with the disgust of the same old, same old, Nike Air Monarch IV is your war cry. But here’s a warning: Once you experience this level of defiance in footwear, there's no going back. FYI: For a winning fit, upsize a tad!" Models Used: Emotions (Defiance, Disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang), Shame (Defeat), Numbers (Size). Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: Shoe Targeted audience: Target with interest in Nike Placement: News Feed Optimization: Optimized for Traffic Here are all the 12 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $15.80 Total Impressions: 2,869 Total Reach: 2,569 Total Clicks: 38 Cost Per Click (CPC): $0.42 CTR (all): 1.32% Ad results Summary Reach and Impressions: 'Headline 6' has the highest reach with 585 and the highest impressions with 611. 'Headline 11' has the lowest reach with 55, and also the lowest impressions with 62. Amount Spent: 'Headline 6' had the highest amount spent at $3.46. 'Headline 11' had the least amount spent at $0.27. CPM (Cost per 1,000 Impressions): 'Headline 3' has the highest CPM at $6.45, indicating it's the most expensive ad per 1000 impressions.

'Headline 12' has the lowest CPM at $2.63. Link Clicks and CTR (Click-Through Rate): 'Headline 6' has the highest number of link clicks at 12. 'Headline 3' stands out with a CTR of 2.73%, making it the most effective ad in terms of engagement. 'Headline 10' has the lowest CTR at 0.61%. CPC (Cost per Link Click): 'Headline 10' has the highest CPC at $0.90. 'Headline 3' has the lowest CPC at $0.24, making it the most cost-effective ad in terms of link clicks. Ad Performance: 'Headline 6', despite not having the highest CPM, stands out with the highest reach and impressions. It also has a reasonable CTR and CPC, indicating a good balance between reach and cost-effectiveness. 'Headline 11' has the lowest reach, impressions, and amount spent. It might be worth investigating why this ad is underperforming compared to others. In conclusion, while 'Headline 6' reached the most people, 'Headline 3' was the most effective in terms of engagement and cost-effectiveness for link clicks. It's essential to consider both reach and engagement metrics when evaluating the performance of ads. Analytics: Winning Ads: If the goal is to get maximum reach and impressions, 'Headline 6' is the top performer. Headline: "For the Ones Who Value Substance Over Style: Nike Air Monarch IV" Ad body: "Don't settle for style without substance. The Nike Air Monarch IV offers the stability, durability, and comfort that the modern man craves. Wear it daily, wear it proudly. Ordering tip: Runs a tad snug, so order half a size up for a fit that's just right." Models Used: Relationships (Your customer, Avatar), Emotions (Pride), Capability (Offers, Wear), Time (Now), Numbers (Size). Total Impressions: 611 Total Reach: 585 Clicks: 12 CPC: $0.29 CTR: 1.96% If the objective is to get the most clicks at the lowest cost, 'Headline 3' stands out. Headline: "Workout Shoes That Last: Step into a Legacy" Ad Body: "Embrace a workout companion that shares your values. The Nike Air Monarch IV is synonymous with long-term comfort, resilience, and unadorned efficiency. Dive into the legacy of trust and ensure every step is backed by Nike’s promise. Recommendation: Go half a size up for unmatched comfort." Models Used: Relationships (Your customer), Imagery (Kinesthetic), Emotions (Trust), Capability (Is, Ensure), Time (Now). Total Impressions: 110 Total Reach: 102 Clicks: 3 CPC: $0.24 CTR: 2.73% Takeaways/Insights So in this thorough case study, I extensively analyze, examine, and audit Nike's ads relating to the workout shoe, then come up with new ad ideas based on 17 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the winning ad. Leveraging on the fact that Nike has been a household athletic shoe brand for years, the 2 winning ads dive deeper into the benefit of long-term properties of Nike like "legacy". For example: Ad 6: "For the Ones Who Value Substance Over Style: Nike Air Monarch IV" (Substance) Ad 3: "Workout Shoes That Last: Step into a Legacy" (Legacy) Ads 3 & 6 can be bred into a new ad with the dominating ad #6 because #6 has collected lots of reach, impressions, and clicks while #3 has a better edge in CPC & CTR. Surprisingly, shame-model ads such as 7, 8, and 9 aren't delivering this time. Despite their disappointing performance, I wouldn't write them off yet and would make the following adjustments such as: Identify a new group of audience who are more susceptible to the emotions triggered by the shame-model. Update the landing page to address the emotions from the shame model so that you can appear sympathetic to the affected groups of audiences. Having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges.

Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get "stuck" with boring and mediocre "features & benefits" angle. Ideas & creatives are the name of the game. I'd recommend Nike create more ad angles for each of their products. The path of "Extreme Ads Makeover" doesn't stop and should be continuously evolving with the market. What-If Revenue Impact Analysis What If Lexus went ahead and doubled down on ad #3 with the lowest CPC, what would be the revenue impact? Let's make some assumptions: The conversion rate is 1% (given the normal conversion rate of 2%) The shoe costs $75 Double down on ad #3 by increasing the number of clicks to 10,000 clicks (Cost = 10,000 clicks x $0.24 = $2,400) Let's calculate the potential revenues At 0.1% conversion rate, 10,000 x 0.1% = 10 shoppers purchased Revenue = 10 x $75 = $750 ROI = -69% ($750- $2,400) / $2,400) At 0.5% conversion rate, 10,000 x 0.5% = 50 shoppers purchased Revenue = 50 x $75 = $3750 ROI = 56% ($3750- $2,400) / $2,400) At 1% conversion rate, 10,000 x 0.1% = 100 shoppers purchased Revenue = 100 x $75 = $7500 ROI = 213% ($7500- $2,400) / $2,400) Next Step Double down on the winning ad and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I've used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That's why I want to introduce the... "Second Opinion" Package If you are a 7-figure business owner and already run paid ads and need someone to critique your ads for a potential makeover, go ahead and order my "Second Opinion" package. https://michaelnguyen.me/extreme-ads-makeover-nike/?feed_id=366&_unique_id=64fe3e5066f69

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michaelnguyendotme · 2 years ago

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In this series of "Extreme Ads Makeover", I will be tearing down ads of Home Depot and have them completely remodeled to have better targeting and ROI. Check out more ad makeover case studies such as Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. About Home Depot The Home Depot's annual revenue for 2023 was $157.403 billion, a 4.13% increase from 2022. The company's annual revenue for 2022 was $151.157 billion, a 14.42% increase from 2021. The Home Depot's annual gross profit for 2023 was $52.778 billion, a 3.83% increase from 2022. The company's annual gross profit for 2022 was $50.832 billion, a 13.33% increase from 2021. In 2022, the Home Depot had nearly 1.7 billion customer transactions worldwide. The company's revenue per employee ratio is $314,805. About Home Depot's marketing agency Home Depot's creative agency of record is BBDO. The Atlanta-based home improvement chain will work with BBDO on creative campaigns. Home Depot's media agency of record is OMD. OMD is part of the Omnicom Media Group and will handle both digital and traditional media buying and planning. Home Depot has also partnered with UniWorld Group, Inc. (UWG) for over 20 years. UWG was founded in 1969 to bridge the gap between brands and multicultural consumers. Home Depot has also worked with Porchlight, an Atlanta-based design studio that specializes in strategic and creative marketing solutions. - About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Home Depot's ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Handheld Blower Landing page: https://www.homedepot.com/p/Milwaukee-M18-FUEL-120-MPH-450-CFM-18-Volt-Lithium-Ion-Brushless-Cordless-Handheld-Blower-Tool-Only-2724-20/302752040 Facebook Ads: Ad Set #1 (link) Ad Set #2 (link) Analysis What I like: I like how Home Depot team goes beyond and creates 2 ads to promote the Milwaukee-M18 blower. It's a good start and having 2 ads allows you to see how each ad performs. Room for improvements: Despite having 2 ads, the message is still at the generic level and none of the 2 ads touches anything about the joy, desire, or pains of the intended customers who could be homeowners, DIY enthusiasts, or the pros. The Milwaukee-M18 blower may be a great product but when you dress it down with generic words, our mighty Milwaukee-M18 blower becomes mediocre at best. Similarly, the lack of ad ideas dials down the benefits, joys, and problems Milwaukee-M18 blower can solve for Home Depot's target audiences. Attention: If you had multiple product lines and currently ran paid ads, there's a 97% chance that you had less than 3 ads based on my experiences of remodeling ads from Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. Maybe you are perfectly okay with one control ad and burn your ad budget without ROI. But if you would like to have a second-opinion ads critique so that you can see the gaps and areas where you can extract MORE juice out of your ads, click on the link below to have me critique your ads. Gaps Analysis The Landing Page (see link ) Audience avatar: Based on the landing page, I can draw some conclusions about the target audience:

Homeowners and DIY Enthusiasts: The product is listed on a home improvement retailer's website, suggesting that homeowners who engage in DIY projects or yard maintenance are a primary target. The emphasis on "DIY Projects & Ideas" and "Installation & Services" further supports this. Professionals: The presence of sections like "For the Pro" and the detailed specifications of the product suggest that professionals who require reliable outdoor equipment might be a target demographic. This could include landscapers, gardeners, or maintenance workers. Tech-Savvy and Brand Loyal Customers: The emphasis on the M18 system, which boasts over 250+ tools, suggests that the product is aimed at consumers who value technological advancements and brand consistency. These individuals might already own other Milwaukee tools and are looking to expand their collection. Value Seekers: The highlighted discounts, credit card offers, and bundled savings indicate that the retailer is targeting consumers who are looking for value deals and are enticed by financial incentives. Environmentally Conscious: The electric nature of the blower might appeal to those who prefer eco-friendly alternatives to gas-powered tools, as electric tools produce no emissions. Age and Physical Capability: The product's reviews mention its lightweight and ease of use. This suggests that it could appeal to a wide age range, including older individuals who might find gas-powered blowers too heavy or cumbersome. In other words, the target avatar for this product would be: homeowners, DIY enthusiasts, and professionals, spanning various age groups, who value quality, brand consistency, and eco-friendliness. The retailer's promotions and discounts also aim to attract value-seeking consumers Ads Makeover Here's the disease that most marketing agencies and businesses running paid ads: "They think they've tested 20 ads but they really just tested 2 ads 10 different times." The best analogy for this is if you play the game "Battleship". Battleship is a strategy-type guessing game for two players. It is played on ruled grids (paper or board) on which each player's fleet of warships is marked. The locations of the fleets are concealed from the other players. Players alternate turns calling "shots" at the other player's ships, and the objective of the game is to destroy the opposing player's fleet. Using the context of the Battleship game, the fact that you just tested 2 ads 10 different times is like you are calling "shots" for the same spot 10 different times at the other player's ships. The lack of ideas for ad angles is making your ads dull and boring and ultimately leads to ad fatigue. Using the proprietary Bionic Framework leveraging 17-layer analysis to come up with ad ideas touching different aspects of human relationships, fears, shame, language structures, and pop culture rather than the boring feature/benefit-driven ads that most marketing agencies default to. Here are possibilities for ad makeovers: Headline Options "Unleash the Power of Cordless with Milwaukee!" "Revolutionize Your Yard Work with M18 FUEL Blower!" "Experience the #1 Choice for Home Improvement Enthusiasts!" "Still Using That Old Gas Blower?" "Jealous of the Neighbors' Yard? Maybe It's Your Lousy Tools!" "Ditch That Dinosaur Blower Before It's Too Late!" "Ready for the Future or Stuck in the Past?" "Why Settle and Feel Blue When Better is Just a Click Away?" "Ever Been Shocked by a Tool's Power? Body Copy Options "Homeowners and DIY pros, meet your new favorite tool! The Milwaukee M18 FUEL Blower delivers unparalleled power without the hassle of gas. Plus, enjoy exclusive discounts and credit offers. Why wait? Upgrade your toolkit today! " Blades: Emotions (Anticipation, Ambition), Time (Present), Capability (Can, Does), Numbers (Price, Savings), Language Devices (Exclamation marks), Direct Marketing Offers (Discount, Credit offers)

"From the backyard to the worksite, Milwaukee's got you covered. Dive into the world of cordless convenience with our M18 FUEL Blower. And with over 250+ tools in the M18 system, the possibilities are endless! " Blades: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Joy, Ambition), Capability (Can, Does), Numbers (Quantities), Language Devices (Exclamation marks) "Every DIY enthusiast's dream just came true! Milwaukee's M18 FUEL Blower offers unmatched power, cordless convenience, and a system of over 250+ tools. Dive into the future of home improvement now! " Blades: Relationships (Your customer), Imagery (Visual), Emotions (Joy, Anticipation), Capability (Does, Is), Numbers (Quantities), Language Devices (Exclamation marks) "Still clinging to that ancient gas blower? It's a tragedy seeing folks like you missing out on the revolution. Don't be the laughing stock of the block. If you don't switch to Milwaukee's M18 FUEL Blower, you're just asking for defeat. Consider yourself warned!" Blades: Emotions (Anger, Disgust), Types of Statement (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat) "Green with envy every time you see your neighbor's pristine yard? Maybe it's not them, it's your trashy tools. Step up or stay salty. The future's clear: Milwaukee's M18 FUEL Blower or bust. Don't be left in the dust!" Blades: Emotions (Envy, Defiance), Types of Statement (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat) "Holding onto that old blower like a safety blanket? Newsflash: It's dragging you down. Time's ticking, and if you don't upgrade to the M18 FUEL Blower, you're cruising for a bruising. Don't say we didn't warn ya!" Blades: Emotions (Anger, Disgust), Types of Statement (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat) "Ever wonder why you're always a step behind? Maybe it's that outdated tool you're lugging around. Don't be a fool; the future's all about Milwaukee's M18 FUEL Blower. Miss out, and you'll regret it big time." Blades: Emotions (Anticipation, Sadness), Types of Statement (Question), Future (Promise/Prediction), Language Devices (Slang, Tragedy), Shame (Stupidity, Vulnerability) "Feeling down about your yard game? Maybe it's time to ask yourself if you're using the right tools. Don't be dumb; the M18 FUEL Blower is where it's at. Stick with the old, and you're just setting yourself up for heartbreak." Blades: Emotions (Sadness, Surprise), Types of Statement (Question), Future (Promise/Prediction), Language Devices (Slang, Tragedy), Shame (Stupidity, Vulnerability) "Ever had a tool that left you speechless? If not, you're in for a wild ride. Milwaukee's M18 FUEL Blower ain't your grandpa's tool. Stay stuck in the past, and you're just asking to look foolish." Blades: Emotions (Anticipation, Surprise), Types of Statement (Question), Future (Promise/Prediction), Language Devices (Slang, Tragedy), Shame (Stupidity, Vulnerability) Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: handheld blower Targeted audience: Target with interest in Home Depot - Male - 30-55 in Texas Placement: News Feed Optimization: Optimized for Traffic Here are all the 9 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $13.62 Total Impressions: 4,037 Total Reach: 3,364 Total Clicks: 32 Cost Per Click (CPC): $0.43 CTR (all): 0.79% Ad results Summary Reach and Impressions: Headline 4 has the highest reach and impressions, indicating that it was viewed by the most people. This could be due to the ad's content, placement, or targeting strategy.

Headline 8 has the lowest reach and impressions, suggesting that it might not be as effective in capturing the audience's attention or it might have been targeted to a smaller audience. Amount Spent: Headline 4 has the highest ad spend, which is consistent with its high reach and impressions. Headline 8 has the lowest ad spend, which aligns with its low reach and impressions. Cost Per Mille (CPM): Headline 9 has the highest CPM, meaning it costs the most for every 1,000 impressions. This could be due to competitive bidding in its target audience or the platform's valuation of its potential effectiveness. Headline 2 has the lowest CPM, making it the most cost-effective ad in terms of impressions. Link Clicks and Cost Per Click (CPC): Headline 4 has the highest number of link clicks, but it's not the most cost-effective in terms of CPC. Headline 6 has a lower CPC, making it more cost-effective for driving clicks. Headline 3 and Headline 1 have the highest CPC, suggesting that while they might be driving clicks, they are doing so at a higher cost. Click-Through Rate (CTR): Headline 5 and Headline 6 have the highest CTRs, indicating that a higher percentage of people who saw these ads clicked on them. This suggests that these ads were particularly engaging or relevant to the viewers. Headline 2 has the lowest CTR, which could be due to less engaging content or it being less relevant to its audience. General Observations: Ads with higher reach and impressions don't necessarily have the best CTR or the most cost-effective CPC. This highlights the importance of not just reaching a large audience, but also ensuring the ad content is engaging and relevant. The dataset has some ads (Headline 8) with no link clicks data. This could be because the ad didn't drive any clicks or the data wasn't captured. In conclusion, while Headline 4 reached the most people, ads like Headline 6 and Headline 5 were more effective in terms of engagement (CTR) and cost-effectiveness (CPC). Advertisers should consider both reach and engagement metrics when evaluating the success of their ads. Analytics: Winning Ads: If the goal is to get maximum reach and impressions, 'Headline 4' is the top performer. Headline: "Still Using That Old Gas Blower?" Ad body: "Still clinging to that ancient gas blower? It's a tragedy seeing folks like you missing out on the revolution. Don't be the laughing stock of the block. If you don't switch to Milwaukee's M18 FUEL Blower, you're just asking for defeat. Consider yourself warned!" Blades: Emotions (Anger, Disgust), Types of Statement (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat) Total Impressions: 1786 Total Reach: 1484 Clicks: 11 CPC: $0.40 CTR: 0.62% If the objective is to get the most clicks at the lowest cost, 'Headline 6' stands out. Headline: "Ditch That Dinosaur Blower Before It's Too Late!" Ad Body: "Holding onto that old blower like a safety blanket? Newsflash: It's dragging you down. Time's ticking, and if you don't upgrade to the M18 FUEL Blower, you're cruising for a bruising. Don't say we didn't warn ya!" Blades: Emotions (Anger, Disgust), Types of Statement (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat) Total Impressions: 352 Total Reach: 335 Clicks: 9 CPC: $0.22 CTR: 2.56% Takeaways/Insights So in this thorough case study, I extensively analyze, examine, and audit Home Depot's ads relating to the M18 blower, then come up with new ad ideas based on 17 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the winning ad. Both ads 4 & 6 are from the group of ads using the "Shame" model of "defeat" and emotions of anger & disgust. When one of the ads performs better in the same group, it's very likely that we can combine them in another ad to get the best of both worlds.

It's amazing to see that 2 winning ads are derived from using the complex emotions vs the feature/benefit. That leads to the conclusion that having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get "stuck" with boring and mediocre "features & benefits" angle. Ideas & creatives are the name of the game. I'd recommend Home Depot create more ad angles for each of their products. The path of "Extreme Ads Makeover" doesn't stop and should be continuously evolving with the market. What-If Revenue Impact Analysis What If Lexus went ahead and doubled down on ad #6 with the lowest CPC, what would be the revenue impact? Let's make some assumptions: The conversion rate is 1% (given the normal conversion rate of 2%) Price: $179 Double down on ad #6 by increasing the number of clicks to 10,000 clicks (Cost = 10,000 clicks x $0.22 = $2,200) Let's calculate the potential revenues At 0.1% conversion rate, 10,000 x 0.1% = 10 shoppers purchased. Revenue = 10 x $179 = $1790 ROI = -18.6% ($1790- $2,200) / $2,200) At 0.5% conversion rate, 10,000 x 0.1% = 50 shoppers purchased. Revenue = 50 x $179 = $8950 ROI = 307% ($8950- $2,200) / $2,200) At 1% conversion rate, 10,000 x 0.1% = 100 shoppers purchased. Revenue = 100 x $179 = $17900 ROI = 714% ($17900- $2,200) / $2,200) Next Step Double down on the winning ad and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I've used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That's why I want to introduce the... "Second Opinion" Package If you are a 7-figure business owner and already run paid ads and need someone to critique your ads for a potential makeover, go ahead and order my "Second Opinion" package. https://michaelnguyen.me/extreme-ads-makeover-homedepot/?feed_id=358&_unique_id=64fe386e05ee8

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michaelnguyendotme · 2 years ago

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In this series of "Extreme Ads Makeover", I will be tearing down ads on Amazon and having them completely remodeled to have better targeting and ROI. Check out more ad makeover case studies such as Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. About Amazon Amazon has experienced rapid growth since its founding in 1994. It surpassed $100 billion in annual revenues in 2015 and reached $386 billion in 2020. Net income grew from $2.4 billion in 2016 to $21.3 billion in 2020. Amazon has over 200 million Prime members worldwide who pay for perks like free shipping and streaming. It also owns other major brands like Whole Foods and has over 1.3 million employees. The company continues to expand into new industries, though its growth has led to antitrust scrutiny over its market power. Amazon Web Services, its cloud platform, accounts for most of its profits. AWS reached $45 billion in revenues in 2020. AboutAmazon's marketing agency Amazon does not have a traditional external marketing agency. The company handles its marketing and advertising internally through its Global Corporate Affairs group. About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Nature Made ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Gold Zodiac Anklet for Women Landing page: https://www.amazon.com/dp/B08CSM7L67?ref_=pfb_spv01_aaf6ef9a60f08a557d9e104f36eb7956&th=1 Facebook Ads: The Amazon team created one ad set to promote. Ad set #1 (see link) Analysis While this product is not an Amazon product and its seller is Lcherry shop, I can understand that Amazon has little motivation to promote this product to other sellers. However, I still do think Amazon needs to do a better job no matter whom they are advertising for because: When you do stick your name "Amazon" on anything, there would be a brand experience/interaction and users have higher expectations for that. In other words, anything less than stellar will lead to a negative point in customer experience. When doing it for a long time, negative points accumulate. The better the ads, the more buyers know about this product leading to the more resources the seller will be willing to use Amazon's platform. It's a flywheel effect. Getting more traffic & clicks is the first checkpoint for the whole flywheel effect to blossom. What goes wrong with this ad? I am disappointed to see the lack of effort in promoting this product when there is only one control ad. Once again, I totally understand the lack of motivation here because it's not an Amazon product. It's not Amazon's fault but the lack of effort does concern me. Moreover, Amazon team doesn't even bother to add any headlines & ad copies to emphasize, educate, entertain, or interact with the prospective buyers in their ads. Having just a generic statement "Fall in love with our favorite finds for the season" won't do any good here. On the call-to-action, Amazon team left it blank as and as a result, Meta pulled the landing page's header as a call-to-action (CTA). Obviously, Amazon misses out another opportunity to interact with prospective buyers without a customized CTA. Here are the disadvantages when having only one control ad: Lack of A/B Testing Limited

Insights: With only one ad, you won't be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren't. Targeting Limitations Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities. Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover) Creativity and Message Fatigue Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect. Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility. Risk Management Higher Risk: If your one ad doesn't perform well, you don't have other ad sets to fall back on. This all-or-nothing approach can be riskier. Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility. Optimization Challenges Limited Learning: If your single ad isn't performing well, it's harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize. Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can't take advantage of this feature. Data and Analytics Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics. Attention: If you had multiple product lines and currently ran paid ads, there's a 97% chance that you had less than 3 ads based on my experiences of remodeling ads from Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. Maybe you are perfectly okay with one control ad and burn your ad budget without ROI. But if you would like to have a second-opinion ads critique so that you can see the gaps and areas where you can extract MORE juice out of your ads, click on the link below to have me critique your ads. Gaps Analysis The Landing Page (see link ) Audience avatar: Based on the landing page, my best guess for the avatar would be: Younger female between 18-35 years old with a middle to upper-middle class income. She has an interest in astrology and appreciates delicate, on-trend jewelry that allows her to express her style. She frequently shops online, enjoys treating herself, and buys gifts for others. The dainty anklet evokes a sense of femininity, confidence, and excitement. The marketing focuses on gifting, parties, quality materials, and convenient online shopping via Amazon Prime to encourage easy purchase. Overall, the anklet is positioned as a fun, stylish accessory for young women who take pride in their zodiac identity and like showing it off. I think their landing page is quite decent. Any additional improvement can lead to a marginal result. Meanwhile, a huge improvement can be made from the ad creatives. As a result, I'll use my 17 analysis model to come up with 9 different ad angles. Ads Makeover Here's the disease that most marketing agencies and businesses running paid ads: "They think they've tested 20 ads but they really just tested 2 ads 10 different times." The best analogy for this is if you play the game "Battleship". Battleship is a strategy-type guessing game for two players. It is played on ruled grids (paper or board) on which each player's fleet of warships is marked. The locations of the fleets are concealed from the other players.

Players alternate turns calling "shots" at the other player's ships, and the objective of the game is to destroy the opposing player's fleet. Using the context of the Battleship game, the fact that you just tested 2 ads 10 different times is like you are calling "shots" for the same spot 10 different times at the other player's ships. The lack of ideas for ad angles is making your ads dull and boring and ultimately leads to ad fatigue. Using the proprietary Bionic Framework leveraging 17-layer analysis to come up with ad ideas touching different aspects of human relationships, fears, shame, language structures, and pop culture rather than the boring feature/benefit-driven ads that most marketing agencies default to. Headline Options "Embrace Your Stars: 14K Gold-Plated Zodiac Anklets" "Shine Bright with Your Zodiac Sign - Fashioned Just for You " "Sagittarius Elegance: A Delicate Statement for Your Ankle!" "Gold-Plated Luxury, Astrology Love - All in One Anklet " "Let Your Zodiac Dangle Elegantly with Our 14K Anklets!" "Stay Stylish, Stay Starry - Dainty Anklets for the Modern Woman " "Sick of Mediocre Jewelry? It's Time for a Zodiac Glow Up! " "Jealous of Stellar Anklets? Grab One Before They’re All Snatched Up! " "Had Enough of Tacky Bling? Show 'em What Real Style Is! " "Ready for a Zodiac Anklet that Turns Heads? " "Missed the Last Trendy Anklet? Don’t Be Left in Tears Again. " "Whaaat?! Didn’t See This Zodiac Bling Coming, Did Ya? " "Anticipating Your Next Fave Accessory? It's Written in the Stars! " "Sad About Lost Style Opportunities? Let's Change That Story. " "Surprise, Diva! Got the Anklet That'll Make 'Em All Jelly! " Body Copy Options Body Copy 1 Adorn your ankle with the sparkle of your zodiac constellation. Made with genuine 14K gold plated over brass, our anklets promise quality and style. Perfect for beach days or night outs. Gift-ready in a sleek box. 🌟 Free & Fast Amazon Prime Shipping. Easy returns! 🌟 Models applied: Imagery, Emotions, Proof, Numbers, Language Devices, Locations, Direct Marketing Offers, Ad structure. Body Copy 2 Dive deep into the universe of fashion with our dainty zodiac anklets. Made for those who wear their star sign with pride. Exclusive Amazon Prime offer with fast delivery and hassle-free returns. Wear the stars, be the star. 🌌 Models applied: Relationships, Imagery, Emotions, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure. Body Copy 3 Dreaming of the perfect summer accessory? Channel celestial vibes with our 14K gold-plated anklets. From Sagittarius to Leo, choose your sign and shine on. Prime members enjoy faster delivery! 🌠" Models applied: Imagery, Emotions, Time, Capability, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure. Body Copy 4 "Unlock the magic of the stars! With our dainty zodiac anklets, carry a piece of the cosmos wherever you go. Hypoallergenic, elegant, and perfect for any occasion. Prime members, gear up for quick deliveries and free returns. ✨" Models applied: Relationships, Imagery, Emotions, Proof, Capability, Numbers, Language Devices, Direct Marketing Offers, Ad structure. Body Copy 5 Astrology lovers rejoice! Wear your star sign elegantly around your ankle. Made with 14K gold, designed for the stylish woman of today. Fast shipping with Amazon Prime and hassle-free returns. Elevate your style, effortlessly! 💫" Models applied: Relationships, Imagery, Emotions, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure. Body Copy 6 Celebrate you, with our zodiac anklets. Delicate craftsmanship meets 14K gold-plated brilliance. The perfect gift for you or your loved ones. Dive into the cosmos and express yourself. Fast, free shipping for Prime members! " Models applied: Relationships, Imagery, Emotions, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure. Body Copy 7 Are you fed up with

flimsy ankle chains that turn your skin green? Don't get played by trashy jewelry! Our 14K gold-plated zodiac anklets are the real deal. You've battled enough with fashion faux pas, it's time to shine for real. Plus, with Amazon Prime, we ain’t messing around – speedy delivery's on us. Beware: if you miss out, it's on you! Models applied: Emotions (Anger & Disgust), Future: warning, Language devices: slang, Types of statement: condition, Shame: defeat. Body Copy 8 Green with envy seeing all those divas rockin' rad anklets? It’s time to step up your game! Don’t be left in the dust, jealous of the trendsetters. Our 14K gold-plated zodiac anklets are the ultimate envy-inducer. But be warned, they're flying off the shelves – snag yours now or be doomed to watch from the sidelines! Models applied: Emotions (Envy), Future: warning, Language devices: slang, Types of statement: condition, Tragedy. Body Copy 9 Ready to rebel against the mundane? Flip the script with our zodiac anklets! If you've been feeling trapped in a style rut, it's time to break free and defy the norms. With our 14K gold-plated anklets, your ankle won’t just look bomb, it'll be a straight-up revolution. But heads up, slowpokes – they’re selling like hotcakes. If you snooze, you lose! Models applied: Emotions (Defiance), Future: warning, Language devices: slang, Types of statement: condition, Shame: defeat. Body Copy 10 "Ever feel that buzz of excitement, knowing something fab's on the horizon? Well, hold on to your hats, 'cause our 14K gold-plated zodiac anklets are about to shake up your style world! Question is, are you ready to set the trend before everyone else catches on? Promise, it's gonna be epic! 🌌" Models applied: Emotions, Future: promise/prediction, Language devices: slang, Types of statement: question, Shame: Stupidity. Body Copy 11 "Ever felt the pang of regret, watching a trend pass you by? We feel ya, girl. Don't let history repeat its tragic tale. Our zodiac anklets are not just a fad, they're a mood. Why wait and feel blue later when you can rock it now? Don’t sleep on it, or it’ll be déjà vu all over again. 😔" Models applied: Emotions, Future: promise/prediction, Language devices: tragedy, Types of statement: question, Shame: Vulnerability. Body Copy 12 "Bet you didn’t think anklets could make a comeback like THIS, huh? Our 14K gold-plated zodiac beauties are the twist nobody saw coming, but everyone's talking about. You might ask yourself, 'How'd I ever miss out on these?' Don't play yourself – snag it before everyone else does! 💥" Models applied: Emotions, Future: promise/prediction, Language devices: slang, Types of statement: question, Shame: Stupidity. Body Copy 13 "Gearing up for a style surprise? Our zodiac anklets are like nothing you’ve ever seen. You might wonder, 'Is this the accessory I’ve been dreaming of?' Trust us, when you see the magic, you'll know! If you ain’t quick though, you're gonna miss the plot twist of the fashion season! 😱" Models applied: Emotions, Future: prediction, Language devices: slang, Types of statement: question, Shame: Vulnerability. Body Copy 14 "Felt the sting of a missed style opportunity before? Yeah, it hurts. But what if we told you a golden opportunity awaits? Dive into the world of zodiac anklets and turn that frown upside down. Will this be the piece that redefines your style? Only time (and a click) will tell! 😇" Models applied: Emotions, Future: promise, Language devices: tragedy, Types of statement: question, Shame: Vulnerability. Body Copy 15 "Ever had a fashion curveball that left you shook? Well, brace yourself! Our 14K gold-plated zodiac anklets are dropping jaws left and right. Are they the unexpected game-changer of 2023? You bet! Dive in, and don't be left scratching your head later. 🌠" Models applied: Emotions, Future: prediction, Language devices: slang, Types of statement: question, Shame: Stupidity. Validate New Ads This is where the rubber

meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: Anklet Targeted audience: Location: Texas Women 18-35 Placement: News Feed Optimization: Optimized for Traffic Here are all the 15 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $16.11 Total Impressions: 1,842 Total Reach: 1,698 Total Clicks: 53 Cost Per Click (CPC): $0.30 CTR (all): 2.88% Ad results Summary Reach and Impressions: "Headline 5" has the highest reach and impressions, indicating that it was viewed by the most number of unique users and had the most number of total views. "Headline 14" has the lowest reach and impressions, suggesting it was the least viewed ad. Amount Spent: The highest amount was spent on "Headline 5" ($3.43), followed closely by "Headline 12" ($3.03). The least amount was spent on "Headline 14" ($0.20). Cost Per Mille (CPM): "Headline 7" has the highest CPM at $10.00, meaning it costs $10 for every 1,000 impressions. This could indicate that while the ad might be targeting a niche audience, it's relatively more expensive. "Headline 6" offers the best value in terms of CPM at $6.97. Link Clicks and Engagement: "Headline 5" has the highest number of link clicks (16), suggesting it was the most engaging or had the most compelling call-to-action. "Headline 8" has an impressive CTR of 6.98%, the highest among all ads. This means that out of all the people who viewed the ad, almost 7% clicked on it. This is a strong indicator of the ad's effectiveness in capturing the audience's attention. "Headline 15" has the lowest CTR at 0.94%, indicating it might not be as engaging to the audience as the other ads. Cost Per Click (CPC): "Headline 8" has the lowest CPC at $0.12, making it the most cost-effective ad in terms of driving clicks. "Headline 9" and "Headline 15" have the highest CPCs at $0.54 and $0.83, respectively. This could be due to various reasons, such as the ad's placement, targeting, or the overall appeal of the ad content. Ads Without Clicks: "Headline 4", "Headline 1", "Headline 6", and "Headline 14" have no recorded link clicks. This could be due to various reasons, such as the ad's content not being compelling enough, or there might have been issues with the ad's call-to-action. In summary, while "Headline 5" has the highest reach, impressions, and link clicks, "Headline 8" stands out in terms of engagement with the highest CTR and the lowest CPC. On the other hand, ads like "Headline 4", "Headline 1", and "Headline 14" might need revisiting due to their lack of engagement in terms of link clicks. Analytics: Winning Ads: If the goal is to get maximum reach and impressions, 'Headline 5' is the top performer. Headline: "Let Your Zodiac Dangle Elegantly with Our 14K Anklets!" Ad body: Astrology lovers rejoice! Wear your star sign elegantly around your ankle. Made with 14K gold, designed for the stylish woman of today. Fast shipping with Amazon Prime and hassle-free returns. Elevate your style, effortlessly!" Models applied: Relationships, Imagery, Emotions, Proof, Numbers, Language Devices, Direct Marketing Offers, Ad structure. Total Impressions: 391 Total Reach: 371 Clicks: 16 CPC: $0.21 CTR: 4.09% If the objective is to get the most clicks at the lowest cost, 'Headline 8' stands out. Headline: "Jealous of Stellar Anklets? Grab One Before They’re All Snatched Up!" Ad Body: Green with envy seeing all those divas rockin' rad anklets? It’s time to step up your game! Don’t be left in the dust, jealous of the trendsetters. Our 14K gold-plated zodiac anklets are the ultimate envy-inducer.

But be warned, they're flying off the shelves – snag yours now or be doomed to watch from the sidelines! Models applied: Emotions (Envy), Future: warning, Language devices: slang, Types of statement: condition, Tragedy. Total Impressions: 86 Total Reach: 83 Clicks: 6 CPC: $0.12 CTR: 7% Takeaways/Insights So in this thorough case study, I extensively analyze, examine, and audit Amazon's ads relating to the zodiac anklet, then come up with new ad ideas based on 17 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the winning ad. It's not surprising when ad #8 with "envy" emotion stirs up a complex emotion of shoppers and registers a whopping 7% CTR. There are several reasons: Effective Ad Content but Limited Exposure: A high CTR suggests that the ad content is compelling and resonates with the audience that sees it. When those who see the ad are likely to click on it, it means the ad is effective in its messaging. However, the low number of impressions means that the ad isn't being shown to many people. Narrow Targeting: The ad might be targeted to a very specific or narrow audience. While this can be good for reaching a niche market, it can limit the overall reach and number of impressions the ad receives. Budget Constraints: If the advertising budget is limited, the ad platform might not display the ad as frequently as it could. This can result in fewer impressions and, consequently, fewer total clicks—even if the CTR is high. Mismatched Message on the landing page: Obviously when shoppers see the message with "envy" emotion, they are curious and click on the ad leading to Amazon landing page which doesn't connect the "curiosity" with the right message to complete the feedback loop. Ad #5 is connected well with the shoppers with an upgraded feature/benefit. Control version (feature-driven keywords): Gold Plated Anklets for Women Upgraded version: "Let Your Zodiac Dangle Elegantly with Our 14K Anklets!". The usage of the auditory word "dangle elegantly" adds a subtle dimension + feature-driven "14K. As a result, this version amplifies the richness of this ad. As you realize, having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Without creating 15 ads, there's no way you would have known the existence and the realm of possibilities for ad #5 & #8. Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get "stuck" with boring and mediocre "features & benefits" angle. You probably discover at this point that ideas & creatives are the name of the game. I'd recommend Amazon create more ad angles for each of their products. The path of "Extreme Ads Makeover" doesn't stop and should be continuously evolving with the market. What-If Revenue Impact Analysis What If Amazon went ahead and doubled down on ad #8 with the lowest CPC, what would be the revenue impact? Let's make some assumptions: The conversion rate is 1% (given the normal conversion rate of 2%) Anklet's price: $11.98 Profit Margin: 20% Double down on ad #8 by increasing the number of clicks to 10,000 clicks (Cost = 10,000 clicks x $0.12 = $1,200) With a whopping CTR of 7% (indicating strong interest of the ad), we can logically make the assumption that the sales conversion rate is between 1-3% Let's calculate the potential revenues At 1% conversion rate, 10,000 x 1% = 100 shoppers purchased Revenue = 100 x $$11.98 = $1198 ROI = -0.67% ($1198- $1200) / $1200) Obviously, a 1% conversion rate leads to a negative ROI. At 2% conversion rate, 10,000 x 1% = 200 shoppers purchased Revenue = 200 x $$11.98 = $2396

ROI = 100% ($2396- $1200) / $1200) At 3% conversion rate, 10,000 x 3% = 300 shoppers purchased Revenue = 300 x $$11.98 = $1198 ROI = 200% ($1198- $1200) / $1200) Next Step Double down on the winning ad and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I've used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That's why I want to introduce the... "Second Opinion" Package If you are a 7-figure business owner and already run paid ads and need someone to critique your ads for a potential makeover, go ahead and order my "Second Opinion" package. https://michaelnguyen.me/extreme-ads-makeover-amazon/?feed_id=350&_unique_id=64fe2fdfd5eb8

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michaelnguyendotme · 2 years ago

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In this series of "Extreme Ads Makeover", I will be tearing down ads of Target and have them completely remodeled to have better targeting and ROI. Check out more ad makeover case studies such as Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. About Target Revenue: In 2021, Target reported total revenue of $106 billion, up 15% from 2020. Growth: Over the past 5 years, Target's revenues have grown at a compound annual rate of over 5%. Profits: Target's net earnings for 2021 were $6 billion, representing a profit margin of around 5.7%. Their operating income was $9.3 billion. Customers: Target has over 100 million customers per year shop in their stores and online. On average, customers visited Target stores close to 24 times per year. Stores: Target operates 1,924 stores across the United States. They have plans to open 30-40 new small format stores per year. Ecommerce: Digital sales account for nearly 20% of Target's revenues. Their e-commerce growth was over 50% in 2020. Market Share: Target has around 3.7% market share in the US retail sector. In discount retail, they have over 20% share behind only Walmart. So in summary, Target is a retail giant with over $100 billion in annual revenue, 100 million customers, and growing ecommerce and in-store sales. They are one of the largest and most profitable retailers in the US. About Target's marketing agency Target works with multiple advertising and marketing agencies, with most major work handled by their in-house creative team and marketing department. Here are some key details on Target's agency relationships: Mono was named Target's Media Agency of Record in 2016. They handle major media planning and buying for Target in the US. Figliulo&Partners is Target's creative agency of record as of 2022. They develop Target's brand creative campaigns and marketing content. GALE Partners is Target's Multicultural Agency of Record focused on Hispanic and Black consumer marketing. Haworth handles PR and communications for Target. Target also works with digital agencies like Colle McVoy on ecommerce experience and development. For specialty initiatives, Target partners with specialized agencies on a project basis. Recent examples include Mother LA (2022 holiday campaign), Instrument (toys), and Hooray Agency (baby goods marketing). Target has an extensive in-house Creative and Marketing team that leads overall brand strategy and product marketing initiatives. They develop much of the creative work internally. So while Target has agency partners, their in-house team drives marketing strategy and creative. They leverage agencies for supplemental capabilities like media buying and niche campaigns. About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Target's ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Listerine mouthwash Landing page: https://www.target.com/b/listerine/-/N-5tcm7?ref=tgt_soc_pdl&afid=FB_br&fndsrc=tmntga&DFA=%7B%7Bcampaign.id%7D%7D&cid=%7B%7Bad.id%7D%7D&fbclid=IwAR2_isL7Rsfhx-sqDIcNfWy2DzepOXBY7xysT2f6KMMM1j-_CLyhRHrpWcY Facebook Ads: Ad Set #1 (link) Analysis What I like: Obviously, external agencies supporting Target are experienced teams and their experience is reflected in how they structure the landing page to promote tracking.

You notice the landing page for 2 ad sets points to: https://www.target.com/b/listerine/-/N-5tcm7 Whatever after the URL are parameters set up for tracking purposes. Another plus point is the usage of a variety of creative assets. Specifically, in each ad set, a different image is used. Message-Creative matched: The message for each creative is matched. For example, the benefit of "promoting oral health white tackling bad breath, tartar & plaque" matches with the message in the creative "upgrade your oral health routine". Room for improvements: Do you notice the theme in the 2 ad sets? If you said "feature/benefit", you would get a gold star ⭐️ With $1.5B in advertising budget, I would expect ads for Target would go beyond the boring "feature/benefit" because everyone can do it and the information of feature/benefit is widely available. Target Lisa Roath Chief Marketing Officer would probably expect to see more depth in ads for high-margin products like Listerine. The lack of ad ideas besides just pure "feature/benefit" concerns me because of the increased competition from others such as Target, Whole Foods, Costco, etc. The boring "feature/benefit" ad will soon hit the following limitations: Lack of A/B Testing Limited Insights: With only one ad, you won't be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren't. Targeting Limitations Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities. Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover) Creativity and Message Fatigue Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect. Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility. Risk Management Higher Risk: If your one ad doesn't perform well, you don't have other ad sets to fall back on. This all-or-nothing approach can be riskier. Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility. Optimization Challenges Limited Learning: If your single ad isn't performing well, it's harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize. Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can't take advantage of this feature. Data and Analytics Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics. Attention: If you had multiple product lines and currently ran paid ads, there's a 97% chance that you had less than 3 ads based on my experiences of remodeling ads from Lexus, Chanel, Chase Bank, Amazon, Starbucks, Nike, Target, Home Depot, and Nature Made. Maybe you are perfectly okay with one control ad and burn your ad budget without ROI. But if you would like to have a second-opinion ads critique so that you can see the gaps and areas where you can extract MORE juice out of your ads, click on the link below to have me critique your ads. Gaps Analysis The Landing Page (see link ) Audience avatar: Based on the landing page, I can draw some conclusions about the target audience: Daily Oral Care Routine: The mention of "Swish,

rinse & feel refreshed every day" and "Everyday Use" suggests that the target customer values daily oral hygiene and is looking for products that can be incorporated into their daily routine. Variety Seekers: The mention of "Explore formulas for every need" and "Fun flavors in alcohol-free formulas" indicates that the target audience might be looking for variety in their oral care products, both in terms of flavor and benefits. Health-Conscious: The emphasis on "Zero Alcohol" suggests that the target customer is health-conscious and prefers products without alcohol, possibly due to concerns about its effects or personal preferences. On-the-Go Lifestyle: The mention of "On the Go" indicates that the target audience leads a busy lifestyle and values products that can be used on the move, ensuring fresh breath throughout the day. Family-Oriented: The specific mention of products "Specially formulated for the little ones" suggests that Listerine is targeting families, especially parents who are concerned about their children's oral hygiene. Supports Diversity and Art: The mention of "Listerine supports increasing diversity in dentistry" and the collaboration with King Saladeen for the "Listerine Whoa Collection" indicates that the brand values diversity and art, and this might resonate with a customer base that shares similar values. In other words, the target avatar for this product would be: Health-conscious individuals who values daily oral hygiene and is open to exploring a variety of oral care products. They lead a busy, on-the-go lifestyle but also prioritize the oral health of their family, especially their children. This customer appreciates brands that support diversity and artistic collaborations, reflecting a modern, inclusive mindset. Ads Makeover Here's the disease that most marketing agencies and businesses running paid ads: "They think they've tested 20 ads but they really just tested 2 ads 10 different times." Using the proprietary Bionic Framework leveraging 17-layer analysis to come up with ad ideas touching different aspects of human relationships, fears, shame, language structures, and pop culture rather than the boring feature/benefit-driven ads that most marketing agencies default to. Here are possibilities for ad makeovers: Headline Options "Elevate Your Daily Ritual with Listerine!" "From Morning Rush to Bedtime Stories: Listerine's Got You Covered!" "Everyday Freshness, Zero Alcohol: Dive into Listerine's Range!" "For the Busy Bee to the Little Ones: Listerine's All-Day Freshness!" "Ever Felt the Blues of Bad Breath? " "Guess What's Shaking Up Oral Care? " "Tired of Mouthwashes That Just Don't Cut It?" "Green with Envy Over Others' Fresh Breath? " "Dare to Defy the Mundane in Oral Care?" Body Copy Options "Swish and rinse to kickstart your day with a refreshing feel! With Listerine, enjoy the benefits of zero alcohol and fun flavors tailored for every family member. Plus, embrace diversity with our exclusive Whoa Collection by King Saladeen. " Models Applied: Relationships (Your customer), Imagery (Visual, Auditory), Emotions (Joy, Ambition, Creativity), Time (Present), Capability (Can, Is), Proof (Credibility - Powerful Associations), Numbers (Savings), Language Devices (Alliteration, Rhythm), Locations (Conceptual - "Cyberspace"). "On the move? Keep your breath fresh anytime, anywhere with Listerine. Dive into our alcohol-free formulas, perfect for every family member. And don't miss our artistic collaboration, celebrating diversity in dentistry!" Models Applied: Relationships (Your customer), Imagery (Visual), Emotions (Joy, Ambition, Creativity), Time (Present), Towards/Away From (Desire), Capability (Can, Does), Proof (Credibility - Powerful Associations), Numbers (Savings), Language Devices (Alliteration), Locations (Conceptual - "Cyberspace"). "Why settle for ordinary when you can upgrade? Listerine offers a symphony of flavors without the alcohol.

Perfect for your daily routine and specially crafted for the little ones. Celebrate diversity with our unique Whoa Collection!" Models Applied: Relationships (Your customer), Imagery (Auditory), Emotions (Joy, Ambition, Excellence), Time (Present), Capability (Can, Does), Proof (Credibility - Powerful Associations), Numbers (Savings), Language Devices (Simile, Rhythm), Locations (Conceptual - "Cyberspace"). "Your day is packed, but your oral care doesn't have to take a backseat. With Listerine, experience freshness on the go. Dive into our diverse range, from zero alcohol to fun flavors. And, make a statement with our Whoa Collection, designed by King Saladeen." Models Applied: Relationships (Your customer), Imagery (Visual), Emotions (Joy, Ambition, Excellence), Time (Present), Capability (Can, Does), Proof (Credibility - Powerful Associations), Numbers (Savings), Language Devices (Alliteration, Rhythm), Locations (Conceptual - "Cyberspace"). "Tired of those sad moments when bad breath hits you outta nowhere? Listerine's got your back. Our prediction? No more unexpected downers. Keep your chin up and swish away the blues with us. No more facepalms, just freshness! " Models Applied: Emotions (Sadness, Anticipation), Types of Statements (Question), Future (Prediction), Language Devices (Slang, Tragedy), Shame (Stupidity, Vulnerability). "What if we told you there's a plot twist in your oral care routine? Listerine's bringing the unexpected to the table. Our promise? A surprise in every swish. Don't be that last one to catch the wave. Get on board and ride the freshness tide!" Models Applied: Emotions (Surprise, Anticipation), Types of Statements (Question), Future (Promise), Language Devices (Slang), Shame (Stupidity, Vulnerability). "If you're fed up with mouthwashes that promise the world but deliver zilch, it's time for a change. If you don't switch to Listerine, you're setting yourself up for a tragic tale of defeat. Don't let subpar products get the best of you. Choose Listerine and show 'em who's boss! " Models Applied: Emotions (Anger, Disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat). "Ever looked at someone and thought, 'Why can't my breath be that fresh?' If you're not using Listerine, you're just playing yourself. A word of warning: envy's a tough pill to swallow. Don't be left in the shadows. Step up and grab the spotlight with Listerine's unmatched freshness! " Models Applied: Emotions (Envy, Defiance), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat). "Ready to challenge the status quo? If you're still stuck with that old-school mouthwash, brace yourself for a downfall. But here's the tea: with Listerine, you can defy the norms and elevate your game. Don't settle for less when you can have the best. Dive into the Listerine revolution now! " Models Applied: Emotions (Defiance, Disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat). Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: Mouthwash Targeted audience: Target with interest in Target with women from 25-60 in Texas Placement: News Feed Optimization: Optimized for Traffic Here are all the 9 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $14.60 Total Impressions: 2,333 Total Reach: 2,044 Total Clicks: 16 Cost Per Click (CPC): $0.91 CTR (all): 0.69% Ad results Summary Reach and Impressions: 'Headline 3' has the highest reach with 540 and the highest impressions with 573.

'Headline 9' has the lowest reach with 25, and also the lowest impressions with 27. Amount Spent: 'Headline 7' had the highest amount spent at $3.73. 'Headline 9' had the least amount spent at $0.13. CPM (Cost per 1,000 Impressions): 'Headline 7' has the highest CPM at $11.00, indicating it's the most expensive ad per 1000 impressions. 'Headline 1' has the lowest CPM at $3.19. Link Clicks and CTR (Click-Through Rate): 'Headline 3' has the highest number of link clicks at 5. 'Headline 4' stands out with a CTR of 1.37%, making it the most effective ad in terms of engagement. 'Headline 1' has the lowest CTR at 0.47%. CPC (Cost per Link Click): 'Headline 2' has the highest CPC at $1.28. 'Headline 4' has the lowest CPC at $0.42, making it the most cost-effective ad in terms of link clicks. Ad Performance: 'Headline 3', despite not having the highest CPM, stands out with the highest reach and impressions. It also has a reasonable CTR and CPC, indicating a good balance between reach and cost-effectiveness. 'Headline 9' has the lowest reach, impressions, and amount spent. It might be worth investigating why this ad is underperforming compared to others. In conclusion, while 'Headline 3' reached the most people, 'Headline 4' was the most effective in terms of engagement and cost-effectiveness for link clicks. It's essential to consider both reach and engagement metrics when evaluating the performance of ads. Winning Ads: If the goal is to get maximum reach and impressions, 'Headline 3' is the top performer. Headline: "Everyday Freshness, Zero Alcohol: Dive into Listerine's Range!" Ad body: "Why settle for ordinary when you can upgrade? Listerine offers a symphony of flavors without the alcohol. Perfect for your daily routine and specially crafted for the little ones. Celebrate diversity with our unique Whoa Collection!" Models Applied: Relationships (Your customer), Imagery (Auditory), Emotions (Joy, Ambition, Excellence), Time (Present), Capability (Can, Does), Proof (Credibility - Powerful Associations), Numbers (Savings), Language Devices (Simile, Rhythm), Locations (Conceptual - "Cyberspace"). Total Impressions: 573 Total Reach: 540 Clicks: 5 CPC: $0.58 If the objective is to get the most clicks at the lowest cost, 'Headline 4' stands out. Headline: "For the Busy Bee to the Little Ones: Listerine's All-Day Freshness!" Ad Body: "Your day is packed, but your oral care doesn't have to take a backseat. With Listerine, experience freshness on the go. Dive into our diverse range, from zero alcohol to fun flavors. And, make a statement with our Whoa Collection, designed by King Saladeen." Models Applied: Relationships (Your customer), Imagery (Visual), Emotions (Joy, Ambition, Excellence), Time (Present), Capability (Can, Does), Proof (Credibility - Powerful Associations), Numbers (Savings), Language Devices (Alliteration, Rhythm), Locations (Conceptual - "Cyberspace"). Total Impressions: 73 Total Reach: 69 Clicks: 1 CPC: $0.42 Analytics: Takeaways/Insights So in this thorough case study, I extensively analyze, examine, and audit Target's ads relating to the mouthwash, then come up with new ad ideas based on 17 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the winning ad. Similar to Starbucks case, it appears the usage of complex human emotions doesn't drive attention. In contrast, when I look closely, the mechanic behind ad 3 & 4 is almost the same. But consumers tend to favor ad #3's rhyming headline. To utilize human emotions effectively, I'd suggest changing the creatives to match the emotions. In this case study, I intentionally kept the landing page + creatives the same to reduce the number of variations and focus on the ad copy instead. As a result, our ads

7-9 could have suffered the message mismatched not only on the creative but also on the landing page. That explains why ads #7-9 don't gain the anticipated traction Use bundling to increase the AOV instead of one bottle. For example, Target can offer a bundle of 3 bottles or a family bundle with 2 bottles: one for parents + one for kids. My assumption is the buyer can stay subscribed for 3 months. With my Churn Buster Kit system to minimize churns and bring back lost customers, we can stretch the customer LTV to 20-50%. Having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get "stuck" with boring and mediocre "features & benefits" angle. Ideas & creatives are the name of the game. I'd recommend Target team create more ad angles for each of its products. The path of "Extreme Ads Makeover" doesn't stop and should be continuously evolving with the market. What-If Revenue Impact Analysis What If Target went ahead and doubled down on ad #3 with the highest reach, more clicks, and a little higher CPC, what would be the revenue impact? Let's make some assumptions: For the well-known mouthwash of Listerine, the conversion rate should be 10%+ The avg price of one bottle of Listerine: $8 Double down on ad #3 by increasing the number of clicks to 10,000 clicks (Cost = 10,000 clicks x $0.58 = $5,800) Let's calculate the potential revenues At 10% conversion rate, 10,000 x 10% = 1000 shoppers buy Revenue = 1000 x $8 = $8000 ROI = 38% ($8000- $5800) / $5800) Next Step Double down on the winning ad and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I've used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That's why I want to introduce the... "Second Opinion" Package If you are a 7-figure business owner and already run paid ads and need someone to critique your ads for a potential makeover, go ahead and order my "Second Opinion" package. https://michaelnguyen.me/extreme-ads-makeover-target/?feed_id=342&_unique_id=64fc91195a706

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michaelnguyendotme · 2 years ago

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In this series of "Extreme Ads Makeover", I will be tearing down ads of Chanel and have them completely remodeled to have better targeting and ROI. Check out a previous case study of "Extreme Ads Makeover" for Chase Bank. About Chanel Revenue: In 2021, Chanel generated €15.6 billion in estimated total revenue, up over 50% from 2020. Growth: Over the past 5 years, Chanel's revenues have grown at an estimated compound annual rate of 13%. Profits: As a privately held company, Chanel does not disclose detailed financials. Industry estimates put Chanel's operating profits at €3-4 billion annually. Customers: Chanel serves an elite luxury customer base including over 100 million high net worth individuals worldwide. In the US alone, there are over 16 million people who can afford high-end luxury brands like Chanel. Stores: Chanel operates over 200 boutiques globally with a heavy presence in fashion centers like Paris, New York, London, and Singapore. Flagship stores can generate over $100 million per year. Market Share: In luxury fashion, Chanel holds around 4% global market share behind LVMH, Estée Lauder, and Kering. Among luxury leather goods specifically, Chanel leads with 24% share. Iconic Products: Chanel's classic women's suits, No. 5 perfume, leather handbags, and Little Black Dress resonate globally as iconic luxury items. So in summary, Chanel is one of the world's most prestigious and profitable luxury fashion houses with annual revenues exceeding €15 billion globally driven by their iconic branding and elite customer base. About Chanel's marketing agency Chanel's global media agency is Omnicom Media Group. Chanel chose Omnicom after a competitive pitch and was impressed by their strategic approach and understanding of the brand. Omnicom's agency, PHD, took over the account from WPP's GroupM. Chanel had worked with WPP for 21 years. Emmanuelle Walle has been the head of global PR and influence at Chanel fragrance and beauty since 2019. Chanel's digital marketing strategy is one of the most robust in its category. Additionally, Chanel has worked with global celebrities like Keira Knightley, Nicole Kidman, and Kristen Stewart as brand ambassadors. About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Chanel ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Chanel watch Landing page: https://www.chanel.com/us/watches/premiere-edition-originale Facebook Ads: Ad Set #1 (link) Ad Set #2 (link) Analysis What I like: Obviously, the quality of the creatives: the featured model Lily-Rose Depp, and the close-up shot of the Chanel watch are just magnificent. I like how Chanel team used vivid words to describe the watch: "interlaced with leather", and "echoes" (auditory word) which activates the auditory sense besides the visual. Message-Creative matched: Model Lily-Rose Depp wears the watch and the close-up photo of the watch to highlight. Room for improvements: While the control ad is pretty decent, I'd love to see more angles such as prestige, FOMO, the ability to wear "history" on your wrist, etc. There are a lot more angles yet to be shown, displayed, activated, and demonstrated from just one control ad. Having one control ad can put your campaign into the following risks:

Lack of A/B Testing Limited Insights: With only one ad, you won't be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren't. Targeting Limitations Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities. Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover) Creativity and Message Fatigue Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect. Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility. Risk Management Higher Risk: If your one ad doesn't perform well, you don't have other ad sets to fall back on. This all-or-nothing approach can be riskier. Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility. Optimization Challenges Limited Learning: If your single ad isn't performing well, it's harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize. Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can't take advantage of this feature. Data and Analytics Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics. Attention: If you had multiple product lines and currently ran paid ads, there's a 97% chance that you had less than 3 ads based on my experiences of remodeling ads from Chase Bank, Amazon, Starbucks, Nike, Lexus, Home Depot, and Chanel. Maybe you are perfectly okay with one control ad and burn your ad budget without ROI. But if you would like to have a second-opinion ads critique so that you can see the gaps and areas where you can extract MORE juice out of your ads, click on the link below to have me critique your ads. Gaps Analysis The Landing Page (see link ) Audience avatar: Based on the landing page, I can draw some conclusions about the target audience: Demography: Gender: Primarily female. The watch is described with feminine attributes and is worn like a piece of jewelry. Age: Adult women, likely in the age range of mid-20s to 60s. The reference to timeless style, classic CHANEL handbags, and the history of the brand suggests an appeal to a mature audience, while the inclusion of Lily-Rose Depp, a younger model, indicates an attempt to appeal to younger generations as well. Income Level: High. CHANEL is a luxury brand, and the detailed descriptions of the watch's design and materials suggest a high price point. Geography: Global, with a particular emphasis on regions that value luxury fashion. The mention of Gabrielle Chanel’s apartment at 31 Rue Cambon in Paris indicates a connection to European luxury and fashion. 2. Avatar (Psychographics): Fashion-forward: The target audience values high fashion and is likely to be aware of fashion trends and iconic brands. Appreciates Heritage: The mention of the watch being a reissue of the first CHANEL watch and references to Gabrielle Chanel suggest an audience that values brand heritage and history. Values Luxury: Descriptions like "golden hands," "onyx cabochon," and "interlaced with leather" indicate a preference for luxury materials and craftsmanship. Seeks Exclusivity:

The term "ÉDITION ORIGINALE" suggests a limited or special edition, appealing to those who seek unique and exclusive products. Elegant & Sophisticated: The watch's design, inspired by the N°5 fragrance bottle and classic CHANEL handbags, targets an audience that appreciates elegance and sophistication. Bold & Audacious: The watch embodies a "spirit of freedom and audacity," suggesting an audience that is confident and bold in their fashion choices. Appreciates Art & Culture: The involvement of directors Inez & Vinoodh and the setting in Gabrielle Chanel’s Parisian apartment indicates an appeal to those who value art, culture, and cinematic storytelling. In other words, the target audience for CHANEL's "PREMIÈRE ÉDITION ORIGINALE" watch is affluent, sophisticated women, ranging from mid-20s to 60s, who have a global awareness and a penchant for luxury and exclusivity. These women value the heritage and history of iconic brands, are fashion-forward, and appreciate elegance and craftsmanship. With a bold and audacious spirit, they resonate with the watch's embodiment of freedom, its connection to CHANEL's legacy, and its association with art and culture, as highlighted by its cinematic storytelling and ties to Parisian luxury. Ads Makeover Here's the disease that most marketing agencies and businesses running paid ads: "They think they've tested 20 ads but they really just tested 2 ads 10 different times." Here are possibilities for ads makeover: Headline Options "Rediscover Timeless Elegance with CHANEL's PREMIÈRE ÉDITION ORIGINALE" "A Timepiece That Echoes CHANEL's Legacy: The PREMIÈRE ÉDITION ORIGINALE" "Wear History on Your Wrist: CHANEL's Iconic PREMIÈRE Reissued" "From Paris with Audacity: CHANEL's PREMIÈRE ÉDITION ORIGINALE Watch" "CHANEL's Craftsmanship Meets Timeless Design: The PREMIÈRE ÉDITION ORIGINALE" "Experience the Spirit of Freedom: CHANEL's PREMIÈRE ÉDITION ORIGINALE" "Missed Out on CHANEL's First Watch? Don't Let History Repeat Itself!" "Still Wearing That Old Thing? Time for a Real Watch Upgrade!" "If You Don't Know CHANEL's Legacy, You're Missing Out Big Time!" "Curious About CHANEL's Timeless Elegance? Wait No More!" "Ever Wondered Why CHANEL Stands Out? Discover the Secret!" "Ready for a Timepiece That'll Leave Others in Awe?" Body Copy Options "A reissue of CHANEL's first-ever watch, the PREMIÈRE ÉDITION ORIGINALE is more than just a timepiece—it's a statement. Inspired by the iconic N°5 fragrance bottle and interlaced with leather reminiscent of classic CHANEL handbags, this watch is a testament to audacity and freedom. Dive into Gabrielle Chanel’s world with a film featuring Lily-Rose Depp, and let the golden hands on a black-lacquer dial remind you of timeless elegance. [DISCOVER]" Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Time (Past, Present), Capability (Is, Does), Proof (Credibility: Powerful Associations), Numbers (Dates), Language Devices (Metaphor), Locations (City, Historical). "CHANEL's PREMIÈRE ÉDITION ORIGINALE is not just a watch, but a journey through time. With lines evoking the N°5 fragrance and a bracelet echoing classic CHANEL handbags, it's a piece of jewelry that tells a story. Witness Lily-Rose Depp in Gabrielle Chanel’s Parisian apartment and embrace a spirit of audacity unique to CHANEL. [DISCOVER]" Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Time (Past, Present), Capability (Is, Does), Proof (Credibility: Powerful Associations), Numbers (Dates), Language Devices (Metaphor), Locations (City, Historical). "Step into a world where time meets elegance. The PREMIÈRE ÉDITION ORIGINALE, inspired by CHANEL's rich heritage, is a masterpiece that intertwines the past with the present. From its design reminiscent of the N°5 bottle to its bracelet that mirrors CHANEL handbags, every detail speaks of luxury.

Join Lily-Rose Depp in a cinematic experience and embrace CHANEL's audacious spirit. [DISCOVER]" Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Time (Past, Present), Capability (Is, Does), Proof (Credibility: Powerful Associations), Numbers (Dates), Language Devices (Metaphor), Locations (City, Historical). "CHANEL's legacy is reborn with the PREMIÈRE ÉDITION ORIGINALE. A watch that's more than just a timekeeper, it's a piece of history. With design cues from the N°5 fragrance and a bracelet that's a nod to classic CHANEL handbags, it's luxury redefined. Experience it through a film with Lily-Rose Depp and let CHANEL's spirit of freedom inspire you. [DISCOVER]" Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Time (Past, Present), Capability (Is, Does), Proof (Credibility: Powerful Associations), Numbers (Dates), Language Devices (Metaphor), Locations (City, Historical). "Evoke the spirit of Paris and CHANEL's timeless elegance with the PREMIÈRE ÉDITION ORIGINALE. Inspired by the N°5 fragrance and adorned with a bracelet reminiscent of CHANEL handbags, this watch is a tribute to audacity. Dive into a cinematic journey with Lily-Rose Depp and let every tick remind you of CHANEL's legacy. [DISCOVER]" Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Time (Past, Present), Capability (Is, Does), Proof (Credibility: Powerful Associations), Numbers (Dates), Language Devices (Metaphor), Locations (City, Historical). "The PREMIÈRE ÉDITION ORIGINALE is where CHANEL's heritage meets modern luxury. Drawing inspiration from the iconic N°5 fragrance and classic CHANEL handbags, this watch is a testament to timeless elegance. Join Lily-Rose Depp in a film that captures the essence of Gabrielle Chanel’s Paris and let yourself be captivated by CHANEL's audacious spirit. [DISCOVER]" Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Time (Past, Present), Capability (Is, Does), Proof (Credibility: Powerful Associations), Numbers (Dates), Language Devices (Metaphor), Locations (City, Historical). "If you didn't snag CHANEL's first-ever watch, here's your shot at redemption. The PREMIÈRE ÉDITION ORIGINALE ain't just a watch—it's a statement. But here's the kicker: if you don't grab it now, you're setting yourself up for another defeat. Don't be that person who missed out twice. It's a tragic tale you don't wanna be part of. [DISCOVER]" Models Applied: Emotions (anger, envy, defiance, disgust), Types of Statement (condition), Future (warning), Language Devices (slang, tragedy), Shame (defeat). "Still rockin' that outdated watch? Time to level up with CHANEL's PREMIÈRE ÉDITION ORIGINALE. But if you think this is just another watch drop, think again. Miss out, and you're looking at a world of regret. Don't let envy eat you up when you see others flaunting it. It's a tragedy waiting to happen. [DISCOVER]" Models Applied: Emotions (anger, envy, defiance, disgust), Types of Statement (condition), Future (warning), Language Devices (slang, tragedy), Shame (defeat). "If you ain't part of the CHANEL legacy yet, you're doing it wrong. The PREMIÈRE ÉDITION ORIGINALE is here, and if you don't get on board, you're setting yourself up for a major letdown. Don't be the one watching from the sidelines. It's a tragic look, trust us. [DISCOVER]" Models Applied: Emotions (anger, envy, defiance, disgust), Types of Statement (condition), Future (warning), Language Devices (slang, tragedy), Shame (defeat). "Ever wondered why some watches just stand out? Why does CHANEL's PREMIÈRE ÉDITION ORIGINALE make such a buzz? Because it's not just a watch, it's a promise of timeless elegance. But here's the real kicker: miss out, and you're just setting yourself up for a world of "what ifs".

Don't be that tragic tale. [DISCOVER]" Models Applied: Emotions (anticipation, sadness, surprise), Types of Statement (question), Future (promise/prediction), Language Devices (slang, tragedy), Shame (Stupidity, Vulnerability). "What makes CHANEL's PREMIÈRE ÉDITION ORIGINALE the talk of the town? Why are folks always so shook when they see it? Because it's more than just a watch—it's a prediction of the future of fashion. But here's a heads up: if you don't get in on this, you're just setting yourself up for a major facepalm moment. Don't play yourself. [DISCOVER]" Models Applied: Emotions (anticipation, sadness, surprise), Types of Statement (question), Future (promise/prediction), Language Devices (slang, tragedy), Shame (Stupidity, Vulnerability). "Why does CHANEL's PREMIÈRE ÉDITION ORIGINALE get all the love? Why does it leave everyone else in the dust? Because it's not just a promise—it's the future. But here's the tea: if you're not part of this journey, you're just exposing your own fashion blind spots. Don't be that tragic story. [DISCOVER]" Models Applied: Emotions (anticipation, sadness, surprise), Types of Statement (question), Future (promise/prediction), Language Devices (slang, tragedy), Shame (Stupidity, Vulnerability). Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: Watch Targeted audience: Women from 30 - 60 Target with interest in Chanel Placement: News Feed Optimization: Optimized for Traffic Here are all the 12 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $13.37 Total Impressions: 1,537 Total Reach: 1,351 Total Clicks: 48 Cost Per Click (CPC): $0.28 CTR (all): 3.12% Ad results Summary Reach and Impressions: 'Headline 9' has the highest reach with 351 and the highest impressions with 382. 'Headline 10' has the lowest reach with 31, and 'Headline 3' has the lowest impressions with 52. Amount Spent: 'Headline 9' had the highest amount spent at $3.28. 'Headline 6' had the least amount spent at $0.40. CPM (Cost per 1,000 Impressions): 'Headline 3' has the highest CPM at $11.15, indicating it's the most expensive ad per 1000 impressions. 'Headline 6' has the lowest CPM at $6.35. Link Clicks and CTR (Click-Through Rate): 'Headline 9' has the highest number of link clicks at 13. 'Headline 3' stands out with a whopping CTR of 9.62%, making it the most effective ad in terms of engagement. 'Headline 4' has the lowest link clicks at 3 and a CTR of 1.28%. CPC (Cost per Link Click): 'Headline 4' has the highest CPC at $0.68. 'Headline 3' has the lowest CPC at $0.12, making it the most cost-effective ad in terms of link clicks. Ad Performance: 'Headline 3', despite having a lower reach and impressions, stands out with the highest CTR and the lowest CPC, indicating that it's the most effective ad in terms of engagement and cost-effectiveness. 'Headline 5' and 'Headline 6' have the lowest and second-lowest amount spent, respectively, but their CTRs are above average, indicating good performance for their cost. In conclusion, while 'Headline 9' reached the most people, 'Headline 3' was the most effective in terms of engagement and cost-effectiveness for link clicks. It's essential to consider both reach and engagement metrics when evaluating the performance of ads. Analytics: Winning Ads: If the goal were to get maximum reach and impressions, 'Headline 9' would be the top performer. Headline: "If You Don't Know CHANEL's Legacy, You're Missing Out Big Time!" Ad body: "If you ain't part of the CHANEL legacy yet, you're doing it w

rong. The PREMIÈRE ÉDITION ORIGINALE is here, and if you don't get on board, you're setting yourself up for a major letdown. Don't be the one watching from the sidelines. It's a tragic look, trust us." Models Applied: Emotions (anger, envy, defiance, disgust), Types of Statement (condition), Future (warning), Language Devices (slang, tragedy), Shame (defeat). Total Impressions: 382 Total Reach: 351 Clicks: 13 CPC: $0.25 CTR: 3.4% If the objective were to get clicks at the lowest cost, 'Headline 3' would stand out. Headline: "CHANEL's Craftsmanship Meets Timeless Design: The PREMIÈRE ÉDITION ORIGINALE" Ad Body: "Step into a world where time meets elegance. The PREMIÈRE ÉDITION ORIGINALE, inspired by CHANEL's rich heritage, is a masterpiece that intertwines the past with the present. From its design reminiscent of the N°5 bottle to its bracelet that mirrors CHANEL handbags, every detail speaks of luxury. Join Lily-Rose Depp in a cinematic experience and embrace CHANEL's audacious spirit." Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Time (Past, Present), Capability (Is, Does), Proof (Credibility: Powerful Associations), Numbers (Dates), Language Devices (Metaphor), Locations (City, Historical). Total Impressions: 52 Total Reach: 52 Clicks: 5 CPC: $0.12 CTR: 9.62% Takeaways/Insights So in this thorough case study, I extensively analyze, examine, and audit Chanel's ads relating to the watch, then come up with new ad ideas based on 17 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the winning ad. Ad #9 using Emotions (anger, envy, defiance, disgust) and Shame (defeat) commands the highest impression, reach, and clicks but with a high CPC. It appears when users saw & heard a message using a different tone (defeat, anger) vs. joy & anticipation, the ad could probably catch their attention. Marketing 101 says the first thing is that you need to capture the attention of users. Without attention, all other marketing objectives become useless. Ad #9 achieves the goal of attracting attention and spreading the message. What I would recommend is to modify the landing page accordingly to match the tone of the landing page with the message to increase the overall CTR. For a complex product like the Chanel watch, being different and standing-out works. Having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get "stuck" with boring and mediocre "features & benefits" angle. Ideas & creatives are the name of the game. I'd recommend Chanel create more ad angles for each of their products. The path of "Extreme Ads Makeover" doesn't stop and should be continuously evolving with the market. What-If Revenue Impact Analysis What If Chanel went ahead and doubled down on ad #3 with the lowest CPC, what would be the revenue impact? Let's make some assumptions: The conversion rate is 1% (given the normal conversion rate of 2%) Chanel watch: $5950 Double down on ad #3 by increasing the number of clicks to 10,000 clicks (Cost = 100,000 clicks x $0.25 = $25,000) Let's calculate the potential revenues At 0.01% conversion rate, 100,000 x 0.01% = 10 merchants signed up Revenue = 10 x $5950 = $59,500 ROI = 138% ($59,500- $2,500) / $2,500) At 0.05% conversion rate, 100,000 x 0.01% = 50 merchants signed up Revenue = 50 x $5950 = $297,500 ROI = 1090% ($297,500- $25000) / $25000) At 0.1% conversion rate, 100,000 x 0.1% = 100 merchants signe

d up Revenue = 100 x $5950 = $595,000 ROI = 2,280% ($595,000- $25000) / $25000) Next Step Double down on the winning ad and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I've used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That's why I want to introduce the... "Second Opinion" Package If you are a 7-figure business owner and already run paid ads and need someone to critique your ads for a potential makeover, go ahead and order my "Second Opinion" package. https://michaelnguyen.me/extreme-ads-makeover-chanel/?feed_id=334&_unique_id=64fbba8f761c8

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michaelnguyendotme · 2 years ago

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In this series of "Extreme Ads Makeover", I will be tearing down ads of Starbucks and having them completely remodeled to have better targeting and ROI. Check out a previous case study of "Extreme Ads Makeover" for Chase Bank. About Starbucks Starbucks has over 32,000 stores worldwide and serves 100 million customers each week. In 2022, Starbucks reported $32.3 billion in global revenues, a 13% increase from the previous year. Starbucks's annual revenue for 2021 was $29.1 billion, a 23.57% increase from 2020. Starbucks's gross profit for the year ending December 31, 2022 was $22.313 billion, a 5.52% increase year-over-year. Starbucks's gross profit for the twelve months ending June 30, 2023 was $23.829B, an 8.88% increase year-over-year. Starbucks's revenue is the total amount of income that a company generates by the sale of goods or services. The vast majority of Starbucks's revenue comes from the sale of beverages. In Fiscal 2021, beverage sales were $18.32 billion, whereas food products accounted for $5.05 billion. Customers: Starbucks serves over 100 million customers occasions per week across over 33,000 stores globally. In the US, nearly half of all adults visit Starbucks every 6 months. Stores: As of 2021, Starbucks had 33,833 total stores globally, with 15,444 stores in the US. They plan to grow stores by 7% annually. Market Share: Starbucks holds over 40% of the US coffee shop market. Globally their market share in specialty coffee is over 32%. Loyalty Members: Starbucks Rewards loyalty program has over 26 million members in the US alone contributing over 50% of sales. About Starbucks's marketing agency Starbucks has appointed We Are Social as its EMEA strategic and creative agency. The global agency will lead a three-year contract for Starbucks. We Are Social will be responsible for developing social strategy and brand campaigns that are "connected to culture". They will target Gen Z and millennial audiences. Starbucks also works with Gershoni Creative Agency. Gershoni is a creative agency that builds brands. They use a cross-disciplinary approach that combines strategic insight with design thinking. Starbucks' marketing and creative teams develop strategies for all customer touch points in stores and online. Kyndra Russell is the senior vice president of marketing. Brady Brewer is the chief marketing officer. About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Starbucks ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Starbucks September Thurs-Yays Promo - Buy One Get One FREE (BOGO) Landing page: https://www.starbucks.com/rewards/mobile-apps/ Facebook Ads: Ad Set #1 (link) Ad Set #2 (link) Analysis What I like: Message-Creative matched: The message for each creative is matched. For example, the message "Fall for all! 🍂 September ThursYays are here—buy a fall drink and get one free, every Thursday in September from 12 p.m. to close." is direct, formational, and benefit-driven. Also, the message matches with the creative. Creatives are matched 100% with brand identity and the quality of the image is spot-on. Room for improvements: Do you notice the theme in the 2 ad sets? If you said "feature/benefit", you would get a gold star ⭐️

With $417M in advertising budget, I would expect ads for Starbucks would go beyond the boring "feature/benefit" because everyone can do it. Similar to many other cases from "Extreme Ads Makeover", there's only one control ad for this "September Thurs-Yays" BOBO promo. The more visits Starbucks get, the more likely sales increase because customers can buy other things besides coffees while they are hanging out at the stores. The boring "feature/benefit" ad will soon hit the following limitations: Lack of A/B Testing Limited Insights: With only one ad, you won't be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren't. Targeting Limitations Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities. Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover) Creativity and Message Fatigue Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect. Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility. Risk Management Higher Risk: If your one ad doesn't perform well, you don't have other ad sets to fall back on. This all-or-nothing approach can be riskier. Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility. Optimization Challenges Limited Learning: If your single ad isn't performing well, it's harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize. Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can't take advantage of this feature. Data and Analytics Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics. Attention: If you had multiple product lines and currently ran paid ads, there's a 97% chance that you had less than 3 ads based on my experiences of remodeling ads from Chase Bank, Amazon, Starbucks, Nike, Lexus, Home Depot, and Chanel. Maybe you are perfectly okay with one control ad and burn your ad budget without ROI. But if you would like to have a second-opinion ads critique so that you can see the gaps and areas where you can extract MORE juice out of your ads, click on the link below to have me critique your ads. Gaps Analysis The Landing Page (see link ) Starbucks' most loyal customers are people aged 25–40, who account for almost 50% of its customers. This age group is usually of a higher socioeconomic status. Starbucks' other big market target is young adults aged 18–24, who make up about 40% of Starbucks' buyers. The average age of a Starbucks customer is 42 years. Starbucks' customers are typically highly educated and in a high income bracket, earning an average of over $90,000. Starbucks' target audience is primarily tech-savvy, with a range of ages from 22 to 60, including a growing number of teenagers Ads Makeover Here's the disease that most marketing agencies and businesses running paid ads: "They think they've tested 20 ads but they really just tested 2 ads 10 different times." Here are possibilities for ads makeover: Headline Options "Tech-Savvy Coffee Lovers, Your Perfect App is Here! ☕️📱" "Double the Fall Delight Every Thursday with Starbucks® App!"

"Elevate Your Starbucks® Experience with Just a Tap!" "Stay Ahead, Order Ahead! Dive into the Starbucks® Digital Experience." "Unlock Exclusive Rewards & Offers with Starbucks® App!" "From Your Screen to Your Cup – The Ultimate Starbucks® Journey!" Tired of Mediocre Coffee Apps? Get the Real Deal with Starbucks®!" "Jealous of Exclusive Rewards? Join the Starbucks® Elite!" "Dare to Experience Coffee Like Never Before? Challenge Accepted!" Body Copy Options "Hey there, modern coffee enthusiast! Dive into a world where your favorite brew meets cutting-edge tech. With the Starbucks® App, every Thursday in September is a treat. Buy a fall drink from 12 p.m. to close and get another on us. Exclusive for our U.S. Starbucks® Rewards members. Download now and let the rewards flow! 🍂📲" Blades Applied: Relationships (Your customer), Imagery (Visual, Auditory), Time (Present), Capability (Can, Does, Do), Proof (Credibility - Powerful Associations), Numbers (Dates, Periods of time), Language Devices (Alliteration, Rhythm), Locations (U.S. stores). "Sophisticated, educated, and always on the go? Elevate your Starbucks® experience with our app. Order ahead, pay seamlessly, and enjoy BOGO fall drinks every Thursday this September. Your coffee journey, redefined." Blades Applied: Relationships (Your customer), Imagery (Visual), Emotions (Feelings: anticipation, joy), Time (Present), Capability (Can, Will, Does), Proof (Credibility - Powerful Associations), Numbers (Dates), Language Devices (Metaphor). "Starbucks® meets tech innovation! For our discerning customers aged 22-60, here's an app tailored for you. From exclusive offers like our September ThursYays to tracking your rewards, it's all at your fingertips. Dive in now!" Blades Applied: Relationships (Your customer), Imagery (Visual), Emotions (Feelings: anticipation), Time (Present, Future), Capability (Can, Will, Does), Proof (Credibility - Powerful Associations, Believability - Display of knowledge), Numbers (Ages, Dates), Language Devices (Alliteration). "Young adult or seasoned professional, the Starbucks® app is your digital coffee companion. This September, let's make Thursdays special. Buy a fall drink, get one free. It's our way of saying thanks for being awesome!" Blades Applied: Relationships (Your customer), Imagery (Visual), Emotions (Feelings: joy, gratitude), Time (Present), Capability (Can, Will, Does), Proof (Credibility - Powerful Associations), Numbers (Dates), Language Devices (Alliteration, Rhythm). "From the bustling streets of New York to the serene landscapes of Oregon, our U.S. Starbucks® Rewards members get a special treat. Every Thursday in September, buy a fall drink and your next one's on us. Experience it with our app!" Blades Applied: Relationships (Your customer), Imagery (Visual), Time (Present), Capability (Can, Will, Does), Proof (Credibility - Powerful Associations), Numbers (Dates), Language Devices (Alliteration), Locations (Landmark, City, State). "Starbucks® isn't just a coffee; it's a lifestyle. And for our tech-savvy aficionados, we've brewed the perfect app. Order, pay, earn rewards, and enjoy special offers like our September ThursYays. Cheers to innovation and great coffee!" Blades Applied: Relationships (Your customer), Imagery (Visual, Auditory), Emotions (Feelings: joy, anticipation), Time (Present), Capability (Can, Will, Does), Proof (Credibility - Powerful Associations), Numbers (Dates), Language Devices (Alliteration, Metaphor). "Had enough of those lame coffee apps that promise the world and deliver nada? 🙄 It's time to switch to the Starbucks® App. If you're looking for a real coffee experience, then this is it. But be warned, once you go Starbucks®, there's no going back. Don't let defeat by subpar apps get you down. Rise above!" Blades Applied: Emotions (Anger, Defiance, Disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat).

"Green with envy seeing others enjoy exclusive Starbucks® perks? If you want in on the action, it's time to level up. Warning: This ain't for the faint-hearted. Dive into a world where coffee meets luxury, and leave those tragic coffee experiences behind. No more FOMO, only the best brews!" Blades Applied: Emotions (Envy, Defiance), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy). "Think you've seen it all in the coffee world? Think again. If you dare to challenge the norm, the Starbucks® App is your weapon. But here's a warning: it's not for those who settle. Say goodbye to those tragic moments of coffee disappointment and step into the Starbucks® revolution. Don't be defeated by mediocrity!" Blades Applied: Emotions (Defiance, Disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat). Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: BOGO campaign Targeted audience: Target with interest in Starbucks - All Audience 25-40 - Texas Placement: News Feed Optimization: Optimized for Traffic Here are all the 9 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $14.19 Total Impressions: 2,337 Total Reach: 1,965 Total Clicks: 171 Cost Per Click (CPC): $0.08 CTR (all): 7.32% Ad results Summary Reach and Impressions: 'Headline 6' has the highest reach with 548 and the highest impressions with 638. 'Headline 4' has the lowest reach and impressions, both being very close at 9 and 10 respectively. Frequency: 'Headline 9' has the highest frequency at 1.21, meaning on average, the ad was shown a little more than once to each person. 'Headline 5' has the lowest frequency at 1.04, which is close to being shown once to each person. Amount Spent: 'Headline 9' had the highest amount spent at $4.02. 'Headline 4' doesn't have an amount spent mentioned, but among the others, 'Headline 8' had the least amount spent at $0.61. CPM (Cost per 1,000 Impressions): 'Headline 1' has the highest CPM at $7.34, indicating it's the most expensive ad per 1000 impressions. 'Headline 8' and 'Headline 5' have the lowest CPMs, both being slightly above $5. Link Clicks and CTR (Click-Through Rate): 'Headline 3' has the highest number of link clicks at 50 and a very high CTR of 10.99%. 'Headline 5' stands out with a whopping CTR of 33.93% with 38 link clicks, making it the most effective ad in terms of engagement. 'Headline 1' has the lowest link clicks at 1 and a CTR of 1.06%. CPC (Cost per Link Click): 'Headline 5' has the lowest CPC at $0.02, making it the most cost-effective ad in terms of link clicks. 'Headline 1' has the highest CPC at $0.69. Ad Performance: 'Headline 5' stands out as the most effective ad in terms of engagement and cost-effectiveness for link clicks. 'Headline 6' and 'Headline 3' also perform well with high link clicks and CTRs. 'Headline 4', despite having the lowest reach and impressions, has a CTR of 20%, indicating that 1 in 5 people who saw the ad clicked on it. In conclusion, while 'Headline 6' reached the most people, 'Headline 5' was the most effective in terms of engagement and cost-effectiveness for link clicks. It's essential to consider both reach and engagement metrics when evaluating the performance of ads. Analytics Winning Ads: If the goal is to get maximum reach and impressions, 'Headline 6' is the top performer. Headline: "From Your Screen to Your Cup – The Ultimate Starbucks® Journey!" Ad Body: "Starbucks® isn't just a coffee; it's a lifestyle.

And for our tech-savvy aficionados, we've brewed the perfect app. Order, pay, earn rewards, and enjoy special offers like our September ThursYays. Cheers to innovation and great coffee!" Blades Applied: Relationships (Your customer), Imagery (Visual, Auditory), Emotions (Feelings: joy, anticipation), Time (Present), Capability (Can, Will, Does), Proof (Credibility - Powerful Associations), Numbers (Dates), Language Devices (Alliteration, Metaphor). Total Impressions: 638 Total Reach: 548 Clicks: 26 CPC: $0.14 If the objective is to get the most clicks at the lowest cost, 'Headline 5' stands out. Headline: "Unlock Exclusive Rewards & Offers with Starbucks® App!" Ad Body: "From the bustling streets of New York to the serene landscapes of Oregon, our U.S. Starbucks® Rewards members get a special treat. Every Thursday in September, buy a fall drink and your next one's on us. Experience it with our app!" Blades Applied: Relationships (Your customer), Imagery (Visual), Time (Present), Capability (Can, Will, Does), Proof (Credibility - Powerful Associations), Numbers (Dates), Language Devices (Alliteration), Locations (Landmark, City, State). Total Impressions: 112 Total Reach: 108 Clicks: 38 CPC: $0.02 CTR: 34% Takeaways/Insights So in this thorough case study, I extensively analyze, examine, and audit Starbucks's ads relating to the BOGO Promo campaign, then come up with new ad ideas based on 17 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the winning ad. Coffee drinkers don't like dramatic ad angles, especially using the "Shame" model. I am glad to find this out using a data-driven approach rather than guessing. The similarity between ad #5 & #6 is the approach of straight-to-the-offer and telling users what the offer is and how they can get it. That's why it works so well. For a simple product like coffee, the "shame" angle doesn't move much of the needle. Having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get "stuck" with boring and mediocre "features & benefits" angle. Ideas & creatives are the name of the game. I'd recommend Starbucks create more ad angles for each of its products. The path of "Extreme Ads Makeover" doesn't stop and should be continuously evolving with the market. What-If Revenue Impact Analysis What If Starbucks went ahead and doubled down on ad #5 (Headline: "Unlock Exclusive Rewards & Offers with Starbucks® App!") with the lowest CPC, what would be the revenue impact? Let's make some assumptions: According to a 2023 survey by Premise, the average Starbucks customer visits the store six times a month (72 visits/year). The average order value (AOV) for Starbucks is around $6 and Starbucks' profit margin for the quarter ending June 30, 2023 was 12.45% The average spent/user = 72 visits * $6 = $432 => Starbucks profit = $432 x 12.45% = $54 Double down on ad #5 by increasing the number of clicks to 1,000,000 clicks (Cost = 1,000,000 clicks x $0.02 = $20,000) Let's calculate the potential revenues CTR of ad #5 is a whopping 34% (it means for showing the ad to 100 people, 34 people would show interest and click on it). At 1% conversion rate, 1,000,000 clicks x 1% = 10000 visits Revenue = 10,000 x $6/visit = $60,000 ROI = 200% ($60,000 - $20,000) / $20,000) At 2% conversion rate, 1,000,000 clicks x 2% = 20,000 visits Revenue = 20,000 x $6/visit = $120,000 ROI = 500% ($120,000 - $20,000) / $20,000) At 3% conversion rate (1/10th of the CTR), 1,000,000 clicks x 3% = 30,000 visits

Revenue = 30,000 x $6/visit = $180,000 ROI = 800% ($180,000 - $20,000) / $20,000) Next Step Double down on the winning ad and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I've used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That's why I want to introduce the... "Second Opinion" Package If you are a 7-figure business owner and already run paid ads and need someone to critique your ads for a potential makeover, go ahead and order my "Second Opinion" package. https://michaelnguyen.me/extreme-ads-makeover-starbucks/?feed_id=326&_unique_id=64fb891626f50

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michaelnguyendotme · 2 years ago

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In this series of "Extreme Ads Makeover", I will be tearing down ads of Lexus (lexus.com) and have them completely remodeled to have better targeting and ROI. Check out a previous case study of "Extreme Ads Makeover" for Chase Bank. About Lexus (lexus.com) Lexus is the luxury vehicle division of Japanese automaker Toyota. In 2022, Lexus sold over 500,000 vehicles globally, down 2% from 2021. However, Lexus saw record sales in China of over 230,000 units. Lexus has ranked highest among luxury car brands in dependability and reliability for years. The brand's global revenue reached $53 billion in 2021. Lexus has launched electrified models like the RX hybrid SUV, which make up over 25% of sales. Key models include the ES sedan, RX and NX SUVs, and LC coupe. Lexus represents Toyota's strategy to compete in the global luxury market against the likes of BMW and Mercedes-Benz. About Lexus's marketing agency Lexus does not have a single dedicated marketing agency. Their marketing is handled by an in-house department within the larger Toyota organization. Some key details about Lexus' marketing: Team One is Lexus' long-standing U.S. advertising agency of record. They have handled Lexus ad campaigns and creative work in the U.S. for over 30 years. Lexus also works with various regional marketing agencies and creative partners around the world. In Europe, they've worked with agencies like AMV BBDO. In China, they partner with agencies like WPP. For digital marketing and social media, Lexus works with smaller specialized agencies like IZEA and retains dedicated staff internally as well. Saatchi & Saatchi was previously Lexus' ad agency until they moved to Team One in the 1990s. Team One was formed by a group of former Saatchi employees specifically to handle the Lexus account. While Toyota handles most marketing in-house, they use partnerships with creative agencies to develop branding, campaigns, and execution in specific markets. But the overall strategic marketing direction for Lexus globally remains within Toyota. About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Nature Made ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Lexus Service Center Here are some key details about Lexus service centers and their business: Lexus has over 220 service centers in the U.S. These are dedicated facilities that only service Lexus vehicles. Industry average service and parts revenue per dealership is around $5 million annually. With over 200 service centers, Lexus' total service revenue likely exceeds $1 billion per year in the U.S. Profit margins on service are typically higher than vehicle sales. Industry average is 15-20% net profit on service vs 3-5% on new car sales. Lexus owners on average return to the dealer for 2 service appointments per year during a typical 3-4 year ownership period. With around 2 million Lexuses on the road in the U.S., Lexus dealers see 4+ million service appointments annually. Customer service satisfaction is very high for Lexus service centers. Lexus ranked #1 in dealer service satisfaction in multiple JD Power awards. Growth in service revenue is tied to overall vehicle sales growth and the expanding Lexus owner base over time. In the last decade, service business has likely grown steadily for Lexus along with U.S. sales.

So in summary, Lexus service centers see over $1 billion in annual revenue in the U.S. alone and 4+ million customer appointments per year, with strong growth and industry-leading satisfaction ratings. Landing page: https://www.lexus.com/service Facebook Ads: The Lexus team created one ad set to promote. Ad set #1 (see link) Ad set #2 (see link) Ad set #3 (see link) Ad set #4 (see link) Analysis In this installment of "Extreme Ads Makeover", I am going to remodel Lexus Service Center because I don't think it deserves the right attention and care. In other words, all 4 adsets Lexus team created have the same message, "Treat yourself and your Lexus right with Service by Lexus." If Lexus Service Center's mission were to treat customers and their Lexus right, it would start by treating itself right, wouldn't it? If you didn't have the right attention, care, and respect for your brand and your mission, how likely would you dedicate the right attention to your customers? That's the narrative Lexus team certainly doesn't want its customers to foster and even appear on their minds. It all starts with the ad message. First of all, I applaud the Lexus team for creating 4 ad sets with different images and I appreciate their effort. It tells me that the team is professional and knowledgeable about digital ads. At the same time, their effort in 4 ad sets is negated by the lack of creativity in ad messages because all ad sets share the same message!!! While Lexus ranked #1 in dealer service satisfaction in multiple JD Power awards, I expect to see MORE from a world-class team like Lexus because one message across 4 ad sets does a disservice to Lexus's high satisfaction record. Moreover, having only one control ad leads to the following issues: Lack of A/B Testing Limited Insights: With only one ad, you won't be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren't. Targeting Limitations Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities. Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover) Creativity and Message Fatigue Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect. Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility. Risk Management Higher Risk: If your one ad doesn't perform well, you don't have other ad sets to fall back on. This all-or-nothing approach can be riskier. Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility. Optimization Challenges Limited Learning: If your single ad isn't performing well, it's harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize. Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can't take advantage of this feature. Data and Analytics Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics. Attention: If you had multiple product lines and currently ran paid ads, there's a 97% chance that you had less than 3 ads based on my experiences of remodeling ads from Chase Bank, Amazon, Starbucks, Nike, Lexus, Home Depot, and Chanel.

Maybe you are perfectly okay with one control ad and burn your ad budget without ROI. But if you would like to have a second-opinion ads critique so that you can see the gaps and areas where you can extract MORE juice out of your ads, click on the link below to have me critique your ads. Gaps Analysis The Landing Page (see link ) Audience avatar: The ideal Lexus customer values luxury, craftsmanship, and a personalized service experience. They are likely middle to upper-middle class, aged 30 and above, and seek convenience, quality, and exclusivity in their vehicle ownership. They appreciate attentive, expert service and desire a seamless post-purchase experience. Lexus positions itself as a brand that offers more than just a vehicle, emphasizing its commitment to quality, expertise, and treating customers as special guests, ensuring they feel valued and protected throughout their journey. Ads Makeover Here's the disease that most marketing agencies and businesses running paid ads: "They think they've tested 20 ads but they really just tested 2 ads 10 different times." The best analogy for this is if you play the game "Battleship". Battleship is a strategy-type guessing game for two players. It is played on ruled grids (paper or board) on which each player's fleet of warships are marked. The locations of the fleets are concealed from the other players. Players alternate turns calling "shots" at the other player's ships, and the objective of the game is to destroy the opposing player's fleet. Using the context of the Battleship game, the fact that you just tested 2 ads 10 different times is like you are calling "shots" for the same spot 10 different times at the other player's ships. The lack of ideas for ad angles is making your ads dull and boring and ultimately leads to ad fatigue. Here are new ads makeover ideas: Headline Options "Craftsmanship Meets Luxury: Experience the Lexus Difference." "More Than a Car: A Journey of Exclusivity with Lexus." "Elevate Your Drive: Discover the Lexus Gold Standard." "Where Expertise Meets Elegance: Dive into the Lexus Experience." "Lexus: Where Every Drive Feels Like a Red Carpet Ride." "Crafted for the Elite: Welcome to the Lexus Family." "Tired of Mediocre Rides? Lexus Ain't That." "Settling for Less? That's a Tragic Tale." "Ready for the Unexpected? Lexus Brings the Wow." "Ever Felt the Blues Over a Car? Lexus Changes the Tune." "Guess What's Missing in Your Driveway? Lexus Magic." Body Copy Options "Ever wondered what sets a service center apart? It's the touch of craftsmen who know your Lexus inside out. From the moment you step into our dealership, you're not just a customer; you're our esteemed guest. Dive into a world where maintenance is a breeze, and luxury is a standard. With 24/7 Roadside Assistance and cutting-edge digital tools, we've got you covered in every way imaginable." Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual, Kinesthetic), Emotions (Feelings: joy, anticipation), Types of Statements (Questions, Statement), Time (Present), Capability (Does, Is), Levels of Identity (Behavior, Environment), Proof (Credibility: Powerful demonstration, Unique Mechanism), Numbers (Periods of time), Language Devices (Metaphor, Rhythm). "Crafted for those who value the finer things in life. At Lexus, we ensure every experience mirrors the luxury you seek. From expert hands guiding you through features to complimentary loaner vehicles, we redefine service. And with LexusCare, say goodbye to maintenance woes. Ready for an unparalleled journey?" Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Types of Statements (Statement), Time (Present), Capability (Does, Is), Levels of Identity (Beliefs, Behavior), Proof (Credibility: Powerful demonstration), Numbers (Periods of time), Language Devices (Metaphor).

"Lexus isn't just about cars; it's about a promise of unmatched luxury and service. Our technicians? Think of them as craftsmen who cherish your vehicle as their masterpiece. And with benefits like 24-hour Roadside Assistance, we ensure you're always in safe hands. Experience the Lexus difference today." Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual, Kinesthetic), Emotions (Feelings: joy, anticipation), Types of Statements (Statement), Time (Present), Capability (Does, Is), Levels of Identity (Beliefs, Behavior), Proof (Credibility: Powerful demonstration), Numbers (Periods of time), Language Devices (Simile). "Step into a realm where every detail echoes luxury. Lexus is not just a vehicle; it's a commitment to excellence. From our finely crafted vehicles to our top-tier service, we ensure you're always treated as a guest, not just a customer. Why settle for less when you can have the best?" Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Types of Statements (Question, Statement), Time (Present), Capability (Does, Is), Levels of Identity (Beliefs, Behavior), Proof (Credibility: Powerful demonstration), Language Devices (Metaphor). "Discover the Lexus legacy. Where maintenance is effortless, and luxury is the norm. Our experts don't just know your vehicle; they treasure it. And with state-of-the-art tools and benefits, we ensure you're always ahead of the curve. Dive into the world of Lexus today." Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual), Emotions (Feelings: joy, anticipation), Types of Statements (Command, Statement), Time (Present), Capability (Does, Is), Levels of Identity (Beliefs, Behavior), Proof (Credibility: Powerful demonstration), Language Devices (Metaphor). "Why Lexus? Because every journey with us is a testament to luxury, craftsmanship, and unparalleled service. From the first touch at our dealership to our unmatched post-purchase care, we ensure you're always in expert hands. Join the Lexus family and elevate your driving experience." Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual, Kinesthetic), Emotions (Feelings: joy, anticipation), Types of Statements (Question, Statement), Time (Present), Capability (Does, Is), Levels of Identity (Beliefs, Behavior), Proof (Credibility: Powerful demonstration), Language Devices (Metaphor). "If you're fed up with cars that just don't cut it, it's time for a change. Why envy the luxury of others when you can own it? With Lexus, it's not just about the drive; it's a statement of defiance against the ordinary. But here's a warning: once you experience the Lexus difference, there's no going back. Don't let the defeat of settling for less be your story. " Models Applied: Emotions (Feelings: anger, envy, defiance, disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat). "Ever felt that sting of defeat when your car lets you down? It's a gut punch, right? Don't be that guy green with envy, watching Lexus owners cruise by. Stand defiant against mediocre rides and say no to the tragedy of average. A heads up though: once you're with Lexus, everything else feels like a downgrade. Choose wisely." Models Applied: Emotions (Feelings: anger, envy, defiance, disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat). "Anticipating the next big thing in luxury driving? Why stick with the same old when Lexus promises a ride that'll leave you shook? But here's a question: Are you ready to ditch the tragedy of mundane drives? Don't let past car stupidity hold you back. With Lexus, vulnerability turns into confidence. Dive in, and let the surprises roll! " Models Applied: Emotions (Feelings: anticipation, sadness, surprise), Types of Statements

(Question), Future (Promise/Prediction), Language Devices (Slang, Tragedy), Shame (Stupidity, Vulnerability). "Feeling down about your current ride? We get it. But what if there's a car that promises to turn that frown upside down? Question is, are you ready to escape the tragedy of average? With Lexus, you're not just buying a car; you're investing in a future filled with delightful surprises. Don't let past mistakes define you. Rise above! " Models Applied: Emotions (Feelings: anticipation, sadness, surprise), Types of Statements (Question), Future (Promise/Prediction), Language Devices (Slang, Tragedy), Shame (Stupidity, Vulnerability). "Ever had that sinking feeling of missing out? Lexus is here to change the game. Why settle for less when the promise of unparalleled luxury awaits? But here's the real question: Ready to ditch the tragic tales of car woes? With Lexus, the only surprise is how you ever lived without it. Say goodbye to past vulnerabilities and hello to the future. " Models Applied: Emotions (Feelings: anticipation, sadness, surprise), Types of Statements (Question), Future (Promise/Prediction), Language Devices (Slang, Tragedy), Shame (Stupidity, Vulnerability). Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: Magnesium Gummy Targeted audience: Target with interest in Nature Made (who else is better than prospects already interested in Nature Made?) Placement: News Feed Optimization: Optimized for Traffic Here are all the 9 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $14.50 Total Impressions: 3,284 Total Reach: 2,615 Total Clicks: 25 Cost Per Click (CPC): $0.47 CTR (all): 0.94% Ad results Summary Reach and Impressions: 'Headline 3' has the highest reach and impressions compared to all the other headlines. 'Headline 6' has the lowest reach and impressions. Frequency: 'Headline 3' has the highest frequency at 1.34, suggesting that, on average, a user saw the ad 1.34 times. 'Headline 1' has the lowest frequency at 1.03, which indicates almost all reached users saw the ad only once. Results (Link Clicks): 'Headline 8' performed the best in terms of link clicks, with 11 clicks. Several headlines ('Headline 4', 'Headline 5', 'Headline 9') have no link click data provided. Cost Efficiency: 'Headline 6' has the lowest cost per result (CPR) at $0.21 and also the lowest amount spent. This suggests it's the most cost-effective in terms of cost-per-click. 'Headline 2' has the highest CPR at $1.09, suggesting it's the least cost-effective ad for generating link clicks. CPM (Cost per 1,000 Impressions): 'Headline 3' offers the best value in terms of CPM at $1.32, suggesting that it's the cheapest to reach 1,000 people. 'Headline 5' has the highest CPM at $4.56, indicating it's the most expensive per 1,000 views. CTR (Link Click-Through Rate): 'Headline 8' has the highest CTR at 3.48%, suggesting that out of all the ads, users are most likely to click on 'Headline 8' after seeing it. 'Headline 3' has the lowest CTR at 0.23%, suggesting it's the least enticing, even though it had the most reach and impressions. CPC (Cost per Link Click): 'Headline 6' and 'Headline 8' share the lowest CPC at $0.21, which means they are the most cost-effective in terms of getting users to click the ad. 'Headline 2' has the highest CPC at $1.09, making it the least cost-effective. Analytics: Graph comparing the "Reach" of each Ad Graph comparing the "Impressions" of each Ad: Graph comparing the "Amount spent (USD)" for each Ad.

Pie chart showing the distribution of "Link clicks" across the Ads: Graph comparing the "CPM (cost per 1,000 impressions)" for each Ad: Graph comparing the "CTR (link click-through rate)" for each Ad: Winning Ads: From a strategic perspective: If the goal is to get maximum reach and impressions, 'Headline 3' is the top performer. Headline: "Elevate Your Drive: Discover the Lexus Gold Standard." Ad body: "Lexus isn't just about cars; it's about a promise of unmatched luxury and service. Our technicians? Think of them as craftsmen who cherish your vehicle as their masterpiece. And with benefits like 24-hour Roadside Assistance, we ensure you're always in safe hands. Experience the Lexus difference today." Models Applied: Relationships (Your customer, The advertiser), Imagery (Visual, Kinesthetic), Emotions (Feelings: joy, anticipation), Types of Statements (Statement), Time (Present), Capability (Does, Is), Levels of Identity (Beliefs, Behavior), Proof (Credibility: Powerful demonstration), Numbers (Periods of time), Language Devices (Simile). Total Impressions: 1330 (40% of the campaign's total impressions) Total Reach: 991 (accounts for 38% of the campaign's total reach) Clicks: 3 CPC: $0.59 If the objective is to get the most clicks at the lowest cost, 'Headline 8' stands out. Headline: "Settling for Less? That's a Tragic Tale." Ad Body: "Ever felt that sting of defeat when your car lets you down? It's a gut punch, right? Don't be that guy green with envy, watching Lexus owners cruise by. Stand defiant against mediocre rides and say no to the tragedy of average. A heads up though: once you're with Lexus, everything else feels like a downgrade. Choose wisely." Models Applied: Emotions (Feelings: anger, envy, defiance, disgust), Types of Statements (Condition), Future (Warning), Language Devices (Slang, Tragedy), Shame (Defeat). Total Impressions: 317 Total Reach: 287 Clicks: 11 CPC: $0.21 (64% cheaper) Takeaways/Insights So in this thorough case study, I extensively analyze, examine, and audit Lexus Service Center's ads, then come up with new ad ideas based on 17 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the winning ad. "Feature/Benefit" ads like ad with headline #3 gets the most eyeballs (40% impressions of the entire campaign) but register 72% fewer clicks than ad #8 featuring more complex emotions like fear, defeat, anger, and envy. Having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get more "lookie-lookie" but less hand/thumb action. I'd recommend the Lexus team create more ad angles for each of their products. The path of "Extreme Ads Makeover" doesn't stop and should be continuously evolving with the market. What-If Revenue Impact Analysis What If Lexus went ahead and doubled down on ad #8 with the lowest CPC, what would be the revenue impact? Let's make some assumptions: The conversion rate is 1% (given the normal conversion rate of 2%) The average annual maintenance cost for a Lexus is around $551. The service and parts department accounts for 44% of the dealership's gross profits. Double down on ad #8 by increasing the number of clicks to 10,000 clicks (Cost = 10,000 clicks x $0.21 = $2,100) Let's calculate the potential revenues At 0.1% conversion rate, 10,000 x 0.1% = 10 merchants signed up Revenue = 10 x $551 = $5510 ROI = 162% ($5510- $2,100) / $2,100) At 1% conversion rate (the industry standard is 2%), 10,000 x 1% = 100 buyers scheduled for maintenance at the shop.

Revenue = 100 x $551 = $55,100 ROI = 2,500% ($55,100- $2,100) / $2,100) At 2% conversion rate, 10,000 x 2% = 200 merchants signed up Revenue = 200 x $551 = $110,200 ROI = 5,148% ($110,200 - $2,100) / $2,100) Next Step Depending on your objectives, double down on the winning ads (ad #3 and #8) and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I've used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That's why I want to introduce the... "Second Opinion" Package If you are a 7-figure business owner and already run paid ads and need someone to critique your ads for a potential makeover, go ahead and order my "Second Opinion" package. https://michaelnguyen.me/extreme-ads-makeover-lexus/?feed_id=318&_unique_id=64fb6db271f56

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michaelnguyendotme · 2 years ago

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In this series of "Extreme Ads Makeover", I will be tearing down ads of Natural Made ads and have them completely remodeled to have better targeting and ROI. About Nature Made Nature Made is a leading dietary supplement brand in the United States. It was founded in 1971 and is the #1 Pharmacist Recommended Vitamin and Supplement brand in nine product segments. Nature Made products are manufactured in the United States and are verified by the United States Pharmacopeia (USP), an independent third party that verifies products that meet stringent quality criteria for purity and potency. About Nature Made's marketing agency The current marketing agency for Nature Made is Leo Burnett Chicago. They have been the agency of record for Nature Made since 2021. Leo Burnett is a global advertising agency with offices in over 90 countries. They have a long history of working with major brands, including Coca-Cola, McDonald's, and Nike. In 2023, Leo Burnett Chicago created a new marketing campaign for Nature Made called "The Start of Something Great." The campaign features a 30-second ad spot that showcases the ways vitamins can impact day-to-day activities, like time spent with loved ones. The ad spot has been running on TV, online, and in print. About Michael Nguyen - CEO of Produce Results Agency, aka the "Extreme Ads Makeover" Host Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Nature Made ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Magnesium Gummy Landing page: https://www.naturemade.com/products/magnesium-citrate-gummies Facebook Ads: The Nature Made team created one ad set to promote. Ad set #1 (see link) Analysis I am disappointed to see the lack of effort in promoting the Magnesium Gummy from Nature Made when there is only one control ad. Here are the disadvantages when having only one control ad: Lack of A/B Testing Limited Insights: With only one ad, you won't be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren't. Targeting Limitations Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities. Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover) Creativity and Message Fatigue Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect. Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility. Risk Management Higher Risk: If your one ad doesn't perform well, you don't have other ad sets to fall back on. This all-or-nothing approach can be riskier. Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility. Optimization Challenges Limited Learning: If your single ad isn't performing well, it's harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize.

Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can't take advantage of this feature. Data and Analytics Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics. Gaps Analysis The Landing Page (see link ) Audience avatar: I don't know exactly what the avatar Nature Made is targeting for this offer. By analyzing the landing page, here's what I think the avatar Nature Made is targeting: Meet Emily, a 35-year-old working professional who is health-conscious but has a hectic lifestyle that makes it challenging to maintain a balanced diet. She's gluten-sensitive and prefers natural products. Emily is already on medication for a minor health condition and is cautious about adding new supplements to her regimen. She's been advised by her healthcare provider to increase her Magnesium intake. Emily loves fruity flavors and hates swallowing pills, making her the perfect candidate for Nature Made® High Absorption Magnesium Citrate Gummies. Unlike the approach I used to analyze Chase Bank, for Nature Made, I think their landing page is quite decent. Any additional improvement can lead to a marginal result. Meanwhile, a huge improvement can be made from the ad creatives. As a result, I'll use my 9 analysis models to come up with 9 different ad angles. Ads Makeover Here's the disease that most marketing agencies and businesses running paid ads: "They think they've tested 20 ads but they really just tested 2 ads 10 different times." The best analogy for this is if you play the game "Battleship". Battleship is a strategy-type guessing game for two players. It is played on ruled grids (paper or board) on which each player's fleet of warships are marked. The locations of the fleets are concealed from the other players. Players alternate turns calling "shots" at the other player's ships, and the objective of the game is to destroy the opposing player's fleet. Using the context of the Battleship game, the fact that you just tested 2 ads 10 different times is like you are calling "shots" for the same spot 10 different times at the other player's ships. The lack of ideas for ad angles is making your ads dull and boring and ultimately leads to ad fatigue. Using a combination of the following analysis models (aka "b Model #1 - Relationships Most ads are about something you sell (aka magnesium) or some really obvious problem related to the keyword (magnesium). By using different relationship types, you can unlock new ad hooks that make your ads more interesting. Here are 6 relationship layers with which you can pair. Your customer (avatar) You (the advertiser/vendor) (aka. Nature Made) A thing that your customer loves A thing that your customer hates Your customer's worst enemy Your customer's best friend Model #2 - Imagery Each person has a unique way to process information. Some are visual, some are auditory or kinesthetic. If you only relied on visual ways to write ads, you would be missing out on other types of customers who are auditory and/or kinesthetic. Three imagery categories: Visual Auditory Kinesthetic Model #3 - Emotions Fact-based ads without emotions are dry, boring, and run into the risk of losing interest fast. Ads with emotional treatment are more versatile and relatable because they activate feelings like anger, joy, surprise, etc. In addition, I will throw in vices such as sloth, greed, envy, lust, and so on to take another level deep on the emotional scale. Besides vices, there are possible virtues that human beings are drawn to such as love, ambition, compassion, honesty, etc, and are eligible to use in ads. Model #4 - Types of Statements The English language comes with many types of statements such as questions, condition statements (if/then), declaration statements,

etc. By interchangeably sub out different statement types, new ads become interesting instead of the most commonly used declaration statement. Model #5 - Time Human beings react differently in different contexts of time such as past, present, and future. For example, some people may feel regretable over their past and motivated for the future yet to come. Similarly, when the offer or the ad deploys the language of time, it arouses different emotions. Model #6 - Towards/Away From As you realize, we are driven toward the things that give us pleasure and go away from things that cause us pain. Similarly to ads, construct them in a way that brings out the most pleasures or helps prospects get away from pain. Model #7 - Future The future model involves different ways of discussing the future and how you describe it. We are always looking out for indicators of "winter is coming" as survival mode. That's why we are drawn to predictions, warnings, or threats so that we can plan accordingly. For ads, you just do the same by adding an element of "future" to trigger the feeling of "winter is coming". Model #8 - Capability The capability model is a way of talking about either your customer or yourself or your products and services. Brainstorming your product/service capability in positive and negative ways reveals another interesting angle for the ads by writing ads in (Can, Can't, Will, Won't, True, False, etc). Model #9 - Levels of Identity The "levels of identity" model is very sophisticated, and it's very useful because there are different levels at which a product affects people. For ex, the Nature Made - Magnesium Gummy product can be appealed to customers whose identity is to live a healthy lifestyle. They want the benefits from consuming Magnesium because the gummy help s them continue to reinforce their identity. In other context of Skill for ex, if they were knowledge workers, they would need Magnesium gummy to maintain or gain an edge in their skill sets to get the financial rewards. Here are different levels of identity: - Identity - who they are - Beliefs - what they think - Skills - what they're capable of - Behavior - what they do - Environment - where they are Model #10 - Proof Needless to say, proof is a powerful force to draw more attention and sales when properly used. Sadly, most businesses leverage less than 50% of the power of proof and how to use it in different ways to create an edge. You can use the following proof elements to build credibility such as: - The powerful demonstration - Results in advance - High Profile Clients - Track Record - Powerful Associations - Celebrity - Unique Mechanism - Case studies - Research - Media mentions - Number of followers Model #11 - Numbers Ever heard phrases like "Strength in numbers" or "Numbers don't lie"? Find a way to quantify by numbers in your ads and they will create authority power because numbers paint a picture in the prospects' minds rather than vague quantifiers such as "a lot", "many". Model #12 - Language Devices Similar to model #4 (type of statements), you can use multiple language devices such as bullet points, simile, humor, famous quotes, and lyrics to diversify the "look & feel" of the ads. By combining multiple language devices, new ads become richer and have more depth. Model #13 - Names Finding a way to associate, pair, compliment, and rhyme with existing names from reputable sources such as movies, icons, brands, actors & actresses, songs, TV shows, etc infuses new ads with new-found authority and a breath of newness. Model #14 - Locations Similar to using names above (#13), locations including (landmarks, cities, countries, fictional, and metaphysics) bring a similar punch of power and authority and a level of mystique to your ads. Model #15 - Direct Marketing Offers Direct marketing elements such as (guarantees, free samples, deadlines, no obligation,

etc.) generate a surge in adrenaline that can lead to actions. Model #16 - Ad structure In this model, the ad structure will be reconstructed in multiple permutations such as verb/noun/adjective swapping, using quotes, dashes, symbols, capitalization, etc. When ads are gone through this model, they appear different visually and comprehensively. Model #17 - Shame Shame is one of the powerful emotions that very few know how to tap into because shame isn't obvious and takes time to research and understand. For example, when the ads mention moral guilt (shameful act committed due to bad moral character) blame (what customers got blamed for), or feelings of defeat (who/what customer lost the battle with?). I hope you can see how powerful it is to incorporate shame into ads and make ads more alive and connected. Next is the fun part where i am going to do a makeover on Nature Made's existing Magnesium Gummy ad by coming up with 6 new ads. Headline Options "Unlock Wellness On-the-Go with Nature Made® Magnesium Gummies!" "No Time for Pills? Try Nature Made® Magnesium Gummies!" "Elevate Your Health Without Slowing Down!" "Nature Made®: The Busy Professional's Secret to Balanced Health!" "Get Your Daily Dose of Relaxation, No Pills Required!" "Say Goodbye to Stress, the Nature Made® Way!" "Tired of Being Defeated by Pills? Take Control with Nature Made®!" "Don't Let Your Health Routine Make You Angry—Switch to Nature Made® Gummies!" "Envious of Easy Wellness Routines? Make Them Green with Nature Made®!" Body Copy Options Body Copy 1 We get it. You're a busy professional juggling a lot but still committed to your health. Meet Nature Made® Magnesium Citrate Gummies, your new best friend in wellness. Imagine the relief of not having to swallow another pill, but instead, savoring a delicious mixed berry gummy that's gluten-free and all-natural. Feel the joy and anticipation as you elevate your health without compromising your lifestyle. "Why didn't I find this sooner?" you'll ask. Act now and secure this game-changer for your health regimen. Recommended by pharmacists and approved by healthcare providers. Limited offer: Subscribe and save 10% + Free Shipping! Models Applied: Relationships, Imagery (Visual, Kinesthetic), Emotions (Joy, Anticipation), Statements, Time (Present, Future), Towards/Away From (Desire), Future (Promise), Capability (Can), Proof (Credibility, Social Proof), Numbers (50% off), Language Devices (Questions), Direct Marketing Offers (% Discount). Body Copy 2 Are you tired of the pill-swallowing routine? Nature Made® Magnesium Citrate Gummies are here to revolutionize your health journey. Visualize a stress-free life, powered by these delicious, gluten-free gummies. Feel the ecstasy of making a smart choice that aligns with your values and lifestyle. "A small change for a big impact," says our satisfied customer Jane. Hurry, offer ends soon! Models Applied: Relationships, Imagery (Visual), Emotions (Ecstasy), Types of Statements (Quotation), Time (Present), Towards/Away From (Desire), Future (Warning), Capability (Are), Proof (Personal Endorsement), Numbers (Ends soon), Language Devices (Quotation), Direct Marketing Offers (Deadline). Body Copy 3 Imagine a world where your health supplements don't feel like a chore. That's what Nature Made® Magnesium Citrate Gummies offer. Listen to the sound of stress melting away as you chew these fruity, gluten-free delights. Feel the courage and determination to take on the day, every day. "It's like a mini-vacation in a bottle," says wellness guru Sarah. Act now, and we'll throw in a free consultation with a healthcare professional. Models Applied: Relationships, Imagery (Auditory), Emotions (Courage, Determination), Types of Statements (Quotation), Time (Present), Towards/Away From (Both), Future (Promise), Capability (Will), Proof (Personal Endorsement, Credibility), Numbers (Free), Language Devices (Quotation), Direct Marketing Offers (Consultati

on). Body Copy 4 Are you ready to defy the odds and take control of your health? With Nature Made® Magnesium Citrate Gummies, you can. Feel the love and compassion we've poured into creating a gluten-free, all-natural supplement just for you. "This is the future of health supplements," declares Dr. Smith. Don't miss out; your future self will thank you. Models Applied: Relationships, Imagery (Kinesthetic), Emotions (Love, Compassion), Types of Statements (Declaration), Time (Present, Future), Towards/Away From (Both), Future (Promise), Capability (Can), Proof (Credibility), Numbers (None), Language Devices (Declaration), Direct Marketing Offers (None). Body Copy 5 How would you like to turn your daily health routine into a delightful experience? Nature Made® Magnesium Citrate Gummies make it possible. Savor the mixed berry flavor as you chew your way to better health. Feel the joy and generosity in every bite. "It's a game-changer," says Emily, another satisfied customer. Limited offer: Subscribe and save 10% + Free Shipping! Models Applied: Relationships, Imagery (Visual, Kinesthetic), Emotions (Joy, Generosity), Types of Statements (Questions), Time (Present), Towards/Away From (Desire), Future (Promise), Capability (Make), Proof (Personal Endorsement), Numbers (30-day), Language Devices (Questions), Direct Marketing Offers (Money-back guarantee). Body Copy 6 What if you could get all the Magnesium you need without adding another pill to your day? Nature Made® Magnesium Citrate Gummies are your answer. Picture this: A gluten-free, all-natural gummy that fits seamlessly into your busy life. Feel the anticipation and elegance as you uncap the bottle. "It's not just a supplement; it's a lifestyle," says health expert Mark. Subscribe and save 10% + Free Shipping! Models Applied: Relationships, Imagery (Visual), Emotions (Anticipation, Elegance), Types of Statements (Questions), Time (Present), Towards/Away From (Desire), Future (Promise), Capability (Could), Proof (Personal Endorsement), Numbers (20%), Language Devices (Questions), Direct Marketing Offers (% Discount). Body Copy 7 If you're sick of the tragic defeat of swallowing pills, it's time for a change. Nature Made® Magnesium Citrate Gummies are the real deal. Feel the anger turn into defiance as you take control of your health. "Don't get played by pills," warns fitness coach Mike. Act now, or forever hold your peace! Models Applied: Relationships, Emotions (Anger, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang, Tragedy), Shame (Defeat). Body Copy 8 If you're disgusted by the synthetic junk in most supplements, we've got your back. Nature Made® Magnesium Citrate Gummies are as natural as they come. Feel the disgust turn into defiance as you say no to artificiality. "Don't let fake stuff mess with you," warns nutritionist Lisa. Time's ticking, so make your move! Models Applied: Relationships, Emotions (Disgust, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang), Shame (Defeat). Body Copy 9 If you're envious of people who effortlessly maintain their health, your time has come. Nature Made® Magnesium Citrate Gummies are the game-changer you've been waiting for. Feel the envy turn into defiance as you level up your wellness game. "Don't get left in the dust," warns health influencer Tom. Miss this, and you'll regret it! Models Applied: Relationships, Emotions (Envy, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang), Shame (Defeat). Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the custom

ers. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: Magnesium Gummy Targeted audience: Target with interest in Nature Made (who else is better than prospects already interested in Nature Made?) Placement: News Feed Optimization: Optimized for Traffic Here are all the 9 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $12.71 Total Impressions: 1,845 Total Reach: 1,637 Total Clicks: 44 Cost Per Click (CPC): $0.29 CTR (all): 2.38% Ad results Winning Ad: While impression & reach are important, I value "result" (or link click) more than impression because the impression is more passive than an action taken by the user (click). Angle: If you're sick of the tragic defeat of swallowing pills, it's time for a change Headline: "Tired of Being Defeated by Pills? Take Control with Nature Made®!" Total Impressions: 506 (27% of the campaign's total impressions) Total Reach: 557 (accounts for 34% of the campaign's total reach) Total Clicks: 10 (accounts for 23% of the overall campaign's clicks) Cost Per Click (CPC): $0.37 (28% higher than the campaign's CPC) CTR: 1.8% (21% lower than the campaign's CTR) Top 3 Ads 1st Place with Headline #7: "Tired of Being Defeated by Pills? Take Control with Nature Made®!" Models Applied: Relationships, Emotions (Anger, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang, Tragedy), Shame (Defeat). 2nd Place with Headline #6: "Say Goodbye to Stress, the Nature Made® Way!" Models Applied: Relationships, Imagery (Visual), Emotions (Anticipation, Elegance), Types of Statements (Questions), Time (Present), Towards/Away From (Desire), Future (Promise), Capability (Could), Proof (Personal Endorsement), Numbers (20%), Language Devices (Questions), Direct Marketing Offers (% Discount). 3rd Place with Headline: "Envious of Easy Wellness Routines? Make Them Green with Nature Made®!" Models Applied: Relationships, Emotions (Envy, Defiance), Types of Statements (Condition), Time (Present), Towards/Away From (Both), Future (Warning), Capability (None), Proof (None), Numbers (None), Language Devices (Slang), Shame (Defeat). What-If Revenue Impact Analysis What If Nature Made went ahead and ran another campaign based on what i suggested below, what would be the revenue impact? Let's make some assumptions: The conversion rate is 1% (given the normal conversion rate of 2%) The price of a subscription for one bottle of Magnesium Citrate Gummies is $20.33 Double down on the winning ad by increasing the number of clicks on winning ads to 10,000 clicks (Cost = 10,000 clicks x $0.37 = $3,700) Let's calculate the potential revenues Assuming a buyer would stay subscribed for an average of 3 months. At 1% conversion rate (the industry standard is 2%), 10,000 x 1% = 100 buyers signed up Revenue = 100 x $20.33/mo x 3 months = $6,099 ROI = 64.83% ($6,099- $3,700) / $3,700 At 0.1% conversion rate, 10,000 x 0.1% = 10 merchants signed up Revenue = 10 x $20.33/mo x 3 months = $601 ROI = -84% Takeaways/Insights So in this thorough case study, I extensively analyze, examine, and audit Nature Made's ads relating to the Magnesium Gummies, then come up with new ad ideas based on 17 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the winning ad. Use bundling to increase the AOV instead of one bottle. For ex, Nature Made can offer a bundle of 3 bottles or 6 bottles. My assumption is the buyer can stay subscribed for 3 months. With my Churn Buster Kit system, we can stretch the longevity to 20-50%. Having only one control ad can seriously underpe

rform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get "stuck" with boring and mediocre "features & benefits" angle. Ideas & creatives are the name of the game. As you notice the top 3 winning ads, I introduced a "Shame" element in those ads to bring up the "defeat" emotion (a very complex emotion) as an angle. The result speaks for itself that those 3 ads are winners I'd recommend Nature Made create more ad angles for each of their products. The path of "Extreme Ads Makeover" doesn't stop and should be continuously evolving with the market. Next Step Double down on the winning ad and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you the 17 proprietary models I used to create ad ideas. While those 17 models appear easy for me because I've used them to generate thousands of ad ideas, for you, generating ideas may not come easily. That's why I want to introduce the... "Done For You" Package So "Michael, I am a 7-figure business owner and already run paid ads. I need your help to run through the same process you are doing during your Extreme Ads Makeover and help me optimize my ads to extract more juices. What's the process to work with you?" Call/text me 214-734-0685 to schedule a paid Half-Day Consulting Day where we'll cover the following: Explain your current situation, what's working, and where you feel there is room for improvement. Discuss the vision of your business: You can't get to where you want to go without taking an inventory of where you are. We discuss your situation. Discuss obstacles: Until we have clarity on our obstacles, we can't put together a game plan to overcome them. We have an honest discussion of what's in your way Come up with action plans. Then and only then - if it fits - we'll start the engagement. https://michaelnguyen.me/extreme-ads-makeover-natural-made/?feed_id=310&_unique_id=64f4c93647c50

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michaelnguyendotme · 2 years ago

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In this post of "Extreme Ads Makeover", I will be tearing down ads of Chase Bank, the #1 Bank in America with over $1.3 Trillion in Deposits with $2.3B in marketing budget, on Facebook and have them completely remodeled to have better targeting and ROI. Since 1999, Produce Results Agency has helped clients double assets from $5ooM to $1B and generated 4000% ROI for a regional bank turning their $66K marketing budget to $2.8M in revenue. In this post, I will perform an ad audit on Chase Ads, analyze what's missing from the ads, come up with new ads, and eventually validate those new ads by running paid traffic on my own dime to see how new ads perform. I am using Meta Ads in this case study but the same principle applies to other mediums such as Google, Youtube, Programmatic Ads, and short forms. Table of Content 1. Ads Audit 2. Gaps Analysis Voice/Tone/Style/Diction Analysis Objections Analysis Maslow Hierarchy Analysis Negative Sentiment Analysis Positive Sentiment Analysis Logic vs Emotion Analysis Psychographic Analysis Desires Analysis Human Biases Analysis 3. Ads Makeover 4. Validate New Ads 5. Insights/Takeaways 6. Next Steps Ads Audit Promoted Product: Chase Point of Sales Landing page: https://www.chase.com/business/knowledge-center/manage/pos. Since Chase can take down this landing page anytime I made a copy of it from this backup link. Facebook Ads: The Chase team created two ad sets to promote. Ad set #1 (see link) There's no text in this ad besides the photo and CTA I think Chase team missed a HUGE opportunity to sell prospects on the benefits of POS when leaving the copy blank. Ad set #2 (see link) As the Call To Action (CTA) of the ad suggests "Do more with your POS system", this ad is quite generic and tries to do "many things" at the same time. In most cases, when you try to appeal to many things, the effort is most likely to fall short. Rather I advocate for the principle of "1-1-1", one ad idea, one angle and one call to action. Analysis I am disappointed to see the lack of effort in promoting the POS system from Chase when there is only one control ad. In contrast, when I review Square, a noteworthy competitor of Chase POS, Square team has created 270 different ads from many different angles to promote. For example: these are Square's ads on Meta. Ad 1 (link): focusing on the affordability angle Ad 2 (link): featuring the mobility angle emphasizing the promise of "taking your store wherever you want to go". Here are the disadvantages when having only one control ad: Lack of A/B Testing Limited Insights: With only one ad, you won't be able to perform A/B tests, which are essential for determining what aspects of the ad are working and what aren't. Targeting Limitations Missed Opportunities for Segmentation: Different ad sets can target different customer segments. A single ad may not be as effective across all segments, missing out on some potentially lucrative opportunities. Reduced Personalization: Multiple ad sets allow you to customize messages based on user behavior, geography, or other demographics. A single ad will be less personalized and potentially less effective (more on this below when I do an ad makeover) Creativity and Message Fatigue Ad Fatigue: Over time, the same ad is likely to become less effective as users get tired of seeing it. Multiple ad sets can help mitigate this effect. Limited Creative Testing: Having multiple ads allows for testing different creative elements like headlines, images, and call-to-actions. A single ad limits this flexibility. Risk Management Higher Risk: If your one ad doesn't perform well, you don't have other ad sets to fall back on. This all-or-nothing approach can be riskier. Budget Allocation: With multiple ad sets, you can allocate more budget to higher-performing ads. A single ad does not offer this flexibility.

Optimization Challenges Limited Learning: If your single ad isn't performing well, it's harder to pinpoint what exactly is going wrong. Multiple ad sets can provide you with more data, making it easier to optimize. Inability to Leverage Platform Algorithms: Many advertising platforms use machine learning algorithms to automatically allocate budget to the best-performing ads in a campaign. With just one ad, you can't take advantage of this feature. Data and Analytics Limited Data for Analytics: Having only one ad will provide you less data, reducing the reliability and validity of your performance metrics. Gaps Analysis The Landing Page (see link or backup link) Audience avatar: Small business owner accepting credit cards As Jim Collins wrote in his most popular book "Good to Great" - "Begin with an end in mind", improving Chase's Facebook Ads wouldn't start from the ads themselves. Instead, I would start from the landing page to where Chase sends prospective customers. By analyzing the landing page, I know what's missing so that I can work backward to improve the ads. Using the power of AI, I will be applying 7 different lenses (or analysis models) to analyze Chase's landing page so that you understand what's missing. Let's goooooo..... VTSD (Voice/Tone/Style/Diction) Analysis From the landing page, I came up with the Text Personality profile. Text Personality Profile Style and Voice: - Expository: The text primarily aims to inform the reader about POS systems in a methodical manner, breaking down their features, benefits, and considerations. - Educational: The tone and language used aim to provide a deeper understanding of the subject to the audience, which presumably consists of individuals not fully acquainted with the intricacies of modern POS systems. Tone: - Neutral-Positive: While primarily informative, the text occasionally adopts a positive tone, especially when highlighting the benefits of modern POS systems. - Encouraging: Phrases like "Get started" and the mention of it being an "exciting time" aim to motivate the reader to consider their options. Interesting Diction: - Technical Jargon: Terms such as "smart POS", "merchant services provider", "digital payments", "integration", and "cloud-based system" appear throughout the text. - Conversational Elements: Phrases like "Not so long ago" or "Get started by answering these five questions" give the content a more conversational and approachable feel. While the Chase team chose to break down the features and benefits of their POS system, here are some missing angles that would resonate more with the customer avatar that Chase is trying to reach. Highlight Affordability: - Emphasize cost-effective solutions tailored for small businesses, ensuring they don’t have to spend much to get a top-notch system. Flexibility & Scalability: - Stress the flexibility of modern POS systems that can grow with their business, catering to expanding operations without needing constant replacements. Personalized Customer Experience: - Discuss how a good POS system can help small business owners offer a more personalized shopping experience, building customer loyalty and repeat business. Efficient Inventory Management: - Elaborate on how POS systems help small businesses manage their stock efficiently, ensuring they don't over-order or run out of popular products. Local & Community Engagement Features: - Introduce features or apps within POS systems that allow businesses to engage with local communities, promoting local events or partnering with other small businesses for promotions. Ease of Training: - Mention the ease with which staff can be trained on these systems, saving time and ensuring smooth transactions for customers. Security Emphasis: - Given that small businesses may not have extensive IT teams, emphasize the robust security features that protect customer credit card data.

Integration with Local Delivery Services: - Highlight the potential integration with local delivery services, especially crucial in the current market where delivery options are highly valued. Highlight Local Testimonials: - Include testimonies from other local small businesses, discussing the benefits they've seen since adopting the system. Local Support: - Mention that small business owners can get local support, ensuring that they have someone to turn to if they encounter any problems or have queries. By implementing these suggestions, the content will be more aligned with the needs, preferences, and concerns of small business owners looking to accept credit card payments. Objections Analysis Anticipating objections is one of the most overlooked analyses that most agencies don't bother to work on. Yet, when you have more insights into logical, emotional, and practical objections in their heads preventing them from going forward, making sales is so much easier when you find a way to remove those barriers. In this analysis, I'll break down 3 categories of objections where the landing page does a good job and where it falls short. Logical Objections: - Complexity and Learning Curve: The description of both traditional and smart POS systems suggests that there might be a steep learning curve for individuals who aren't tech-savvy. Business owners may feel overwhelmed with the numerous features and integrations mentioned. - Security Concerns: While the text mentions connecting to bank accounts, tracking sales, and storing customer data, it doesn't emphasize the security features. Business owners could be concerned about the safety of financial transactions and the storage of sensitive customer data. - Reliability of Wireless Systems: The mention of slow internet connections or locations with spotty cell service potentially causing delays in sales processing could be seen as a significant drawback. Owners may question the feasibility of adopting such systems if their area has unstable internet connectivity. Emotional Objections: - Fear of Change: The contrast between the old bell-ringing cash registers and the modern, feature-rich POS systems may invoke a sense of nostalgia and resistance to changing what might be working just fine for some businesses. - Overwhelm with Choices: With the array of options and considerations provided (traditional vs. smart, integrations, payment methods), a business owner might feel paralyzed by too many choices and prefer to maintain the status quo. Practical Objections: - Cost Implications: The text doesn't provide clear information about the cost of acquiring and maintaining these POS systems. Small business owners might be concerned about the financial implications of implementing a new system, especially if there are transaction fees, setup fees, or monthly costs involved. - Integration Limitations: For businesses that already use specific software for accounting, inventory, or CRM, there may be concerns about how seamlessly the suggested POS systems would integrate with their existing tools. - Potential Hardware/Software Redundancies: If a business has recently invested in a system, they may see the proposed POS solutions as redundant or unnecessary. Here are additional objections that the prospective customers could raise: - Long-term Support and Updates: Business owners might question the longevity of support and regular updates for the POS systems, ensuring that they remain compatible with evolving technologies. - Vendor Lock-in: There could be concerns about being locked into a particular service provider, especially if switching providers in the future becomes complex or costly. - Customization Limitations: The text doesn't specify if the POS systems can be customized to cater to niche business needs or specific industry requirements. - Physical Space and Installation:

Business owners might wonder about the physical space required for these systems and the potential disruption during installation. - Contractual Obligations: There might be questions about the length of contracts, early termination fees, or other hidden costs not mentioned in the text. - Scalability Concerns: As businesses grow, owners might be concerned about the system's ability to scale and handle increased transactions without performance issues. Maslow Hierarchy Analysis Maslow’s hierarchy of needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid. From the bottom of the hierarchy upwards, the needs are physiological (food and clothing), safety (job security), love and belonging needs (friendship), esteem, and self-actualization. Needs lower down in the hierarchy must be satisfied before individuals can attend to higher needs. Physiological Needs: Not explicitly mentioned. Safety Needs: - Reliable connection, ensuring that business transactions go through without hitches. (Mentioned multiple times: reliable connection, the speed and reliability of a wired connection, storing data on your own servers for access even if the internet is down.) - Secure credit card processing, ensuring the safety of financial transactions. (Mentioned once: secure credit card processing) - Fair and transparent pricing for payments. (Mentioned once: look for fair and transparent pricing) Belongingness and Love Needs: Not explicitly mentioned. Esteem Needs: - Being able to offer better service to customers, elevating the business's reputation. (Mentioned multiple times: provide fast and convenient service, POS system helping in offering better services, the ability to offer loyalty rewards, suggest new products, send targeted emails, etc.) - POS being the front line of the business, which might boost the business owner's pride and confidence in their operations. (Mentioned once: POS system is the front line of your business.) Self-Actualization Needs: - Turning the POS system into a strategic hub, implying that it can help the business reach its fullest potential. (Mentioned once: turn your POS system into a strategic hub) - The ability to develop new or more effective sales strategies, signifying growth and betterment. (Mentioned once: develop new or more effective sales strategies) Maslow's Hierarchy of Needs NOT Present but Could Appeal to Small Business Owners Accepting Credit Cards: Physiological Needs: - Offerings that reduce physical effort or save time, which indirectly relates to physiological comfort. For example, a lightweight, compact design that doesn't consume much space. Belongingness and Love Needs: - Building a community of users where business owners can share experiences, give feedback, and learn from one another. - Offering personalized customer service experiences, where the business feels valued and part of a larger group of satisfied customers. Esteem Needs: - Offering elite or premium versions of the POS service for businesses that want to differentiate themselves. - Including testimonials or success stories of businesses that have grown or benefited immensely from the POS system. Self-Actualization Needs: - Advanced analytics or features that not only help in running the business but also in evolving and envisioning future strategies. - Training or workshops aimed at helping business owners leverage the full potential of the POS system. To fully address the needs and concerns of small business owners, it would be valuable to incorporate these missing elements in the promotional content about the POS system. Negative Sentiment Analysis Humans are driven by pains & pleasures. As a result, when analyzing what causes pain for small business owners accepting credit cards, I can discover insights to tweak the messages addressing those pain points.

Based on the current Chase Landing page, here's what I came up with. Pain: - Inconvenience of not making sales on the go: Traditional POS often requires a wired connection, restricting mobility. (Mentioned once) - Inability to offer desired customer services: Not all POS systems store customer data or have loyalty programs. (Mentioned once) - Potential limited functionality: Earlier, POS was just a cash register with minimal features. (Mentioned once) - Overwhelming choice: Many potential features to consider in a POS system. (Mentioned once) Problems: - Traditional POS systems might not integrate easily: Integrations can be challenging. (Mentioned once) - Traditional POS might not allow for diverse payment options: Some POS systems might be limited to certain payment methods. (Mentioned once) - Potential challenges with fair and transparent pricing: Some payment methods might have higher transaction fees. (Mentioned once) - Lack of clarity in payment structure: The payment structure could be confusing. (Mentioned once) Fears, worries, anxieties: - Fear of making the wrong choice: So many potential features to consider. (Mentioned once) - Concern about not having access to business data remotely: Not all POS systems offer cloud storage. (Mentioned once) - Worry about not being able to provide the latest payment options: Traditional POS might not support all digital payment methods. (Mentioned once) - Fear of not being competitive: Not using POS to its fullest potential. (Implied but not explicitly mentioned) Frustrations: - Waiting due to slow connections: Slow internet or spotty cell service can delay transactions. (Mentioned once) - Difficulty in understanding pricing: Need to ask providers to explain their pricing. (Mentioned once) - Integrations not being straightforward: Need to implement new code for certain integrations. (Mentioned once) - Limitations of traditional POS: Restricted to wired connections or not having certain features. (Mentioned multiple times) Uncertainty & Perceived risk: - Doubting reliability of wireless systems: Concern about sales going through with wireless connections. (Mentioned once) - Storing data off-site: Risk of not accessing data if the internet is down. (Mentioned once) - Uncertainty about merchant services providers: If they can’t explain their pricing, considering other options becomes a possibility. (Mentioned once) - Not sure about integration possibilities: Uncertainty about whether integrations are already set up. (Mentioned once) Sentiments Not Present but Could Appeal to Small Business Owners Accepting Credit Cards: Pain: - High transaction fees reducing profits. - Difficulty in tracking sales and managing inventory without a POS. - The stress of manual accounting and sales tracking. - Time-consuming training or steep learning curves for new systems. Problems: - Inconsistent customer data leading to inefficient marketing. - Difficulty in offering promotions or loyalty programs without proper data. - Manual reconciliation of sales and inventory. - Limited insights into customer behavior and preferences. Fears, worries, anxieties: - Fear of technological obsolescence. - Anxiety about data breaches or security issues. - Worry about system downtimes during peak business hours. - Concerns about compliance and regulatory issues. Frustrations: - Feeling tied down to one location due to wired systems. - Lack of customization or adaptability for unique business needs. - Having to switch between multiple systems for different tasks. - Inefficient customer support when issues arise. Uncertainty & Perceived risk: - Uncertainty about future software updates or support. - Risks associated with choosing lesser-known brands or new entrants. - Doubts about long-term costs and potential hidden fees.

- Uncertainty about integration with other existing business systems. Including these sentiments in promotional or explanatory content would make it more comprehensive and relevant to the concerns and needs of small business owners. Positive Sentiment Analysis While the Negative Sentiment gives us insight into what drives small business owners away, for the Positive Sentiment analysis, I am looking for what can lead to desire, hopes, and dreams of what they are looking for in POS solutions. Goals - Turn POS system into a strategic business hub (1 instance) - Track sales and inventory (1 instance) - Provide fast and convenient service (1 instance) - Choose the right POS system for business needs (1 instance) Desired outcomes - Connect to bank account seamlessly (1 instance) - Access business data remotely (1 instance) - Understand payment structures and pricing (1 instance) - Integrate POS with other business systems (1 instance) Jobs - Process credit cards and digital payments (2 instances) - Access additional tools and information through apps (1 instance) - Take payments on the go (1 instance) - Sync and pass data between different systems (2 instances) Wants, hopes, dreams - More advanced features in the POS system compared to older systems (1 instance) - Mobility and flexibility in processing payments (2 instances) - Ability to easily integrate with other systems (2 instances) - Improve customer relationship and retention (2 instances) Unique function - A strategic hub that more than just processes payments (1 instance) - Real-time adjustments to inventory (1 instance) - Tracking success of marketing campaigns through integrated data (1 instance) - Offering loyalty rewards and targeting customers effectively (1 instance) Unique features/benefits - Ability to offer loyalty rewards (1 instance) - Suggest new products based on past customer data (1 instance) - Fast and straightforward integration capabilities (1 instance) - Verification of in-stock products and holding them for customers (1 instance) Relationships - Building trust with transparent pricing from merchant services providers (1 instance) - Improving customer loyalty with targeted marketing efforts (2 instances) - Responding quickly to customer needs (1 instance) - Connecting businesses with Payments Advisor (1 instance) Sentiments Not Present but Could Appeal to Small Business Owners Accepting Credit Cards: - Confidence: Assurance that adopting new technology would be a seamless process. - Security: Strong emphasis on protecting customer data and financial transactions. - Simplicity: Ease of use and user-friendly interfaces, minimizing the learning curve. - Affordability: Cost-effective solutions tailored for small businesses. - Community: Being part of a network or community of business owners sharing insights and best practices. - Support: Ongoing customer service and tech support to address challenges swiftly. - Updates: Continuous updates and improvements to stay ahead of technological advancements. By understanding these sentiments, businesses can tailor their offerings and communications to resonate more deeply with their target audience, in this case, small business owners accepting credit cards. Logic vs Emotion Analysis The late great sales trainer, Zig Ziglar, used to say, “People buy on emotion and justify on logic.” Wouldn't it make sense to understand what logical sentiments small business owners are using to make justification and how they make decisions on emotion? That's exactly why in this analysis, the landing page is carefully analyzed to look for decision-making logical patterns as well as emotional patterns to see what the gaps are. Logical Sentiments - "It’s the front line of your business." (Identification Logic: Defining the role of a POS system in a business)

- "Traditional POS systems operate specific point of sale software on a computer and save data to a hard drive." (Categorization Logic: Differentiating traditional POS systems) - "With so many potential features, there’s a lot to consider when choosing a POS system." (Decision-making Logic: Recognizing the complexity of choosing the right POS) - "Traditional POS systems often require a wired connection..." (Comparison Logic: Contrasting traditional and smart POS systems) - "When considering merchant services providers, look for fair and transparent pricing..." (Evaluation Logic: Providing guidance on how to assess a service) - "Many software providers offer built-in integrations." (Causation Logic: Explaining the availability of integration options) - "The big advantage of a traditional POS is the speed and reliability of a wired connection." (Cause and Effect Logic: Highlighting the benefit of a specific feature) - "They may also enable you to take payment information and store it offline and then process payments once you have access to a phone line..." (Sequential Logic: Describing a sequence of events in offline payment processing) Logical Sentiments Missing but Should Be Present: - The long-term cost savings of digital vs. traditional POS systems. - The ease or difficulty of training staff to use a new POS system. - Data security and customer information protection features. - Future-proofing businesses: How adaptable are these systems to future tech advancements? Emotional Sentiments - "Not so long ago, a point of sale system (POS) system was a cash register whose “bells and whistles” included an actual bell. Today, business owners can expect a lot more." (Nostalgia: Reflecting on simpler times and progression) - "Many business owners now run their businesses through their POS." (Trust: Relying heavily on technology) - "If they can’t, consider a different option." (Distrust: Suggesting caution and skepticism) - "A smart POS uses apps, which allow it to easily pass data back and forth between systems." (Appreciation: Valuing convenience and integration) - "A POS system can do more than process payments. Many now include features that customers love..." (Affection: Positive feelings toward the versatility of modern POS systems) - "It’s an exciting time to consider a new POS system." (Excitement: Anticipating the benefits of newer systems) Emotional Sentiments Missing but Should Be Present: - Peace of mind for business owners knowing that transactions are secure and reliable. - The pride and prestige associated with owning a state-of-the-art POS system. - Relief in knowing that support and assistance are available when navigating POS complexities. - Frustration prevention, suggesting that a better POS can prevent common business hiccups. Psychographic Analysis Psychographics is the study of consumers based on their activities, interests, and opinions (AIOs). It goes beyond classifying people based on general demographic data, such as age, gender, or race. Psychographics seeks to understand the cognitive factors that drive consumer behaviors. Based on Chase Landing page, there are 6 primary psychographic groups based on the usage pattern of POS system. 6+ Primary Psychographics People who prioritize mobility in their business operations. - "Do you need to make sales on the go? Traditional POS systems often require a wired connection, although some work with wireless card readers that allow you to move around your space or process transactions off-site." People who value diverse and convenient payment options for their customers. - "What kinds of payments do you need to take? Many traditional POS systems and all smart POS systems integrate digital payment options and allow customers to swipe, dip, tap or scan their payment of choice." Business owners who appreciate the integration of various systems to streamline their operations. - "Do you want to integrate

your POS with other systems? Integrations can be challenging for traditional POS systems but are usually possible." People focused on customer relationship management and targeted marketing. - "Fast, straightforward integrations also can help you analyze your sales figures and collect customer data in your CRM system so that you can develop new or more effective sales strategies." Business operators who emphasize enhancing the customer experience. - "How can your POS system help you offer better service? A POS system can do more than process payments. Many now include features that customers love and that can help you run your business more effectively." Individuals who weigh the importance of a reliable, consistent connection for their business transactions. - "Do you have a reliable connection? The big advantage of a traditional POS is the speed and reliability of a wired connection." The text from the landing page paints a picture of business owners or decision-makers who are tech-savvy, customer-focused, and keen on enhancing and modernizing their operations. They are also depicted as being diligent in their research, wanting to understand and weigh their options before making an investment. Desires Analysis Over the years of writing copies and launching marketing campaigns for clients, there's a list of desires that humans want to achieve. For example: Need: Satisfy an intense need for something. Survival: Live a long and healthy life Protection: Safety, care and protection for yourself and loved ones Freedom: Freedom from danger, fear and pain Comfort: Comfortable living conditions and many others. The goals of this analysis are two-fold: Amplify desires already present on the landing page Include missing desires from the landing page 6 Primary Desires Convenience: - "It’s the front line of your business. It’s not just where you can process credit cards and digital payments. It’s also how you can connect to your bank account, track sales and inventory, and provide fast and convenient service." - "Many business owners now run their businesses through their POS." - "Traditional POS systems often require a wired connection, although some work with wireless card readers that allow you to move around your space or process transactions off-site." Efficiency: - "A smart POS uses apps, which allow it to easily pass data back and forth between systems." - "With these integrations, many businesses are able to see sales data in their accounting software, get real-time adjustments to their inventory or quickly deposit funds into their bank accounts." Protection: - "On the other hand, smart POS systems often connect through Wi-Fi or a cellular network for secure credit card processing across the street or the country." Intelligence: - "Do you want to integrate your POS with other systems?" - "Fast, straightforward integrations also can help you analyze your sales figures and collect customer data in your CRM system so that you can develop new or more effective sales strategies." Relationships: - "A POS system can store customer data, allowing you to offer loyalty rewards based on dollars spent or points earned." Dependability and Quality: - "The big advantage of a traditional POS is the speed and reliability of a wired connection." Sentiments Not Present But Should Be Profit: Appealing to business owners' desire to maximize their profit margins through efficient transaction processing and minimized downtime. Ownership: Positioning the POS system as a tool that enables business owners to have more control and ownership over their sales data, customer relationships, and overall business operations. Cleanliness: In today's context, cleanliness is crucial. Highlighting features that reduce physical contact, like contactless payments or emailed receipts, would resonate with health-conscious business owners.

Aspiration: The idea that by adapting and upgrading to a newer, more efficient POS system, the business owner is striving for continuous improvement and is forward-thinking Belonging: Emphasizing the sense of belonging to a community of technologically advanced and savvy business owners by choosing the right POS system. Loss: Highlighting the potential loss of revenue or customer loyalty by not upgrading to a smarter POS system or not offering certain payment methods. Human Biases Analysis A cognitive bias is a systematic error in thinking that occurs when people are processing and interpreting information in the world around them and affects the decisions and judgments that they make. According to the Cognitive Bias Codex, there are an estimated 180 cognitive biases (this list is frequently updated.) For example, there are some biases you may be familiar with: A deep grasp of the psychological underpinnings that drive human attention, perception, and decision-making can greatly increase the effectiveness of ad campaigns. Here's how understanding human biases can help: Visual Attention and Primacy Effect People are more likely to remember the first and last things they see. Designers can capitalize on this by placing the most important elements, such as the call-to-action or brand logo, in positions that take advantage of this bias. This principle is often applied in landing page designs, video ads, and carousel advertisements. Authority Bias People are influenced by experts or authoritative figures. Incorporating endorsements or expert opinions in an ad can help sway potential customers. In the design, this can manifest as strategically placing these endorsements where they are most likely to capture attention. Social Proof The bandwagon effect or social proof bias means people are more likely to do something if they see others doing it. Incorporating elements that indicate wide acceptance or popularity, such as customer testimonials, star ratings, or the number of products sold, can make ads more compelling. Emotional Appeals People are not always rational; emotional biases often override logical thinking. Design elements like color, imagery, and typography can evoke specific emotions that align with the ad’s message. For example, using warm colors like red or orange can trigger excitement or urgency, which could prompt quick decision-making. Scarcity and Loss Aversion People are generally more motivated by the fear of losing something than by the prospect of gaining something of equal value. Adding time-sensitive offers, limited quantities, or exclusive deals can make an ad more compelling. Designers should highlight these elements visually to draw attention to them. Anchoring People rely heavily on the first piece of information they receive when making decisions. Price anchoring is a common technique, where a higher price is first shown next to the discounted price, making the latter seem like a bargain. The design should make this contrast visually striking. Reciprocity People tend to want to return favors. Offering something of value in the ad—like a free e-book, a discount, or valuable insights—creates a sense of obligation in the viewer. The design should make this offer stand out. Simplification and Cognitive Ease People prefer things that are easy to think about and understand. Keeping the design uncluttered, using simple language, and providing clear calls to action fall under this category. By acknowledging these biases, we can create layouts, use colors, and choose typography and imagery that aligns with these cognitive triggers, ultimately leading to higher conversion rates and more effective advertising campaigns. Cognitive Biases Quote: "Not so long ago, a point of sale system (POS) system was a cash register whose “bells and whistles” included an actual bell. Today, business owners can expect a lot more." - Bias: Narrative Fallacy - The text constructs a narrative that illustrates a story of technological progress in POS systems.

Quote: "Many business owners now run their businesses through their POS." - Bias: Herd Mentality - By stating that many business owners now use POS systems in this way, it implies that this is a common or popular behavior to adopt. Quote: "Ask providers to explain their pricing in a way that you can understand. If they can’t, consider a different option." - Bias: Framing Cognitive Bias - This statement is framed in a way that implies that if a provider can't explain their pricing simply, they might not be a good choice. Quote: "The big advantage of a traditional POS is the speed and reliability of a wired connection." - Bias: Overconfidence Bias - This sentence seems sure of the superiority of the traditional POS in terms of speed and reliability. It doesn't provide comparative data to support this claim. Quote: "It’s an exciting time to consider a new POS system." - Bias: Framing Cognitive Bias - This statement is framed positively to make the process of considering a new POS system seem appealing and timely. Sentiments not present but could appeal to small business owners accepting credit cards: Cost Efficiency: Emphasizing how using a POS system might lead to cost savings in the long run. Enhanced Security: Detailing the safety measures that modern POS systems provide to ensure secure credit card transactions. Scalability: Highlighting how the system can grow with a business and adapt to increased transaction volumes or diversified payment methods. Customer Trust: Mentioning how customers are more likely to trust businesses with reliable and modern payment systems. Competitive Advantage: Stating how having an advanced POS system can give small businesses an edge over competitors still using outdated methods. Simplified Accounting: Emphasizing the ease with which POS systems can integrate with accounting software to simplify bookkeeping. Ads Makeover There is a lot to absorb based on my 7 analysis models. For brevity, I'll pick out 3 models and improve the landing page & create new sets of Facebook ads based on what I recommend. I would leave the remaining 4 analyses as homework for Chase team or they can reach out to me and we can gladly continue the work on the remaining 4 models on a retainer basis. Voice/Tone/Style/Diction Analysis Landing page Rewrite: I am going to rewrite a new version of the landing page with emphasis on Highlighting Affordability Unlock the Magic: Make Your POS the Affordable Powerhouse of Your Business Picture this: Once upon a time, the charm of a point of sale system (POS) was a quaint bell that signaled a sale. Now, that humble register has evolved into a commanding force that not only hears the cha-ching but also streamlines your operations in a digital arena. With an affordable investment, witness the metamorphosis of your business. Dive into the heart of the digital age with a POS that stands as the vigilant guardian of your business. Beyond mere transactions, it’s a shimmering portal, granting you direct access to your bank vault, sales analytics, and inventory in real-time. It's no wonder that savvy business owners have seamlessly integrated their operations via their POS. While the traditional POS, steadfast and reliable, functions through specific software and stores treasures on a hard drive, the modern, smart POS sparkles with the brilliance of a smartphone. With a treasure trove of apps at your fingertips, you can reach out and touch vast realms of data and tools without breaking the bank. Embarking on this journey? Pose yourself these golden questions: - Wish to Conquer Territories On-the-Move? While the old-world charm of traditional POS demands a tethered connection, some have adapted, allowing you the freedom to roam with wireless connections. Yet, the majestic smart POS, affordable yet grand, connects through the invisible threads of Wi-Fi or cellular networks, giving you the power to process transactions from any corner of the world.

- Which Coins and Currencies Do You Wish to Accept? Both the traditional stalwarts and the gleaming smart POS open the gates to a myriad of payment methods. Seek providers who offer clear, affordable, and transparent treasures without hidden dragons. If they talk in riddles, set your sights elsewhere. - Dream of Interlinking Your Kingdom's Systems? While old guard POS might require wizards to integrate, the smart POS, with its app-driven magic, integrates effortlessly. Watch as your sales data paints a masterpiece, or let your inventory adjust in real-time, all without draining your coffers. - How to Dazzle Your Subjects with Stellar Service? The modern POS is no mere payment conduit. It's a gilded chest brimming with features. Enchant your customers with personalized offerings and cast a spell with targeted messages, all while ensuring the best value for your precious gold. - Do You Have the Steed for a Steady Journey? The strength of the traditional POS lies in its unwavering wired connection, ensuring a speedy voyage. However, should you face treacherous terrains with unstable connections, some systems come armed with both wireless prowess and backup dial-up. Embark on This Grand Quest In this vibrant era, choosing a POS is an adventure filled with promise. Be it the unyielding reliability of the old guard or the nimble grace of the cloud warriors, your quest awaits. Venture forth to Chase Payment Solutions℠, and let your saga begin! Facebook Ads Concepts for Highlighting Affordability Headlines From Quaint Bells to Digital Power: The Affordable Evolution Awaits! Modernize with Magic: Your Cost-Effective POS Transformation. ✨ Unlock the Majestic Magic of Modern POS – Affordably & Efficiently! Small Investment, Grand Returns: The POS Revolution for Business Owners. Ad Copies Remember the simple chime signaling a sale? Step into the future with a POS system that’s both a beacon of modernity and affordability. Seamlessly merge your operations, dive deep into analytics, and watch your business metamorphose—all without emptying your purse. Join the ranks of the savvy. 💼✨ In a world of digital wonders, your POS can be the guardian of your business kingdom without the hefty price tag. Connect from anywhere, accept varied payments, and enchant customers with stellar services. With a trove of modern features at your fingertips, make the smart and affordable choice today. 🌍💰 Small business owners, unlock the affordable powerhouse your enterprise deserves! Beyond the cha-ching, our modern POS system streamlines operations, integrates effortlessly, and brings the world to your fingertips—all while respecting your budget. Embark on your quest with Chase Payment Solutions℠. 🚀 Objections Analysis Landing page Rewrite: one of the objections not clearly addressed in Chase's original landing page is the concern about "Cost Implication", the cost of acquiring and maintaining these POS systems. Small business owners might be concerned about the financial implications of implementing a new system, especially if there are transaction fees, setup fees, or monthly costs involved. A Budget-Friendly Upgrade for Small Businesses: The Modern POS System In an evolving business world, remember when the 'ring' of cash registers signified sales? Today, it's not just about the sound; it's about the efficiency and cost-effectiveness of the system behind it. Embrace the digital age with a POS system that understands both the scale and the budget of a small business. Think beyond just another expense. Envision a strategic investment that enhances your sales process, links seamlessly with your bank, tracks your inventory, and elevates the service you offer—without breaking the bank. Old-school POS systems, while dependable, function like analog tools in a rapidly digitizing world. Contrast that with today's 'smart' POS, which offers a plethora of features at a fraction of the expected cost, making them tailor-fit for small businesses.

Plus, with instant access to countless apps and tools, informed decision-making is just a tap away. Concerned about the financial commitment? Let's address that: Affordable Entry & Transparent Pricing: Dive into the world of modern POS without the hefty price tags of the past. Our solutions offer transparent, upfront pricing, devoid of hidden charges or confusing terms. Know exactly what you're paying for, and why. Maximize ROI: The efficiency gains, sales insights, and customer experience enhancements you'll achieve with a modern POS system mean that your initial investment will pay for itself in no time. It's not just about accepting credit cards; it's about refining your entire business process. Cost-effective Integrations: With our modern systems, gone are the days of expensive integrations. Connect effortlessly with other business tools and systems, bringing together sales, accounting, inventory, and more without the high integration costs of traditional systems. Savings through Efficiency: A modern POS does more than just process payments. With features like inventory tracking and customer insights, reduce overheads, avoid stock wastage, and understand client preferences to offer targeted promotions—saving money while driving revenue. Stay Competitive without Overspending: In today's business landscape, accepting credit cards is no longer a luxury—it's a necessity. But that doesn't mean it should come with an exorbitant price tag. Our POS solutions ensure you stay competitive while remaining financially prudent. Make the Leap: Switching to a modern POS system isn't merely about keeping up with the times; it's about being strategic with your resources. With Chase Payment Solutions℠, make the transition smooth, affordable, and, most importantly, beneficial for your business's bottom line. Embrace the future of transactions, optimized for small business budgets. Facebook Ads Concepts for addressing the cost implication. Headline Options: Unbeatable Value, Unparalleled Experience: Your POS Upgrade Awaits! Modern POS for Every Budget: Amplify Business without Breaking the Bank. Transform Your Transactions: Cost-effective, Cutting-edge, and Customized. Ad Copy: Dreaming of a state-of-the-art POS but worried about costs? Dive into a world where modernity meets affordability. With Chase Payment Solutions℠, the heartbeat of your business becomes more vibrant without weighing down your finances. Enjoy transparent pricing, diverse payment options, and efficiency that won't dent your wallet. Let's redefine what 'cost-effective' truly means! Every small business owner deserves the best, without the hefty price tag. With Chase Payment Solutions℠, experience a modern POS system designed with YOU in mind. From seamless integrations to unmatched reliability, step into the future of transactions without financial stress. Say goodbye to jargons and hello to clear, transparent pricing. Ready to revolutionize your business? In an age of digital wonders, why should your budget hold you back? Transition to a modern POS system that understands the pulse of your business and respects your pocket. Enjoy the charm of digital efficiency, diverse payment modes, and crystal-clear pricing. With Chase Payment Solutions℠, let's ensure your business soars, not your expenses. Join the cost-effective revolution today! Psychographic Analysis Landing page Rewrite: I am going to rewrite a new version of the landing page with emphasis on the category of "business owners who prioritize mobility in their business operations" Unlock Boundless Horizons with Mobility-Driven POS! Step into the future, where your POS isn't just a business tool—it's the lifeblood of your unshackled, ever-moving enterprise. Remember the quaint jingle of the traditional cash register? Fast forward to today, where the digital symphony of the new-age POS sings tales of uninhibited movement. Your business deserves more than static operations.

Picture this: Closing a lucrative deal as you sip your coffee at a café downtown or clinching a pivotal sale as you wander through a trade fair in another city. Are You Ready to Unleash the True Power of Mobility? Anywhere, Anytime Sales: Traditional POS had you tied down, bound by cords and connections. Now, envision a world where your business transcends borders, where every corner of the globe is a potential sales point. With smart POS systems, the world truly becomes your marketplace—untethered and unlimited. Seamless Payment Experiences: Dive into the digital age, where payments aren't just about swipes and dips. Be it an impromptu sale at a local market or a mega transaction on the opposite coast, smart POS ensures your transactions are swift, secure, and seamless. Integration Like Never Before: Let's talk magic—where your POS effortlessly converses with your inventory, CRM, and accounting systems. Imagine real-time data at your fingertips, giving you insights as you hop from one city to the next. Transform Customer Service: Create memories, not just sales. Delve deep into the desires of your clientele, offering personalized product recommendations even when you're miles away. And as they leave with a smile, give them the choice—digital receipts that echo your business's eco-friendly ethos. Stellar Connectivity: Reliability isn't just about strong connections—it's about persistent ones. Why limit yourself to one mode when you can switch between wired efficiency and wireless wonders? Embark on Your Unchained Journey! This is your clarion call—unshackle your business aspirations from static confines. Whether you desire the stalwart reliability of a traditional system or the whimsical wonders of the cloud, the world awaits your conquest. Dive deep with Chase Payment Solutions℠ and soar the limitless skies of mobile commerce. Facebook Ads Concepts for "People who prioritize mobility in their business operations" Headline Options: Empower Your Mobile Business: The Future of POS Awaits! POS That Moves As Swiftly As You Do: Upgrade to Mobile Mastery. Mobility First: Transform Your Business with Next-Gen POS Solutions. Ad Copy: Business on the move? Keep up with the fast-paced world with a POS system designed for ultimate mobility. Chase Payment Solutions℠ offers smart POS systems that sync effortlessly over Wi-Fi or cellular networks. Your data? Safely tucked in the cloud, accessible anytime, anywhere. For small business owners embracing change, it's not just about accepting credit cards—it's about ushering in a new era of boundless opportunities. For the dynamic small business owner, every second and every location counts. Dive into a POS system that's as mobile as your ambitions. With Chase Payment Solutions℠, leave wired constraints behind and embrace the freedom of remote access, cloud storage, and seamless integration. When your business has wings, ensure your POS system does too. Let's soar together! In the realm of business, mobility isn't a luxury; it's a necessity. Upgrade to a POS system that understands this ethos. With Chase Payment Solutions℠, enjoy a smart POS experience that offers the convenience of Wi-Fi or cellular connections, and the security of cloud-based data storage. Small business owners, it's time to move, evolve, and thrive with a POS system built for the modern age. Join the revolution today! Validate New Ads This is where the rubber meets the road as I am going to validate ad concepts from the previous step by running paid traffic to see which ad concepts would resonate most with the customers. There will be 3 ad sets: Adset 1: Goal: Highlighting Affordability of the POS system Landing page: https://michaelnguyen.me/make-your-pos-the-affordable-powerhouse/ Headlines From Quaint Bells to Digital Power: The Affordable Evolution Awaits! Modernize with Magic: Your Cost-Effective POS Transformation. ✨ Unlock the Majestic Magic of Modern POS – Affordably & Efficiently!

Small Investment, Grand Returns: The POS Revolution for Business Owners. Ad Copies Remember the simple chime signaling a sale? Step into the future with a POS system that’s both a beacon of modernity and affordability. Seamlessly merge your operations, dive deep into analytics, and watch your business metamorphose—all without emptying your purse. Join the ranks of the savvy. 💼✨ In a world of digital wonders, your POS can be the guardian of your business kingdom without the hefty price tag. Connect from anywhere, accept varied payments, and enchant customers with stellar services. With a trove of modern features at your fingertips, make the smart and affordable choice today. 🌍💰 Small business owners, unlock the affordable powerhouse your enterprise deserves! Beyond the cha-ching, our modern POS system streamlines operations, integrates effortlessly, and brings the world to your fingertips—all while respecting your budget. Embark on your quest with Chase Payment Solutions℠. 🚀 Ad Creatives: Instead of creating new creative, I decided to use the existing one and focus on the copy instead. However, having multiple creatives matching the ad message boosts the performance. Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: POS Ad Angle: Highlighting Affordability Targeted audience: Target with interest in Chase Bank (who else is better than prospects already interested in Chase Bank?) Placement: News Feed Optimization: Optimized for Traffic Adset 2: Goal: Addressing the "cost implication" objection Landing Page: https://michaelnguyen.me/the-modern-pos-system Headline Options: Unbeatable Value, Unparalleled Experience: Your POS Upgrade Awaits! Modern POS for Every Budget: Amplify Business without Breaking the Bank. Transform Your Transactions: Cost-effective, Cutting-edge, and Customized. Ad Copy: Dreaming of a state-of-the-art POS but worried about costs? Dive into a world where modernity meets affordability. With Chase Payment Solutions℠, the heartbeat of your business becomes more vibrant without weighing down your finances. Enjoy transparent pricing, diverse payment options, and efficiency that won't dent your wallet. Let's redefine what 'cost-effective' truly means! Every small business owner deserves the best, without the hefty price tag. With Chase Payment Solutions℠, experience a modern POS system designed with YOU in mind. From seamless integrations to unmatched reliability, step into the future of transactions without financial stress. Say goodbye to jargons and hello to clear, transparent pricing. Ready to revolutionize your business? In an age of digital wonders, why should your budget hold you back? Transition to a modern POS system that understands the pulse of your business and respects your pocket. Enjoy the charm of digital efficiency, diverse payment modes, and crystal-clear pricing. With Chase Payment Solutions℠, let's ensure your business soars, not your expenses. Join the cost-effective revolution today! Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: POS Ad Angle: Addressing the "cost implication" objection Targeted audience: Target with interest in Chase Bank (who else is better than prospects already interested in Chase Bank?) Placement: News Feed Optimization: Optimized for Traffic Adset 3: Goal: Meet the expectation of the group of "People who prioritize mobility in their business operations" Landing Page: https://michaelnguyen.me/mobility-driven-pos Headline Options: Empower Your Mobile Business: The Future of POS Awaits! POS That Moves As Swiftly As You Do: Upgrade to Mobile Mastery. Mobility First: Transform Your Business with Next-Gen POS Solutions. Ad Copy: Business on the move? Keep up with the fast-paced world with a POS system designed for ultimate mobility.

Chase Payment Solutions℠ offers smart POS systems that sync effortlessly over Wi-Fi or cellular networks. Your data? Safely tucked in the cloud, accessible anytime, anywhere. For small business owners embracing change, it's not just about accepting credit cards—it's about ushering in a new era of boundless opportunities. For the dynamic small business owner, every second and every location counts. Dive into a POS system that's as mobile as your ambitions. With Chase Payment Solutions℠, leave wired constraints behind and embrace the freedom of remote access, cloud storage, and seamless integration. When your business has wings, ensure your POS system does too. Let's soar together! In the realm of business, mobility isn't a luxury; it's a necessity. Upgrade to a POS system that understands this ethos. With Chase Payment Solutions℠, enjoy a smart POS experience that offers the convenience of Wi-Fi or cellular connections, and the security of cloud-based data storage. Small business owners, it's time to move, evolve, and thrive with a POS system built for the modern age. Join the revolution today! Asset: Here's how I set the adset on Facebook Budget: $10 Lifetime Product/Service: POS Ad Angle: meet expectation of the group of "People who prioritize mobility in their business operations" Targeted audience: Target with interest in Chase Bank (who else is better than prospects already interested in Chase Bank?) Placement: News Feed Optimization: Optimized for Traffic Here are all the 9 ads being launched. Fast-forwarding 24 hours to let the ads run. Here's the results Campaign Numbers: Ad budget: $10.71 Total Impressions: 1038 Total Reach: 983 Total Clicks: 15 Cost Per Click (CPC): $0.69 CTR (all): 1.45% Winning Ad: Angle: Affordability Headline: Modernize with Magic: Your Cost-Effective POS Transformation Total Impressions: 193 (18.5% of the campaign's total impressions) Total Reach: 189 (accounts for 19% of the campaign's total reach) Total Clicks: 5 (accounts for 33% of the overall campaign's clicks) Cost Per Click (CPC): $0.32 (53.6% cheaper than the campaign's CPC) CTR (all): 2.59% (⬆️ 78.6% higher than the campaign's CTR) Top 3 Ads 1st Place with Headline: Modernize with Magic: Your Cost-Effective POS Transformation 2nd Place with Headline: Empower Your Mobile Business: The Future of POS Awaits! 3rd Place with Headline: Unbeatable Value, Unparalleled Experience: Your POS Upgrade Awaits! What-If Revenue Impact Analysis What If Chase went ahead and ran another campaign based on what i suggested below, what would be the revenue impact? Let's make some assumptions: The conversion rate is 1% (given the normal conversion rate of 2%) Chase POS charges merchants 2.6% + 10c for every transaction. Let's assume a restaurant merchant has an average 1000 transactions/mo with an avg order of $25/order. Total fees collected by Chase: 2.6% of (1,000 transactions * 25) + 10¢ × 1,000 transactions = $750/mo or $9,000/year/merchant Double down on the winning ad by increasing the number of clicks on winning ads to 10,000 clicks (Cost = 10,000 clicks x $0.32 = $3,200) Let's calculate the potential revenues Assuming merchants would stay with Chase POS for an average of 12 months. Sub-par scenario: At 1% conversion rate (the industry standard is 2%), 10,000 x 1% = 100 merchants signed up Revenue = 100 x $750/mo x 12 months = $900,000 ROI = 22,440% ((100 * $750) - $3,200) / $3,200 Worst-case scenario: At 0.1% conversion rate, 10,000 x 0.1% = 10 merchants signed up Revenue = 10 x $750/mo x 12 months = $90,000 ROI = 134% ((10 * $750) - $3,200) / $3,200 As you can see, whether you are in the worst case or sub-par scenario (under 2% industry standard), you are still ahead in term of ROI (134% - 22,440%). Takeaways/Insights So in this thorough

case study, I extensively analyze, examine, and audit Chase's ad relating to the POS system, then come up with new ad ideas based on 7 analysis "lenses", and finally validate ad ideas by running them through paid FB traffic to determine the winning ad. Having only one control ad can seriously underperform your entire campaign because of the lack of A/B Testing, targeting limitations, ad fatigue, risk management, and optimization challenges. Having multiple analysis "lenses" is the foundation to come up with ad ideas addressing customers' needs, wants, objections, pains, and frustrations. Without additional analysis "lenses", you are more likely to get "stuck" with boring and mediocre "features & benefits" angle. Ideas & creatives are the name of the game. As you notice the top 3 winning ad, they are winning ads from 3 different adsets. Specifically, for the "Affordability" angle, the winning ad is #1. For the "Mobility" angle, the winning ad is #2, and for the objection related to price, the winning ad is #3 (from the screenshot above). Your competitor Square has 270 different ad results and I don't see any reason why Chase can't at least match the amount of effort of Square or even raise the bar. As you are reading through the blog, I try to simplify for brevity but it's a much more involved and time-consuming effort to go through all 7 analysis models to sift through ideas and come up with the best one. Furthermore, upon having ad ideas, setting up ads is another challenge because ads must comply with Meta's advertising guidelines. As a result, the ad you like may not get approved to run and you have to get around that. Next Step Double down on the winning ad and amp up the budget on it because I've done the homework for you, all you need is to increase the ad budget. I share with you ideas from 7 different analysis "lenses" and I just pick out 3 analysis lenses and one idea from each analysis model. You should have plenty of ideas to distribute across your team and create more ads. "Done For You" Package So "Michael, I am a 7-figure business owner and already run paid ads. I need your help to run through the same process you are doing for Chase and help me optimize my ads to extract more juices. What's the process to work with you?" Call/text me 214-734-0685 to schedule a paid Half-Day Consulting Day where we'll cover the following: Explain your current situation, what's working, and where you feel there is room for improvement. Discuss the vision of your business: You can't get to where you want to go without taking an inventory of where you are. We discuss your situation. Discuss obstacles: Until we have clarity on our obstacles, we can't put together a game plan to overcome them. We have an honest discussion of what's in your way Come up with action plans. Then and only then - if it fits - we'll start the engagement. https://michaelnguyen.me/extreme-ads-makeover-chase-2/?feed_id=303&_unique_id=64ee352971456

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