The Secret to Making Paid Advertising Work

By | August 11, 2019

– Google and Facebook
combined generate more money from ad dollars than any
television channel out there. They’re huge. That means paid advertising works, because if it didn’t, they wouldn’t be making hundreds of
billions of dollars a year. Hey everyone, I’m Neil Patel, and today I’m going to share with you the secret to making paid advertising work. (upbeat music) Before we get started,
make sure you subscribe to this channel. And if you’re on YouTube,
click the alert notification. That way when I go live on YouTube, Facebook, any of the social channels you’re watching this video
on, you’ll get notified. Question, what industry did you try paid advertising in? I’m curious because the solution is going to be the same for
almost every single industry and eventually it’s going to go to this exact solution/secret for every single industry, but by knowing what industry you’re in, I
can give you specific advice. Now here’s the thing, here’s the secret, are you ready for it? It’s a funnel. The reason paid advertising doesn’t work for most people is they’re driving traffic to a product and expecting it to convert. Now, I could tell you that yeah you need to look at what your competition is doing, look at their ad copy, use things like Facebook libraries. You need to end up doing things like using tools like Ubersuggest’s
to see the keywords that other people are going after, because you may not be going
after the right keywords. But look, even if you do that, you have the right product, you have the right landing page. Over time no matter how
much you tweak your ads, no matter how much you
tweak your landing page, you’re going to struggle
to end up making money. And do you know why this is? It’s a funnel. The reason a funnel is important is because it optimizes for
lifetime value of a customer. And that’s why when Amazon tracks its user and you buy a DVD, they
know that they should email you other DVDs that you
should end up buying. They know that when you buy a product, that they can end up getting you to buy other products as
well that are very similar that’ll get you a big user experience. Amazon themselves, when
they end up spending on paid advertising, they
usually lose money right there in that first transaction. But their funnel optimizes for
lifetime value of a customer. That’s why it’s so important. You can’t optimize for
hey, what am I making on the front end? You got to optimize for lifetime value. Someone once told me, you know what the difference between seven-figure, eight-figure, and
nine-figure companies are? And I’m what, and they told me. Seven-figure companies spend money on paid ads and they want to make their two, three-X return right there. So for every dollar they spend, they want to make two,
$3 right then and there. He was saying that eight-figure companies, what they want to do is when they spend a dollar on advertising, they want to make a dollar back right then and there and over time, they’ll
make more but they want to at least break even on the front end. But nine-figure companies
and even beyond that, they’re willing to lose money because they know in the long
run the lifetime value of the customer is so much more. And you can’t just assume that
someone’s going to keep coming back and buying more from you. You’ve got to optimize for a
lifetime value of your customer. You got to create that funnel. That funnel’s what helps
increase that number. Because with funnels, you can do things like checkout bumps. You can do things like upsells. You can do things like downsells. You can do trigger-based emails that are very relevant to them, which causes them to convert more. You could do things
like push notifications, so that way when someone
goes to your checkout page, they add stuff in there,
but they don’t complete, you can send a push notification through their browser to get them to come back and then convert more. All those little things won’t drastically change your numbers and get you double sales, triple sales. But what will happen is
all those little things will add up and that’s what will make your paid ad campaigns
extremely profitable, combined with you creating an
amazing customer experience like Zappos does or Amazon does, right? Or all these other big
companies like Apple do. That’s how you keep getting people to come back, increase that lifetime value and make paid advertising work. In essence, the secret to
making paid advertising work isn’t how you optimize
the paid ad campaigns, it’s your funnel. That’s what opens up doors
so you can spend more on paid advertising because over time, the costs will continue to rise, they’re not going to go lower. If you need help with your
paid advertising campaigns, check out my ad agency Neil Patel Digital. If you have any questions,
leave a comment below, I’ll answer it. Make sure you subscribe to this channel. If you enjoy the video, like it, tell other people about
it, thanks for watching.

65 thoughts on “The Secret to Making Paid Advertising Work

  1. Neil Patel Post author

    What industry did you try paid advertising in?

    I'm curious because the solution is going to be the same for almost every single industry and eventually it's going to go to this exact solution/secret for every single industry, but by knowing what industry you're in, I can give you specific advice.

  2. Patrick Cogen Post author

    Congrats on 400k Neil! Keep up the great work! Love from a small youtuber 🙂

  3. The Brains Music Empire Post author

    keep up the good work Patel.
    I have really grown in marketing thanks to you

  4. Promothash Boruah Post author

    Nice tips. I didn't do well with google/bing ads. My conversion are better with SEO traffic.

  5. Shaggad M Post author

    400,000 Subscribers in 2 years of uploading/video creating/ editing. Wow a lot of work must have been done. Congrats Neil and Team on the effort and hope the channel is here for long term! – Shaggad

  6. BizBOOSTER Digital Post author

    Great advice and usually many marketers don't pay enough attention to create a funnel in 1st place before launching any campaigns, so they miss so many upselling opportunities! I loved the part of the video that explains the difference between 6, 7 and 8 figure businesses, that's so true! Keep sharing great content!

  7. Mike Keats Post author

    Trying out Facebook Ads and Google Ads in the metal fabrication industry in the UK

  8. geovani mejia salazar Post author

    do you recommended a company for creating clickfunnels? thanks

  9. Passive Income Tom Post author

    Thanks for sharing great value once again!👍

  10. Benjamin Fairbourne Post author

    im making thousands per day with my secret funnel for affiliate marketing. Im one of the industry leaders in paid ads + affiliate marketing

  11. Nicola - Business Tips For Success Post author

    very helpful pieces of information!

  12. Lisa LaMagna Post author

    Healthcare and in-home care (nursing or companions/helpers) for older adults and seniors

  13. BigBusiness Post author

    Paid advertising in marketing is difficult as a lot of people don’t see the value in marketing and a lot of people don’t think they need it. However if don’t correctly it works well, just takes longer to grow. Unless you have a USP takes longer to grow

  14. Mystic Yash Post author

    What to do u if u are on a low budget? U can't afford to lose money at-front! Pls tell us how to advertise(eCommerce) on a low budget.

  15. Adan Ruiz lopez Post author

    Hi Neil! What do you think of Clickfunnels for creating landing pages and your funnels??

  16. James Scott Post author

    Thanks for sharing your Knowledge Neil 🙏🏻

  17. John Vianny Post author

    Thanks for the Guidance!
    This the best creator for seo &search engines!
    I actually created my own channel called JohnVianny to show even MORE making money methods, come check it out and i will always follow back!

  18. Darrell Lischka Post author

    The best and fastest way to scale your business is with paid advertising – period. The key is doing it in a way where you don't go broke. I agree with you Neil 100% on the lifetime value of a customer. Many people focus on just the one time sale. The smarter marketers understand this fundamental concept. Make it a great day.

  19. Jason Cellino Post author

    I am in screen printing and embroidery. I compete with custom ink

  20. Imtiyaz Ahmad Post author

    Congratulations sir for 400k subscribers. And thanks for your valuable information for us. Keep it up.

  21. YoursTrulyOma Post author

    Hi Neil. Great video. Quick question.. apart from having a Digital Marketing certification, what other certifications can help one stand out and possibly earn more.?

  22. Bassal Malick Post author

    Can you give some suggestions on running ads for a SaaS company that serves b2b clients in real estate. It helps agents to automate their follow up process. How can we get more booked demos for that?

  23. Virus Various - منوعات فيروسية Post author

    Health and nutrition

  24. Marco Papavero Post author

    Sometimes it seems people reinvent the wheel! It's obvious that Google and Facebook using funnel. Great job Neil

  25. shreyank goyal Post author

    I'm just starting as a digital marketer and I tried Facebook ads for a gym which didn't work the owner was impatient I stopped the work.

  26. Yunus Shaikh Post author

    Event management doesn't work for me,
    I'm trying in FB

  27. Niche Site Ideas Post author

    I've been working online since 1995 and this is the first time this concept has truly crystallized and has given me the aha moment thanks to this video. Sad to say I have probably fallen into the one camp that has always tried to convert directly from ads. I would love to see more videos on this topic 🙂

  28. Raj Yoga Rishikesh Post author

    Hi Neil , I m I tried with Facebook & google ad for yoga training courses & retreats but not converting .. any advice ?

  29. John Gallagher Post author

    Ballroom dance school for adults, the conversion is a completed lead form

  30. martin smith Post author

    Hi Neil, I have never been involved in direct marketing. However I have been out work for sometime now. What is the best way for me to build a sustainable business and how do I know what is hot or not? Affiliate marketing, drop shipping, blogging, arbitrage etc. Thanks regards Martin

  31. Narjeet Soni Post author

    Hey Niel, we are planning to target Product Managers and Product Leaders in Fortune 500 companies with a service around user research. But before that we want to conduct a landing page experiment with problem they currently face and solution we would be offering. We want to leverage paid ads for this test on LinkedIn, Facebook and Google. How would you approach this? Would creating a funnel be an overkill for a test?

  32. Sandra Hernandez Post author

    Currently running FB and IG paid ads for handmade and unique bags (Authentic Wayuu Bags). No results yet. Besides these and IG feed, any other way to promote them?

  33. Jimmy b747 Post author

    great video from the best channel on utube. we do home improvement advertising. thank you and keep up the good work


    You are really genius. God bless you and your family

  35. Eamon Delaney Post author

    I sell firewood with a chimney cleaning service as an add on

  36. Peeareyou Post author

    Bro can you please make video for youtubers I have tried a lot but most of them fail.
    Plz more videos for small youtuber.

  37. A Wild Becoming Post author

    The nugget about the 7 8 and 9 figure businesses… So helpful. Perspective shift! 😳

  38. Solid Web Tools Post author

    I used to run Facebook ads to promote Internet marketing products and would always spend way more money than I ever made back. I thought it was my ads, but then I realized it was because I wasn't using a funnel. I was just sending traffic to a bridge page and then on to the sales page. Wow, big mistake!

  39. Ashish Makhija Post author

    Spa industry , i am running google ad word but not at all satisfied with keyword selection & how to make a perfect ad on google & facebook both

  40. Michal Bahno Post author

    I am doing FB ads and Bing Ads
    Used to do Google Ads as well, but not anymore..

  41. Juliana Loomer Post author

    Fine Art. Hard to find info how to sell art that is not a service.

  42. Ibrahim A.idress Post author

    e-commerce industry and this was great information thank you very much please keep helping us

  43. Vidit Jain Post author

    We are a medical tourism company based out of India. We get patients from countries where healthcare is not good. We provide them end to end service. Any suggestions on channels to use for getting more relevant traffic and how can we boost traffic?


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