TCM #032: 5-Steps to ad targeting (without being brainwashed by gurus)

 5-Steps to Ad Targeting (without being brainwashed by gurus) 

TCM 032 / Sunday, 24th March 2024 / Read time: 3 minutes 

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I say this as a friend. 

Please, for the love of all that is holy, stop listening to the hysteria around ad targeting. 

It's never been simpler to target ads. Yet, I see so many folks overcomplicating it.

(You're not alone; I used to be that guy too.)

At this point, the following advice applies to pretty much all platforms.

I've intentionally tried to make this as concise as possible so it's (somewhat) easier to follow.

That said, hit me back if you have any questions whatsoever. (Mean it.)

Step 1: Let warm outreach lay a foundation

I touched on this last year (and I'll probably drop a revised version of it soon), but if you're in the early stages of your brand or trying to pick up momentum ahead of running ads, start here:

How I got my first 1000 customers without relying on ads.

Bottom line: ensure you're connected organically with your audience. It'll help these platforms know who to target (AKA retarget).

Step 2: Turn your warm list into a custom audience

The purpose of your warm outreach is to build a list that's primed for conversion.

Upload those initial leads to a custom audience (on whichever ad platform you're using); laying the groundwork for a targeting strategy that speaks to those already interested in you, your brand and your product(s). 

Step 3: Create a lookalike audience from your warm list

If you don't have a warm outreach list that is big enough to create a lookalike, don't sweat it. You can skip this step and move to Step 4.

If you do, go ahead and create a lookalike audience to exponentially increase your reach with a wider pool that's similar to your warm list.

Step 4: Stack your audiences + interests

Merge your Warm List and your Lookalike Audience, and then layer in Interests to refine it.

If you're targeting a small local area, forget stacking interests – you've already gone narrow enough. Your ad creative will do the work from here.

Step 5: Creative leverage

"Going broad" doesn't mean losing focus.

Follow steps 1-4 to seed a targeted audience, call out your audience in your ad creative / ad copy, and then let the algorithms expand your reach. 

What do I mean by calling out your audience? For example, when someone sees themselves being labelled, they're far more likely to engage. It's the same way you hear your name being called in a crowd:

• "London cyclists..."
• "Austin Crossfitters..."
• "Cheesecake Factory lovers..."
• "Night shift workers..."

The hardest part?

Sitting on your hands and trusting in the platforms' ability to find your audience as you refine your creative content.

These platforms are pretty well-versed in knowing how to put the right ad in front of the right person at the right time. 

Steer the ship initially out of the harbour and then let the autopilot take over. 

The best piece of advice I can give you?

Remember that the goal isn't to blanket the entire world with your message, but to find your people – the ones who categorically need what you're offering and are ready to engage.

While you may lose efficiency as you scale and move further into a "broad" audience, keep in mind that you'll be making a greater return:

• $1,000 spent at a 4x ROAS = $4,000 (High efficiency, okay profit)
• $100,000 spent at a 3x ROAS = $300,000 (Lower efficiency, much more profit)

Aim for the sweet spot where expenditure meets the return your brand needs. And don't get obsessed with ROAS. It doesn't tell the full story.

That's it for today.

Next week, we'll dive deeper into crafting ads that resonate and convert. Stay tuned.

I hope this is genuinely helpful and you have a fantastic week ahead!

Cheers to ads that meet their audience,

Tom