If I Started Facebook Ads in 2025, I'd Do This

I've been running Facebook ads since 2014 and I've spent over $100 million in total ad spend generating over half a billion dollar in revenue for businesses that I've worked with at this point I've basically seen it all and if you're going to be running Facebook ads in 2025 and Beyond there are very important things that you need to know to successfully scale so in this video I'm going to condense down my last 11 years of Facebook ads knowledge and compress it into just one video so you could avoid all the cost and mistakes that I

made and actually scale your business profitably from the jump the best part is it doesn't matter if you're spending your very first dollar today or if you're already spending tens of thousands of dollars on ads because everything here is going to go in order based on how much you're currently spending and how aggressively you're trying to scale and I'm going to show you everything that I have literally done so you can test your way from zero all the way to tens of thousands of dollars in ad spend per day so look there are three levels

to this Facebook ads game and if I was just starting out as a beginner running Facebook and Instagram ads this is exactly what I would do starting from scratch first things first we have to start with what actually moves the needle the most important things upfront are what is actually going to drive Revenue the best return on ad spent and of course profit for your business think about this like the 8020 of Facebook ads the 8020 rule generally states that 20% of what we do creates 80% of the results so when you're just starting out

it's so important to hit that 20% right and don't worry about all those little minute details we need to focus on the core so that you build a system structure and really everything that I'm going to go through here so that you can scale steadily over time so I ask if you're a beginner watching this for forget the fancy strategies forget half the videos that I talk about on this channel where we get into really really individual details what I want you to focus on is the core cuz that's how you're going to scale creative

is King in 2025 everything is moving towards quality in 2024 we were really focused on volume massive volumes of creative tons of different variations tons of different iterations in 2023 it was the year of ugc the year of ugly ads now what we see is quality in different formats what quality means is it doesn't need to look like Netflix produced the ad but what it does mean is it needs to be ultra high quality now here are the exact formats that I would use if I was starting a brand today first I would have a

Founder story a Founder story ad is one of the most basic ad types you can possibly have and still to this day one of the most longlasting ad creatives period what a Founder story is composed of is getting in front of the camera as the owner of the business telling the camera and the audience who you are and explaining why your product is different and by the way in just a few moments we're going to get into why offers need to be created perfectly literally in a minute here think of the founder story as your

elevator pitch but also kind of a sales pitch you want your founder story to resonate with people instantly by associating product to person and also providing the benefits and the core offering of your product in just a roughly 30 second to a minute and a half clip these don't need to be super short and super Snappy but the point is that they grab attention quick and they add a ton of value throughout the length of the video next is mixing formats there are so many different ad formats when it comes to Facebook and Instagram think

about it there's reals there there's stories there's native posts there's different sizes on the native feed and there's the whole entire display Network and it depends what device you're on these days so whether you're on an iPhone and Android or literally on a desktop computer and depending on the size of that desktop screen is all going to have an impact on what you're being able to serve so for you as the actual brand owner you need to make sure you have creative formatted to every single format possible now you don't need to go as crazy

as breaking down 17 or 18 19 different formats especially if you're only spending a couple hundred bucks a day or even $1,000 a day but what you do need to do is make sure you have the core formats handled and that doesn't just mean the sizes that means the actual differences between video Carousel Collections and static images if you cover all of your bases here you are immediately going to get more inventory reduce your cpms reduce your cost per clicks and of course if those metrics are improving you're going to see better conversion rates come

through and therefore better return on ad spend all super key don't be like some of your competitors who are just leaning into one thing that they think is the best because you're going to miss tons of people who Di adust ads better in different formats every single person's different and don't forget that next is building ads around difference makers now this might sound obvious but 90% of people completely ignore this difference makers are what makes your product or your brand completely different than the rest of the market so think about it like this why would

I buy specifically from your brand if a bunch of other brands sell nearly the exact same product or maybe a little bit of a different skinned version of your product think about your core competency what do you do different why do you do it differently is it price is it color is it sustainability is it the quality of the product is it The Branding what's behind you that makes you feel different and why should I buy from you very specifically Focus hard on your Difference Maker if you don't focus on your Difference Maker you going

to blend in and no one's going to buy from you you never want to fall in the middle you want to be so outlandishly different when it comes to ads that everyone attracts to that and that the people who don't attract to that never even worry about you at all we don't care about the 5 or 10% of people that are never going to convert on your product anyway we'd rather C capture the specific cohort that you are a fit for and that's why difference makers are a huge creative angle that you need to be

taking in 2025 and last really similar to difference makers we saw a surge in 2024 on product demos quick Snappy product demos a product demo is literally showing what the product does really quickly and really hitting the core competency again so for example if I sell a product let's say it's a helmet let's say that helmet is indestructible and I take a baseball bat and I smash that helmet I am getting my core competency to the user in an instant it's very engaging content it's very entertaining and right away they understand okay that's a helmet

that doesn't break when it's smashed by a baseball bat it's probably safe for me to wear when I'm driving a motorcycle or riding a bike that is really really key that you can get that across in an instant and if you could do that in a demo style format where you're showing it physically on screen that's a mega win for you in your brand huge Pro tip especially when it comes to video make sure those first 3 seconds are Ultra engaging the first 3 seconds are going to determine if a user wants to actually watch

the rest rest of the ad so you could literally qualify and disqualify people in the first half of a second that first few frames are critical get your point out quick share who you are very quickly and get your core competency across as quickly as you possibly can think about orienting these in different orders that ultimately put you in a better position to show different variations to different kinds of people and let the algorithm figure out what ads work best for you more on this in a second your offer matters way more than your ad

spend I've have seen so many Brands try to optimize or fix their way out of a weak offer when in reality your offer is the most important thing about your entire brand service or product so everything we do on Facebook ads is usually bringing people to a website where they can buy right then and there it is so critical that you have these four elements completely handled on your website so that people could actually convert because one of the worst things that you can do in this market especially where you're paying so much per click

you're paying such high advertising cost is getting someone to your site who is actually interested and then them dropping off in an instant because you didn't do these four things really well so when you think about your offer keep in mind this is not just for services this is actually more focused on e-commerce than anything so each of these elements needs to be in every single offering ever this could be per product it could be per bundle this is a general note on offers and it's critical that all four of these elements are included in

yours today so if you go to your website right now and you're missing any of this add these elements and I could basically guarantee that you're going to see an increase in conversion rate first you have to have a guarantee you have to have something that allows someone to know that they can return your product or if they hate it they'll get their money back even though this sounds a little scary to do upfront even if just 2 to 3% of people actually act on this guarantee it's going to give you a huge boost in

total conversion rate because 98 to 99% of people are not going to act on this because honestly people don't like to handle returns and going through that whole process there's a huge reason there's no friction on Amazon it's because with every single purchase we know we have the ability to return so just knowing that you can get your money back some sort of satisfaction guarantee is huge huge second is urgency urgency can come in so many different forms I don't really recommend timers these days and telling people they're saving your cart for a certain amount

of time unless of course you are literally doing that and this is an exclusive drop or timing Associated to that but what you can do instead is have offers related to certain times so you could have potentially a 24-hour flash sale or things along that line when you're running sales if you're not running a sale and this is an evergreen period or you just don't run sales for your business then you really really should consider different urgency tactics like stock count being shown potentially that this is a drop that's only going to be exclusive for

a certain amount of time there's a whole lot of different things you can do to actually add urgency just make sure that at some point you are adding a little bit of it make sure that you have some sort of notice that this won't be here forever we have limited stock it could be early in the funnel maybe on the product page it could even be on the homepage if there's like a shipping Banner get it by X date that's something that Amazon does super well if you order now guaranteed delivery by a certain date

there's so many little ways to add urgency and it just improves conversion rate a little bit which which is sometimes all you need to go from semi-of to extremely lucratively profitable so the next thing is average order value and when it comes to increasing your average order value there's of course hundreds of things you can do you could bundle you can make complimentary products there's literally dozens of different ways to actually increase your average order value however there's two main things you can do basically right now first you can increase your prices now of course

when you're increasing your prices you need to watch your conversion rate so check your conversion rate if you increase your prices 10 or 20% what I'd recommend doing is increase your prices 20% see what happens to your conversion rate and find the balance it is literally a math equation and the second thing you could do which is very obvious because nearly every single e-commerce brand does it but most people don't actually do it right is set a shipping threshold a shipping threshold is literally how much you're willing to give free shipping for every single brand

these days should have free shipping or else they're going to go to your competitors who do have free shipping there are numerous studies out there that basically show that even just paying $5 for shipping cost reduces the conversion rate on a website so what you really really need to focus on is where is your shipping cut off where it makes sense for you logistically and from a financial perspective but also can you raise your shipping cost just a little bit to actually get increased average order value for example if most of your products are $30

adding two of them will get the price to 60 adding one obviously is just 30 to your C so if you create your shipping Threshold at 50 it is going to substantially increase the likelihood of people going from one product in their cart if your shipping threshold is 30 to two products in their cart if your shipping threshold is 50 because they will get over that shipping threshold by just adding one extra product to their cart now look when it comes to average order value as that increases you are going to become a more profitable

business but you're going to lose some other things for example average order value may increase but conversion rate or net new customers might decrease the key here is finding the strategy that is most profitable for your business both shortterm and long-term you don't always need to acquire customers the fastest if those customers are not worth as much as higher average order value customers then it's not worth acquiring them so always think about the long term and don't get too caught up in one individual metric or one thing that might not be an actual North Star

for the business and finally when it comes to your offer you need to make the first purchase and Nob brainer a no-brainer takes the customer from considering the purchase to actually purchasing so think about it like this there are dozens of different brands in your category selling similar products to yours they may not be the exact product they might not be as good as your product but they're similar and the customer needs to make an informed decision of what's going to actually get them over the line to put their credit card information into your we

and to ultimately make a purchase and the way that they're going to do that the most clean way that they're going to do that is by making the offer a no-brainer there's two ways you can make it a no-brainer you could discount which is okay to do sometimes but you take a big hit from a discount perspective and the other way to do it is by giving more because if you give more you could show the perceived value of those products but to you the actual value of those products is significantly lower think about it

like this if you add a t-shirt into your order an extra free t-shirt and when they receive and open their product they have two T-shirts that could be a surprise and Delight in that case they get a ton of value after purchase what we want to focus on what can you show them UPF front that they'll get as a result of being a firsttime customer great ways to do this are better packaging like adding totes or adding different kind of elements to your product and packaging that's awesome people love that people like to know that

they're being treated like a VIP a first-time customer that's huge for some people other folks depending on your vertical it could really vary but just think about different ways that you can add more value upfront that excites the consumer it could l be as simple as doubling whatever they're getting right if you're in like the health and wellness category just giving them an extra protein powder giving them two for the price of one without them even thinking about it is going to put you at such a steep advantage and better yet if you're in a

category like that it's going to actually force that customer to build a habit of enjoying your product and they're going to come back and buy again finally structure in 2025 it's actually simpler than you think the algorithm has gotten way smarter but we need to be very careful about how we feed that algorithm so first and foremost the most important campaign is your scaling mechanism the key of this is when you're first starting out you need to create some sort of scaling mechanism the best part is what we talk about here is going to apply

forever in your ad account or at least for the long foreseeable future we have taken Brands spending just a couple hundred a day using this structure to now spending thousands and thousands of dollars every single day of course profitably so what you need to start with is an ASC and ASC is known as an Advantage Plus shopping campaign also known as just an Advantage Plus campaign the key of the ASC campaign is it becomes your scaling mechanism this becomes the place that you scale your best top creatives in Period the next campaign that you need

to focus on is a prospecting CBO campaign I say CBO because it means campaign budget optimization CBO is technically an outdated term and now it's actually replaced with Advantage Plus budget optimization so just know whether you call it Advantage optimization or you call it CBO just know that it's setting your budget at the campaign level you always want to do this Facebook is going to do a a significantly better job of Distributing your budget where it's most likely to actually convert for you as opposed to you trying to nitpick each individual audience and potentially even

each creative this right here this structure these two campaigns alone begin the process of creating a hyper competitive system within your own ad account and here's how I would actually implement this first I would create that prospecting CBO campaign that prospecting CBO campaign is where you're going to launch new adsets with new creatives all the time this is both your testing campaign and it's your Evergreen campaign at the same time so anytime you have new creatives a new product launch anything new you launch it as a new Fresh adet to a 100% broad audience we're

going to talk about interest audiences at the end or in the middle of this video so just note that this is for the start of this we're going to get to the detailed stuff in a few minutes so when you launch those fresh adsets inside that campaign you always need to just continue to let them run what you are creating is a mega hyper competitive environment in the prospecting CBO what this is going to do do is going to make new creatives really really really hard to start actually spending but it's only going to scale

your proven creatives and then what you do is you take the ads from the prospecting CBO that are the top 10% and you scale them into the ASC so we scale those top 10% in the ASC based on both spend and return on ads spend so what you want to look for in the ads manager are your ads that have spent the most and had a return on ad spend above your kpi that you need to achieve if that Target row ads that you have is two let's say ads that have a 2.5 and are

spending the most should get graduated just keep it simple and do this on a every 14-day basis don't do this every 5 days don't do this every 2 days keep this very consistent every 10 to 14 days just make sure the schedule doesn't change now look eventually you're going to outgrow this structure you're going to outgrow the rules that I just told you the key though is you build on top of this like I said from the very jump here we are not creating completely new systems every time everything from beginner to mastery is building

one step at a time on top of another so if you're still spending $20,000 a day step one here applies to you so I actually if you skipped ahead go back because you need to watch the first section of this video to even understand section number two here the second part of this level two as we'll call it is the optimization zone now let's talk about what separates good campaigns from ones that just die real quick because way too many people start Facebook ads or run a few hundred maybe even a few thousand they can't

get past a one return on ADP maybe can't even break even above a 2X return return on ad spend but let's keep it real you want to scale beyond that you want to scale to that Promise Land you want to use Facebook ads as the core mechanism to drive new business to your site I get it that's what we do so one of the first things you need to do is create a creative testing framework now I told you before there's that prospecting CBO campaign the beauty of that campaign is that it's going to automatically

tell you what your top 10% are you're going to graduate those ad creators by duplicating them from the prospecting CBO into the Advantage Plus scaling campaign but it doesn't end there let's say you have three winning ads you found three ads that work Far and Away better than everything some people might see these ads and say they're hogging all of my ads spend they're still not getting me my best return on ad spend they're just totally eating up all of my budget good good I want to tell you I want to scream from the rooftops

I always say this but this is the best thing possible you found a winner something in Facebook's algorithm is getting hit it literally knows that this ad could work for you even if it's not hitting your Target kpi right now it's spending it has good signal from Facebook people are probably reacting to it engaging with it clicking more on it now you need to find out what works around it think about this like anything else in your life I love sports analogies but it doesn't really matter what you compare this to there's never been something

you've done for the first time and immediately are a master at it every single time you look back at what you were doing a year ago two years ago even if it's a thing you're the best at right now you always will look back a year ago two years ago 3 years ago and say wow I knew nothing back then and that's what it's like when you find winning creatives you could win the weightlifting competition but two years can go by and you're at a completely different weight class dominating completely lifting more weight whatever it

is the analogies don't matter too much what this means for you in regards to creative testing and what this actually means for Facebook ads as a whole is that when you find winning ads you immediately need to create variations of those ads so the first thing I would do if I had a winning ad right away day one what we need to do is we need to diagnose what is going right with this ad and potentially what's going wrong with this ad the funny thing here is I care way more about what's right and we

want to double down on that and I don't worry as much about what's exactly wrong pinpointing what's wrong with an ad is significantly harder than pinpointing what's right so think about it from a positive perspective when you're looking at your ad data look at the first 3 seconds of a video ad look at the click-through rates look at the cpms try to understand with the actual incredible amount of data that we have in the Facebook ads platform what is specifically indicating that this is a good ad and double down literally double down over and over

and over again make multiple variations of those ads change the colors of things make someone else say the same words in the hook or change up the words in the hook just keep the core you found a winning core and that's what you need to roll with and then continuously tweak and tweak and tweak and eventually you get 2% 5% 8% better that brings you slowly to your return on adspend that you need to achieve I want to be clear this is hard work this is not magic right the systems the structure everything I talk

about here is advanced and there's a reason this industry even exists it's because you have to put in a ton of work and a ton of time and anyone telling you that this is easy and you need to just set up this structure and everything's going to work and it's going to be money pouring in trees growing all around you they're lying to you you need to work hard steadily continuously kind of meticulously over long long long periods of time to actually achieve well beyond your expectations so next up is custom structure building this is

so critical as you're scaling everything is not cookie cutter when it comes to face Facebook ads in most cases nearly every case actually you're going to have to do some important tweaks based on the individual fundamentals of your individual business now keep in mind this doesn't mean you stray 100t off the path but what it does mean is that when something is unique to your business you build for it now what I'm about to give you are the two to three things that you need to add to your account as you scale to actually create

proper swim Lanes within your account first you need to add retention-based targeting retention means that the customer has transacted with you they have purchased from you before don't get this confused with someone who's been to your site 20 times or told you they were going to purchase or told you they really liked your product that's not a customer it's very very very very different we all know that there's fundamentally a huge difference between someone who says they're going to do something and someone who actually does something kind of like everyone watching this video because if

you're already this deep into the video you're probably a doer you're probably going to execute on this information you're probably not just going to absorb this and let it go over your head so just like you watching this video your customers are the the same way people who transact fall into retention so what does this exactly mean when it comes to Facebook ads for your cohorts and your targeting you need to focus on people who have purchased within the last 180 days and you could even refine that further if you're a bigger brand down to

45 days or 90 days next comes retargeting retargeting is very different from retention but it has a little bit of overlap which I'm going to get to at a pro tip at the end of this entire section so when it comes to retargeting these are people who have not converted but have shown actions that they are interested like visiting your site adding to cart initiating checkout engaging on Instagram engaging on Facebook but they haven't quite transacted with your brand yet note there's a huge difference between transacting and just doing these actions so we always want

to have retargeting separate from retention and we want to have retargeting separate from prospecting when you get to stage two the reason for this is cu you're going to need individualized creative for retargeting and for retention and for prospecting because the way you talk to someone who has added products to your cart versus someone who has already purchased from you or or has never even heard of you is vastly different it's really important to curate that experience depending on where the person is at that specific time in the funnel now I have contrarian thoughts on

this than most people a lot of people will tell you that the funnel is perfect I don't believe the funnel is perfect at all in fact I believe that the funnel is very very messy so when we create these swim Lanes we still don't put massive exclusions into each one of these categories for example what could technically happen is a past purchaser could visit your site and they will fall into their retargeting bucket that's okay we don't care where the purchase comes from we just don't want to exclude too many things at this stage when

you're only spending somewhere around $10 to $30,000 a month where we start to really advance and get exclusions in place is in the next entire section of this video where I get really really deep into one of the pro tips where you need to create swim Lanes really really critically important when you're spending 30 to 50 to $100,000 a month and then finally when it comes to finalizing that custom structure we need to launch interest based audiences interest based audiences are the core of Improv return on that been outside of broad audiences so the big

run in the last 2 years has been broad audiences broad everything broad everywhere broad is great broad is actually one of the best scaling mechanisms however if you want to increase just pure efficiency and pure return on ad spend interest groups are still the way to go now the key here and this is a mega tip for anyone listening this far don't stack your interests people that stack interest these days literally are just recreating broad audiences because interest are not the same functioning machines that they were just 3 years ago two to three years ago

interests were completely different this is 2025 now 2025 interests are suggestions and interest when you're Advantage Plus targeting are merely signals so be careful when you set this up because what you don't want to do ever is stack two three four five even 6 Seven 8 nine interests that's a bad move one interest at a time one interest per adset so when it comes to this custom structure make sure you build it for you but keep in mind the these core buckets everything I've broken down so far your prospecting campaign your scaling mechanism with an

ASC your retargeting campaign and your retention campaign these four are the core four when it comes to Facebook ads in 2025 you might have to build Beyond this for example if you have a sale you might have to throw in a brand new campaign just to support that sale especially if it's only for a few days there are so many nuances that of course I can't predict I don't know your individual business but keep in mind if you curate this core on top of what you're building for your business you are going to see a

substantial increase in not only return on ad spend but predictability and scalability by the way if you're watching this video and you're getting a ton of value already I have created the M3 method PDF it is down in the description it's also in the first pinned comment below you can get it it's completely 100% free it goes through some of the stuff we're already talking about but way way deeper infographics charts everything that you need to know the core three things that we push at the moonlighters and if you're spending over $10,000 a month in

advertising or you're in a position where you want to scale today go to the moonlighters docomo apply to see if you could be a fit to work with us today let's get back into the video okay now for the fun part now for the part that actually still to this day challenges me and I like to say this because level three this level of Mastery is always changing anyone that tells you that these ways are set in stone is a total fraud what's way more important here is that you clearly understand that everything at this

Elite level of media buying and Elite level of Facebook ads buying is in flux it will always change it will always be in demand the knowledge is so critical and it's going to be different when we watch this in 2025 compared to when we watch this in 2027 right so keep in mind this is the top level stuff that is working most critically right now and the things you need to be on the lookout for but it's also the most delicate so here's what's working at the highest highest level one of the most fundamental important

things that you need to know is that 90 9% of advertisers are spending the same amount of money every single day of the week you cannot be the Sheep you have to be what I'm calling here the black sheep of spending if you want to operate at the highest level if every single dollar counts a you are spending thousands of dollars every single month likely 50 plus, a month you have enough data to support these kinds of decisions at this point and when it comes to Black Sheep spending what that specifically means is spending money

when you are most likely to make more money back so let me tell you a story about when I used to work at BarkBox every single Monday I would walk into the doors I'd address my team and I'd say hey guys great weekend wow and we did this for three four five weeks in a row hey everyone great weekend hey everyone great weekend guess what it wasn't a great weekend it was a trend the business performed better on Saturdays and Sundays while I can't tell you exactly how much we were spending or how much we

were making what I can say is that we shifted a huge portion of our budget to be spent on Saturdays and Sundays when conversion rates are higher when I left BarkBox this was one of the core things that I took with me because at the time the business was doing about $150 million in revenue and when I left 3 years later they were a publicly traded company on the New York Stock Exchange worth over $700 million now this wasn't the only thing this business did of course they did a hundred things right but it is

one of the many principles that we applied which was spend efficiently and effectively and don't be a fool to allow Facebook or Google or any of the ad platforms to control control our ad spend right now 99% of people watching this video are spending the same amount of money every single day so a day of week analysis is how you avoid being a sheep and how you become a black sheep because if you're in a competitive set where everyone's doing the same thing and expecting different results I think it's time to wake up because that

is the definition of insanity insanity is literally doing the same thing and the same thing and the same thing and expecting different results so you have to act different than every single one of your competitors because in this market it's one of the only ways to actually outperform everyone now the key part is I'm going to give you a value bomb because it doesn't end there you do the same exact thing for every part of the business just because one or two days of the week convert better doesn't mean you stop there you apply What's

called the parto principle or the 8020 rule which basically states that 80% of your results come from 20% of your actions and you apply that everywhere in the business find your top 80% of Revenue generating products and promote those products specifically do the same thing for day of week for platform replacement everything across your entire business these are what the best marketers are doing today this is what we do at the moonlighters and the second thing you should be doing at the highest level of advertising is Advanced attribution optimizing now this is a loaded word

I don't know if I made it up doesn't matter the key here is that 99% of people are using 7-Day click one day view not only as the optimization attribution window but they're also using it to actually make informed decisions on their ads this is a huge blow basically when you use 7-Day click in one view the view portion of Facebook is overinflating your results I will say it very straight up the view portion of Facebook are typically customers that we going to convert without that Facebook view anyway now of course there's a lot of

data supporting that view conversions are valuable they're just not as valuable as click-based conversions so what you need to do is in your Facebook ads platform go to your column set scroll down to attribution settings and click one day click 7-Day click and one day view when you select these three you'll be able to see every attribution setting in the ad platform in real time so you could literally see the differences between your click data and your view data and what I want you to do and this is one of the biggest things you could

do if you take one thing from this video literally if you do nothing else and just do this one thing over time by optimizing this way you're going to get better results in your ads and that one thing is literally looking at the click only data but still optimizing for the 7-Day click and one day view what you'll recognize is that there's going to be ads that are really good at bottom feeding that may have been converters anyway and you just need to ignore that view through data make your changes on the return on ad

spend the CPA and the purchase value Associated to the 7-Day click and then perhaps my favorite the best for last year the one-year value people love love to talk about lifetime value lifetime value is like the hottest topic when it comes to Shopify or just e-commerce in general people try to talk about their audience retention rates and they try to act like lifetime value is just something that they always shooting to increase and they try to measure it into their forecast and it gets super confusing to be completely honest if you are a big spender

in Facebook ads you need to worry about not only what's being driven in the future AKA lifetime value but you also need to worry about today so you can't really build your business on a lifetime value you just need to properly predict what's going to happen with a lifetime value and I actually hate lifetime value I don't like the full thought of lifetime value because there's just too many things that could change in a business and quite honestly it's very risky if you start optimizing for long-term lifetime what we like to optimize for is one

year value one- year value is basically 12 months from the date of the purchase so if I purchased on January 1st 2025 December 31st 2025 is my one-year value how many times did I come back how much did I spend in your business over that one-year period is my one-year value of course you could look at 2-year value three-year value and lifetime value eventually but the one-year value helps the most from a financial perspective from a tax perspective because you're looking at a one-year period there's so many reasons to look at one-year value and the

best business that I know they focus on their break even return on adpen and these are specifically businesses that want to scale aggressively they look at their break even return on adspend or their Break Even cost per acquisition and then they understand what is that break even they run into that break even meaning they scale as much as they possibly can to hit that break even Target and then they make all of their money on what I call the gravy they make all of their money on the one-year value for example to keep this super

super simple if your first purchase order value on average is $100 then that means that you could spend $100 minus your cost of goods and other expenses to acquire that customer and then if that customer comes back at a rate that you understand well enough let's just pretend they come back at a straight up 2x rate so every single customer comes back on average once over the course of the year that means that $100 becomes $200 on average minus your cost of goods minus your expenses you know that that extra $100 roughly is gravy and

profit for your business that you did not have to spend money to acquire again huge think about that one-ear value and how quickly you can out spend on ads if you don't have to worry about where's your return on ad spend being at such a high level for you to be super super profitable on the first purchase if you could just break even plus or minus $1 or2 on your very first purchase you put yourself in an advantageous scenario where you can scale super aggressively and yes you might not feel that profit coming in in

the first 20 30 50 days or even 6 months but over the course of the year you're going to start to feel that profit quick quickly now look I mentioned from the start there's three levels to this but what I want you to really really understand is that this game changes constantly everything in Facebook ads everything in advertising in general is always in flux everything's going to change if every single ad platform comes out with a new format or a new medium like when reals got hot everything changes so keep in mind that the advice

I'm giving today is for right now and you should act on it now because every single month when it comes to Media buying means a ton a ton now everything we hit in this video was broad it was high level it was fundamentals it was the core of what you need to know and it also was probably one of the best prep sessions I've ever given to myself but if you want to get into technicals if you want to get into tutorial level videos where I show you literally Click by click a lot of what

I just went through in this video click this video right here where I go through everything you need to know about how to set up the best Facebook ads for 2025 and then finally click this video if you actually want to scale Google ads because if you're not spending in Google ads you are leaving so much money on the table these are two separate platforms targeting completely different users it's so critical to be on both of them all the time so click this video right here where I go through how I literally print on Google

ads all right I hope you got value out of this video leave me a comment let me know any questions below we try to answer every single comment here and I appreciate you thank you