Summary of 48 min pour enfin comprendre Meta Ads (Masterclass)

Summary of "48 min pour enfin comprendre Meta Ads (Masterclass)"

This masterclass, led by Tho (founder of Kouak) and Paul (CEO and head of performance at Kouak), provides an in-depth understanding of Meta (Facebook) Ads, focusing on how to effectively manage advertising budgets, measure performance, and optimize campaigns for customer acquisition and business growth.

Main Financial Strategies, Market Analyses, and Business Trends

  1. Customer Acquisition Focus Over Traditional Metrics
    • The primary goal of Meta Ads is acquisition of new customers, not just lowering CPA (Cost Per Acquisition) or increasing ROS (Return on Spend).
    • Growth in e-commerce depends on:
      • Increasing website visitors (main lever for Meta Ads)
      • Improving conversion rate
      • Increasing customer lifetime value (LTV)
    • Meta Ads mainly impact the visitor acquisition part of this growth equation.
    • Retargeting existing customers is better done through owned channels like email, SMS, or organic social media, which are cheaper and more effective.
  2. Meta Ads as Part of a Multi-Channel Acquisition Strategy
    • Meta Ads alone are less effective than when combined with other channels (organic social, SEO, PR, Google Ads).
    • Multi-channel presence builds brand awareness and trust, increasing conversion rates and lowering acquisition costs.
    • Marketing should be viewed as a coordinated system (like a carriage pulled by multiple horses) where each channel supports overall growth.
  3. Importance of Product-Market Fit Before Advertising
    • Advertising on Meta Ads is not effective without a validated product-market fit.
    • Investing heavily in ads before product-market fit wastes budget and stalls growth.
    • Starting with organic strategies is recommended to build social proof and validate demand before scaling paid ads.
  4. How Meta Ads Work: Impressions to Sales Funnel
    • Meta Ads sell targeted impressions to users who are not actively searching for products (non-intentional traffic).
    • The funnel:
      • Investment → Impressions → Clicks → Website visits → Purchases → Revenue
    • Success depends on the smooth transition between these stages.
  5. Key Metrics and How to Prioritize Them
    • Distribution Metrics (measure ad delivery quality):
      • CPM (Cost per 1000 impressions)
      • CTR (Click-through rate)
      • CPC (Cost per click)
    • Conversion Metrics (measure website and sales performance):
      • Conversion rate (sales/clicks)
      • CPA (Cost per purchase)
      • Average order value (AOV)
      • ROS (Return on ad spend)
    • Hierarchy of importance:
      • CPA > CPC > CPM
    • Focus on CPA and ROS for quick health checks of campaigns.
    • CTR and conversion rate are less actionable and often influenced by seasonality or external factors.
  6. Indirect Impact and Attribution Challenges
    • Meta Ads influence not only direct clicks but also indirect visits (users who see ads and later visit site organically or via search).
    • Attribution models (last click, multi-touch) are imperfect and often distort reality by double-counting or favoring certain channels.
    • Over-reliance on attribution can lead to poor budget decisions and breaking channel synergies.
    • Instead, use blended CAC (Customer Acquisition Cost) across all channels and post-purchase surveys to assess channel effectiveness more reliably.
  7. External and Internal Biases Affecting Performance
    • Seasonality, economic events, and business-specific occurrences (e.g., TV ads, bad buzz) affect ad performance independently of ad quality.
    • Tracking issues (data loss, GDPR compliance, attribution window settings) can skew performance metrics like ROS and CPA.
    • Understand that changes in tracking or attribution methodology can cause metric fluctuations without actual performance changes.
  8. Maximizing Impact of Each Euro Invested
    • Creative quality is crucial: ads must capture attention and provide value to users.
    • Use tools like Kouak’s Creative DAT Center to evaluate creatives by investment and CPA, identifying:
      • Poor creatives with high CPA and low spend (cut immediately)
      • Promising creatives with low CPA and low spend (scale investment)
      • Winning creatives with low CPA and high spend (maximize budget)
      • Poor creatives with high CPA and high spend (reduce spend immediately)
    • Media buying discipline:
      • Avoid "stupid mistakes" like poor budget timing or investing without market readiness.
      • Timing investments to coincide with periods of high purchase intent (seasonality, promotions) maximizes ROI.
      • Anticipate market trends based on historical data rather than reacting late.
  9. Strategic Budget Management and Seasonality

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