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E119: Basics of Ad Optimization

by Sean Boyce

If ads are driving traffic to your B2B SaaS, you’ll eventually want to make sure you are optimizing that channel to produce better results.

Let’s talk about the basics to get you started here using the example from my latest product.

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Episode Transcript
 Hey folks, Sean here, and today what I want to talk to you about is how to optimize for more conversions to your potentially relatively new B2B SaaS application. So after you’ve developed a channel for the early stage launch of your B2B SaaS application, You’re gonna want to be measuring how effectively you’re converting visitors into prospects, free trial users, paying customers, et cetera, and you’re probably gonna be wanting to boost those conversions as much as possible.

Now, for me, when I’m starting out, especially evaluating an early stage B2B SaaS product that I’ve recently launched, what I’m looking for is how effectively I’m able to turn those visitors into paying customers. I ultimately want to be able to create what is my funnel, and then measure what. Ultimately success in converting from one stage to another actually looks like.

So from a visitor to a free trial user to a paying customer, for example. And if I know that, you know, a hundred goes to 10, goes to one or whatever, then I can work backwards from how many I want of the paying customers to know how many visitors I want, for example, and then anything, any dials that control the traffic that I need to send to ultimately convert into the first category.

If I know what my percentages are in terms of my conversion rate for the other categories, I should be able to work my way back towards that outcome that I’m looking for to hit ultimately that number that’s going to mean the revenue number I want to hit or whatever. So what I’m trying to share with you here is that you want to build this through the channels that you’ve found to be the most effective.

And on the earlier. When the domain is new or the product is new, I am typically leaning pretty heavily on ads, typically Google search ads, but it really depends on your product. What matters more than anything is where are your users? Where’s the persona that you’ve built this product for that has the specific problem that your product solves hanging out.

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If that’s Facebook, then go there. If that’s LinkedIn, then go there. Wherever they’re hanging out, that’s where you want to get in front of them. And then, Any way that you can drive more traffic. And again, what I use pretty heavily, at least in the earlier, earlier days of launching a new B2B SaaS product, is on advertisements.

In order to generate the kind of traffic you want to measure the effectiveness of essentially your funnel and the conversion rate from getting from one category to the next. And then after you’ve determined not to be effective, as in, you know, Getting people to and through that funnel, as in you’re able to get people from prospects to free trial, to users, to customers.

That’s just what the stages are in my case, but yours may be slightly different, but regardless, I know I can get people to become paying customers for my product. Now I can work backwards from how many paying customers I want and I can. Turn the dial all the way up to a hundred if I want, for whatever I’ve been able to do for that channel thus far.

As in, for me, what that looks like is increasing the budget significantly for the ad campaigns that I may be running until I know where the diminishing return line is. As in where do I max out, where do I, where can I not show it anymore, or where will it not move the needle in terms of getting more prospects or visitors to the site to consider creating an account, for example.

That’s the center, kind of like the first stage in optimization is you can move the relatively straightforward needles like that, like budget, and then you can get into really optimizing. I’m gonna talk more about that in the future episode as well too. And that’s where you optimize around the keywords.

Make sure that if you’re using ads that you’re only displaying for the keywords that are relevant to what your product ultimately does. I’ll talk more about that as well too, so you can continue to optimize your budget and your spend at this point if you’re investing dollars into getting people into and on your platform.

So start thinking about that after you’ve launched your product for the channels that are able to send essentially those visitors or prospects to your product. And then from there, we’re gonna do your future episodes where I’m gonna talk you more through how to continually optimize to make sure you’re getting a better return on investment.