Pouring money into paid ads and getting crickets? You’re not alone. Many business owners waste thousands before figuring out what works. In this guide, I’ll share the simple tweaks that transformed my paid ad campaigns, taking one business from barely breaking even to generating over $2.9 million in profit.

Before we dive into the details, let’s address a common misconception: the bigger your ad budget, the more effective your campaigns will be. This isn’t always true. I’ve seen companies with huge budgets perform worse than those spending a fraction of that amount due to a huge mistake that tanks campaigns before they even get started. Let’s explore what that is and how to fix it.

The Biggest Mistake in Paid Advertising

Most business owners are stuck in the past, treating paid advertising like it’s 2010. But the landscape has changed dramatically. Video has taken over, dominating over 80% of all internet traffic. If you’re not using video ads, you’re leaving money on the table. However, there’s a catch: many people misunderstand how to use video ads effectively.

It’s not about production quality or having the perfect script. In our tests, simple videos shot on phones often outperformed expensive, professionally produced content. The key is in how you present these videos. Think about how you use social media—most people hold their phones vertically. Yet, many businesses are still running horizontal or square ads, which costs them dearly.

A 2021 study published in the Journal of Interactive Marketing showed that vertical video ads had a 57% view completion rate compared to just 43% for horizontal ads. Even better, vertical ads had a 10% higher engagement rate. Why? Because vertical video creates a frictionless experience; it’s the natural way people hold their phones. No matter your business type, using video will make a significant difference.

Steps to Create Successful Paid Ad Campaigns

Now that you understand the importance of vertical video, let’s go through a step-by-step process to create paid ad campaigns that convert.

Step 1: Directional Testing

More ideas will fail than succeed. Accept that. Your first step is to spend just $50 on what I call a directional test. This helps you eliminate the losers quickly. If you’re just starting out, test different ad ideas and hooks in your videos. The Scale with Science protocol will help you track what works and what doesn’t, allowing you to pick winners without wasting too much money.

In my last business, I used this strategy to turn $500 in spend into $2.9 million in sales by avoiding ads that would never convert. Wouldn’t you want to eliminate ineffective strategies before investing heavily?

Step 2: Statistical Testing

After identifying potential winners, refine them by testing different variations. For video ads, run three to five variations that performed well in the directional test against each other to see which produces the most revenue. You might not make money during directional testing, but as you transition to statistical testing, you should start seeing positive results.

This stage is critical because it shows what resonates with your audience and which ads convert best into revenue. Remember, you can grab a free copy of the Scale with Science diagram to help with this process.

Step 3: Revenue Testing

Once you’ve identified the best-performing ads, it’s time to scale. By filtering out ineffective ads through the first two steps, you can focus on those that drive revenue. Businesses that scale the fastest aren’t necessarily those with the biggest budgets; they are the ones that test the most variations quickly.

One of my clients tested 400 variations in a month while their competitors were still perfecting their first video. My businesses test thousands of ad variations, which keeps us ahead of rising ad costs and poor performance.

Final Step: Elevate and Scale

Once you have a winning ad, don’t stop testing. Keep refining and exploring new concepts. This iterative process helps you stay ahead of the curve. 

Make sure to download your free copy of the Scale with Science protocol to assist you on this journey. 

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