Omnipresence is an approach that allows you to constantly be in front of the people who’ve originally engaged with you. I do this because it’s the cheapest way to turn people who barely know who we are, into huge fans of our brands, and then eventually into customers.
In today’s podcast episode, I share tips to turn your omnipresence into an opportunity to grow your business. And I’ll talk about why, due to the current state of the economy, it’s almost too cheap not to do it.
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What's up everybody? Anton Kraly here from e-commercelifestyle.com and in today's podcast we are going to talk about omnipresence and why right now it's almost too cheap. So as always, I kind of create these episodes to have them be relevant and timely, and right now what we're going through with the whole coronavirus and the whole economy, kind of pulling back a little bit, things are changing in a big way when it comes to ads and what it is we're seeing inside of our own ad accounts. So I wanted to get this message out to share this with you so that you can learn what it is we are doing right now and what you can do to emulate and do the same.
So when I'm referring to omnipresence, I'm referring to after somebody either engages with you on social or they go to your website, once they leave, whether or not they purchase, you then become everywhere. So they leave your website, they go to Facebook, and they're seeing your business there. They go to Instagram, they're seeing your business there. They even go to websites like cnn.com and they're seeing your website yet again. So this method, this approach is being everywhere to people that have originally engaged with you.
Now, this can be them coming straight to, again your website or this could even be things like them engaging with your Facebook page or engaging with your Instagram page, or it could be even things like them watching a YouTube video that you might've created for your brand. Now, typically the way that this works is we always are trying to be everywhere once people first engage with us, and the reason we're doing this is because that's the cheapest way to kind of get people to buy, to turn people that already at least have an idea who we are to become huge fans of our brands and then to become customers. But right now, things are changing and it's cheaper than ever again, it's almost too cheap to reach these people on the first touch when they first visit us, and then again in remarketing. And this is happening for a few different reasons and those are things that I'm going to share with you in this podcast.
Now, first of all, there's a question of whether or not we're currently in a recession. And the reason that question is here is because whether or not we actually are, it feels that way to a lot of people. There's a lot of people right now that can't go to work because they work in businesses that have to be closed. There's a lot of people that maybe work for companies that weren't that financially stable, that are now seeing a dip in sales that might take those companies out and people are afraid of being laid off. So again, whether or not to you, it feels like we're in a recession or if we technically are or aren't, that's not what's important. What's important is that a lot of people feel like that.
Now, what we have been seeing recently in our ad accounts is a massive decrease in our cost per lead. So I made some notes so I get these numbers right, but our cost per lead currently on Facebook is down 20%, and this is the past two weeks, compared it to the two weeks before that. And then even going back months before that, we're down on average 20% per lead on our Facebook ads. And on Google where we advertise really heavily, our cost per lead is down 15%. What that means is we are getting a ton of leads, meaning email addresses into our businesses.p>
Now literally this is a breakout month, like the amount of leads we're having coming in right now, it's not even comparable to anything else in my past 12 or 13 years in business. So you might be thinking like, wow, that's amazing. You're probably also having your best month of sales ever. And unfortunately that is not true. So I'm going to talk about why and I'm going to talk about what it is we're doing to combat this, and again, how you can do this with omnipresence right now in the current state of e-Commerce and really just marketing online in general. So I have been seeing these numbers in our accounts. So what did I do? I got on our biweekly call with our Facebook rep who is there to kind of just bounce ideas off of, share some things that are like in beta and also answer any questions. So I said this, I said, "Are you seeing this amongst other accounts that you manage? Our costs are just down drastically?"
And she said yes. And the reason why she told me that she thinks this is, is not what I was expecting. The reason that she gave me is because Facebook has been seeing an increase in traffic and usage of 50%. 50% more people than usual are currently logging into Facebook and spending time on the platform. Now, this isn't new people that haven't used Facebook before, but these are the people that are now either out of work or currently waiting for their business to reopen or people that are working from home and just distracted or people that are bored and looking to kill time. So what's happening is since so many more people are on Facebook, there's a lot more inventory.
Now, the way things that work, the way they work with Facebook ads or Google ads or most ad platforms is when you place an order or when you create a campaign for an ad, it's an auction. And the way the auction works is it's based on how much inventory is available, meaning different ad units, so things like a right column ad, things like a newsfeed ad, things like an audience network ad, things like an Instagram ad, and those spaces are limited to the amount of people using Facebook. So you have that limited number of inventory available and then you have me and you and everybody else bidding for that inventory, and the more people that bid, the higher it costs.
But what's happening, she said the big thing they're seeing on their end again is there are just so many more people actively using Facebook, so there's more inventory. So even if everybody was still advertising on Facebook as they previously had been, ad costs would still be down because there's more inventory. So again, it's an auction, you get more for your money. So that's the first thing.
Then the thing that I brought up, which I really think is helping in a big way, and again, I don't want to make it sound like, Oh, I'm happy about this because there really is no good news here, businesses are hurting, I'd much rather have the business be as usual. But what's happening right now too is all of the local businesses that typically pay and buy some of that inventory, they are basically not advertising at all. So their budgets went from whatever it was, to zero because why are they going to run ads if they can't have people come into their place of business?
So what we're looking at here is kind of a scenario that I don't think has ever happened before where not only is there more inventory, but there's less advertisers, which is leading to this opportunity to get a ton of leads at a really good price. So that's what's happening now, again, I don't want to say it's good news, but that's the good part of this equation that we're getting a ton of leads at better prices.
Now here's the not so good news or the thing that we are actively working to adjust to, and that is that our lead to purchase conversion rate is down. So even though we're getting all these leads, they're not converting, meaning buying at the same rate that they normally do, literally any other month. Now I'm going to talk about what my hypothesis was for that and then what I found and what we're doing about that and what you can do. And again, this is important because you want to be taking advantage of this right now and making the most out of it so you're set for the future. But what we're currently seeing, and I'll just give some general numbers here just so everybody could visualize this. Let's say in a given month on one of our stores, we had 10,000 leads. We might have about 1000 of those leads become customers, so they would go ahead and buy from us. Now what we're seeing, and I'll just write normal here because this is again a normal month, what we're seeing now is maybe for every 10,000 leads that come in, we're seeing about 750 become customers.
So when we started to see this and we check our KPIs like crazy, everybody should be doing that, I started to think like, well, okay, we have all these leads, we're having less of them buy, is it because maybe we're getting lower quality leads, maybe our targeting is now not on as point as it used to be. Maybe the leads that are coming in aren't as qualified to become customers, so obviously less would buy. But then what I did is just do a deep dive into our Facebook ad account and I went deep into our ads reporting and then I did the same thing in Google analytics for all of our Google ads. And what I found is that the leads still are just as qualified, so there's no reason from just numbers that they shouldn't be buying at the same frequency that they previously had.
So what I just came to the conclusion of is that the reason that less people currently are buying our lead to purchase conversion rate is down is because people are scared, even though our leads are still super qualified, they maybe just saw their 401k decrease by 30%, maybe their, again, place of work is currently closed and they don't know when they're going to get their next paycheck. Maybe they're in a situation now, again where their company that they work for never was that stable financially and now they're seeing a dip that might take them out. So even though they're still currently qualified, they want the products, they're unsure of the future and they are scared, they don't know, should I take out my credit card, should I buy? So that is what I think is causing the lead to purchase conversion rate to go down.
Now here's the good news and again, what we're doing about this and what you can as well, that is that our ROAS, favorite equation in business, our return on ad spend, it's pretty much equal to what it always has been. So even though less leads are buying, we're getting more leads and we're getting about the same amount of sales. So we're pretty much just as profitable as we always have been, except now we're profitable with all of these, call them excess or extra leads that are coming in to our world.
Now, the question becomes, okay, what do we do about that? Obviously we don't want to lower our return on ad spend, we want to raise it, but how can we do this in a way that makes sense and how can we make the most out of all these leads that are coming in.
Now the way that I am currently planning for, this is what I'm going to share with you and this is where omnipresence comes in in a big way and how, again, this is cheaper than I've ever seen it and I don't think this is something that's going to last because... I'm not going to get into the whole virus situation and where we're at, but I feel like the country, for people in the States, we're not obviously going to be closed forever. I feel like even if it's a few months, after a few months pass, people that used to go into work can now go back into work. Also, the stimulus checks people are going to be getting, that's going to give them a little boost of money and consumer confidence. Also people getting money back from their taxes, that's going to give them some more money, that's going to give them some more confidence to buy. So whether that be in two weeks, which I don't think it's going to be, or whether that be in a few months, we're going to get there. And again, all of these leads that are coming in now, I think we'll be ready to make that purchase decision once they have their confidence back.
So what are we doing to run ads right now during this time of uncertainty. The first thing that we're doing and that you should do too, is run your campaigns as normal. Again, assuming your return on ad spend is still where it always has been or at least close to, continue to run ads the way they're running. Don't change up your Google shopping ads, don't change up your normal remarketing ads, don't change up your Facebook ads. Let them all run as normal. Expect to see a lower lead to purchase conversion rate, but expect to see all of these extra leads come in. The only time I would, and I would recommend changing your budget in a big way, is if your return on ad spend number starts to tank significantly or go up, in which case obviously you would increase it.
Now the next thing that we're doing very, very slightly, and I recommend you do as well, is incrementally raise your budget on Google shopping, but do it in very, very small amounts. You don't want to think like right now, well, okay, this is amazing. Let me go into my Google shopping campaign and double my budget and now I'll make more money and I'll have all these leads. We don't want to do that yet because again, I'm not sure how these numbers would maintain. So what we're doing and what I recommend you do is do very small budget increases there. Maybe do 5%, let it run for a few days, see how numbers actually work. Look at your KPIs. If they're still on track, maybe a few days later, raise it 5% more and do that until you can't do it anymore. So that's the first thing we were doing, the first thing I recommend you do as well.
Now for omnipresence, this is where this becomes huge and this is where I think we're going to have our best months ever in the coming few months. So the first thing is these leads I'm talking about, make sure your websites are optimized to collect as many emails as possible because again, these are still qualified leads, they might just not be comfortable buying right now. So make sure you're collecting leads on your website every way possible. Obviously you should be doing abandoned carts, but you should be doing things like opting in for promo codes or free shipping codes or expedited shipping codes. You should be doing things like running gift card giveaways, even free product giveaway is, but make sure you're collecting as many emails as possible when people visit your website so that you can remarket to them. Again, get that omnipresence going and I'm going to talk about specifically how we're shifting our strategy there too in just a minute.
But something else that you should already be doing but definitely double down on now if you're not already, make sure you have the Facebook pixel on your website so that you can be building audiences of website visitors. Same thing goes for the Google remarketing tag. Make sure as people are visiting your website, you are tracking them in Google so that you can remarket to them there as well. Also on Pinterest, make sure you have their code on your website so that if your audience are people that use Pinterest, you can be there in front of them on Pinterest as well.
The reason we're doing that is because when things get better, which they will, we're going to be omnipresent in a big way, and we're actually starting that right now. And this is in addition to what we normally do when it comes to remarketing, where we're showing people back to the product page they saw, we're still doing that, but what we're focusing on heavily now is building up a lot more content to build trust and to make sure when these leads are ready to buy, they're going to buy from us.
So the first type of content that we're using for our remarketing is user generated content. This means things like different product photos from customers, different testimonials from customers. If we have any videos from them, we're uploading those as ads, showing them to this whole big mix of audiences that we have. We're also using any press mentions that we have. If we've been mentioned in any industry publications or on any industry blogs, we're making ads showing that off and we're showing this to these huge audiences that we're currently building.
Now, the reason we're doing this again is because we don't want these people to forget about us and when they're ready to buy, we want them to come back to us and we want to build that trust factor now so they choose us over the competition.
Now the next thing that we're doing that you should 100% be doing is putting a lot of time into planning your upcoming promotions. So the next two big holiday is that I think are going to be coming by the time this is at least leveling out or hopefully all said and done with, is the 4th of July for independence day and then for labor day. So what I want you to do, and this is what we're doing as well, is start planning those promotions that you're going to run for those two different events, those two different holidays, and build out your emails now, because all those extra email leads that aren't buying now, guess what? They're going to be back to work by hopefully 4th of July, if not, I really hope by labor day, but we're going to have these email campaigns set up so we're reengaging with them or bringing them back to buy. The ads and the emails are going to bring them to purchase. This goes just like I said with email, but same thing, plan your promotions for Facebook, for YouTube ads, for Google remarketing, for Instagram remarketing, and all of these leads that you're building up now, all of these audiences, you can be omnipresent everywhere when things get better and you can get the cheapest conversions you've ever seen.
Right now we're getting the cheapest CPMs again, costs for people to see our stuff that we've ever seen and pretty soon it's going to be the cheapest cost per purchase because again, when people are confident again, they're going to buy. So I want you to do the same thing that we're doing.
And then finally, what I'll say that we're doing that you should definitely do as well is make sure that you are keeping what I call a change log of everything that you're changing, so things like ads, things like emails, things like budgets, whatever it is, keep a Google doc and just make notes every time you make a significant edit because when things do level out, we're going to go back to business as usual and you don't want to be in a situation maybe three months from now where you've made all these modifications to all of your ad campaigns and you're like, "What did I change? How do I go back to normal?" So keep notes of what it is you're changing so once people are back to work, once it's business as usual, you can be running these omnipresent campaigns, these remarketing campaigns, but your normal ads, the moneymakers can be back to how they always have been.
So that's kind of what we're doing guys, that's why omnipresent right now is cheaper than ever. Again, I don't know how this could ever happen again, not only is there a way more inventory available to advertise because internet usage is way up. There's less advertisers because local businesses are not advertising, so keep your ads running, start creating these new audiences, start planning future promotions and start putting together content that will build trust between you and the lead right now so that again, when things are back to normal, they choose you.
So as always, guys, I hope you found this episode helpful. If you did, please do leave a review on iTunes, it helps us a lot. Also, if you're watching this as a video, please give it a like and leave a comment below letting me know what you learned. And if you want to learn more about how we build highly profitable semi-automated stores, be sure to go to dropshipwebinar.com.
So that's it guys, appreciate you. Thanks for listening in and I will talk to you in the next episode of the podcast. See you.