Wednesday, February 24, 2016

How to Monetize Your Niche Website: Coaching Call #7 with Samara

Hey there…welcome back to another Niche Site Project 3 coaching call!  Today we finally started talking about how to actually make some cha-ching from your website.  This call was all about monetization strategies for your niche website, both short term and long term.

The reality is that there are lots of different ways to make money from a website.  However, it seems like the default answer for many people building websites is to just throw on Google Adsense or Amazon Associates and call it good.

So, before I led Samara down that default path, I wanted to discuss lots of other options that are out there including creating your own information products, software, or other methods of bringing in the mula.

Whether you have an existing site or are just creating one from scratch, hopefully this call will help you think about all the options available to you to monetize your website.

Samara’s Update…

What up everybody? It’s me again!

Spencer and I had our seventh coaching call about a topic that should pique everyone’s interest: monetization. He covered some of the main strategies, both short- and long-term, and it was all very exciting.

First he talked briefly about creating your own product. If not for Niche Site Project 3, I don’t know if it’s something I would have even considered, but it actually makes a ton of sense. You have greater control over a product you create and you have much better margins.

Affiliate marketing is what I think about first when talking about monetization. Spencer gave a quick demo for inserting Amazon affiliate links, and gave two real-world examples of websites that are doing affiliate marketing extremely well, which is great to have as both a reference and as inspiration.

Of course, there are many ways to become an affiliate. Spencer spoke about Adsense as being a great and profitable option. This was news to me, as I had thought that it was quite hard to make any real money using that method. Oh how wrong I was! Turns out Spencer has had massive success with Adsense and, shockingly, he said that in many cases Adsense will be more profitable than Amazon!

We looked at a few examples of websites using Adsense, some more aggressively than others, but it was a great exercise because now I understand a little bit better how it works and how it should look. Spencer also said that it doesn’t necessarily make sense to use Adsense on every site, and that it’s something you need to test. I would be really interested in learning how to test that out: how do you figure out the best size and placement of the ads? Is it just a question of trial and error, or is there a strategy?

We also took a quick look at CPA, which is cost per acquisition. I don’t think it makes much sense for my website at the moment (or maybe it does and I just don’t realize it yet), but anyway it’s great to learn about another monetization method for future sites.

Spencer went into a little more depth about creating your own product, whether it’s software, services, or a physical product. I can think of a whole bunch of potential products that might work in my niche, and like Spencer said, you can see which articles are getting the most traffic and earnings and then consider private labeling a related product.

I also have to sign up for an email provider and work out an opt-in form for my site. I’ve never done this before. I bet it’s a pretty great feeling when people sign up to receive your content or newsletter. I can’t even imagine what that’s like; it still feels like that’s a long way off at the moment. I love the idea of building a community of people that I might be able to help in some way.

Well, I better not dawdle any longer. I have to get to brainstorming product ideas and adding affiliate links. At the moment, I am living and breathing content creation as I try to get as many articles up as possible. It’s actually taking a lot longer than I expected, but it’s rewarding once you see the site start to take shape. I better sign off then, I have lots to do!

Coaching Call Video


Outline of the Coaching Call

Coaching Call 7: How to Monetize Your Site

Project Overview

1.Brainstorm general market/niche ideas

2.Pick a niche through keyword sampling and site Doppelgangers

3.Begin In-depth keyword research (find hundreds of low competition keywords to create content on)

4.What problem is your site solving? How will your site stand out?

5.Domain, Theme, Logo, Voice, and more to help build a brand

6.Develop a long term content strategy

7.Writing and publishing content

8.Monetization strategy: short and long term (possible product ideas)

9.Getting noticed: Outreach, PR, and Linkable Assets

10.Social Media strategies

11.Maximizing revenue through list building

12.Paid traffic strategies

13.Long Term strategies to continue growing

Assignment Follow Up

How to Monetize a Website

Sell Your Own Products – most profitable; long term strategy

  • Information
  • Software
  • Physical Products
  • Services

As an Affiliate – short term strategy

  • Google Adsense
  • Amazon Associates
  • CPA offers
  • Thousands of other affiliate programs

Amazon Associates Examples

  • theWireCutter.com
    • Detailed reviews
    • Image affiliate links
    • Text affiliate links
    • Links open in new window
  • BabyGearLab.com
    • Comparison Charts
    • Image affiliate links
    • Text affiliate links
    • Links open in new window

Google Adsense Examples

CPA/Lead Offers

Creating Your Own Products

Build an Email List

  • Most Profitable = Build a community, keep them engaged, sell products to that community.
  • Easiest way to stay engaged in with an email list.
  • You can start for free with MailChimp.com
  • Aweber is about $20/mth – good solution

Assignments for Call 7

  • Add affiliate links to your existing content (short term strategy)
  • Brainstorm 3 products ideas you could sell to your niche
    • Information?
    • Physical Products?
    • Other?
  • Sign up for an Email provider
  • Get an Opt In form on your site

The post How to Monetize Your Niche Website: Coaching Call #7 with Samara appeared first on Niche Pursuits.



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4 Conversion Rate Optimization Tactics That Hurt You in the Long Run

mistakes

There are two sides to conversion optimization.

The first one is the one that’s in the open. You perform tests, measure activity, and choose the winner that will yield a better conversion rate for your business.

The conversion rate might be for opting in to an email list, buying products, or signing up for a demo.

But behind that conversion rate number, there’s a more complex factor lurking…

Marketers love conversion rates because they give us something to measure and base our decisions on. But they can be taken too far.

If the rate at which your visitors convert to purchasers increased from 2% to 4%, did you just double your sales for good?

Maybe…maybe not.

That’s because numbers reflect quantity without taking quality into account.

Simply put: If you double your current conversion rate but do so in a way that lowers your conversion rate in the future (i.e., rate of getting return customers), that initial optimization could actually decrease the profit you make.

If this isn’t obvious to you right now, don’t worry.

I’m about to show you four specific conversion rate optimization tactics that can appear to give you positive results in the short term but can do serious damage to your business in the long term.

On top of that, I’ll show you what to do instead. 

1. Discounting your products can destroy your business

Need a spike in sales?

Easy…just send out coupons or put your products on sale.

In almost all situations, you will see a spike. And the bigger the discount, the bigger the spike.

Also, if you do some testing, you can price the discount so that you maximize your overall profit.

image09

So, what’s not to love?

At first glance, discounting looks like a great way to boost sales, which seemingly might lead to more return customers down the line too.

Most short term case studies support this. They show, for example, conversion rates improving by 13% with a simple 10% coupon.

But the complete picture is much bleaker.

There’s a company you’ve probably heard of called Groupon.

It’s a pretty simple company/app. Groupon contacts businesses offering to send them a ton of new customers if they provide them with a big discount, often at 40-50% off.

image00

Many companies thought Groupon was an amazing opportunity to grow their businesses for the reasons I mentioned above.

However, they quickly discovered that the big discounts not only didn’t grow their business but indeed hurt it. If you Google “Groupon caused business failure,” you’ll get a slew of results that explain how running a Groupon deal actually killed someone’s business.

And these results are not rare; there are many of such sad cases.

The proof is in Groupon’s share price. After its IPO (in 2011), it was valued at about $13 billion (or $20 per share).

Currently, Groupon’s share price is under $3, which is less than a sixth of its original valuation.

It has steadily declined over the past few years as businesses have learned that massive discounting isn’t effective in the long term.

There are multiple ways that discounting can hurt you.

Problem #1 – You attract the wrong customers: There are many sites, like Slickdeals, that exist solely to promote sales to their user bases.

If your products have a fairly wide appeal, any discounts will end up on these kinds of sites.

The people who use these sites are looking for great deals (called discount hunters) and nothing more.

They don’t become long term customers.

In addition, if you promote your sale (and why wouldn’t you?), it could actually cause you to lose potential long term customers.

That’s because you’ve shifted the focus to your product’s or service’s price.

So, when a potential customer (who cares about quality over price) is comparing their options, they’ll go with the company that’s emphasizing the quality of their product rather than the price.

Problem #2 – You set a bad precedent: This adds on to the problem of having discount-seeking customers.

Once you discount a product for a customer, that becomes their new perceived value of your product.

They are not likely to buy from you again unless they get a similar deal in the future.

This is okay for some businesses that rely on selling huge volumes, but most businesses can’t permanently slash their profit margins.

Additionally, if someone pays a full price for your product and then sees that it goes on sale, they’ll usually feel shafted. There’s a good chance that they won’t want to buy from you again because of that.

Problem #3 – You erode your brand’s and product’s value: Finally, since a discount can lower the perceived value of your product, it can make potential customers question its quality.

Why is this so cheap? Is there something wrong with it?

In some cases, discounts actually lower short term conversion rates since customers care about quality over cost.

How do you get the potential benefits of discounting without giving a discount? Discounts are not evil despite all these common problems.

They can be used effectively in some specific situations.

More importantly, you can learn a few general elements of effective discounting and use this knowledge to increase your conversion rate without hurting your business in the long run.

One of the main reasons why people buy discounted products and services is because they feel they are getting good value for their money.

Think of it like this:

Likelihood of buying = Value of product (or offer) / Cost

When the cost goes down, your conversion rate goes up.

However, you could also just increase the perceived value of your product.

Bryan Harris uses this tactic well. He sells courses related to building an email list.

When he goes through a sales campaign, he doesn’t discount his courses often. Instead, he adds bonuses.

If someone buys the course, they get a free valuable add-on related to the course:

image03

This way, you still increase your conversion rate, but you don’t damage your product or brand in any way, and you still attract the right customers (who care about value more than a discount).

Businesses that sell physical goods use this tactic as well by sending free samples of products with orders. For example, Bodybuilding.com sends free samples of supplements:

image10

The second useful aspect of discounts is that they make your product feel less risky.

No one wants to buy something only to find out that it doesn’t do what they thought it would.

The solution is to make buying your product feel less risky by addressing potential concerns. This will be different based on the type of your product.

One option is to create detailed case studies that show how your product works and what results it produces:

image07

If you sell physical products, create a high quality video that shows your product in action. Remove all doubt.

If you sell software, offer a demo, or create clear video walkthroughs.

2. Buying fake followers on social media for social proof

We all look to friends and experts to guide our purchases.

This is known as “social proof.”

If other people recommend something or simply already use it, it’s a sign that the product is good.

Case studies, testimonials, number of members, etc. can be considered as social proof.

And social proof can have a big impact on conversion rates. One study found that testimonials increased sales page conversions by up to 34%.

While social proof is most studied in the context of sales, it plays a role in all types of decisions (conversions).

Should you join that email list? Well, do any of your friends or mentors recommend it? If so, you’re much more likely to.

Additionally, social proof matters on social media, just not in all the ways that many marketers think it does.

The logic is that if you have a ton of followers on a social media account, other users will think you’re popular and be more likely to follow you as well.

It’s hard to build up a social media account from scratch, so marketers look for a shortcut: buying followers.

It’s easy to go to Fiverr and get a few thousand subscribers on any main social network for $5.

image02

These followers or likes all come from bot accounts that won’t do anything afterwards.

Having more isn’t always better: There are a few major downsides to faking social proof on social media.

One that most marketers never even consider is that having more social proof doesn’t always improve conversion rates.

Derek Halpern conducted a test and found that social proof in the following form actually decreased his email opt-in rate:

Join 15,000 people already subscribed.

The reason why this “social proof” might backfire is because some people don’t want to be part of a huge crowd.

They want to feel like they could potentially make a personal connection.

It, of course, depends on the demographics of your audience, but you can’t automatically assume that having thousands of followers will improve your follow rate.

Fake followers can kill your reach: The more important issue is that many social networks are determining the organic reach of users based on their engagement rates.

Take Facebook for example.

If a page has 10,000 likes but gets only one or two likes or comments on each individual post, Facebook assumes the posts aren’t very good.

Then, Facebook will start showing that page’s future posts to fewer people unless the business pays for advertising. If you want to improve your Facebook page’s organic reach, read this guide.

When you have fake followers, you have low engagement rates because bots don’t engage with anything. Your profile will look something like this:

image06

This means that fewer of your real followers will see your content, or you’ll have to spend a lot more than the initial social proof boost gave you.

3. “Clickbait” headlines can raise your email open rates…at first

Clicks equal views, and views equal revenue.

At least that’s a reasonable formula to use when your revenue comes from advertising.

Buzzfeed is infamous for coming up with the concept of “clickbait” headlines.

image08

These headlines pique curiosity of readers and make them more likely to click through to the content.

In the past years, marketers have used clickbait headlines for content headlines, email subject lines, and social media posts.

I’m not a fan of using them anywhere—but particularly in email subject lines.

When someone is on your email list, they’re giving you access to a valued personal channel of communication. Trust is key.

When you use clickbait headlines, it’s almost impossible to offer your readers content that will match their expectations and make them feel satisfied.

For example, imagine I sent you an email with the subject line:

10 Mind-blowing SEO tactics that will change your life

I don’t think I could come up with a single “mind-blowing” SEO tactic, let alone 10.

Even if the 10 tactics were valuable, you’d still feel unsatisfied after reading that subject line.

If you use these types of email subject lines, please stop.

It might help at first, but your readers will quickly catch on.

A study of 9 million subject lines identified clickbait phrases and looked at their effect on the open rates.

It turns out that clickbait phrases have either minimal positive or significant negative effect on open rates.

image04

The reason is simple. Why would anyone continue to open your emails once you showed them they will be disappointed?

The solution – Deliver on your promises: You should always make your subject lines as enticing as possible, but you need to ensure that they match the content closely.

If you say you have five tactics that will double your subscriber’s revenue, those five tactics had better do just that.

Your subject line is a promise that you need to keep if you want to earn long term trust.

4. Using fake scarcity to boost sales is a double-edged sword

One way to improve conversion rates in almost every situation is to make use of scarcity.

It’s one of Cialdini’s 6 principles of influence.

When there’s a limited amount of a product we might want or a limited time to buy it, we are much more likely to make the purchase.

Landing pages that have countdowns, indicating when an offer will expire, are a great example of this. These pages can improve conversion rates by up to 147%.

image01

Another example of scarcity is a simple email saying that there’s a limited amount of a product left:

image05

Both are incredibly effective.

Scarcity works, but keep it real: As always, some marketers get too greedy.

Using scarcity in the form of a timer, for example, is a one-time thing. You can use it once per sales period.

What some marketers do is set up a timer that runs out and then starts again.

If you’re continually sending new traffic to the page, the idea is that you can use scarcity all the time.

But people aren’t stupid. If they come back to the page after the timer should have ran out, they will know that you were trying to trick them.

Of course, once someone feels tricked like that, they’ll never trust you or buy from you again.

So, while you might improve your conversion rate in the short term, you’re also going to scare away some good customers for life.

By all means, use scarcity, but don’t fake it.

If you say you have only five spots left in a course, then sell only five more. If you say you’re selling something for only 10 more hours, stop taking orders in 10 hours.

Conclusion

All marketers and business owners need to use conversion rate optimization to improve their revenue.

However, you need to consider the long term effect of any changes you make based on short term optimization.

I’ve shown you four common tactics that can work in the short term but could hurt your business significantly in the long term.

If you’re making one of these mistakes, fix it. If not, be aware of them and avoid them in the future.

To close off, I’d like to ask you to leave me a comment below telling me one way that you’ve prioritized long term success over quick wins as well as any questions you have.



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Tuesday, February 23, 2016

Small Business SEO

Table of Content Introduction On-Page SEO Titles & Metas Website Silo Architecture URL Structure Headings Alt Tags Page Speed Social & Web 2.0 Branded Social Media Profiles Branded Web 2.0 Properties Citations Consistent NAP Correct pre-existing citations Check competitor’s citations Geo-tagging Reviews & Ratings Boosting Link Building Competitor Links & Anchor Text Building Domain Authority […]

The post Small Business SEO appeared first on Alvarez Web Services.

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Monday, February 22, 2016

8 Tools That Will Help You Get Inside Your Readers’ Heads

head

Do you hate the phrase “getting inside your reader’s head?”

Although you know you are supposed to be able to do it, you don’t have any specific instructions on how to do it.

Of course, it’s important to understand your current readers and those you are trying to attract with your content, but that’s one of the hardest skills you have to develop as a writer.

It’s going to take years of continuous improvement to become really good at it.

However, there are ways for you to get this information much sooner—namely, formulas and tools.

In this post, I’m going to focus on the latter.

I’ve put together a list of the eight best tools for getting inside your readers’ heads.

They will give you tangible data you can use to produce content that resonates with your readers.

Finally, I’ll show you how to use the key features of these tools. I promise that none of them are difficult to use and that they are worth your time. 

Tool type #1 – Hard demographics data

If you want to know what your readers think, you first need to know who they are.

That’s where demographics come in.

Essentially, any statistic that describes a characteristic of your audience is a demographic. The most common are:

  • age
  • location
  • device preference
  • gender
  • marital status

The tools in this section will help you figure out who you should be targeting in the first place. They can be used whether you have an existing audience or are just starting off.

1. Demographics Pro for Hootsuite

This tool is one of the most complete I’ve ever come across when it comes to demographics.

The only significant limitation is that it draws its data from Twitter.

However, as long as people in your niche use Twitter (which is likely), it’s really useful.

While you can sign up for Demographics Pro directly, it’s pretty simple to use this Hootsuite app.

When you click the link in the title for this tool and then click the “Install App” button on the page, you’ll be taken to Hootsuite, where you’ll see a pop-up like this (if you’re signed in):

image04

Once you install the app, you’ll see a new tab on your account called “Demographics Pro for Twitter.”

image03

To use the tool, simply enter a Twitter handle (e.g., “@NeilPatel”), and click “get profile.”

That’ll automatically bring up some basic data:

image15

More useful, though, is the “view full profile” option. Click that link, and you’ll see an extremely detailed panel like this:

image11

From this, you can get a ton of demographic information about your (or their) followers and even some psychographics (more on that in section 2):

  • gender distribution
  • marital status
  • parental status
  • age
  • average income
  • location
  • types of jobs they have
  • types of hobbies they have
  • types of brands they like

It’s a gold mine of information.

If you’re already using Twitter, start with your own profile.

Then, get the stats of some of your top competitors. If you don’t know who they are, head to Buzzsumo’s amplification tool, and search for some keywords that describe your niche:

image05

2. Sprout Social

This is a similar type of social audience analyzer. However, it analyzes both Facebook and Twitter, so there’s a potential to get a few different insights.

Once you sign up for an account (free trials available), you can connect your Twitter and Facebook accounts (only your own).

That will populate your account with a bunch of social trends data, but more importantly—demographics.

image13

On top of getting a gender distribution of the audience on each platform, you get a detailed breakdown of their age brackets. That’s another important insight into your audience that will come in handy.

3. Google Display Planner

It might surprise you to find out that the Google Display Planner is another decent source of demographic data even though it isn’t the tool’s primary purpose.

When you open the planner, you have two options for searching:

  • keywords, topics, or sites
  • a landing page

I recommend doing both, and several times if possible. The larger your sample size, the more accurate your demographics data will be.

You can enter your own site, a competitor’s site, or keywords that you will be targeting with SEO.

Once you’ve picked an option, click the blue button to proceed:

image06

On the next page, you’ll get a whole bunch of suggestions for ad keywords. Ignore them.

The only thing we care about here is the panel in the center of the screen that breaks down the demographics of people who search for the terms you entered (or terms found on the page you entered).

It looks like this:

image00

Again, you get a gender and age breakdown.

Additionally, you can record which devices that audience prefers to use.

Is all this information redundant? It is to a degree, but it’s still useful. By now, you have demographic data from three different tools.

That data may look the same, but there may be differences because it’s collected from different sources.

Having data from multiple sources ensures that it won’t be skewed. You can take an average of all the data you collect or keep it as a range (i.e., average age might be 25-34 and not just one specific number).

4. FollowerWonk

The final tool in this section also uses Twitter to retrieve demographic data. However, it provides one important feature that the others miss.

Once you create an account, go to the “Analyze” tab on the top menu. Enter your Twitter handle, and let the tool scan your followers.

On the next page, look for a graph like the one below that shows at what times your followers are most active.

image10

This information will be useful when you are promoting your content, especially on social media.

Tool type #2 – Understand your readers’ thinking (psychographics)

Once you’ve nailed down who your readers are or will be, it’s time to start figuring out how they think.

Ideally, you want to answer questions such as:

  • what are their biggest problems?
  • what type of content do they like the most?
  • what kind of language do they use?
  • what bores them, and what excites them?

The tools in this section will help you answer these questions and eliminate guesswork.

5. Faqfox

This is a simple tool that makes getting useful data from forums easy.

Basically, you enter a keyword and sites to scan, and the tool pulls up relevant thread titles for you. You can search multiple sites at once.

Start by inputting a keyword into the first field. You could manually enter sites, but an easier option is to simply pick one of the preset categories. If you’re not sure which one to choose, pick “generic”:

image09

The tool will load the results after a few seconds of search:

image01

I recommend downloading the results into a spreadsheet and analyzing them there.

Remember those questions you need to answer? These results will help you do that.

You’ll have some irrelevant results, so start by removing those.

Once you have a few hundred relevant threads left, dig in.

Note down:

  • common questions (those that come up more than once)
  • any phrasing that you wouldn’t normally use yourself
  • any other keywords that you haven’t thought of (that you see in the titles)

Then, repeat this whole process at least a few times with different keywords.

6. Crazy Egg

If you know me well, you know I founded Crazy Egg.

I’ll let you judge the tool for yourself, but it can be incredibly useful for understanding the behavior of your readers.

The one catch is that you have to actually have readers before you can use the tool.

Assuming you do, Crazy Egg will give you a variety of heatmaps that will show you exactly how readers interact with your content.

There are two types of maps you’ll want to look at.

First is the scroll map, which tells you how people scroll through your page. You can tell what portions of the page they pay more or less attention to.

image08

It’s natural for the percentage to decline as you scroll down, but you might see that it declines at certain sections in the middle of the content.

This is a clear indication that something on your page didn’t interest your readers.

For example, if I looked at a heatmap for this post and saw that there’s a huge drop off within this section, I could conclude that my readers don’t like reading about heatmap tools (or potentially about psychographics).

Similarly, hot spots lower down the page indicate that you’ve touched upon something that excites them.

Record this information for all your content, and you’ll start seeing patterns in the type of content, the tone, and the format your readers like.

To get even more insight into your readers’ preferences, you can use click heatmaps, which show you what readers clicked on:

image12

You’ll see that certain things attract their attention more than others. Again, look for patterns.

7. Buzzsumo’s Top Content Tool

The heatmaps can give you a lot of insight into what excites and bores your readers.

However, sometimes you need more, or you don’t have enough readers to use heatmaps yet.

That’s where Buzzsumo’s top content tool comes in.

You’ll want to make a list of keywords you’ll be using within your content. Then, search them one by one in the tool:

image14

The tool will return a list of the most popular content in the past year (sorted by total shares).

Visit as many of these pages as you can, and record down the answers to these questions in your spreadsheet:

  • What format does the content use? (lots of images? videos? big font? small font?)
  • What tone does the content use? (news articles? personal stories? conversational?)
  • Why would your reader be so excited about this topic?

You can leave the last one blank for now if you don’t know, but come back to it later.

When you have a good understanding of your readers, you should be able to figure out why these top articles would appeal to them more than the average content.

Finally, search all the answers to all those questions for patterns.

For example, if a large chunk of the most popular posts are mainly image-based, you know that your readers love images.

Tool type #3 – Assemble your data, and make it useful

If you’ve used every tool up until this point, you have a lot of useful data.

Don’t just put it on a spreadsheet and forget about it.

Instead, create reader personas. It will help you and your team when you need to be reminded for whom you are writing.

I created this final section for a single tool because I feel that—although it is a small step you need to take—it’s a very important step.

8. Make My Persona

This tool was created by Hubspot, and it’s brilliant.

It guides you through a simple process that uses all the different demographic and psychographic information you’ve collected with all the other tools.

It also ensures that you don’t forget any key part of creating a reader persona, e.g., putting a real name or face to it:

image02

Once you answer all the questions, the tool will produce a well-organized persona summary:

image07

First, you should share this with everyone who helps you with content.

Next, you should be looking at this before you write any content yourself. Always ask yourself what this person would find valuable and interesting. Print it out, and hang it up if you need to.

Note that you can create multiple personas if that’s what the data supports.

Conclusion

This is not a huge list, but every tool on this list can be useful.

The better you understand your readers, the more you’ll be able to write exactly what they want to see (and value).

I recommend trying at least a few of the tools, but if you really want to get a clear picture of what your readers think and care about, use them all.

If I missed a tool that can help writers understand their audiences, please post it in the comments below, and I’ll give it a look.



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Friday, February 19, 2016

How to Improve Your Revenue Using Video Ads

As a marketer, you always want to be ahead of the curve.

The most effective tactics are always the ones that the majority of marketers either haven’t adopted yet or haven’t been successful with yet.

One of the current tactics that fall into that category is the use of video in advertising.

Very few marketers have tried to create video ads, but that will change in the coming years.

The consumption of video in general is growing at a rapid pace. Over half (55 percent) of people watch at least one video a day. Some watch several dozen.

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In order to make revenue from the videos they host, video sites (e.g., YouTube, Dailymotion, etc.) have a few options.

They can overlay some text ads. It doesn’t generate much revenue for them, so they don’t do this if they have a better option.

That better option is to play a paid video advertisement before playing the video a user clicked to watch.

Guess how much better these are.

One analysis found that users are 27 times more likely to click on a video ad than a regular ad.

Do I need to say more?

Although video sites are starting to get a wider inventory of video ads to play, they’re not even close to being saturated.

There are still plenty of text ads being shown because the sites have no other option.

On top of that, the video ads that they do have are often shown for unrelated videos (a bad thing) because they’re the best they have right now.

This is your opportunity to learn how to create effective video ads and reap the rewards while you still can.

I’ve created a full guide to creating YouTube video ads in the past.

But today, I want to take it further. If you understand the basics of video ads, it’s time to create video ads that perform even better than you thought they could.

We’re going to look at 6 different ways that you can make video ads that convert better than you ever thought possible. 

A quick look at where video ads are most effective: Before we dive in, you need to understand where video ads are used best.

The biggest key component of an effective video ad network is the size of its audience. Some of the tips in this post require a large potential audience so that you can narrow your targeting down and still have an audience left.

There are two main video advertising networks that fulfill this condition: YouTube and Facebook.

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I’ll be writing the rest of this post mostly with Facebook and YouTube video advertising in mind although most of the information will apply to other networks as well.

Don’t be afraid to try out video advertising on other networks, but I recommend starting on one of these two.

They are big enough to have just about every audience you can imagine, including yours.

Let’s look at the 6 tips now.

1. Take full advantage of custom audience options

Like I mentioned before, many video ads are being shown to users who are not actively interested in the advertised product.

While some of those advertisements are purely for brand recognition, the mismatch between the ad and the viewer interest highlights a bigger issue.

Say you were running an advertisement for a new car. In which situation do you think the ad would perform better?

Shown before a video about home decorating.

OR

Shown before a video clip from Top Gear (a show about cars).

It’s pretty clear that the second option is better.

You’ll have a targeted audience of car buyers, who are expecting to watch a video about cars. That’s doubly good!

When someone is planning to watch a video about home decorating and on comes a video about a new car, they’re not happy—understandably—and skip it as soon as possible.

The first major thing that you can do to lower your ad prices and improve your click-through rate is to improve your targeting.

Not only should you use targeting to make sure your ads are being shown to your actual target audience, but you should segment your audience further so that different parts of your audience see different ads.

Let’s look at some common effective examples of segmenting audiences.

Possible group #1 – Potential customers who are aware of brand or product: Your highest conversion rates when selling a product will always be from people who have heard of your brand or product.

Many in this audience just need a little nudge to get them to make a purchase.

You can target these people if you’re active on the platforms you’re advertising on.

For example, you can target people who have already “liked” your Facebook page:

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If someone’s done that, they probably have a good idea of what your products are and why someone might want them.

To advertise effectively to this segment, you need to create video ads that show your product doing something great for them.

If you were selling a personal finance tool, you would show in your ad how someone saved hundreds of dollars using the tool.

That will give your viewers the nudge they need to make a purchase.

Possible group #2 – No brand recognition, but interest in your type of product: This group refers to people who don’t know you, your brand, or your products.

However, they have an interest in your industry.

If I was selling a link building tool, I could target people with an interest in SEO.

Facebook and YouTube both have this type of targeting, and most other video advertising platforms do as well.

But remember that targeting is just one part of the equation. You also have to choose what to show your audience.

Since they don’t know you or your products, your first goal with these types of ads shouldn’t be to get the viewers to buy your products right away.

Instead, create a short, interesting video that teaches them something about your niche.

Going back to my SEO example…I wouldn’t even mention a link building tool, but I could create a video that showed that someone was able to rank #1 using a technique I created in the past.

Then, I would link to a detailed case study from the video.

Guess what would be in that case study?

That’s right, a mention of my product—the link building tool. The case study would also give the readers an opportunity to sign up for an email list.

Alternatively, you could link to a landing page from the video, asking viewers to opt in to an email list to receive the full report. Either option could work well.

The point is to establish contact, expose your potential customers to your product and brand, and get them on an email list. Then, you would continue sending them free content, and eventually you can target them like I showed you above in group #1.

Possible group #3 – Target by location: You should only target your video ad to countries and locations that you actually sell to. It sounds like common sense, but many businesses neglect to do it.

On top of that, you can also improve your results by creating videos for specific audiences.

For example, let’s say you sell a lawn care tool.

You wouldn’t want to show the same video ad to Australians, who have warm weather year round, and to Canadians, who have drastically different seasons.

To the Australians, you’d want to emphasize such features as durability and year-round suitability.

To the Canadians, you’d want to emphasize such features as easy storage during the colder months.

Take a second to think about your product and the different locations of your customers (cities, states, provinces, countries, etc.).

Do people in those different locations vary in how much they care about the features you offer?

If so, create specific video ads for each location. You might be able to reuse ads for different locations with a bit of clever editing.

Possible group #4 – Sell to multiple countries? Cover your languages: This type of grouping relates to the last point.

Did you know that you can target users based on language?

If you sell to people in countries that use two or more languages, you should be creating video ads in multiple languages and targeting by language.

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If you’re only targeting the main language, you might be missing out on a solid chunk of your potential market.

Recognize the unique properties of your products: The last two groups I showed you won’t apply to every product out there.

But they illustrate an important concept.

Targeting depends on analyzing your potential audience and determining how different parts of that audience think.

Then, you’ll need to find a way to target specific portions of your target audience and create ads specifically for them.

I’ve shown you four possible groups, but there are dozens for all major ad networks. Don’t be afraid to go beyond these four.

2. All good video ads take on an interesting angle: Start with the concept

Some businesses are finally starting to “get it.”

For video ads to be successful, they need to be interesting.

When they’re done right, video ads can actually be shared and go viral. There are many cases that prove this.

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While you may not have the budget of any of those companies, that doesn’t mean you can’t reach a large audience with an interesting advertisement.

How do you make an interesting video ad? The first thing you need to do is forget the word “advertisement.”

Yes, you’re paying to display it, but beyond that, your advertisement is just a video.

For some reason, many marketers think an ad needs to shove a product in someone’s face, which just isn’t true.

The vast majority of people on YouTube and Facebook are watching videos for entertainment, so if your video isn’t entertaining, they are going to ignore it or skip it as soon as possible.

And getting pitched a product is not entertaining, so don’t do it.

Instead, create or find an interesting story to tell.

Let me walk you through an example.

Fanpage.it is an Italian news site of sorts, so they focus mainly on current issues.

They were able to create a video, advertise it, and then have it go viral with over 2.3 million views:

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They started with a concept. In this case, they thought about a way to make a video about attitudes towards violence against women interesting.

It might seem a little sad that it’s not enough for the subject matter to be important, that it has to be interesting, but the reason I’ve repeated it a few times is because it’s crucial to your success.

There are many ways to make something interesting:

  • tell a story
  • make it funny
  • make it surprising
  • make it unusual

In this case, they combined most of these elements.

They introduced a girl to several boys and asked them about her. At the end, they asked them to slap the girl. The boys, of course, innocently said that they would never do that.

I was glued to my screen for the entire 3 minutes, and it took me from smiling to thinking about the issue at hand.

The biggest concern marketers have is whether this approach is effective or not. How does an engaging story translate into page views and revenue?

If you’re able to tell a story, with your product being at the center of it, people will want it and seek it out.

Although Fanpage.it wasn’t constantly saying, “We have the best content on social issues out there; visit us now!”—viewers still made that connection.

They understand that if they want clever, entertaining, and thought-provoking content, they should click through to the site.

Telling an interesting story is not easy. That’s why the people who are great at it are paid well.

However, it’s a skill like any other that can be developed. I’ve written extensively about it in the past:

3. Know when you need professional help

The thing that scares most marketers away from video advertising is that they can’t do it themselves.

Although you could try to make one with your iPhone (or whatever you use), chances are the video would suck.

And that’s just a basic video. When you consider animation, editing, and voiceovers, it’s just too much for a marketer to learn how to do.

That’s what scares marketers.

We love to do everything, including marketing, sales, product development, and just about anything else that needs to be done.

But creating a high quality video isn’t something that you can learn in a few days or even months.

And if you want to be successful with video advertising, quality has to come first.

People expect almost television-like quality for any video they watch:

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This means that your video must have:

  • no blurriness
  • good lighting
  • no background noises or echoes
  • no stuttering or unclear speech

You need to recognize when you are out of your depth and bring in professionals to supplement your marketing expertise.

Putting together a high quality video: A video ad might only be 15 seconds long, but it can often take hours to make.

It will depend on the kind of video you are creating, of course, but a ton of work goes into creating even short videos.

The first step is to decide what type of video you’d like to create.

There are two main types of video ads.

The most common is a standard video with actors in it.

However, animated videos are really popular, particularly if you’re creating a tutorial or an educational video:

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Your next step is to hire a professional to help you. This will include:

  • freelance animators
  • video creators (videographers)
  • video editors

As a marketer, you can probably handle the script writing yourself, but that’s another area you could potentially get some help with.

Video editors and animators are very easy to find online. Just browse for them (or post a job ad) on any of the following freelance job boards:

However, if you’re looking to include actors in the video, you’ll have to find local videographers.

Unfortunately, you can’t effectively narrow down the location of videographers on those freelance sites.

Instead, I recommend going to LinkedIn.

Search for “videographer” or “freelance videographer” in the search bar, and narrow down the results using the “people” filter in the sidebar.

Finally, choose “Add” under the location filter, and type in your city:

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Not only will you find local professionals, but you will also find people who have worked with some of your existing connections. That’ll allow you to ask your connections about their experiences with the professionals you are considering to hire.

After you’ve found someone to work with, you need to develop a video outline and script. Again, you can probably handle this if you have some experience with storytelling.

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Once you’ve gone over these details with your freelancer(s), they will create the video for you. Make it clear that you’re happy to get involved when necessary and answer any questions.

The last thing you want is to be unhappy with the final video because it’s a pain (and expensive) to reshoot.

For the most part, trust your freelancers. If you’ve hired experienced professionals, they will know how to bring your vision to life.

Ideally, you want to establish a relationship with freelancers so that they can continue to create videos for you in the future. It will save you the time of having to find someone new every time you need a video created.

4. Shorter is usually better

You need to be careful, especially if you embrace the tips I’ve shown you so far.

It’s common to get excited about producing a video, aiming for the best, and end up with a video that’s 3, 5, or even 10 minutes long.

Keep in mind that when users see your ads, they see them before the content they actually want to see.

Even if your video is fairly entertaining, most will pick the “skip” option that comes up shortly after your video starts—especially if they see that there’s another 3 minutes to go.

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As a general rule, keep your video ads under 1 minute long. Under 30 seconds is better.

This forces you to focus on the most important parts of your message.

According to one analysis, only 36 percent of video ads are longer than 30 seconds.

Further, 13 percent are shorter than 15 seconds, which means that 51 percent of ads are between 15 and 30 seconds long. Aim for that range whenever possible.

The good news is that if you are able to keep your ad within that range, people will usually watch your full video.

The same research found that 79 percent of video ads are watched to their middle points, and 72 percent are watched to the very end. This means that if you can intrigue your viewers in the first half of your ad, almost all of them will stick with you to the end.

5. Videos may be different, but you can (and should) split test them

To edit a landing page, you need to click only a few buttons.

To edit an image, you need to do a bit more.

Video is far more complicated to edit than images or landing pages.

That’s why most marketers produce a video ad, put it out there, and hope for the best.

But you know me—I like to measure and improve everything. And I hope that you have a similar attitude.

When it comes to ads of any kind, including video ads, you must split test.

What’s split testing? A quick answer: If you’ve never done split testing, it’s a simple but powerful concept.

Most things are not optimized when you first create them.

What you can do is create two versions of something and then send visitors to both versions.

By measuring the results, you can see which version performs better.

Typically, you’ll use A/B split testing, which helps you learn about which elements work and don’t work.

With A/B testing, both versions are exactly the same, except for one change.

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That way, you know that any difference in the results is caused by that one change. Then, you keep the better performing version and do a new test with a different element.

I’ve written a complete guide to split testing if you’d like a detailed guide; otherwise, let’s move on to how you would do split testing for your video ads.

Step #1 – Identify major elements: The reason why most marketers don’t split test video ads is because they know that editing a video is a pain.

But most split testing doesn’t even need to involve editing the video.

Start by looking at how your video ad will show up:

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Then, make a list of the most important elements.

From the above, the most visible elements are:

  • the description
  • the video
  • the brand name

You can’t change the brand name, and you probably don’t want to edit the video (although that’s an option), but you can change the description.

Let half of the audience view one version of the description, and let the other half view the other version.

Alternatively, you can also split test different targeting options.

For example, you could show the exact same ad to two different groups of people. You could divide them based on interests, behaviors, or demographic options.

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This will tell you which audiences are best to target, and that information will help you create more effective video ads in the future.

Step #2 – Create different versions of the ad based on those elements:  Once you know which element you will be changing (e.g., description or targeting options), all you need to do is create the two different ads and buy a similar number of views for each.

Here’s a guide to split testing on Facebook, and another for split testing in Google Adwords (for YouTube).

Step #3 – Decide which metrics are most important, and compare: Finally, the most important thing you need to do is decide what your goals for the video ad are.

Usually, it’s going to be cost per click-through. Sometimes, you’ll have to use your click-through rate percentage instead.

Once you have a valid sample size, you can compare the results and determine the winner.

A neat little tool to help you figure out the significance of your test is Isvalid.org.

Enter the number of samples for both the original and experiment videos as well as the conversions (clicks or whatever metric you’re using):

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The tool will calculate the conversion rate of each test. More importantly, it will give you a significance rate (how often your conclusion will be correct) and a measure of how much better the winning test is:

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Aim for a significance of at least 95%.

Remember that split testing typically gives you small improvements. However, those small improvements add up over time, so keep iterating and making changes until you’ve optimized your video ad.

6. Studies have shown that music impacts emotion—use it wisely

The final tip I have for you is to use music in your videos, but use it intelligently.

To begin with, always remember that videos are mainly focused on visual content. That should remain the main focus of your video ads.

However, music in the background can make your message more powerful.

The effect of music on mood: One study recruited subjects to determine what effect music has on our moods.

They found that both happy and sad music affects our perception. When subjects heard the happy music and then were shown a person with a neutral expression, they were more likely to say that the person was happy.

Conversely, the other subjects who heard sad music thought that the exact same person was sad.

Basically, we match our perception with the tone of music we hear.

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The takeaway is simple:

If you want your viewers to feel a certain way during parts of your video, use music that corresponds to that feeling (e.g., sad music for a sad feeling).

You can use this to nudge viewers to feel happy, then sad, to make your video more impactful.

Music improves focus: You want your viewers to be glued to the screen while your ad is playing.

But if the ad has no sound, no matter how good your video is, most viewers will get bored and zone out.

A study looked at how listening to different sounds affects focus.

The researchers found that listening to either classical music, white noise, or silence improved visual attention. The greatest effect, however, was produced by classical music, followed by white noise. Silence produced the least effect.

The takeaway:

Play some sort of music in the background throughout most of your ads to help your viewers pay attention to your video. If classical music suits the tone of your video, it’s probably the optimal choice.

Music should accent, not distract: Finally, there’s one more study about music and focus that you need to know about.

The researchers tested how music affected the rate of driving mistakes in teenagers.

The bottom line was that when the drivers got to pick their own music, they drove more aggressively and made more mistakes. It makes sense as they were more focused on the music than their environment.

On the other hand, when they listened to “safe” music that was picked by the researchers, they drove better.

The takeaway:

Use music in your ads, but make sure it’s not so loud or catchy that your viewers focus more on the music than your video’s images.

Conclusion

Video advertising is one of the most exciting advertising opportunities that is still maturing.

If you take action right now, you will learn how to profit from video ads before the rest of marketers catch on.

I’ve shown you 6 key principles and tips of effective video ads that you can use to reach profitability quickly.

Once you have a profitable campaign, scale it up and enjoy the results.

I understand that creating video ads isn’t easy. So, if you have any questions, leave me a comment below, and I’ll try to clear things up.



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