This client has a very high-ticket Done for You Offer in the Built for You business niche (some of their indirect competitors include Kevin David). They had been testing this offer with Facebook Ads, but realized that they needed to add YouTube to really add the massive scale they were looking for.
A major issue was that Facebook Ads weren’t generating enough profitability for the 7 figure MRR they wanted to achieve. The owners also realized that in their niche, Facebook can shut down accounts on a whim. To keep the margins they wanted at scale, other traffic sources would be required. One of the partners had worked with Linx before and suggested YouTube Ads as an evergreen and scalable traffic source.
The client realized that they needed a team behind them that knew YouTube from every angle, from scripting ads to scaling massive ad spends.
They had considered hiring a cheaper freelancer but had negative experiences with them in the past (lack of experience, no creative expertise, and unreliable).
They also realized most media buying agencies were Facebook-first, and had very little experience with YouTube.
One of the partners had worked with Linx and had a positive experience which led them to partner with Linx to scale this offer on YouTube.
We first started by scripting a variety of video ads and optimizing for cost per call at the $1000/day budget.
Initially the cost per call was somewhat high at the $150 to $200 mark.
However, this is completely normal. We knew we had to keep scripting and shooting new ads, test a variety of audiences, and let the algorithm dial in. We knew that by being patient eventually the algorithm would dial-in and the cost per call would go down.
The client was nervous because the cost per call was higher than Facebook at the time, however we reminded him that there’s a long selling cycle and YouTube leads are typically more qualified. We also didn’t get any sales in the first few weeks (a product of long sales cycles with this offer).
We went from a $150 Cost per call in September at $2500/day to a stable $90 to $120 per call at scale spending nearly $10,000/day.
Once we started getting sales (the selling cycle is around 30 days), we used Hyros to start optimizing for sales. For example, if a campaign had a $250 cost per call but had a 5x ROAS, we would keep it live, even if it’s over our cost per call KPI. The end goal is to optimize for profitability.
Normally cost per call and cost per acquisition goes up significantly at scale, however because of the unique nature of the offer and our scaling methodology we were able to actually reduce costs at scale.
Our best audiences were very broad audiences including:
- Custom Intent
- Custom Audiences
in our experience, once you’re spending over $3000/day broader audiences are the way to scale. The algorithm needs to be trained, but once it’s trained you can target broad audiences for very high ROAS.
Note that there were a lot of unattributed sales due to salespersons not uploading the right emails from their phone calls. Likely YouTube generated another $1 MM in revenue that went unattributed.
Our total ad spend was just over $1.074 million during this period. Currently we are spending around $10,000/day, and may potentially scale even further to $15-20k/day spend.
1) Hire more salespeople to be able to scale spend to 20k/day on YouTube, and be able to handle more work.
2) Work with their partner to increase scale on the fulfillment side, thus ensuring that lack of supply won’t hurt scaling efforts.
3) Our team will (when ready) start pushing spend to $20,000/day while maintaining cost per call at a reasonable rate. Cost Per call will likely go up to $150/call in the short term until we’re able to optimize. Whenever scaling fast, CPAs do go up, but then you’re able to stabilize them and bring them down through optimization.
We also made a YouTube video about this case study. Check it out below.
If you want to find out more about what YouTube Ads could do for your business, jump on a free strategy call with us so we can advise how we can help you grow your company!