Running paid advertisements

From: alexhormozi

Running paid advertisements is presented as the fourth method in the “Core 4” for acquiring customers, specifically for reaching people who do not know you on a one-to-many basis [00:27:22]. This method is considered the fastest and most risky, but if done well, it can generate significant revenue [00:27:04]. The speaker shares that the majority of his net worth has been generated through running paid advertising [00:30:04].

How Paid Ads Work

Paid advertising involves paying a platform to gain access to strangers within their newsfeed, whether it’s on television, Instagram, or TikTok [00:29:29]. Ads are typically inserted between the free content that users are consuming [00:29:36].

Structure of an Effective Paid Ad

A paid ad generally consists of three main parts, similar to the “Hook, Retain, Reward” framework for free content, but with a crucial difference: the inclusion of a clear call to action [00:29:43]:

1. Hook [00:29:44]: This is the most critical part, as 80% of people decide not to watch an ad within the first three seconds [00:33:57]. Effective hooks grab attention and create curiosity [00:30:20].
   • Call Out: Often precedes the hook to target a specific audience (avatar) [00:30:51]. This can be:
     • Visual: Something viewers see that indicates the ad is for them [00:30:58].
     • Auditory: Directly addressing the target audience (e.g., “Las Vegas homeowners”) [00:31:03].
   • Question-based Hooks: Using questions like “Are you backed up in trash?” or “Does the smell of your trash drive you bananas?” can immediately engage the viewer [00:30:11], [00:34:27].
   • Relatable Moments: Presenting scenarios that the target audience has experienced, such as “Alex, did you take the trash out? I’m watching the game on my phone” [00:35:31].
   • Humor: Incorporating humor can make ads more engaging [00:34:29].
   • Visual Cues: Using specific visuals can create curiosity and act as a filtering mechanism to attract the right audience [00:30:18].
2. Meat/Retain [00:29:46]: This section presents and agitates the problem the audience faces, describing the pain points in detail [00:31:28].
   • Agitating Pain: The more detailed the description of the pain points, the more the audience will feel affected (e.g., the smell of trash, chasing the truck, trash piling up) [00:32:35]. It’s important to hit multiple pain points as different ones resonate with different individuals [00:32:58].
   • Presenting Solutions/Benefits: Clearly outline how the service or product solves these problems [00:31:34]. Presenting benefits in groups (e.g., “three things”) helps organize information for the audience [00:31:36].
   • Guarantees: Placing guarantees within the ad can build trust and highlight exceptional offers (e.g., “three free months if we miss one pickup day”) [00:32:04].
3. Call to Action (CTA) [00:29:52]: This prompts the viewer to take a specific action, such as clicking a link or calling a number [00:33:31].

Key Considerations for Effective Ad Creation and Optimization Techniques

• Targeting (role_of_ad_targeting_in_business_success): When spending money to reach eyeballs, ensure the ad communicates who it’s for, so only the specific type of person you want to respond does [00:30:40].
• Avatar Representation: The setting and the avatar (person) in the ad will do more to attract the right types of people than anything else [00:34:37]. To double or triple reach, include two, three, or four different people in your ads [00:34:54].
• Testing: The hook is the most important part of an ad to test frequently [00:33:53].
• Offer: A superior or “big fast value” offer is crucial, especially when talking to strangers, as they don’t trust you and need a big incentive [00:26:00]. This is a significant force multiplier for getting people to say yes on cold outreach [00:26:09].