Dennis Yu

$500 for 60 minutes of your time? Why analytics are key to selling ads

Every week, a couple of hedge funds ask me to project Facebook’s revenue curve and outline what factors are affecting it. They want to know whether sponsored stories are gaining traction, why big brands are spending only sporadically on ads, and what the holes are in the ads’ products.

I charge them $400 for 30 minutes or $500 for an hour. Let me summarize what I’ve been saying to them…

Facebook can’t grow its ad revenues just by hiring more salespeople. Most folks have tried Facebook and aren’t sure if they’re successful or are disappointed. If you crash your brand new helicopter, for which there was no manual, whose fault is it?

Facebook’s ad platform changes so fast that even most pros don’t know how to use it. Massive kudos to Facebook for a sophisticated product and even solid agency training programs here (it’s free, but you have to get approved). But this leaves most folks in the dark– hounded by sales teams fresh out of college who don’t know marketing strategy.

To be fair, most online marketers are still in the dark about Google AdWords, thinking that it’s still about keywords and text ads. Google has been in the game a lot longer. And the offer of personal support on new accounts that spend at least $1,500 a month is alluring.

Training is key, and they’re ramping up. Big brands want to know how to build and justify a social budget using metrics that a CFO would appreciate. To the dismay of eager sales folks, merely spending more than last year or spending because there a billion people on the platform are insufficient reasons. Buying more tools is just as bad since generating charts and posting more content equates to a noise-making strategy, not one based on ROI.

$1.6 billion in Q3 revenues isn’t bad, but I’ll bet they can raise average CPMs from 30 cents to well over a dollar in the next 18 months and perhaps $3 in 3 years. This is like the early days of AdWords, where every click was a nickel. Even today, I can get Facebook search traffic at pennies a click (just type in “pubcon” and see the suggested results as you type). And targeting by workplace (they work at Facebook) or interest (they like PubCon) is the same price as males 18+. Thus…

A 10X increase in traffic costs is not unthinkable, so if you’re not getting ROI now at these prices, you’re not likely to win when prices go up. Those who complain of poor performance usually suffer from low CTR, which is a result of imprecise targeting and non-social ads. The average CTR of 0.030% by the major Facebook ad players can easily lead to a dollar CPC in the US. The fact that traffic prices have increased is often more a factor of targeting that is too broad. Newsfeed ads routinely are over 2% CTR, while mobile ads can be 12.5%. Those who complain of rising costs think they’re slamming Facebook when really they’re not taking advantage of all the new ad units available– there are over a dozen.

Rapid death and birth of products. Gifts, Reach Generator, premium ads, open graph protocol, and a variety of other initiatives have died or are likely to die. But FBX (retargeting onto Facebook), offers (which now require ads), and Sponsored Posts (from the timeline directly) will be solid revenue drivers. Are you using them yet?

Facebook apps continue to be commoditized. If you’re a developer of Facebook ads/pages/insights, you better have a clear acquisition play or be developing something well beyond the base list of requirements. Unlike the apps platform (Facebook is not interested in building games to compete with the Zyngas of the world)

Dennis Yu

Dennis Yu

Dennis Yu is co-author of the #1 best selling book on Amazon in social media, The Definitive Guide to TikTok Ads. He has spent a billion dollars on Facebook ads across his agencies and agencies he advises. Mr. Yu is the "million jobs" guy-- on a mission to create one million jobs via hands-on social media training, partnering with universities and professional organizations. You can find him quoted in major publications and on television such as CNN, the Wall Street Journal, Washington Post, NPR, and LA Times. Clients have included Nike, Red Bull, the Golden State Warriors, Ashley Furniture, Quiznos-- down to local service businesses like real estate agents and dentists. He's spoken at over 750 conferences in 20 countries, having flown over 6 million miles in the last 30 years to train up young adults and business owners. He speaks for free as long as the organization believes in the job-creation mission and covers business class travel. You can find him hiking tall mountains, eating chicken wings, and taking Kaqun oxygen baths-- likely in a city near you.
I'm a member of Blitzmetrics Academy and a friend of Dennis to boot. Not only is Dennis highly intelligent and full of great and creative ideas, he's also incredibly generous with both his knowledge and his time. Success couldn't come to a better guy. Thank you for all that you do for the world, Dennis! 🙏

Michael Pacheco

Marketer

Thanks 🙏 for being shining light in this industry. Love what your building for works overseas too network for jobs so innovative. Dennis helped me navigate having bad experiences with marketing agencies and doing dollar a day marketing which has helped my personal brand tremendously. Highly recommend.

Eric Skeldon

Founder at Kingdom Broker

Working with Dennis has been a delightful experience. After meeting him in 2015 I got to collaborate with him on countless occasions. His understanding for state-of-the-art marketing, his implementation, and his leadership put him into the top 0.01% of marketers and mentors.

Jan Koch

Ihr kompetenter Partner für innovative KI-Strategien.

I had the pleasure of interviewing Dennis for my podcast in 2021 and since then we have maintained a friendship that grows with each interaction. I have seen Dennis' devotion to his friends and clients firsthand, and our conversations often result in us talking about how we can provide more value to the people around us. He is someone whom I can ask questions on a technical level, and look to on a personal level. If you have any hesitancy about hiring him, get over yourself and do it!

Isaac Mashman

Help scaling personal brands.

Geez, where do I start recommending Dennis? First, he is an absolutely brilliant marketer who understands where marketing is today and where it's going tomorrow. He also has an incredible passion for the International Worker community. The lessons he has taught me from his almost 20 years of experience hiring International Workers have been immense. Most importantly though. Dennis Yu is someone who wants the absolute best for you and is willing to tell you the truth. Dennis sat with me at a point in my business where I was floundering but did not want to admit it. He asked some very straight forward questions to get me to admit my issues, highlighted the issues, and then helped me create a roadmap to success.

Atiba de Souza

International Keynote Speaker | Video Content Superman | Superconnector |

Dennis, which I had the pleasure of working with is one of the most giving, honest and tell you as it is person I ever know. The knowledge this man has is remarkable and he just gives it out freely. He is not pretentious and always entertain anyone big or small in the industry always willing to help. If you ever get a golden opportunity to work with him or mentored by him say YES!. You will notr regret Dennis, which I had the pleasure of working with is one of the most giving, honest and tell you as it is person I ever know. The knowledge this man has is remarkable and he just gives it out freely. He is not pretentious and always entertain anyone big or small in the industry always willing to help. If you ever get a golden opportunity to work with him or mentored by him say YES!. You will not regret

Nixon Lee

The PR Whisperer

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