Online advertising explained.

It is easier to lose money with online advertising than to make money. We look at Facebook Advertising and Google Adwords to see why people are losing money with these.

Questions I often get:
– How to advertise on Facebook?
– How to advertise on Google?
– How to do Facebook marketing?


Hi guys welcome to The Marketing Techy. 

Today we are going to have a look at why people are losing a lot of money with buying online advertising.   

Ok, let’s have a look at my screen here. Basically you need to have leads to make sales to make profit. Alright. So leads are inquiries about your service or your product. Some of these leads will turn into sales and sales or a part of your sale will result in profit for your company. That’s really the only reason to have a business.   

Okay, so this is what we are after: leads. One way of generating leads would be online ads. There are various other ways of generating leads and some in my opinion are a lot better than others.

Online ads in my own business and with most of my customers: I see that online ads actually is not the bulk of where the leads come from. In some cases up to about 50% of new leads for my customers or for companies come from online ads. If you spend a lot on ads then that percentage will go up. So if you’ve got a business and you are spending a lot of money on online ads, you could get 80 or 90 percent of your leads from these ads. In my opinion there are cheaper and better ways and in most cases I find that online ads count for about five to about twenty percent of new leads for my customers and myself.

Okay so, online ads: you can buy online ads in a lot of different places. The two biggest ones right now would be Facebook and also Google. So first let’s have a look at Facebook. What does Facebook do well? Facebook knows people so because Facebook knows people in the sense of Facebook knows what my hobbies are, what music I listen to, where do I live, when am I traveling, what company I work for, all these things Facebook knows and I could target people with ads based on that.

Google. Google does something that we call timing very well so Google can get the timing really, really well when it comes to placing an ad in front of someone. So when somebody is searching for a specific product or service or something related to a specific product or service then I could show my ads to them. So they could be searching for a plumber in their area. I could show them an ad for plumbing services. Okay so the timing in Google is really good.

Google knows less about people than what Facebook does and with Facebook getting the timing correct is a lot harder than with Google. Some product or services will do better on Facebook. Other products or services will do better on Google.

Now the issue is: especially on places like Facebook. Facebook will show you things like: So you’ve posted something about your business, or a photo, or something about a product. Then Facebook will usually show you something like you could show this to 20,000 more people for X amount of money. Okay, and that’s in a lot of cases where it starts. Yes, you can show your ad on Facebook and Google to a lot of people you could potentially show your ad to millions of people if you wanted to and you have enough money. That’s unfortunately not the only thing you have to do.

Things you have to keep in mind is:

  • What is your marketing strategy?
  • Who is seeing this ad?
  • Are you targeting them correctly?
  • Are the correct people that are actually interested in your product or service seeing your ad?

Otherwise you’re paying for this ad and showing it to people that’s costing you money and they’re not actually buying. You would often find that people are buying ads on one of these two platforms and they are not getting leads or sales.

Okay so yeah unfortunately the reality is: I see companies that are wasting a lot of money with online advertising. Now the question is: can it work? The short answer is: yes absolutely. If you monitor your ads. If you’ve got a good strategy. If you’ve got a really good website and landing pages where you’re sending people from your ads. You could get new leads. So a new lead would be somebody either calling you and inquiring about your product, so that you can actually follow up with them. Emailing  you or filling in the form on your website. Or actually looking at a product page where they would be able to buy something directly off your website.

All right, so that’s a new lead and unfortunately what we’re seeing is the trend is people are advertising right here and they’re never getting the lead and obviously they’re also not getting the sale. Okay so they are spending a lot more money on this side and not making the money back on the other side. Allright, so that’s a recipe for disaster.

How do you do this well? You look at your analytics. You track these ads. You make sure, that at least on a weekly basis, you’re monitoring them. Seeing which people are clicking on them. Which ads are doing better than other ads? Making decisions based on this. Starting new ads. Stopping some of the older ads. Making sure your wording is perfectly correct in all of your ads. Changing wording in these ads over time. Changing photos. Making sure you’re using the correct photos. Making sure basically that you’re getting the absolute most from these ads that you possibly can and that along the way you are converting as many people as possible into actual sales at the end.

Okay, so yes, you can make a lot of money by sharing your product or service to people at the correct time, but the flip side is you can lose a lot of money if you’re not monitoring these and making sure your strategy is correct when it comes to buying ads online.

I hope this helped. If you’ve got any questions feel free to contact me or comment on the video. You can contact me on Twitter or by email. I’m happy to answer any question about this. I’ll see you for the next video. Cheers. 


This business is not taking on any new customers. We are slowly winding down as the owner has moved to the USA.

The Marketing Techy