Discover insights into ad performance, what makes a good introductory offer, and membership conversion rates as we analyze the impact of various advertising channels (meta, youtube, and tiktok).
Don't miss this opportunity to learn valuable lessons on boosting your Jiu-Jitsu school's success through online video advertising.
0:01 Hey Brian from town leads here Really excited about this case study for this gym located in Worcester, Massachusetts They're an MMA gym and we ran paid ads paid video ads in the month of September and it did really well So just wanted to talk about the video itself, the number of ads they normally get
0:22 , their introductory offer opt-in rate, and then their close rate on memberships. So I'm looking at January through August just to get you an idea of normal close rates and things like that.
0:37 So they usually get roughly half the people that opt into their website. Now keep in mind they got 288 leads from January to August 31st.
0:44 So roughly 300 leads. They're able to book half of those people. I'd say the overwhelming, I'd say 98% of those leads.
0:54 Organic traffic. Google search, direct search. This business has been around for 15, maybe 17 years now. So half the people opt in for their introductory offer.
1:06 It's a great offer. It's 30 days for $40. Now some people do free offers. This gym has a reputation where they can comfortably charge $40 for their introductory offer.
1:17 And their win rate is roughly 23-24%. And their lifetime value for each person that signs up is roughly $2,600 based on 17 years of data.
1:29 And that's, you know, 10 year long students and then one month long students just calculated over time $2,600 is how much they spend.
1:38 So with that in mind, a little bit of backstory about the video ad that they ran and context for the city.
1:45 The city is a very college intensive city. A lot of people come in in the fall, September is a good time of year to advertise.
1:53 In the month of August, they had a seminar with Matt Sarra. He came in, one of our students one of the students there filmed a lot of B-roll during, during the seminar of the facility, the interior, exterior, and then some of the moves and then did a little video.
2:10 We took that, recorded a script, and then turned it into a commercial. And we ran these across three different channels.
2:18 Meta, so Facebook and Instagram, TikTok, and then on YouTube. And then what I want to do is kind of expand on how those three did.
2:29 But with that in mind, let's take a look at the month of September. So I'll just look at last month.
2:37 Now keep in mind these are 38 trials, so there's a bit of a lag for sign up rates. So a lot of these people are still in their 30 day trial.
2:45 But if you notice right away, their intraless and booked is only 32%. So it's down quite a bit. You'd expect based on historical data, you'd expect to see that at 50%.
2:55 Now why is it lower? Two things, low intent traffic channels, so Facebook and Instagram and then TikTok too. And sales scripts not designed for paid traffic.
3:08 This gym is very used to organic leads, walking, visiting the website, opting in. Paying the $40. Facebook and Instagram though, you get in front of people that are kind of curious but kind of gunshot so they don't sign up.
3:22 So opportunity for this gym is to actually develop on their sales script for for warm leads. Note though, the month of September they received over 100 leads that month so that's if you think about what they did from January to August, almost 300 leads, they got a third of that in just one month.
3:44 Total ad spend. For that month was $1200 between TikTok, YouTube, and Meta. And I just want to talk quickly about how each channel did.
3:55 So, looking at Facebook let's see, $400 spent 44 leads, $8 dollar. There's a lead in $90 per minute. So, a little pricey for the, the, the intro offer opt-ins, but they charge $40, so it's not that bad.
4:14 So, 4 x 4, $160, that covers the cost of advertising. No one's closed yet, though. So, as of the time of this video, we are on the month of mid-October.
4:23 No, oh, no wins just yet. So, a lot of leads, not a lot of not a lot of wins, low intent.
4:32 TikTok, not a lot spent here. It's a hundred dollars. I think exactly a hundred dollars. Yep. Let's see, nine leads, cost per, cost per lead, $11.
4:44 No intros booked. No, no wins. So where we're going to spend more. Would we get more appointments booked? It's hard to say TikTok's a new ad channel.
4:56 Not too many people are using it. We tried it out did okay, but not great opportunity to close these leads later on down the line.
5:03 And I want to talk about the best performer of the three paid channels. And that is YouTube. Let's see, $425 spent, 9, 10 leads generated.
5:14 So $40 per lead. That's a lot of money. Relative to the other two channels, but 6, 6. Appointment scheduled. Let's see.
5:28 That's that covers half the ad spend for that one. And looking at the number of wins so far, they actually got a closed lead from YouTube.
5:39 If you recall, the lifetime value for a closed lead is $2600 that paid for itself. Threefold, at least fourfold actually, that actually is a factor of six.
5:54 So sixfold. Return on YouTube. So, leads are expensive but high intent. I think they got the, the number of appointments booked for YouTube.
6:04 Just blew, blew the other channels out of the water. So pretty interesting case study. If you don't have a good sales script for paid traffic, you might want to consider working on, working on that.
6:17 So maybe that's you know, calling leads, texting leads, emailing leads, and then following up during the trial and giving them a great offer for, for signing up.
6:31 Another takeaway is Facebook and Instagram not great channels in terms of, I mean, everyone uses it, right? Every ad agency that you've seen has probably offered.
6:43 These channels. YouTube though, is a different piece because you actually have to film good. You need a good script. You need a good voiceover.
6:51 You need a good B-roll or you just need a good video in general and it needs to have a great call to action.
6:57 So you need good content on YouTube. And you also, last but not least, you need a strong offer. So, it's going to take a while.
7:16 Anyways, if you're not using YouTube, you're missing out. If you don't have a great sales script, you're missing out. If you don't have a great offer, you're missing out.
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