Pareto’s Principle states that 80% of consequences come from 20% of causes. Otherwise known as the 80:20 rule, the principle applies to marketing as much as sociology and economics.
Essentially, for every ten campaigns you put into the world, two will generate 80% of the results. Of course, this is an average or a rule of thumb rather than an exact figure.
The 80:20 rule might sound like bad news because it implies you won’t get the desired result every time. But understanding the 80:20 can also be empowering; if you’ve tried a few Facebook ads and nothing’s worked, the chances are you could still be successful if you test another handful of ads.
Once you identify the highest-performing ads within a group, you can pause the rest. This allows you to plough your resources into the ads that work, potentially snowballing your return.
Does this mean you should stop creating new ads once you’ve found a few successful ones? No. Now is the perfect time to begin tweaking your existing ads to create new campaigns alongside your current ones. If you’re paying attention to the data, you’ll soon find even better ways to engage your ideal customers.
Over time, this should help you create ads highly attuned to your audience that continue to generate solid profits for your business. New ads also prevent your target demographic from growing blind to your messaging from overexposure.
To get started, plan at least ten ads, all with a single goal, such as generating sign-ups or sales. Divide your budget into ten, so you can afford to run them all while comparing the data. Follow the plan above as soon as a couple prove their worth. Good luck!
