What is a marketing funnel?
Marketing has many potential goals - brand awareness, building communities, organizing events. For technical marketers, there is only one goal: revenue. This means that we are leveraging techniques and strategies from marketing in order to drive a monetary goal for the business.
A marketing funnel is a user journey beginning when that user first interacts with the company and ending with the customer lifetime value. This will be different for every company and every product.
Why do I need a marketing funnel?
Lightning AI uses your funnels to determine your reporting dashboard. You must have a funnel to see a dashboard.
Lightning AI Optimizer and Expander rely on the funnel to make all decisions to make sure you are spending your money in the best way possible. You determine the target event you want as your conversion and the AI platform enables you to achieve optimal results.
Your funnel teaches the AI system how to understand what actions users are taking within your product. We always want to ensure that we are achieving your business goals!
How does this connect to Facebook?
Think of funnels as a set of campaigns. Each funnel can have one or more campaigns associated with it. You set the target goal and budget at the funnel level, and Lightning AI Optimizer and Expander will take care of the rest!
You should have at least one funnel for every Facebook or Google account you're optimizing with Lightning AI. Depending on your product or business you may have more than one funnel per ad account.
What is a funnel at Lightning AI?
Each Facebook funnel on Lightning AI has:
- A Name - usually this can be your business name or something else that describes your funnel like mobile app or website.
- Events - with paid ads every funnel starts with impressions and clicks. From there funnels usually have unique conversion events that follow such as "add to cart" "sign-up" "install", etc.
- Optimization Event - the final conversion event in your funnel.
- Total Budget - the amount of money you want to spend for all the campaigns within the funnel on a daily, weekly, or monthly basis.
- Target Cost Goal - what is the amount of money you'd like to pay per optimization event.
How do I create a new funnel?
Whenever you sign up with Lightning AI, you'll automatically start by creating your funnel. There are 4 steps for creating a new funnel.
Step #1: Select your Facebook ad account and application
Here you select the Facebook advertising account you want to build a funnel for AND the application. If you have a mobile app and web pixel, you'll need to create two separate funnels for each.
Step #2: Give your funnel a name and select your conversion events
Once you give your funnel a name, you select up to 7 total pixel mobile app events to include in your funnel.
When creating your funnel, think about the steps your users take in their journeys. What is the first step that a user takes? What is the final step?
For example, if you were shopping on an eCommerce website, first you might search for a product, add that product to your cart, initiate checkout, add your payment information and then purchase the item.
Step #3: Add your target cost per conversion event
Once you have created your funnel, you need to select your target conversion event. For example, if you are interested in driving purchases, you would select 'Purchase' as your target conversion event. If you wanted to increase the number of mobile app installs, then you would select 'Install' as the primary event.
The target cost is the maximum you are willing to pay for one conversion event.
If you are using Lightning AI Optimizer, the AI system will automatically reallocate bids and budgets to maximize the number of conversions in the last step of your funnel as long as you are paying less than your target cost.
For example, let's say you charge $20 for an item that you sell and you make money as long as you spend less than $10 per purchaser. You would select 'Purchase' as your conversion event and $10 as your target cost.
What is an optimization event?
The optimization event is the final step in your funnel. This is the event our algorithms use to measure success.
Lightning AI's customers typically optimize toward a monetization or purchase event. By optimizing your funnel to a purchase event, you can more effectively measure the economics of your advertising strategy. However, many of our customers optimize toward events higher in the funnel such as leads, installs or free trial sign-ups, etc.
The optimization event should be:
- Something that can be tracked with a pixel
- An event that fires more than 5 times daily
Sometimes we start with an optimization event higher in the funnel until we can build up enough signal or events firing daily to move down the funnel.
Step #4: Add a total budget for your funnel
Add a budget for your funnel and choose whether that budget should be allocated on a daily, weekly, monthly, or yearly basis.
How do I edit an existing funnel?
To edit an existing funnel, you can select "Funnels" from the main navigation. If you use Lightning AI to manage several accounts on Facebook and Google, you'll want to make sure you're in the right account for the funnel you want to edit.
What if I have more than 1 funnel?
If you have more than one type of product or service you advertise for within the same account you can create more than 1 funnel with the Lightning AI app. Multiple funnels allow you to create budgets, optimize, and measure success of multiple campaigns within each funnel.
Each funnel should have distinct optimization events. For example, just because you have different verticals you market the same product to, it doesn't always mean you have separate funnels.
How does the Funnel Builder Work for AdWords and UAC?
Currently the funnel builder for AdWords and UAC is in private beta. Reach out to your account manager or firstname.lastname@example.org to learn more.
Have More Questions?
Funnel optimization is literally the thing our team loves working on the most!
If you have more questions about your funnel, why funnels matter, or how to get the most value out of the Lightning AI funnel builder, ping us via the messenger at the bottom right or reach out to us at email@example.com