Today's topic is talking about top of funnel terms. A lot of the time we're like, we need to focus on cold traffic in terms of Google, because we need to split out brand. We don't want to bid on brand because the campaigns are focusing on brand and they don't convert as well for cold terms. So the conversation becomes, how do we convert on cold terms and how do we stay? On well, it's not staying on those cold terms. How do we keep new customers on those cold terms? And do we want to keep new customers on those cold terms? Then if we have returned customers on those cold terms, why do we have them? Is it a good thing? Does that make sense? Probably just interfere Whenever you feel necessary. Go ahead Karima. Can you differentiate cold terms and warm terms? Could you elaborate that? Let's talk about mostly because I have a skin care client so we're going to go, that's the example I'm going to use and a supplement client, those are the examples I'm going to use. So let's talk about skin care. The cold term would be purely like vitamin C serum. BeCause there's no brand. It's just purely a serum, right? Or retinol serum. All that random stuff that people search for on the internet. Or best face wash. Something like that, right? Those are cold terms. That I'm talking about. And now, the question becomes, when we're talking about cold terms. And I need whoever's going to post this to blur everything. hold campaign where we've removed brand completely. And it's the same setup. I always preach, but I'll get rid of brand and let it run and leave it alone. Now I'll emphasize this and start with saying that I launched this campaign on, when was it? July 18th. and I've made no changes to these campaigns. If you look at the changes, it's just like the build out of the campaign. Essentially July 14th, 18th was when it's on. Those are the changes here. And then 19th is the only change I made, and the change I made was not even that, hold on. There was a budget change that I made, that was realistically the only change I made. 18th was launched, 19th, and the budget increase was on the 31st. Does it, because the client wanted to scale it, right? Other than that, this campaign hasn't been touched, and as you can all see, conversions are on the rise. Good things to see, right? No thing. I haven't touched this campaign. It's just running. And we always run these campaigns on low TROAS goals here. This for this client, we've just set it to 50 percent as our target. And the reason we do that is so there's enough space for Google to learn and not restrict itself. If it gets too high, if we set our TROAS too high, it restricts itself. We end up with a finite audience and the campaign eventually starts to die. In a situation like with the low TRS, you might have a one bad week, two bad weeks, but it'll recover and you'll end up just getting way more convergence. That's the process guys just go for it. Anyways, what we're talking about is cold terms Now when we talk about people searching for products and brand terms What's the one of the biggest assumptions you can make about a brand term? One is that people already know of the brand because of the vast amount of marketing done on facebook instagram Whatever right and they're coming back via google searching for the brand to convert right? Technically those are new customers But some majority of the time, they're not Google effort customers. Like I didn't put in the work for it. I just took credit for it, right? Because it's a branded conversion. But then there's situations like you have where you can just people search for random cold terms and convert for us, That's what we have going on here. So when we look at this makeup brand, it's been running for a month now, actually. It's spending 4, 000 a day to start, when we look at what converted for us in terms of terminology, foundation for makeup, I don't even know how to pronounce this word. Clean makeup brands, face oil, best lipstick, vitamin C, serum best foundation, skincare benefits. Like it doesn't get any colder than this in terms of someone that does not know of your brand. Does everybody agree with that? Yes, no, head nods. Yeah. Yes. You're going to break your head like that. But yeah, so it doesn't get any colder than that. So is it a fair assumption to make that almost everyone that's converted here is going to be. A new customer that just found our brand, clicked our ad and bought from us. Yes, I can see a trend there that it's mostly well, it's almost all new customers, right? Yeah, but if you look at that all those search terms probably three quarters of those search term has the word best in it But that's not the point. We're trying to make here yet. Oh, no, just saying I can see yeah Transaction keywords. But can we assume that let's just say that On a like a perfect world, all these are new customers, Yeah, exactly. If they didn't know you exist, why would they search for best? They're looking for the best. If they knew of you already, they wouldn't type in best, would they? Yeah, so now let's look at some basic Northbeam numbers. And all we're going to really focus on is return, first time and return customers, right? So last 28 days, we're going to look at here. Whenever Nord Stream decides to load. oh, there we go. Transaction. Okay, so now let's look at Google Ads, And whenever it pops up. Okay. What do you see here in terms of transactions? I of the funnel. So there's 356 first time transactions in top of funnel and 45 or 42. We're not even get 45 from, but 42 return transactions from the top of funnel campaign. But we just technically agreed that people searching for that product had no idea what our brand was and they're just converting on these cold terms, right? So what's happening here? Thoughts, theories, besides going and Colby, you guys have a lot to talk because we already know. Don't shake your head at me, Colby. No. Maybe they are familiar with the brand already, but they were searching for it. Yeah, you're spot on. customer, let's say I am a customer, right? And I buy their vitamin C serum or contour stick, And then 30 days later, I come and I search for something like a vitamin C serum, right? I have already bought from this brand, right? And now I see an ad that they also carry another product that I want to buy from someone or from somewhere, but I see that they've already bought from this brand. So is there a sense of familiarity here where you're more likely to buy from this brand? Yes. Yes. that's what's essentially happening here, right? So someone that came in through a brand term initially, some form of cold term initially and came back and then started looking for other products they wanted to buy or needed, right? They searched a cold term again, And then they bought again, Does everybody follow that? So they basically bought a product that A brand they trusted or have already that they didn't know that brand had so they bought a product that they didn't know the brand had but they already have product for this brand. Everybody follow that. Yes. Yes. So now how does this play into being? Is this good for us or is this bad for us? And I'll say that it depends. Okay, actually, I'll answer this question in my opinion after. So is this good for us or is this bad for us? Everybody can join in this now. Call me Glenn. This becomes a discussion at this point. gave it away. He says it depends. In what scenario does it depend? If I say this is good for us and I'll give you this example of I don't know. We're talking skin care. Let's just continue skin care. We give continuous skin care. How is it good for us in that sense of skincare brands? Maybe on the basis of CAC, CAC is true value. So how much we are spending on those already existing customers, which don't know about the product, which a brand has, and they got through cold system. So maybe just because of CAC, we can. you're right, but the word I wouldn't use would be cac. CAC would just be acquiring a customer. These are already existing customers. The word I would probably use is LTV, let's say you bought said product one, and this is skincare products. People are gonna rebuy it, right? And the LTV for my first product is a hundred dollars. Then all of a sudden you find out that. There's another product you like using that you also buy with is product two and the LTV for that product is $150. What did my customer LTV become two 50. From 100 to two 50, correct. it's not a bad thing for them to come in. Now there's caveats to this as well where. It falls down to how often people return and buy from us right for products they didn't know exist over here. I think you did the math and you put in the chat that it was what you say 10 percent of the overlap. 42 10. Okay, let's just go with 10. So right now we're saying out of all our cold transactions 10 of people and this is a threshold that it will vary business to people this will come business to people business to business 10 of the people that are converting on cold turns did not know that we had another set of products that they want, in my opinion 10 is a good value in the skincare because usually people have like Multiple skincare brands routine and products and their routines So 10 percent in my opinion is a good number to have where I want to say it's a business fail point But it could become a business fail point when We have a lot of return customers coming in to buy other products from cold traffic because they didn't know of the product So how does that become a business fail point because the business didn't fail to educate their already existing customer base That we have on their products whether it was through ads whether it was through email Whatever it was, right? Promotions or whatever, right? Did they retarget or something like that? Does everybody follow along with that? Yes. Yeah, because if that ratio starts getting worse, you know that your overall marketing and sales funnel, there's a kink there because users are not educated and they're continuing to try to repurchase. So, I think with e commerce People don't feel brand loyalty like they do with a car. Yeah, you buy something you might not even remember buying of course email and everything's important But asama's saying keep an eye on that ratio. Because if you don't keep getting new customers That's when things will start to fizzle out.