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Module 8

The Logic of Online Ads

Digital Marketing & AI Launchpad

Phase 4: Amplification

Duration: 1 hour

Learning Objectives

  • ✅ Understand ad auction mechanics
  • ✅ Map the marketing funnel (TOFU/MOFU/BOFU)
  • ✅ Explain retargeting strategy
  • ✅ Identify psychological ad hooks
  • ✅ Use AI for ad angles

How Ad Auctions Work

👤 USER SEES AD SLOT
💰 ADVERTISERS BID
⚖️ PLATFORM EVALUATES
🏆 WINNER DISPLAYS
Ad Auction Formula

The Auction Formula

Score = Bid × Ad Quality × Relevance

  • Higher quality ads can win at lower bids
  • Relevance to audience matters
  • You often pay less than your max bid
Marketing Funnel

The Marketing Funnel

🔝 TOFU - Awareness
Largest audience
🔄 MOFU - Consideration
Interested
💰 BOFU - Decision
Ready to buy

Content by Funnel Stage

Stage Content Objective
TOFU Educational, entertaining Awareness
MOFU How-tos, case studies Engagement
BOFU Testimonials, offers Conversion

The Big Mistake

Running "Buy Now" ads to cold audiences

  • They don't trust you yet
  • Haven't experienced value
  • Competition is highest

What is Retargeting?

Showing ads to people who already interacted with you

  • Website visitors
  • Video viewers
  • Social engagers
  • Cart abandoners

Retargeting Stats

Metric Cold Retarget
CTR 0.07% 0.7% (10x)
Conversion 2.35% 3.8% (60%↑)
Retargeting Loop

The Retargeting Ladder

❄️ COLD
Never heard of you
🔥 WARM
Engaged content
🌡️ HOT
Showed intent
💰 BUYER
Purchased

AIDA Framework

  • Attention - Stop the scroll
  • Interest - Create curiosity
  • Desire - Show the benefit
  • Action - Tell them what to do
Psychological Hooks

Psychological Hooks

Hook Example
Pain Point "Tired of low traffic?"
Curiosity "The trick Google hides..."
Social Proof "Join 10,000+ marketers"
Scarcity "Only 5 spots left"
Transformation "0 to 10K in 90 days"

🤖 AI Hook Generator

I'm creating ads for [product/service].
Target: [description]
Main benefit: [what they get]
Pain point: [what they avoid]

Generate 10 ad hooks using:

- Pain point hooks (3)
- Curiosity hooks (2)
- Social proof hooks (2)
- Transformation hooks (2)
- Scarcity hooks (1)

Video Ad Structure

0-3 sec: 🎣 HOOK
3-10 sec: 😟 PROBLEM
10-20 sec: ✨ SOLUTION
20-30 sec: ⭐ PROOF
30-45 sec: 👉 CTA

Key Metrics

Metric Meaning
CPM Cost per 1,000 views
CPC Cost per click
CPA Cost per action
ROAS Return on ad spend

Hands-on Activity

"The Funnel Map" - 45 minutes

  1. Funnel Mapping (15 min)
    Draw TOFU → MOFU → BOFU stages
  2. Hook Development (15 min)
    Use AI for 10 hooks
  3. Journey Visual (15 min)
    Complete customer path diagram

Deliverables

  • ☐ Customer journey map
  • ☐ 10 ad hooks by psychology type
  • ☐ Ad creative brief (TOFU)
  • ☐ Retargeting audience list

Key Takeaways

  1. Quality beats budget - Better ads win
  2. Funnel before forcing - TOFU → BOFU
  3. Retargeting converts - Warm > cold
  4. Psychology drives clicks - Use hooks
  5. AI accelerates creativity

Next Module

Meta Ads Manager

Technical execution of paid campaigns