How to win with eCommerce Facebook Ads in 2020
Some people already know these points, but for those who don’t, these are the ways you will win with eCommerce Facebook ads in 2020.
Go broad with audiences
A few years ago, the goal was to go tight with audiences and to go niche. Now, you want to go broad and let Facebook use its algorithm to find customers. Why? Because the more broad you go, the lower your costs go (small audiences = higher cost to reach 1000 people). Facebook has also gotten really good at finding customers for you, so it’s better to go broad than to limit Facebook.
A few ways to do this:
- You can go super broad with no targeting. This can take some time to dial in but gives Facebook the ability to figure out who they should show your ads to and can drive down costs.
- Expand audiences by choosing your audience and then clicking expand.
Make sure you bid on purchases
Again, a few years ago, the goal was to get the lowest cost per click possible. Now, Facebook has machine learning that helps you figure out who’s more likely to buy. I’m not entirely sure how this works but my guess is that they show your ads more frequently to people who pause on your ad for 3 seconds because they know that means they’re 10 times more likely to buy, etc.
The way to take advantage of this is to make sure you’re optimizing for purchases, not clicks, reach, video views, engagement, add to carts, etc. This goes for every step of your funnel, even the very top.
Make sure you spend enough at the top of the funnel
This is probably the biggest mistake I see people make. They may spend 50% on prospecting and 50% on re-marketing or even 70% on re-marketing and 30% on prospecting. Instead, you need to flip that funnel over and make sure you’re spending at least 70% of your budget on prospecting. The reason is that you need to get enough people into the funnel for re-marketing to work and ~70% on new traffic is the way to do that.
Keep in mind that your retargeting audiences should have around double the ROAS as compared to prospecting. So if you get a 2 ROAS for prospecting, you should get 4-5 for re-marketing, etc. These numbers are just general guidelines but the blended ROAS will bring you up to where you need to be as long as you’re spending enough on prospecting.
Creative matters a lot
Yes, copy matters, but creative can make or break your Facebook ad campaigns.
To make sure you’re fully taking advantage of creative opportunities, you need to make sure you’re using static images, story ads, videos, and dynamic product ads. All of those work great together, especially when you’ve got great creative assets to work with. Sometimes static works better than video, but you definitely want to make sure and test video ads as well.
Don’t forget about your past customers
Last but not least, you don’t want to forget about your past customers. The way you grow eCommerce sales is Targeted Traffic X Conversion Rate X Lifetime Value / Average Order Value. So yes, you want to reach new people and then show re-marketing ads to get even more of them to buy, but you also want to show ads to your past customers since it’s easier to get someone to buy again than to acquire a new customer.
Some ways to take advantage of this are:
- Set up campaigns, ad sets, etc. targeting past customers with your lifetime customer list or pixel purchases
- Use email marketing to get past customers to buy.