How to Grow Your Sales with Facebook Ads
Since I started doing with Facebook Ads with my agency, I noticed that the majority of those who tried them didn't succeed in generating a positive ROI for their campaigns.
Since each industry and product has different KPI's and best practices, I wanted to give a simple overview of what it takes to create campaigns that convert, no matter what niche you are promoting.
1. Test audiences, ad creatives and value prop: When we start advertising for a new client, we always take into account a testing budget. It can be as little as $300 or as much as $2000 (depending on the size of the market and the type of business). At this stage, create five or six slightly different audiences, and within each audience, run a minimum of three different ad creatives (you can use a video, a picture and a carousel). Also, don't forget to test your value prop! What's going to engage your audience the most? Is it free shipping? A coupon? To gain statistical evidence, wait until your ads got at least 1500 impressions. Now, look at the "Performance and Clicks" report in the ads manager and see which ads had the best CTR, CPC and CPM. Stop running all the ads that are not performing and keep on running the ones that are performing well. [The benchmarks are CTR:1%, CPC $1, CPM $10]
2. Create lots of custom audiences: As you start collecting the data from your tests, you can create "buckets" of users that you can retarget. If you have been using a video, you can create a custom audience for video viewers (pro tip: only retarget video viewers that watched 50% or more of your video, they tend to be the most engaged). You can also create custom audiences for people that visited your site, interacted with your ads and posts, viewed a specific product etc.)
3. Create Lookalikes of your custom audiences: This is gold!!! Facebook makes it so easy to target a cold audience that looks like one of your custom audiences. Just go into "audiences," "create new lookalike" and choose one of your custom audiences as the source. The algorithm draws parallels between people that have already interacted with your brand and will find similar users on their network. Even though this is a type of cold targeting, your ads will start producing a ton of relevant traffic that will drive your CPC and CPM down.
4. Monitor these specific KPI's: As you start your retargeting and lookalikes, pay close attention to your CPC, CPM, CTR and Relevance Score. Especially when you are retargeting a warm audience, your Click Through Rate should go up by 2 or 3x because this audience knows who you are already! If your Cost Per 1000 Impressions (CPM) is higher than $10 still, try to create a different audience and make sure your ad creative doesn't have too much writing on it. Also, make sure your CPC is well under $1 when you are retargeting.
5. Log in every day: This is not Adwords! You can't set up a campaign and forget about it for days on end. Make it a point to log in every day and see what your results are. The higher the budget, the more you need to monitor,
6. Use DPAs: Dynamic Product Ads are the best way to promote your physical products to a warm audience. The Facebook Pixel will record your prospects' behaviours on your site and will retarget them on Facebook with the exact products or collections that they were looking. DPAs increase your relevance score, lower your CPC and help you with your conversion rate as well.
7. Avoid ad fatigue: Facebook Ads campaigns are well known for working very well until, all of sudden, they don't anymore! One of the reasons why that may happen is ad fatigue. Ad fatigue happens especially if your audience is small. If your audience is 1000 to 40000 people, you are bound to show your ads to the same people several times; this redundancy will make your ads more expensive and less engaging. To avoid this, create different ad creatives, offer different pricing, services and offers every few days or weeks.
8. Never stop testing new ads: Just because you are getting a decent ROI, it doesn't mean that you can't improve! Always test new ad creatives, ad copies and lookalikes. Make sure your campaigns don't go stale!
If you need any help figuring out how to get started, DM me on Instagram @denierob or send me an email at firstname.lastname@example.org.