Are you a beginner/intermediate in the Facebook ads world? Have you tried Facebook ads but didn’t get the results you expected?
I am here to tell you that is not that hard as you may think, I am here to tell you that YOU don’t need to change your ad strategy after learning this, I use the same strategy for all my drop shipping/eCommerce stores.
Simple but effective Facebook ads
Most of the time if your ad is not working, the problem is with your product, store design, or your product validation method.
In this article I will show you my simple but effective Facebook ad strategy, I will teach you low budget strategy if you have a tight budget and high budget strategy to speed up your campaign conventions.
What you need to know if you are a beginner is that Facebook’s ads have their structure and organization,
but before we jump into the article I want to give you an overview of how the system is organized, what each part of the system is all about.
Facebook ads Overview
1 Phase: Testing
This testing phase is all about getting a new ad account,
here you’ll be testing a different creative and audience combination until you will find something that works well for your product
# Option 1
This method is considered for beginners and intermediate, it consists of starting with $50 ad spend per day
For the interest, I would suggest you exclude Shopify, Aliexpress, Dropshipping, now you may be wondering why,
simply this is just to make sure that other dropshippers aren’t going to copy you, which would lead a campaign to run into saturation.
Let’s move towards our advertsiments here, all you have to do is upload your advertsiment you have created in Invideo
Here you will have to become creative with the marketing, try to emphasize the best pros of your product,
take your time as this is a very important part because 85% of potential customers will read your headline and primary text, before even clicking on your ad.
Next, duplicate the ad once, and simply, but, this time use a slightly different thumbnail.
In this part we need to duplicate our adsets twice
Let’s change the interest to something else using the suggested feature that will allow finding other related interests, at the end you should have eight ads.
Once you have changed all your interests, then schedule the campaign to run the next day, click on preview and publish.
# Option 2
It is a more advanced method for expert dropshippers,
it consists of starting with a minimum of $300 ad spend per dayThe only differences between these options are the amount of time it will take you to scale. MORE BUDGET= FASTER SCALING
2 Phase: Scaling Interests
The scaling interests are all about taking your working interests and trying to scale up your ad spend to acquire more data quickly.
3 Phase: LLA Test & scale
The LLA is all about creating, testing, and scaling lookalike audiences,
you will use all the data that is available and introduce additional lookalikes once you have acquired enough data.
4 Phase: End Game
This is where you are going to build up your spending and start to see some big numbers thanks to a broad targeting campaign,
it is the final stage of any ad account and at this point, you can scale as high as you would like.
Phase 1 # 1 Option Low Budget Strategy
The reason why this is a low budget strategy is that we utilize more machine learning (AI) AND give Facebook more responsibility for how to utilize our budget,
Facebook has been improving its AI over the years, which is why in this method we utilize only CBO, very broad interests,
automatic placements, very few numbers of ad sets, and let Facebook do the heavy lifting.
In the past, you have to test a lot of interests and find very specific interests to reach profitability,
but now you will see better performance utilizing broad interests and giving Facebook the ability to find the exact audience within the large interests.
By utilizing broad interests you will have access to cheaper CPM more reach, a larger customer base,
and because the machine has become so smart you will get better results letting the machine do the work
Bidding: Automatic ( Lowest Cost)
Time: Starting noon next day
Location: Worldwide (with some countries exceptions)
Interests: exclude dropshipping, Aliexpress, Shopify
Conversion Window: 7 day/ 1 day view
Let’s start creating our campaign, I will guide you to start a low-budget strategy, head over to your ad manager, click on create.
Select the campaign objective for conversions
Next, we will set the budget to $50
Our first adset name is going to be Petco because we are going to be targeting this pet supplies company,
you want to name all your adsets the name of the interests that you are going to be targeting, this way you will know which adset will drive your sales.
Also, keep in mind to target only interests and not work or employees
Make sure to schedule the next day, because sometimes Facebook requires 10 hours before they approve your advertisement
Lets’s say you set up your ad at 6 PM and they approve it, then your ad will run from 6 PM until 12 AM
and the Facebook algorithm will try to utilize all that budget within those hours, while if you set up at noon for the next day Facebook
will have 24 hours optimization window to spread the entire budget throughout the day.
For the detailed targeting, we have selected Pet store usually, we choose interests with more than 10 million people,
then we need to exclude some interests,
do not exclude too many interests, I recommend a maximum of 5 keeps, it broad to allow the algorithm to find your audience
We exclude these interests because we could run eventually into saturation
if you have too many dropshippers copying your ad, so to prevent that I will exclude those.
Next, make sure to name your adset the same name of the interest you have chosen, this way, it will be easier for you to identify which interest is driving sales and which not.
Also, make sure to uncheck detailed targeting expansion
Moving forward to our ad, we are going to upload our video, that we have created in invideo
All you have to do is upload your ad, I have 3 different variations of the ad, the only difference is the scroll stopper,
which means the video is the same but only the 3/4 seconds of the video are different to see which video performs the best.
Here is where I see many people make the mistake to select their website main menu URL to send traffic to,
if you are selling dropshipping products, you want to make sure to send traffic to your product page URL
After you have set up your ad, let’s add a custom thumbnail to make it look more professional
Then choose your custom thumbnail
Is it all clear until now? if something is unclear make sure to drop a comment in the section down!
and if you want to learn more about Facebook ads I suggest you take a look at my Facebook machine learning article to understand better Facebook mechanics.
Let’s continue, for my ad copy I come up with the idea of a problem that people may have, which is to keep track of their dog anytime they want
and anywhere they want, without worry again if their dog wants to run away! And then I use three bullet points to highlight some of the key things that people may be wondering,
Is it hard to use?
What if I don’t like the product?
So for the bullet points, I just answer any objections that customers may have about the product,
The product is easy to use
In case you are not satisfied with the product, there is a 30-day money-back guarantee
Once you have set up your ad, we need to duplicate it 2 times,
For all the same 3 videos keep the same thumbnails, this way we will know exactly which video will perform the best, and make change accordingly
After that, we need to duplicate the interest three times
Now, let’s change the interests name from the bottom to the top by utilizing the suggestion function to pull out the other interests.
Remember to choose broad interests to allow the algorithm to have enough data to work on
Once you have selected your targeted interest, make sure to delete the other interest,
in our example the pet store interest, repeat this process until you will have 4 different adsets.
There you have it, you have four adset and within these adsets, you will have three ads per adset.
For those of you who may be wondering why we don’t spend a lot of time researching audiences?
Simply because Facebook has become so smart that spending more time trying to find specific interests lead to the worst results
because the machine can perform so much better if you can give a very big size and let it filter through these big audience size and find the exact people
Instead of giving a small list where you may have only a million people audience, and is going to cost a lot more money for Facebook to find opportunities to bid for these people advertising space
because you have a much smaller audience size and because of that you will have much less potential customers inside one million size audience VS ten million size audience,
Spend less time in doing research, pick broad main interests, and most likely if your creative is right, your price is good, your landing page is also good, then you should be able to see conversions the first or second day,
now that everything is set up all you have to do is to click review and publish and you are ready to launch your ad campaign, congratulations!
Once you have published your ad will go under manual or automatic review process, this can take sometimes, depending on a various number of factors such as:
After your ad will get approved, let it run, then analyze it
How long do you let the ad run before making any decision?
Well, it depends on the cost of your product, usually, we let our campaign spend 2x the cost of our product, to know how long you should run it for we use the following formula
(Product cost x 2) / Daily budget
which is $50 in our case = number of days
If when you put the number in, isn’t a whole number, round up the whole number
Product $30 x 2= $60/ daily budget $50= 1.2 which we round up to two days
When to Move to Phase Two?
You will need to follow these requirements to meet the criteria of the whole strategy and more importantly before moving to phase two
Make sure that one or more of your adsets meet one or more of the following conditions
At least 3 purchases
Cost per purchase is either break even or profitable
If you have few purchases with at least one of the adset break-even or profitable CPP continue running your ad for a two days
If your CPP is too high or and you have very few purchases then you may want to check out this guide on where I will teach you how to troubleshoot your funnel
Phase 1 # 2 Option
The high budget strategy is recommended for more advanced dropshippers with more ad spend budget, this strategy allows to test multiple creatives and audiences in a single day, which is perfect if you want to scale fast!
You will spend a lot more in a day, $500 the first day and potentially $1000’s the second day, if you are not comfortable with that jump, I will recommend going with the low budget start.
The high budget set up is relatively straight forward, your test campaign is going to be a $500 daily budget CBO with 10 adsets with 3 different creatives per adsets
The settings are:
- Budget: $500
- Bidding: automatic (Lowest cost)
- Conversions: Purchases
- Time: Start noon (the next day)
- Location: Worldwide (except for some countries)
- Age: 18-65+
- Gender: All
- Interests: exclude dropshipping, Shopify, Aliexpress
- Placements: Automatic
- Conversion Window: 7 day click/ 1 day view
For the interest targeting, I will do something similar to the low budget strategy, except for something slightly out of the ordinary, in our low budget method we picked up four broad interests with more than 10 million audience sizes to start with. Since we are running the dog tracker device we picked up
- Pet store
- Dog Training
- Dog Food
Which I was able to generate using the suggestions interests features within the ads manager
with the high budget strategy with the method will include these audiences, but in addition to this you also want to find four more audiences that two also broad but more roughly related to your product, in the case of the dog tracker device I would use the following:
- Dog walking
- Animal welfare
I will also pick up more interests closely related to dogs
- Pet smart
- Nestlé Purina PetCare
Once you have set up your interests make sure to schedule to run at midnight the next day and let it run for a whole day before moving on to step two
When to Move to Phase 2?
Dealing with a higher budget you can have a good idea of where you are at, after a much shorter period, with a $500 budget you can do so after only 1 day
Process to follow
If your cost per purchase is 20% above your target CPP close up your campaign and attend this article where I explain the way to troubleshoot your funnel.
If you’re break-even or above your target CPP then let your CBO run 1 more day to ascertain if your performance increases before moving on to phase 2
This phase is one of the most important parts, so focus with me, let’s say you found a profitable audience that is working for you,
just because these audiences are working at the initial stage at a lower budget doesn’t mean that it will continue to do so when you will try to scale it up,
these audiences are just starting point, what we want to do is to feed the Facebook machine algorithm with data so that can find potential customers for us,
first, we use the lookalike audiences, and then with broad targeting later on
While you keep the existing campaign running to keep collecting data, it will likely take a while for you to get the data to scale properly.
Set Up Scale Campaigns
Take the three best adsets from your previous testing phase and duplicate them into a new CBO campaign
Picking the Right Audiences
If you use the low-budget method, most likely you won’t have three profitable audiences, in that case, you need to select your best audience and duplicate it three times.
If you decide to start with a high budget method, you may find even more audiences qualifying for scaling,
in this case, you will need to narrow down to three large audiences,
FRIENDLY NOTE: Prioritize the larger audiences, the ones with more initial conversions.
These audiences will be more typically more promising at the initial stage and it will help to guide the machine learning algorithm in the right direction
Narrowing Down the Creative
After you have decided which adset you will go with, you also want to start using the best performing creative
How Do We Find the Best Creative?
An easy way to tell what is your cost per purchase is for a particular creative is by using the creative report feature in your ads manager, which can be accessed via the sidebar
This will save you a lot of time when having to look at multiple copies of the same advertisement and doing the math manually, just look at the performance of each creative of all your adsets.
Beginner Friendly Note
A CREATIVE IS AN IMAGE OR VIDEO THAT YOU ARE GOING TO USE IN YOUR MARKETING CAMPAIGNS
Determining your CBO Budget
To decide how you want to scale you will need to consider few things
- Initial Performance
- Starting Budget
- Your Audience Size
If your performance were great when you started, you will be safer scaling up high than if it was breakeven
If you started with a $300 budget, duplicating it into another $300 budget is much safer than doing from $50 adset
Since you already know that the audience will perform better with a higher budget, and providing more data, will get you a better performance.
Take into consideration also how comfortable you are to scale up, if you don’t have enough money to scale, don’t do it especially if you are a beginner.
In general, this is the set up of a CBO campaign
How do we move forward once we get to this point?
It will entirely depend on your campaign performance, the first thing you need to ask yourself, were you profitable or breakeven?
if you are in profit, increase your daily budget following this guideline:
- lower than 70% of your target CPP then 2x your budget
- CPP 60% of your target CPP then 3x your budget
- If your CPP is less low than 50% of your target CPP then 4x your budget
For example: if your target CPP is $200 then 60% of your target CPP is $120.
What retargeting mean? Simply retargeting means when an audience engaged with your ad but didn’t commit to a purchase, the point of retargeting is to keep your audience engage with your brand to pull them back to your website to finish the purchase.
We have mainly three types of retargeting methods
- Testimonial ads
- Functional ads
- Coupon ads
The testimonial ads are designed to recover any potential objections about purchasing due to lack of social proof and customer testimonial,
that’s why we always recommend including reviews in each of your products, also it is not a bad idea to include testimonial proof in your ad to re-affirm your brand trust level.
You can include images of your product with a testimonial quote of your product, and in the case of a video ad,
having a customer talking about your product is great.
Recently we have been using influencer video ads to level up our video testimonial campaign using Billo
The purpose of this ad is to educate your audience on your brand and product, in case they never saw your original video ad or watch few seconds of it and didn’t fully engage.
It is similar to the video ad you created for your cold audience, but this time mix up some of the footage and maybe include details that you may have left out
this type of ad will typically be a video or a collection of images in a form of a carousel ad.
This type of ad is generally more effective if many of your potential customers may find your price point to be an issue
In the past, I have tested 5% to 30% off and some have been pretty effective, so if you suspect that your price maybe is an issue, then definitely try out a coupon code.
Retargeting Campaign Setup
You will be using a CBO campaign with a daily budget of 10% of the daily spend of all your campaigns.
You will need seven adsets in this campaign, each of which will use one of the following custom audiences
- Video view 95% -7 days
- Video view 75%-7 days
- Page view -7 days
- Facebook engagement -7 days
- Instagram engagement -7 days
- Top 25% website visitors by time spent- 7 days
- Add to cart – 7 days
- Initiated checkout 7-days
As for the other settings, we will be using
- Automatic placement
- Automatic bidding
- Launch at noon next day
Within each of these ad sets, you will place three different retargeting ads
You can have two different testimonial ads and one functionality ad, although I recommend mixing up these ads to figure out what works the best for your product.
Managing Your Retargeting Campaign
After your ads will run for a day or two, check them, they should perform well, if this is the case try increasing the budget gradually every few days.
Phase 3 LLA
Now that you have seen some real data it’s time to make, custom audiences that gather first correspond to those who appear first in the conversion funnel.
We test our LLA people who interact in the following way
- People who view your video view 75% and 95%
- People who interacted with your advertisement- Facebook engagement
- Page view
- Add to cart
- Initiated a checkout
- Make a purchase
The reason why we recommend testing LLA in this order is that we need a minimum of 500- 1000 people in your custom audience before making its lookalike.
If you haven’t met the minimum requirement then I recommend spending a bit more time and coming back when you have met these requirements.
Congratulations on making it to the final phase, in this phase you will be utilizing the full Facebook machine learning potential
by leveraging broad targeting, automatic placement, and CBO you will be giving Facebook full control on how to manage your ads,
70% of the time this method will work, however, I can’t guarantee this method will work every time,
sometimes you will need $3000 for this to work and sometimes it doesn’t even work with $10.000 of spend.
The amount of data you will need for this method to work will vary from store to store but the minimum requirement
for this to work is at least $3000 spend the reason why this method will work so well in phase four is that you have collected enough amount of data for
Facebook to work to fully understand exactly who your target audience is, in this phase,
you are going to be creating a high budget campaign with adsets that have no defined audiences targeting
the only thing you will need to specify is budget, location, and language
Final Phase Campaign Setup
The setup is very simple: one CBO campaign with two adsets, one targeting the USA, CANADA, AUSTRALIA
and the other one targeting worldwide using the best performing ads with the language set to English all,
with two ads in each adsets In this campaign you will need to set up a minimum spend for each adset, the minimum spend will be 20% of your total budget,
so if your budget is $2000 then each adset will get a minimum spend of $400,the reason why we are using a minimum spend limit
is that the CBO will tent to favorite large audience sizes due to the cheaper reach,
Once you finish setting up your campaign, schedule it for the next day and then publish it.
Check CBO Campaign Results
The main things that you will need to check after a couple of days are:
Were the adsets profitable? ( USA,CANADA,AUSTRALIA,WORLDWIDE)
If your campaign was profitable then most likely Facebook figure out where to allocate the budget.
Keep monitoring your campaign and continue to double the budget as long as you strike your target cost per purchase.
Campaign Level Breakeven
If performance doesn’t increase after each day or two, then kill the campaign and return to phase.
If performance does increase then let it run another day
How to scale once you see better performance? simply by doubling the budget every day, as long as you achieve your target cost per purchase
What if when you scale your performance goes down?
Sometimes when you scale too rapidly you may see a decrease in performance, in that case,
scale down the budget to the original budget when you started to scale.
To Sum Up
In the ultimate phase, there isn’t much to do, just continue to scale until you will see a decrease in performance, but of course,
there are still a lot of things that I can’t teach such as intuitions, and experience, not every scenario will be the same,
and it will be up to you to apply the foundations of this article
to achieve success, this system is meant of giving you means of running ads that will get you going with your drop shipping career,
yet, to truly progress at Facebook advertisements you’ll need to become innovative at Facebook
you’ll have to continue to test new features, set up, products, and niches, so best of luck to all of you.