Achieving a high Return on Ad Spend (ROAS) is a key objective for many e-commerce businesses advertising on Facebook. Sustaining a positive ROAS, especially with a large media spend is not an easy thing to accomplish, but it is possible with the right approach.
In this article, I am going to reveal 3 Proven Strategies that will help you increase your E-Commerce Facebook ROAS.
So let’s dive straight into it.
Strategy #1: Scaling Lookalike Audiences
Lookalike Audiences (LLAs) are powerful gamechanger. They are audiences created based on existing audience such as prospects and previous customers who have similar characteristics and interests. Using LLAs is a great way to approach new audiences and scale a successful product or service beyond its local environment. That can help you increase your website traffic, prospects, or customer base, because the Facebook users in the Lookalike Audience share interests and demographic similarities with your source audience. For example, if an audience is made up of users who are male, age 25-54, and interested in e-commerce, and online shopping, Facebook will find an entirely new set of users with the same characteristics.
Now, after you already know what Lookalike Audiences is you probably ask your self the following question “But what kind of Lookalike Audiences to create and how to find out which one works best?”
The Solution is to split-test them. Try launching three to four separate ad sets with one Lookalike Audience each based on pixel events, depending on the amount of audience overlap between them (Tip: Try avoiding any overlap above 25%).
You can create the following Lookalike Audiences:
- 1% of Previous Customers
- 1% of Add to Cart Audience who visited your website in the last 30 days
- 1% of Email List Lookalike Audience
- 1% of Specific Product Page View/Website Traffic Audience
This is a great start but as a next step, you need to make sure you create the right ad with the relevant message, as these will be people who have probably never heard about your brand but have an interest in similar products or services.
Strategy #2: Use Retargeting
Facebook Retargeting is a MUST use strategy in your e-commerce business. The type of audience you can create when using Retargeting is called Custom Audience.
It allows you to reach prospective customers who have shown an interest in your business or product, based on their online activity. You can create a different type of Custom Audiences such as:
- Email Sign Ups
- People who Added to Cart But Not Purchased
- People who visited a specific page on your website such as Product Page or Blog Page
- People who engaged with your Facebook or Instagram social media page
- People who watched a certain percentage of your video
Begin by creating different time slots for your retargeting ads. I always like to start with a 3-Day, 10-Day, and 30-Day Custom Audience. Now is the perfect time to say that if you are using Dynamic Product Ads, you can also customize those time slots. Remember that each of these windows gets an ad that is slightly different from the other because the message to someone who visited your website 3 days ago should be different than someone who visited 30 days ago. Try customizing each pitch with different offers and promotions. Using different ad types will allow you to scale sustainably because you are showing different value propositions to your potential customers, which ultimately helps you understand what is working and what isn’t. Also, make sure you exclude 3-Day Audience from 10-Day and 30-Day ones and 10-Day from 30-Day one to avoid message overlapping.
Strategy #3: Constant Creative Testing
After we have talked about different strategies on the ad set level, let’s now talk about a strategy you can use on ad level. The third and last strategy I want to share with you in this article is a strategy that you should always be using, especially if you start using Facebook ads for the first time. It’s the strategy of constant creative testing.
This is a necessity if you want to identify the best performing ads that can significantly improve your ROAS. You should constantly be testing different creative variations to avoid ad fatigue and maintain high ROAS. By using the right creative, you can provide value to your customers by creating meaningful connections and giving them a reason to purchase your product or service. Consumers are more likely to resonate with an ad if it is something they can relate to or if it is relevant to their interests.
When it comes to scaling your Facebook ROAS, there are numerous other strategies brands can use. These are just three examples that we have tried with so many businesses and every time we have successfully scaled accounts and generated high ROAS.
Well, what are you waiting for? Open your Ads Manager and start implementing these strategies and let me know in the comments below or via email how your ads are performing.
Hope this was helpful. Let us know if there is anything else you would add or if you know any other strategies that you have used in the past and increased your ROAS.
Are you struggling to get the best results out of your Shopify Store? If you are, then you probably know that generating sales can be a very difficult thing. Don’t get discouraged. Luckily, there is an effective way to help your business get more customers and give you higher returns for much less cost than any other traditional methods. This way is called Facebook Ads.
Facebook Ads is like a “goldmine” for E-Commerce businesses if they know how to use it and have the right strategy behind their advertising. Facebook advertising helps brands connect with their ideal customer who is most likely interested in their content and will engage with their products and services, leading to a sale. Facebook ads offer the allure of reaching out to your target audience based on their demographics, interests, and behaviors.
This article reveals 6 steps that will help you generate more sales on your Shopify Store using Facebook Ads.
Step #1. Make Sure You Set Up Your Facebook Pixel
The Facebook pixel is a piece of code you place on your website that measures the effectiveness of your Facebook advertising, improves your conversion rate, and gets better ROI. Having a Facebook Pixel allows you to retarget people who have already visited your website and taken a certain action. It also collects data that helps you create targeted audiences such as Custom and Lookalike Audiences, run effective and efficient ads, and track conversions. Using Facebook Pixel is an easy and effective way to ensure that your social ad spending produces the best results, all by making it easier to reach the right people for your product or service. If you haven’t got Facebook Pixel installed on your website, now is the time to do it.
Step #2. Use Retargeting
Retargeting, the process of targeting people who have expressed an interest in a particular product or service is of particular use when it comes to creating Facebook Ads for your eCommerce business. Retargeting is so effective because it focuses your advertising spend on people who are already familiar with your brand and have recently demonstrated interest. It allows you to go after your potential customers, even as they are simply browsing your website.
This allows you to target, through Facebook Ads, people who have already visited your online store and may have expressed an interest in your products. On Facebook, this type of audience is called a Custom Audience.
How Retargeting works is that when people visit your website, they are tagged with the Facebook Pixel code that allows for their tracking. When they open their Facebook, they are then shown ads that are relevant to the products they have seen while visiting your site.
Retargeting allows you to:
- Remind people of the products that they have seen on your website
- Offer them a discount on those products
- Promote related products
- Target people with specific ads called Dynamic Product Ads
Remember, always use Retargeting for your Facebook Ads. Retargeted visitors are 70% more likely to convert on a website compared to those who visited the website for the first time.
Step #3. Dynamic Product Ads
Dynamic Product Ads (DPAs) are one of the best ad formats for e-commerce businesses. DPA are a way to create customized advertising content for your Facebook audience, personalized according to the individual consumer’s data: making them more useful, more welcome, and significantly more effective. They appear to users who have previously engaged with your website, showing them relevant products and are a great tool that pushes customers interested in your products to make a purchase. E-Commerce businesses now have the chance to promote products quickly, easily, and aesthetically on Facebook, and all straight from their product catalogues. A Product Catalogue is an excellent way to show customers your product line. It is an object of information about your products and a container where you can upload your inventory.
DPAs appear in Facebook’s mobile application. This makes it possible to identify a user and follow their browsing behaviour. Based on audience interest data from your site, you can up-sell and cross-sell or retarget audiences with dynamic product ads, regardless of what device the audience was browsing on.
Those eCommerce businesses using Facebook Dynamic Product Ads already report positive results, so it may pay to prepare now to get ahead of the curve and make a big difference for your ad campaign’s ROI.
Step #4. Warm Traffic – Engaged Audiences
Warm traffic is the people who have already engaged with your business in some way but haven’t purchased your products. They may have visited a certain page on your website, watched one of your videos on Facebook, may have liked your Facebook or Instagram page, engaged with a post, or have taken any other certain action. Warm audiences have not made a purchase or booked in for your service yet. However, there is a good chance that with more time, information, and value they may become a customer. So use this opportunity to nature them via retargeting campaigns, email newsletters, new blog posts, and regular social media updates to get them to convert.
A warm audience may be leads or prospective customers who have had some level of interaction with your business such as sharing with you their personal details in exchange for a discount code, coupon, free shipping, or any other free lead magnet form. An effective way that you can use these types of audiences to generate more sales is to create so-called Facebook Custom Audiences and target them directly with ads specifically tailored to them.
Step #5. Carousel Ad Format
Facebook Carousel Ads is an ad format, which lets businesses showcase multiple images and links in one ad. According to Facebook, advertisers have seen Carousel Ads drive 30-50% lower cost-per-conversions and 20-30% lower cost-per-clicks than a single-image link ad.
Carousel Ads are an exciting and innovative way to get your clients more involved with your advertisements on Facebook. Through the use of more creatives such as videos, imagery and detailed information than a traditional organic post or advertisement, Carousel Ads offer the chance to engage more with your audience.
The carousel format allows you to display up to ten images or videos within a single ad, each with its own link. With more creative space, you can highlight different products, list the benefits of the product, service, or promotion, or tell a story about your brand. It’s interesting how so many brands use this type of ad format in a really creative way of storytelling.
Step #6. Video Content
Nowadays, it’s essential for brands to use videos as part of their advertising. Video creative is one of the best performing formats on Facebook, helping businesses get more reach, lower CPC, better engagement, and more sales. It enables you to introduce your brand, say much more with less, and show off individual products. If you aren’t using video as part of your advertising strategy, it’s time to start.
Here are some stats on why videos work so well:
- Videos are much better, mainly due to the auto-play feature. As the Facebook user scrolls down the feed, your ad suddenly starts playing and you get a chance to capture their attention and show exactly what benefits they will get from your business.
- Consumers are 27 times more likely to click on an online video ad than a banner ad.
- Video helps your message go viral. BrightCove reported that social video generates 1200% more shares than text and images combined.
- According to Aberdeen Group, companies who use video for marketing are growing their revenue 49% faster than brands that aren’t.
- Forbes reports that “viewers retain 95% of a message when they watch it on video, compared to 10% when reading it in a text.”
So, there you have it. Six proven steps to get the best results out of your Shopify Store using Facebook Ads. We have used all these tactics in our clients’ businesses so many times, and we identified that they work very well. Therefore, we encourage you to try them as well and share with us your experience and results you generated.
Hope you enjoyed the article, let us know what you think by leaving your comment below.