E-commerce companies are on a rise today as many of you know already. With a rapid growth rate and a market cap that already exceeded 3 trillion USD, e-commerce is the way forward for business. The industry found a partner in Facebook, the biggest social media platform in the world. With more than 2 billion monthly active users, Facebook offers a huge pool of audience to the companies. In order to grab their attention, Facebook Ads have emerged as a great tool and for a lot of companies, the most used. Remember, if businesses keep spending money on Facebook, it might be because it’s worth it, right?
But how exactly do Facebook Ads work, and how can you use them to grow your business? Well, here is everything you need to know. But before that, also have a look on our post here on a guide on how to use Facebook ads for beginners.
Getting Started with Facebook Ads
Table of Contents
- 1 Getting Started with Facebook Ads
- 2 Not All Ads Are Made Equal
- 3 Targeting the Audience
- 4 Tips for Getting the Most Out of Facebook Ads
- 5 Conclusion:
Usually, you can access Facebook ads directly from your page as a sub-section. It is called the “Ad Manager” and is a very straightforward way to create ads. While being the simpler way, there are some downsides to it too. In case you have more than one page, or there are many people who manage the same page, then the default mode falls short. This is where Business Manager steps in.
Business Manageris a management system that gives you an integrated control over the ads on every page you manage. It provides you with insights, metrics, and ad creation options. For beginners, Business Manager might seem like an unwanted complication. However, if you want to utilize the best feature of Facebook ads like Dynamic Ads and Facebook Analytics, Business Manager is a must.
One more thing worth knowing here is the Power Editor. Like Ads Manager, Power Editor is another free Facebook tool for creating ads. However, while the Ads Manager is simple and provides basic features, Power Editor gives you greater flexibility.
Not All Ads Are Made Equal
“Facebook ads” is not a single entity. It is an umbrella term and consists of a verity of ads, each serving a different purpose. If you hope to achieve the best results and best conversion on your e-commerce website, then it is imperative to know about these types:
· Website Ads (traffic or conversion):
These are the most common ad types for e-commerce websites. They usually include an image and a link to the website itself. Traffic or conversion campaign as well as engagement campaigns can also be a video ad, however this is just the most common (even though video has higher engagement rate).
· Multi-Product Ads (catalog or carousal):
Also known as Carousal ads, they are a relatively recent trend on Facebook. The ads usually contain multiple products in the same post, which users can view with a swipe. It gives users more choices and has a higher CTR.
· Offer Ads:
Offer ads are similar to Domain ads, but they contain specifically an offer or a discount code. The target audience is usually the existing customers of your brand.
· Video Ads:
Gaining popularity rapidly, Video ads are great for building your brand story as well as giving more details about the product. Videos are also more captivating than text or images, so they have higher engagement.
· Lead Ads:
Lead ads are not ads in the true sense since the advertisement is just a front for collecting user information in the background and performing lead generation.
· Dynamic Ads (DPA):
Dynamic product ads are also fast gaining popularity due to their vast flexibility. Dynamic ads require only a template which is then filled with product info by Facebook itself, depending upon the preferences of the user in question.
· Sponsored Ads:
These are also not ads in the strictest sense, but rather promotions made by another brand via partnership. The advantage here is that you get access to the audience of the other brands.
Targeting the Audience
The primary focus of any kind of advertising is getting the attention of the audience. While TV and newspapers ads have to do it in a much-generalized manner, Facebook Ads provide the flexibility to target.
This targeting could be classified into the following two categories:
i) Broad Targeting:
It simply refers to targeting the audience that fulfills any of the criteria that you mentioned in the ad. For instance, if you are a company that sells sports equipment, you would set criteria like “cricket”, “football”, “tennis” etc. and show the ads to people who are interested in any one of them.
ii) Specific Targeting:
It focuses on the audience that fulfills a particular set of criteria. It is a sort of refined advertisement that ensures that people who are really interested in the products you offer would see the ad. This strategy works well for companies that sell specialty products.
Apart from this, there are certain other types of targeting like:
- Interest-based targetinguses “interests” to find its audience. It is the most commonly-used metric as most Facebook users mention their interests on their profile.
- Behavior targetingis a more nuanced strategy that looks for the behaviors of Facebook users, like their search and purchase history.
- Demographicis another useful way of targeting, especially when your product would be relevant to only a certain type of people. For instance, if you are selling female accessories, you would want to exclude males from the target audience. Similar refinements could be done using age and location.
Tips for Getting the Most Out of Facebook Ads
Understanding how Facebook Ads work is just a beginning. There are some nuances that the official documentation won’t teach you. For leveraging Facebook Ads to the best, you need to follow these tips:
1) Images Soothe the Eyes:
People scroll through their Facebook newsfeed quite hastily, and it takes something stunning to make them look twice. Great images are used everywhere for creating successful marketing campaigns, and Facebook is no different. In general, the following must be kept in mind if you want to captivate your audience with images:
- Using high-definition images with vibrant colors.
- Positive emotions like cheering, happiness etc. gather more attention than grim emotions.
- Generally, pictures of women are catchier than pictures of men.
- Text should be used to make the image more informative, but not at the risk of cluttering the image.
2) Use Facebook Pixel:
Despite its advantages, most people haven’t heard about Facebook Pixel. Pixel is a code that is placed on your website and tracks everything that goes on between the website and Facebook. It allows you to measure various metrics like conversion rate. However, the most impressive feature of Pixel is its ability to optimize Facebook ads on the basis of customer activity on the website. Depending upon the customer conversion, you can optimize your ads to suit the purpose.
3) Leveraging Multi-Product Ads:
One new trend in Facebook advertising is multi-product ads. It essentially involves advertising multiple products in the same ad. So far, this idea has been working great for e-commerce websites.
Due to multiple products, more clicks occur per ad. This reduces the cost per click, while also prompting multiple products in the same post.
4) Dynamic Product Ads Are Great:
Perhaps the most popular and effective strategy right now is to use Dynamic Ads. As the name suggests, these ads are dynamic in nature. As the owner, you have to only create the template for the ad. Facebook will pull the other relevant details, including pictures, directly from your website. These ads, with different products, are shown to the users depending upon their interests and browsing history.
Dynamic product ads have shown to have a high CTR and low CPC.
5) Focus on Retargeting:
It might seem that making the customers visit the website and choosing products is well-worth the money spent on ads. Well, wrong. The true success is achieved only when users become customers and purchase the products. However, almost 3 out of 4 users abandon their shopping cart before making the final purchase. If nothing is done, most of them won’t return to you.
This is why retargeting is important. In fact, people are more likely to visit your website if they have visited it before.
6) Focus on Brand Story:
Facebook is unlike any other medium you might choose to advertise on. People use Facebook to connect with others, so your brand must achieve that first.
Brand Story is a concept that involves telling the story of your brand through a sequence of ads. It does not advertise your products or services, but the vision and ideology of your company. It might seem counterintuitive to spend money on ads without advertising a product, but building trust is also an essential part of growth. Alternatively, you can try advertising a product through a story that conveys the core beliefs of your brand.
7) Custom Audience:
Like custom email lists, Custom Audience feature allows you to target specific customers on Facebook. Depending on the factors like age, gender or location, you can decide to create ads for specific people. For instance, if your company wants to sell video games, then it might want to cater specifically to males between 15-25 years of age. Customer Audience feature could be used for various purposes, like:
- Using an existing customer list and showing ads to prompt them to like your page.
- Advertise offers and promotions that are relevant to the customers.
- Identify people who had the maximum engagement and reward them.
There is no denying that Facebook Ads gives e-commerce companies a power that is unprecedented in the history of marketing. With the right approach, Facebook Ads can help you grow exponentially.