Hit a Home Run With These 4 Facebook eCommerce Marketing Strategies
Facebook eCommerce marketing is ever more competitive and ever more profitable. Here are 4 things you can do today to grow your business with Facebook ads.
In the last quarter of 2019 Facebook reported that 6 million + businesses were using their platform to reach new audiences through Facebook ads (source: lyfemarketing). In 2016, this number was at just 4 million for the same period. This does not come as a surprise as many businesses report that their CTRs on Facebook ads are at a record high along with Facebook ad revenue.
The above statistic for CTRs (0.90%) is for all businesses. But when you isolate eCommerce, these numbers tell a different story. According to a recent hootsuite study, CTRs for eCommerce have gone up dramatically—from 1% to 3%.
Facebook ad revenue was up last year as well, hitting $25.56 Billion in the US alone.
All these statistics point to one simple conclusion:
eCommerce businesses are successfully using Facebook advertising as a tool to steadily increase revenue!
But with a limited Facebook ad budget and high expectations for 2020, what can eCommerce businesses do in order to stay on top of their Facebook ads game?
Here are 4 things you can do today in order to take your eCommerce Facebook ads to the next level:
#1: Lookalike Audiences
The first thing I recommend you do is target lookalike audiences. Facebook is a very powerful data collection tool. FB collects information on users, including people who have previously made a purchase from you who have a high probability of converting again. According to research carried out by Smile.io:
Repeat customers account for 40% of a business’s revenue.
Facebook lookalike audiences allows you to take the characteristics of your target audience, for example, people who have made a purchase in the past, and find audiences who are similar so that you can expand your sales to new audiences. You can also create lookalike audiences based off of custom audiences, using data from a Facebook pixel you have installed on your site, or even from fans that follow your Facebook page. Whatever audience you choose to base your lookalike audience on you should:
- Try to find a group anywhere from 1k-50k in size
- Look for audiences who are located in a country or region which your eCommerce business ships to and services
- Use your highest converting customers as a basis for your lookalike audience
If you want to give this a try head on over to your Facebook Business Manager, click the audience tab, then click Create Audiences and select Lookalike Audiences.
Next, you will need to choose:
- Audience source
- Audience location
- Audience size
Now Facebook will take the billions of data points it has collected on its users including but not limited to:
- Pages liked
- Profile data
And create lookalike audiences highly relevant to your eCommerce business.
#2: Custom Audiences
Another good idea when trying to target high-converting audiences on Facebook is creating value-based custom audiences (that can also be used later on as a basis for new lookalike audiences). Facebook Custom Audiences lets you select from a variety of parameters to get very specific about who you target - the following is a use case of one specific attribute (Lifetime Value). It is important to remember that many other parameters can be customized with Facebook Custom Audiences (e.g gender, location) but I am focusing mainly on LTV as this has the most value and relevance for eCommerce Facebook marketing.
Using Facebook Custom Audiences you can create better, more optimized ads that are based on purchase events collected via a Facebook Pixel you need to have previously installed.
How does this work?
- Purchase events are recorded in real-time by the Pixel
- Based on the value, timing and shopping frequency a customer’s value is determined
- New high-value customers are identified and help Facebook Lookalike Audiences to discover customers with the highest conversion probability
In my opinion, this is one of the most effective tools for eCommerce business owners looking to invest in Facebook marketing that actually converts!
Here is how you can set this up on Facebook:
- Head on over to ‘Facebook Audiences’
- Click on ‘Create Audiences’ and then hit ‘Custom Audience’
- Choose ‘use a file with LTV to create a lookalike more similar to your most valuable customers’
- Upload or copy and paste your customer file
- Name your audience and hit ‘next’
- Click on ‘select value’
- Choose the column you want FB to use for customer value and hit ‘next’
The most important part of this process, however, is to properly prepare the customer file which you upload to Facebook. This is the only way for Facebook to ‘learn’ about and ‘differentiate’ high-LTV customers from low LTV customers. Here are some best practices to follow:
- Work in ONE currency, say USD, in order to avoid confusion
- Include a range of clearly marked customers of both high and low value so Facebook can effectively learn who to target
Now all you need to do is save your custom audience.
Bonus tip - Value-based custom audiences should be treated as bottom-of-the-funnel audiences, so you should tailor your CTA in accordance. Try using:
- Buy Now
- Percentage-based discounts (e.g. 35% off)
- Additional free product incentives (e.g. buy one get one free)
Also, I highly recommend prominently featuring the product in your ad creative.
Here is a great example of a Facebook ad which takes it home both in terms of its CTA and imagery:
Notice how moo.com also tries to push people viewing this ad to take a positive purchase action by using a time-limited offer: ‘for a limited time’. In reality, this does not mean anything because they haven’t specified when this offer ends, but subconsciously they have succeeded in creating a sense of urgency among potential customers.
#3: Dynamic Product Ads
Dynamic ads are very effective when it comes to eCommerce. Big eCom giants like Amazon and eBay understand this, which is why every time you look for a pair of sneakers or a Halloween costume, you start seeing ads for those things on Facebook. Simply put, dynamic ads help you retarget potential customers on Facebook using customized ads based on someone’s:
- Browsing history
- Retail history (e.g. a customer who has visited your website and made a purchase or added an item to their cart and then abandoned it).
Using Facebook Dynamic ads offers some clear advantages for eCommerce business owners:
- Tailored - Ads served to customers are tailored to both their previous actions and current interests—which means that the chances of conversion are infinitely higher.
- Efficient - Instead of wasting your ad spend budget on ads which may only speak to 30% of your target audience, you are creating ads that will be 100% relevant to those who see them. This means you can spend less, yet have a bigger potential impact through precision.
- Automated - Instead of having to upload each item individually, you can upload your entire product catalog to Facebook. Everything from price to product name will be used by Facebook to automatically create ads.
In other words, Facebook personalizes the ads according to both customers’ interactions with your brand and their Facebook data, and uses these insights to match them with products from your catalogue. This is far more efficient than attempting to do this manually.
Setting up dynamic product ads for your eCommerce business is fairly simple. Here’s how Facebook Dynamic Product ads work:
If you want to start using Facebook Dynamic product ads as part of your Facebook marketing strategy, follow these steps:
- Upload a product catalog of items you want to promote to Facebook Business Manager.
- Install a Facebook audience Pixel to your website
- Prepare a dynamic ad template so that Facebook can automatically insert your product information
- Head over to Power Editor and set up Display Product Ads and decide if you want to run ads for your entire catalog or a specific portion of it
If you’re feeling up to the task, read our blog on running successful dynamic ads campaigns!
#4: Multi-Product Ads
Multi-product ads display items in a carousel-like format allowing you to show multiple related items in one ad. These types of ads increase the probability of a conversion since the person seeing the ad can choose from a variety of products that you currently have on offer in your store—and that are related to his or her interest (say pet toys).
Alternatively, you can use multi-product ads to display one item, but show off its multiple aspects, features, or benefits. Another great way to use this type of ad is showing the same item in different colors, styles or versions in order to resonate with a potential customer who otherwise may not be able to visualize product variations.
These benefits can actually have a big impact on how effective your Facebook ads actually are. According to a case study published by Facebook about a candle manufacturer JewelScent who used multi-product ads to tell their unique brand narrative and product story. They saw some fantastic results including:
- Threefold return on Facebook ad spend
- Three times lower CPC for multi-product ads when compared with ‘regular link ads’
If you want to put multi-product ads into action follow these steps:
- Create a new ad on Facebook Ads Manager
- Choose ‘Multiple images and links in one ad’
- Enter the headline which will appear at the top of the ad
- Add relevant images, URLs, and a headline and description for each image and product.
Summing it up
Making Facebook ads an integral part of your eCommerce marketing strategy sounds like a very natural decision to most modern entrepreneurs, and the truth is it should be! But the question here is not whether you should drive traffic and conversions using Facebook ads, rather how you should go about doing this. In order to build a winning Facebook ad strategy for eCommerce, you want to create a nice mix between targeting high-intent, high-value audiences and using Facebook ads that will maximize the value you get from your ad spend.
Please comment below and let us know how you promote your eCommerce business through Facebook. And as always, I would be happy to answer any questions you may have about how to take your business to the next level using Facebook ads!