# How To CRUSH Facebook Ads For Ecommerce

Channel: Ben Heath
Video: https://www.youtube.com/watch?v=QAXiyPv2Aic
Duration: 42 min
Language: English
Words: 9419
Transcript page: https://viewrankai.com/tools/youtube-transcript/QAXiyPv2Aic

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[0:00] in this video I'm going to show you the real keys to success and the things that you need to get right if you want fantastic results when running Facebook ads for your e-commerce business my Facebook ads agency has run Facebook ads for more than a thousand e-commerce businesses over the past 5 years we've literally spent tens of Millions on ads for e-commerce businesses and generated hundreds of millions in Revenue so the first point that I want to make is that you should probably be prepared to pay more to acquire a customer than what you're currently prepared to pay now I speak to e-commerce business owners all

[0:30] the time that that are running Facebook ads right and I'll often ask them okay what's your average order value and they might say our average order value is $80 and I say what are you willing to pay to acquire a customer given your average order value basically what are you willing to to have as a maximum cost per purchase and I might hear something like I don't know 10% of that so $8 cost per purchase to generate an $80 um average order value and I think that's crazy I think it makes much more sense to significantly increase what you're willing to pay to acquire a customer

[1:02] firstly because consistently acquiring customers at say $8 each is pretty unrealistic secondly you're not going to be able to scale because Facebook ad campaigns produce better results when you spend smaller amounts because meta is really good at working out your best possible prospects and they put your ads in front of those people first so that when you scale you advertise to more people those people don't convert quite as well because they're quite as keen and Hyper responsive in your Niche um and therefore your cost per purchase goes up if you've got a cap of say $8 you're just not going to be able to scale that campaign in terms of cost per

[1:33] purchase and thirdly there's tremendous value in acquiring a ton of customers even if you do so and only break even on that initial transaction because provided you're selling high quality products and you have a range of products people are going to want to come back you can retarget you can reactivate with SMS or email marketing there's lots of ways that you can get those customers to buy again so I've given a a quite extreme example of someone wanting a 10x Rass they're only willing to pay 10% in terms of cost per purchase of what they're getting back in average order value um but even if someone said look I'm willing to pay 20%

[2:07] $16 cost Pur I still think that's far too low I would work out what your break even point is so let's say for example you operate with a a 50% gross margin is a pretty easy um example right so you generate $80 per customer on average and $40 of that is the cost of goods uh that goes to the manufacturer I'd be willing to pay up to $40 to acquire a new customer yes you're going to be Break Even yes you're not going to make money on that initial transaction but you can then acquire tons of customers because you're willing to pay $40 to acquire a

[2:39] customer you can spend a lot more than your competition who aren't willing to do that by the way that means you get loads of customers you get thousands tens of thousands of customers and then you can sell to them again and again and again and you build a much more successful businesses it's why a lot of e-commerce businesses that operate at a really large scale and they get a lot of funding or outside backing or they work with a celebrity or something like that they they will operate even at a loss on that first transaction and they know that if we just just acquires tons of

[3:06] customers we'll sell to them again and again and again they'll love our products they'll tell their friends and family and and we'll be better off as a business so I'd really have a good think about how uh much you can actually afford to spend to a crow customer it's probably a lot more than you think it is now of course if you can do better than break even then fantastic to acquire that $80 average order value customer um if you spend $20 and you can do that scale brilliant like of course we would all want the lowest cost per purchase possible but I think setting a much

[3:35] higher uh acceptable maximum sets you up much better to be able to scale and see more success over the long run and and grab a lot more market share and a lot more customers so the next thing I think that Ecommerce business owners need to do and don't do enough of is they don't obsess over aov average order value and LTV which is obviously average order value times the number of times that your customers actually purchase from you so if you've got an 80 average order value and the average customer during their lifetime buys from you five times then you have a $400 um lifetime customer value and I

[4:08] think the e-commerce business owners should obsess over those because the larger you can get those your initial average order value and then your LTV uh the more you can pay to acquire a customer on the front end so the second Point sort of ties in with the first point right so if we can increase our average order value from say $80 up to $120 that might mean that instead of being able to pay a maximum of $40 to acquire a customer we can now pay $60 to acquire a customer that might allow us to spend literally I'm not kidding five times as much on our ad and acquire

[4:40] close to five times more customers it might end up being three and a half or four times as many customers because you're paying a little bit more per each one but you know what I mean and again that ties into the first point that's a massive competitive Advantage if you're able to get really aggressive on the front end and it makes your ad campaigns much easier to succeed and much more profitable over the even if nothing changes about your cost per purchase and you keep all that where it is and you don't scale at all just making more money from each customer makes everything more profitable makes your

[5:08] whole business more profitable makes your ad campaigns more profitable um so that's aov then you've got lifetime value which obviously if you increase your aov you average order value that will inevitably increase lifetime value but there are other things you can do in addition to that to further increase lifetime value which is namely getting people to buy more often so if you've got a recurring or subscription business model which obviously a lot of e-commerce buiness buiness businesses do have um it's about delivering a good enough product and a a good enough customer experience where people want to stay and buy again and again and again and the difference between a business

[5:38] that has customers to stick around for 5 months and a business that has customers to stick around for an average of 10 months is double the LTV with everything else being equal so you can afford to pay at least double to acquire those customers your business is much more profitable much more successful it's a really really big deal um and then there's also putting more effort into reactivation if you don't use a recurr subscription model so how can you can you get more aggressive on email marketing on SMS remarketing on on retargeting on Facebook and on other platforms um like Google to get those customers to buy again and again can you

[6:12] be smart with giving people little taste of products um and discount codes to get them back and and repurchasing and things along those lines I think if if you put more focus into that stuff and potentially even a little bit less focus into your cost to acquire a customer which is where all the FOC because e Co businesses right they're like we make $26 per customer our current cost per purchase is $12 I'm really trying to squeeze that $12 down to $10 cost cost per purchase I need to get it down to 10 I need to get I hear that all the time and you're like you know it' be way

[6:44] easier to take your average customer value from uh $26 to $30 and then achieves the same objective if you've got a 50% profit margin gross margin I should say um it's like just think about it from the other side I know that's not really like necessarily a Facebook cards tip free Commerce businesses but the amount of businesses that I coach and work with where they want to ask me about their campaigns and I sort of try and switch it I'm like look I'm telling you this part is more important let's work this out um and we'll see much better results from it okay the next point is that and I think this is one

[7:17] that I've only become more and more convinced of over time and that's that long-term success comes from Brand if you have a stronger brand a strong and positive brand Association I should say with your products uh with your business it makes sales much more reliable you're going to sell at much larger volumes and you're also able to charge much higher prices I mean we can all think of examples of products where it's basically the same product being s sold as what you could from a regular commodity unbranded product but you're able to charge five times 10 times as much I mean think of like a plain white

[7:51] T-shirt right you can buy that for just a few bucks or you can spend $100 or more on a plain white T-shirt because it's has got like a little emblem somewhere that Associates um a brand with it so we will understand the benefits of brand and this is just something that the more more I've done this and more and more I've been convinced that this is important the question then becomes if you're in Ecommerce business how do you actually build a positive brand Association H how how do you do that because it's not you know the colors on your website or your packaging I mean these things do matter

[8:21] they are important it's part of the story but it's not the whole thing and it can obviously take a long time to to build a brand I think the fastest way for e-commerce businesses to do that is to hire influencers I think just about every e-commerce business there's going to be influencers that are just perfect that create lots of content around the products that you offer they're in that Niche um they're well-liked within that Community their advice carries a lot of weight and you can hire influencers to a promote your products classic influencer marketing but B my favorite method is is to send some product to influencers and

[9:02] obviously you're going to have to pay them for this service as well it's not just not just getting free product and get them to record video ads for you showing how they use the product why they love it all that sort of stuff I think that's much better than like traditional influencer marketing which is just getting them to post about it on their socials because those posts are very like they don't stick around very long they're not very sticky right they they post you might see a bumping cells for 24 hours great and then it's gone whereas if you get them to record video ads for you about your product you can

[9:28] use those in your own ad campaigns for weeks months maybe even years if they're strong enough and you can immediately what people do is if they see someone that they really like talking about your product and doing so in a in a in in a good way um and being realistic about it you know we can all imagine examples where this has just obviously been done poorly but done well and they'll immediately start to associate the things that they like with that person with your brand as well so if they find that person is really friendly and trustworthy they'll start to feel that same way about your products your brand

[10:00] that's that's the fastest way to do it I don't think enough e-commerce uh business owners are doing that this is particularly important I feel if your product is somewhat commoditized a lot of e-commerce business owners just think no my product's not commoditized it's completely different from my competitors if your prospects can't tell the difference it's not even if you think there's a difference your prospects can't tell the difference there not so one way to overcome that is like well we're going to work with some Mega influencers um or or even some micro influencers in your space that can also work you can find a range depending on

[10:30] your budget and test things out and that's going to immediately differentiate you from the competition because when your whatever pops up alongside all the other whatevers if your whatever is being demonstrated by someone that you know your audience will recognize that's that's a complete Game Changer when it comes to influencer marketing we've got lots of experience with this it can be quite hit or miss with who you work with so you can sometimes hire someone that completely flops doesn't make any difference uh other times you can hire people that cut your cost per purchase by 6 70% that absolutely is possible with the right person it's not always easy to do to

[11:03] find the right person you're going to have to test you might have to convince them you might have to pay them well um but I think over the long run that is something that is undervalued by e-commerce businesses the impact that that can have um not overvalued and particularly when you're using it in your own ad campaigns you can therefore amplify the effect of their them being associated with your brand that much more CU you can guarantee how many people you're going to put in front of you can run it for month and maybe even years and um and it doesn't cost much more to do it that way than just getting

[11:34] an influencer to post on their own socials because they've got to make a video about the stuff anyway so why not do it in a way so it shouldn't cost you much more and why not do it in a way that you can benefit from it over the long run and then also when you do it that way you also save on ad creative costs because the influencer is doing it for you so you probably don't have to therefore pay the videographer to create the product like they're going to do it for you and they're probably pretty good on camera because well they're an influencer it's what they do right so um

[11:58] building brand is absolutely essential think about that in terms of your interactions with your customers so your packaging and your website and all that and it is important all those touch points it wants to have the right tone um whatever it is that you're advertising it wants we pitch to the right level but the the way to supercharge this and build brand uh is with influences in my experience and we can all think of businesses that have I mean just come out of nowhere and they're worth I mean take Prime for example you know it's a it's a like an an energy drink effectively right but

[12:30] because it's got huge influencers and KSI and Logan pool behind it it's like a multi-billion dollar company already that's Bonkers how are they able to build that brand and it's the brand that's selling it because I imagine I mean I don't know the product specifically but imagine it's not that differentiated from other sports energy drinks right is it that much better than the others I doubt it it's the brand that's got it from nowhere to multi-billion Dollar company really really quickly and if you're smart you can work with the right people and benefit from that now I've got a bunch more points that I want to cover in this

[13:01] video think that I think you're going to find really valuable before I do just want to quickly let you know that my company my agency offers done for you Facebook and Instagram advertising services so if you want we can create manage optimize your ad campaigns for you most likely help you get much better results and take all that workload off your hands we have so much experience working with e-commerce business as I said more than a thousand e-commerce businesses over the past 5 years so you'd be in very good hands if you're interested there is a link in the video description you can click on that come

[13:30] through to a page and a website and just book a free no obligation call with one of my team members to find out more about how we work and how we might be able to help you so if you're interested go ahead and do that and hopefully we get a chance to work together very soon okay so the next thing I want to talk about is Advantage Plus shopping campaigns now you tend to find that with Ecom advertisers they either go one way or the other when it comes to Facebook ads they're either all into Advantage Plus shopping and they're going to run those exclusively or they're only using

[13:55] manual sales campaigns and they're going to run those exclusively and I think that somewhere in the middle is a better approach so if you've never run Advantage Plus shopping campaigns before I would absolutely test them for those that aren't familiar perhaps you've only run manual sales campaigns um an advanc shopping campaign is effectively a tailored campaign and what I mean by that is meta fixes a lot of the various options so you have less functionality you have less control and meta is basically saying don't worry we'll run a lot of this for you so you have uh less inputs around targeting around changing things like placement options and you

[14:28] just you have the trust meta with with a lot more now when Advantage Plus shopping first came in we were much more skewed towards manual sales campaigns because we know what we're doing and we like the control and being able to adjust things and and do that to improve results but as obviously AI is getting smarter which is what's being used to make Advantage Plus shopping campaigns work as that's getting smarter and getting better and better over time Advantage Plus shopping campaigns are getting more and more effective they you're handing over the control of a lot of things to meta and that is producing um better results so what I would say is

[15:01] that you should absolutely test Advantage Plus shopping but don't be surprised if it's not the best performing option for you yet and the advice I've given a lot of Ecom business owners is look retest this every six months okay and as it gets better and better that's assuming it doesn't work for you as well it might work better than manual sales campaigns in which case you can switch over now with the Advantage Plus shopping I should say that there is still room for competitive Advantage don't think the meta is going to do everything so your ad creative still really matters right um your offer still really matter so there's

[15:29] absolutely work to still be done I've also seen some advertisers be like I use Advan FL shopping I don't need to do anything no that's not true but I do like advaned FL shopping one thing you should also be aware of with advanture plush shopping is that it does retarget a little bit heavy so in terms of you think about when you give meta a lot of control to advertise to who they want to advertise to they have to decide how much of the budget is going to be spent on warm audiences and how much of the budget is going to be spent on cold audiences met is going to be able to

[15:55] work all that out I think it retargets a little bit heavy and what you typic see is if a lot of money is spent on the warm audiences you get great results early on but then obviously you burn through those people quite quickly and then results often drop off so if you do switch from manual sales campaigns to Advantage Plus shopping and you see great results for a bit don't immediately think aha advaned shopping is the way to go forever because you might see those results drop off for the exact reason that I just I just described so I like it test it use it you can always run both uh in your mix

[16:26] but um it's not quite there yet to fully I would just say everyone switch over to Advantage Plus shopping one of the things that could help us get there is a new feature that is coming out soon and that's a customer acquisition feature so you know I said um Advantage Plus shopping retargets a bit heavy like too much of the budget spent on retargeting soon we should be able to say to it I want you to wait new customers more heavily so in terms of like I want you to spend more money acquiring new customers they're more valuable to my business Google ads has this feature as

[16:56] part of performance Max um and Advantage for shopping is to some extent meta's equivalent of that um and I'm sure it's going to come to meta very soon because they already have those breakdowns in terms of reporting you'll be able to see that when you create the Advantage Plus shopping you've got uh what is it you've got engaged audiences existing customers and new customers as a breakdown well I basically think we're going to be able to choose between those three how we want to allocate our budgets yeah something to test but not necessarily completely rely on at this point okay so the next point is that add creative is

[17:27] the most important part of your whole ad campaign obviously there's what you offer but I'm assuming to some extent that's going to be fixed now you can get clever with that you can offer discounts and you can bundle in products and things along those lines as an e-commerce business but assuming that is relatively fixed and you can't change that quickly and easily um creative ad creative becomes the most important thing and I think that a lot of advertisers don't spend enough of their overall Budget on ad creative so I see a lot of e-commerce advertisers where they're happily spending $10,000 a month on ads but the idea of spending $1,000

[18:01] on you know a videographer to produce a really nice like product demonstration video they wouldn't do it and I think that's often quite silly because I think if most e-commerce businesses took 10% of their budget their ad budget and spent that on the creative the ads then only need to perform 10% better with the better quality creative in order for that to be a net positive if that makes sense and I think that if you've gone from ad creative that's fairly mediocre which a lot of e-commerce businesses have particularly if the business owners do it themselves and they don't really know what they're doing creative wise

[18:35] which is fine by the way I'm not very good at creative I always have other people on my team to do creative um because it's not my strong suit either if you're going from something that's a bit mediocre and you spend a bit of money say 10% of your budget on getting some really nice creative ma then that's almost certainly going to produce more than a 10% Improvement in your return on ad spend within the ad account and therefore it will more than pay for itself and it may well produce a 30 40 50% return on ad spend um on that so it's a bit of a mindset

[19:01] shift and I think that's something that we've learned more and more and we we often have this battle with clients right where we're like look guys telling you let's spend it on here and it'll help improve our results um that much more and uh so yeah so something I'd encourage you to do now of course we've already talked about using influence to create your ads which is kind of a two birds one stone because you don't you yes you're paying for the creative to be made but you're also paying for the brand Association from the influencer so in terms of cost Effectiveness that can work really really well as a opposed to

[19:29] hiring like a expensive video agency to produce something that looks fantastic or a photographer to take your products into a studio and get like really professional photos made um but yeah just some a mindset shift and something I think you find valuable if you can't scale the solution is to make more ads So Meta is really good at finding the best possible prospects within your Market when you're advertising using a small budget and that often means that when you've got a small budget you will see your best return on ad spend your lowest cost per purchase because there's going to be some people within your audience it's going to be a tiny tiny

[20:02] percentage that are just so Keen about what you offer they buy everything that pops up in front of them that's to do with your Niche right now as you spend more money meta goes from those people right at sort of the center of the circle to advertise to people that are still Keen but slightly less and as you spend more it's still Keen but slightly less and as you spend a little bit more it's you know kind of interested and as you spend a little bit more it's like maybe was interested one day might be sometimes again and you keep going out and out and out and your ad people that

[20:29] are less and less interested Therefore your ads need to be better to get those people to convert and to get them to convert at uh a on ad spend that is still profitable for you so the best way to create ads that are good enough to do that is to make a whole bunch more because a couple of things happen when you make a whole bunch more ads firstly you get better at it as a skill and making ads is a skill so you get the practice you sort of learn okay this hook worked that hook didn't uh this imagery worked worked really well this type of Carousel performed well that one

[21:01] didn't and you you learn you get better you develop that skill but also when you make a ton of ads and you put time and effort into making each one you kind of end up stumbling across ads that perform really well and often it's a surprise I mean people who've been involved in advertising but also content marketing is is is the same thing often the ones you think are going to crush and do really well don't and then something out of left field you be like really that is bizarre that that one worked really well but it did the only way you sort of stumble across those and find those is

[21:30] you keep testing and trying to find what works um in your Niche so if you think about the inability to scale often people often think about it as a targeting issue or settings within the ad campaign issue and it almost never is it's almost just the ads themselves aren't good enough to get people who aren't super super Keen to convert and if you can improve your ads you should then be able to scale when I say people can't scale by the way I should quickly clarify them I'm talking about people that are every time they try and scale their cost per purchase go through the roof and and their roow really fall um

[22:02] if you are in that scenario that's the solution is you need better ads the best way to do that is just to make a whole bunch now of course there are ways you can look to speed that up right there are you can spend some time in the meta ad library trying to find take a look at what competitors are using take a look at ads that are 3 months older or more those are almost certainly profitable model from those um but you also just have to go through the work and create a ton of ads and get really good at it okay I would also recommend that you you

[22:28] lean into seasonality as opposed to away from it and I've spoken to a lot of business owners where they will say things like okay Christmas Valentine's Day Easter we sell tons of chocolate how do we increase our chocolate sales in July and August I understand why they're asking that because they want to sort of flatten out their revenue and make and and and make their business more consistent and that has advantages but I think you are fighting the tide when you do that you are trying to run away from seasonality instead of instead of taking advantage of it so I would encourage those businesses instead to really scale

[23:06] back their budgets during their low seasons and maybe just running retargeting at that point to keep your regular customers that buy often going and then really load the budget into those times of the year when you know your results are likely to be much better I think if you do that approach and take a look at the whole year you'll end up with a a better return on ad spend during the whole year because you know you're making hay whilst The Sun Shines I think it's a lot easier to do it that way so this applies to our business right we know that in terms of

[23:37] signing up new clients December is our quietest month because all the Christmas campaigns they were started you know in the months before that uh and then any other type of business is waiting till the new year to start working with us typically which by the way if you are watching this in around December it's actually a great time of year to sign up to become a client of ours if if that's what you're interested in because we can then get get everything set up and ready for um the the new year and you can hit the ground running but most people don't think about that but uh but whatever but

[24:06] yeah so I just think it's it's often easier and this is kind of a business lesson as well it's often easier to put your foot on the pedal when it comes to the good things as opposed to trying to compensate for all the weaknesses as opposed to trying trying to round everything out it I would apply that to your marketing as well like oh okay our meta ads ping really well but we want to have ads on LinkedIn and Tik Tok and Google and spread ourselves really thin and get some ads elsewhere to to even things out it's like if you're seeing great results in one place just go for

[24:38] it that's likely to deliver a better return on marketing investment um overall okay next point is to optimize using return on ad spend and if you're recom business basically return on ad spend only you can easily get lost with looking at cpms cost a thousand Impressions uh ctrs clickthrough rates and all sorts of other metrics that you find within a meta ad account but really it's your return on ad spend that matters so I would absolutely focus on that and the reason why I'd rather you focused on return on ad spend over simply cost per purchase or cost per result is because return on ad spend

[25:11] will factor in average order value so some customers are worth a lot more than others and it depending on what e-commerce platform using it's probably Shopify isn't it um then you'll be able to have that data fed back into your ad account so you can see okay we spent £5,000 this month we generated £18,000 in Revenue we've got a what would that be a3.5 is uh return on ad spend that's nicely profitable for us we're requiring customers we can scale that's not we need to make adjustments etc etc so base your decisions on roas not just at the top level like I just described but also

[25:46] which campaign type is performing better Advantage Plus shopping or manual service campaigns look at roas which ads are performing better look at roas and which offers are doing better results look at roas and use that to stop the underperformers and go ahead and go with the uh the best performing ones so another Point around optimization is to use conversion volume not time to make decisions it's probably the question I get asked the most from all Facebook advertisers not just ones that are um advertising Ecom businesses but absolutely applies to them as well how long are you running the ads for before you see like uh that that one's doing

[26:19] well what's your sort of limit or ad spend how much how much time or how much money you're spending on it before you go no that one's crap or that one's doing really well that's a really good question I get that's probably the single most common like question I get asked in comments on videos and they want me to say it's 7 days or something along those lines which is probably a good average um but it absolutely relies on conversion volume not time I'll give you a couple of examples let's say you're an econ business that sells something really expensive like I don't know luxury barbecues for example that

[26:48] cost thousands of pounds and you've got a relatively small ad budget right you've got an ad budget of £10 a day it's going to take you a very long time to generate enough conversions to know which ads performing better like if you're only making a couple of sales a week then it's going to take potentially months to know which ads perform better but on the other end if you're selling something really inexpensive let's say like a really inexpensive like little kids toy and your cost for purchase is really low just a couple of dollars and you have a budget that's in the thousands of dollars a day well in that

[27:23] scenario you're going to get so much conversion volume so quickly that you're very quickly going to be able to work out this adform is better than this one this campaign structure is better than this one and therefore you're going to be able to make decisions in hours so you could literally have one business where I'd say you need to run these ads for a month before you know which one works best and another business where I say we'll be able to tell this afternoon whether which ads work best so don't think about this in terms of time think about it in terms of conversion volume now if you're not very Massy you're not

[27:50] very data not very analytically minded uh spend a bit of time with a statistical significance calculator they are free tools online and you can simply enter in your numbers and the calculator will tell you ad a is producing better results and we're 90% sure so basically they're 90% confident that ad a will always outperform ad B if you keep running it and you start to do that you start to get a feel if if it says there's no statistical significance you're too early if you've got statistical significance then you can make a decisions just a really simple way to sort of take a look at things and

[28:25] go is that actually performing outperforming that one cuz we've all had that experience where you've got one ad that's produced 15 conversions um and they're a little bit more expensive than this other AD that's only produced three conversions on a costplay conversion basis and you're like uh which one's actually better well you can use these free tools and that's the best way to go about it now if you are big enough to justify the cost I'd recommend that you use hyos so hos for people aren't aware is effectively tracking software that allows you to get much more accurate data which then also allows your ad campaigns to optimize a lot better

[29:01] because we know that meta needs data to be able to optimize um ad campaigns and produce better results it is relatively expensive so I would recommend it to everyone particularly if you're just getting started but if you are spending a reasonable amount on ads and you'll have to get in touch with hros and they'll be able to give you a quote on how much it would cost um to make it work for your business uh but I would recommend that once you're spending a good amount you do go ahead and do that we use Hy Ros I've actually got an affiliate link I'll include that in the

[29:28] video description so if you are thinking about using it it won't cost you any extra but just helps me out so that'd be much appreciated uh but we use it as a business and we find it really valuable and the extra data and tracking is it it is helpful not only as I said for meta being able to optimize but also for you being able to optimize as The Advertiser and work out what works and what doesn't there is a sort of scale thing required to make that work um I don't have much experience with other tracking softwares there may well be other ones that you

[29:55] can find that less expensive I only have experience with hyros so that's why mention them um but yeah but I do think that there becomes a point where you're getting past you know 5,000 a month 10,000 a month in ad spend where you start to go okay we can up our game here I think that's going to be worth it and help with our results it's not worth it if you're spending you know a couple hundred dollars a month because the cost of the software is going to exceed the Improvement in results you would get from it but if you are at a bit more of

[30:18] a larger scale then go for it and if you're spending a really good amount absolutely go for it I think it's a no-brainer so the next point and this is really key and not one that a lot of Ecom advertisers think about is that you need to have a differentiated product now there are number of different ways to do that you can do that with brand like we talked about before it could be the same product but it's effectively differentiated because of the brand Association and you can do that with different features you could do that with uh a different price point it's the same as everyone else but ours is a lot

[30:48] cheaper but you do need to find a different a way to do that otherwise you're just not going to have success over the long term now obviously a lot of e-commerce businesses advertising on Facebook and Instagram are Drop Shipping businesses and the one of the biggest issues with Drop Shipping businesses is you're advertising the same product as tons of other advertisers hundreds sometimes even thousands often you're using the creative that was produced by the manufacturer so you're all running the same ad creative and it's just not going to work and even if it does work for a short term it's definitely not going to work over the long term because

[31:17] other people see what you're doing they'll copy you and then it becomes race of the bottom one price that competes away all your profit margin and you don't make any money so over the long run you have to find a way to differentiate do a brand price um you can do that with different features like if you genuinely add something to a product that no one else does create something new that's a that's a great way to do it but that kind of feeds back into even if you do that people will copy you eventually so the long-term success is going to come from that brand

[31:44] element and I really want to draw that home because I I think that is that is absolutely key but yeah I've said this before and I've reviewed a lot of AD accounts and products where this is the case if your prospects can buy what you sell on Amazon for Less your campaign will not work now that sounds like quite obvious it's not something a lot of e-commerce business owners think particularly those that are new to e-commerce and new to running Facebook ads for their e-commerce business but it's true put more effort into customer reactivation now I'm not saying more effort into customer reactivation than initial customer acquisition um you

[32:16] wouldn't normally for example spend more on retargeting than you would on cold audience campaigns unless you had a really big um customer base uh or really large warm audiences but just more than probably what you are currently doing almost everyone thinks about new customers new customers new customers new customers and they sort of just assume that their existing customers will remember their products and buy them and they'll come back and some will but the vast majority won't they're not thinking about your business they're thinking about their own lives they're distracted you need to find a way to get them to buy again retargeting campaigns on Facebook are a great way to do that

[32:50] you can also use email marketing and there are other ways you can send them free stuff we we touched on some of those later on but I just think as a balance when it comes to marketing and advertising for e-commerce most e-commerce businesses undervalue customer reactivation I think this just comes from a place of like as a business owner you're thinking about your business and your products all day long so you kind of almost on a subconscious level think that your customers are doing the same and they aren't they absolutely aren't they're not thinking about you or your products so putting your stuff in front of them again and

[33:19] again even if they've already bought I think is is really valuable a lot of advertisers told me that they think it's a waste of money to put ads in front of people that have already bought for the reasons I just described that's not true and also because your customer base is probably a relatively small percentage of your overall advertising audience like how much you really going to need to spend if you've got 5,000 customers let's say it's going to cost you a tiny amount to put your products um in front of those people on a regular basis well worth doing so the next point is really important if you are scaling

[33:50] or looking to scale your your Facebook ads for uh for e-commerce businesses and that's to focus on absolute returns as a supposed to return on ad spend now that might sound contradictory because I talked about using return on ad spend but I'll explain what I mean and when this applies and I'll give you an example to to sort of help explain this right so let's say you're currently spending $11,000 a month on your ads and you're getting a 15x return on that spend amazing that would be fantastic results so you're spending a th000 you're generating 15,000 in revenue from Those ads so you've got a $14,000 a

[34:22] month profit um obviously there are other costs associated but after your ad spend so you might think this is amazing I'm going to scale these to the moon and let's say you take your $1,000 a month ad spend and you scale it all the way up to $100,000 a month now if you do that you will almost certainly not see a 15x return on ad spend when you're spending 100,000 months that's just unrealistic for the reasons we've we've been through in this video now at that $100,000 a month ad spend you might drop all the way down to say a Forex return on ad spend so you're spending $100,000 on ads

[34:57] and you're generating $400,000 in Revenue so you might think I've gone from a 15XT turn on I spend and now I'm at a uh four extra turn ad spend I should why would I scale that's silly but think about it at the four extra turn ad spend when you're spending $100,000 you're generating $400,000 in Revenue minus your $100,000 adspend gives you a $300,000 profit after ad spend cost I know obviously there's cost of goods and things like that but assuming you've got good margins you will be well better off off with the higher amount like I would much rather a $300,000 a month profit from my advertising than a $14,000 a

[35:36] month profit from advertising even though return on ad spend is much better at those lower levels that's something to be aware of particularly as you scale and you go okay we're not making as good a return on ad spend but actually are we making a lot more profit overall yes and that's really the objective isn't it so just be aware of that I've seen some advertisers sort of get messed up with that uh and you want to focus on on absolute returns now in terms of optimizing so when you're spending $100,000 a month if you're looking at ad a ad B ad C you still want to optimize

[36:06] based on return on ad spend so you want to be like okay well add a turn it off it's not as good as ad B and AD C is doing all right we'll give that a bit more time you know you still want to make those decisions based on that but it's just as an overall expect your return on ad spend to drop but it doesn't matter if you're actually making more profit and in that scenario you're also acquiring a lot more customers and they can buy again and again you're going to build a much bigger business it's going to be much better over all okay and the next point is to sell with

[36:30] both scarcity and urgency and by the way apologies if you can hear my dog snoring in the background he's Sat by my foot just here and asleeping snoring hey F you're having a snooze and you're yipping I can't have that in a video dogs in with me today um s with scarcity and urgency right now a lot of advertisers get these two things mixed up and they don't realize that there's a difference there is and ideally in your ads you want to focus in on both so scarcity is when there's not much of a thing left so you need to go ahead and grab it so let's say you know you're

[37:04] selling a certain product and you've only got 10 left and you can say that in your ads we've only got 10 left once they're all sold they're gone if you're interested go ahead and grab it now that's scarcity urgency is when something is going to end in a it's using time effectively right so it might be our 30% off discount that we're currently running ends on the 30th of June and you're running this ad you know towards the end of June so you've got that I need to grab it because it's going to run out it's scarce and I also need to take advantage of this 30%

[37:35] discount cuz that's going to disappear too they're two separate things obviously linked and you want to try and hit both and I think that a lot of e-commerce businesses underdo promotions they underdo not only a a lot of advertisers know they need to use a discount right but they don't use scarcity often at all but of course whatever you're selling is scarce right like there's limited stocks so at absolutely say it in your ads and they do they underdo the urgency in their promotion we just we just got an ad up that's got a 25% discount no no no make sure that it has an end date it's

[38:06] absolutely fine by the way if that date ends and then you run a new promotion the next month make it a little bit different you don't want to be using a 30% discount that ends the end of every month every month doesn't come across overly well people see your ads over time so mix it up like right now it's a 30% discount next month it's going to be a buy two get one free there's all sorts of things that you could do on that but but have some urgency in it where people need to act and take action and go ahead and uh and buy now cuz if they don't if

[38:33] they think they can buy later and still get as good a deal they will and the problem with that is that people think they're going to buy later but they forget they get distracted they do something else and they don't come to it we've all had that experience as consumers of things where you think oh I need to grab one of those but you can't do it right there and then so you think I need to grab one of those and then you completely forget about it and it's not until you're next in that scenario where you need this product that you go oh I forgot to order this thing that I really

[39:00] need how silly of me and then you forget again and I mean how we've all been through that right where you do that cycle like 12 times before you actually go ahead and buy the product um so you want to you want to try and make sure that people don't do that with your stuff and that they're much more likely to go ahead and buy it so that's that's two things I would look to add in scarcity and urgency and notd and off Ecom advertisers do it okay so the last point that I want to make and this is one of the most powerful is to get a lot

[39:29] more specific with your messaging so let's say for example one of the products you sell is r a running shorts right now you can just advertise those as running shorts or you could get really granular and create separate ads so you could have one ad that talks about them as CrossCountry running shorts one ad that talks about them as winter running shorts one ad that talks about them as Marathon running shorts now they could be the same pair of shorts but if in your messaging you are specifically talking about that subsection of your niece so let's say the difference between like Marathon running which is typically done on a

[40:07] road and cross country running which obviously is not people will identify as one or the other often now there's going to be crossover but some people be like oh I only do cross country running and some people like I run marathons and I train for them and some people going to be like I need a pair of shorts to run in the winter or whatever um as I said it could be the exact same product but if someone is a CrossCountry Runner and they're into that and they see an ad pop up for cross country running shorts your ad your product is going to stand out

[40:32] much more to them than all the other running shorts that they're being advertised and that is a competitive Advantage they're far more likely to pay attention to it because they're like oh this is perfect for me this speaks to me this is this is going to meet my needs and then because they're more likely to pay attention they're more likely to click they're more likely to come through and purchase you obviously want to back that up with on the product sales page you want to make sure that they're I mean in an Ideal World you cre a separate landing page right so you create one for cross country running

[40:59] shorts one for Marathon running shorts again it could be the same product um but they have separate pages but even if you don't if you don't do that and go to go to that extent just make sure that you have something specifically on the um the page itself that has CrossCountry running it's a little bit extra effort but it can make a you know you could see a a 40% Improvement in return on ad spend by taking the time to break things down into the sub Niche and the messaging because we all had that experience where we bought something we've gone yeah the product was okay but

[41:27] it wasn't quite right for what I was looking for with that messaging you overcome that cuz they're like yes I'm a marathon runner and these are just any old running shorts for someone doing you know 5Ks every now and then this is for me because I run marathons and these are Marathon running shorts I've probably labored that point a little bit but um hopefully I've got the uh the message across there because it is important now something I haven't discussed in this video at all is Facebook ads targeting and that's because I've created a full updated Facebook ads targeting tutorial that you can watch right right here and

[41:58] unless you are 100% convinced that you're using the perfect Facebook ads targeting for your business which you know it's probably unlikely I'd say I strongly recommend that you go ahead and check out this video

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