Facebook Ads for eCommerce: Our Complete Guide
July 23, 2022
Facebook Ads for eCommerce: Our Complete Guide
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Facebook is the most popular social media platform today and has an impressive user base of almost half of the world’s population. So it’s no wonder many eCommerce marketers take advantage of the social media giant to push their products or services out to their target customers.
Understandably, if you’ve only just begun considering Facebook ads for your eCommerce marketing, you’d undoubtedly have several questions.
Not to worry, we’ve got you covered.
This article contains a detailed guide to everything you need to know about Facebook ads. In the following paragraphs, we examine what Facebook ads are and go through the various advantages they offer to online business owners.
That is not all.
We’ll also walk you through some tips on setting up your eCommerce Facebook ads and some strategies to help you get the best from them. Finally, you’ll discover insight into the cost of Facebook ads and how to come up with the perfect budget.
So, let’s jump right into it!
What are Facebook Ads?
Facebook ads are paid messages placed on the Facebook social media network.
With nearly 3 billion users, Facebook ads for eCommerce are a great way to show your products to the right people on a large scale.
A paid Facebook ad allows you to:
- Target the right audience
- Create and set up the right offers using different formatting options
- Set your budget.
Like many other advertising channels, the goal with Facebook ads does not change — putting your eCommerce ads in the faces of your target audience.
That said, let us explore some of the unique advantages that Facebook advertising offers business owners.
Benefits of Facebook ads for eCommerce
Here are the top benefits of leveraging Facebook ads as one of your eCommerce advertising channels:
A wider audience reach
With billions of users actively using this social media network, Facebook gives you access to an impressive number of people. So, irrespective of the people your business caters to, you should be able to find a large chunk of your target audience using Facebook.
Besides, this Facebook ad guide will share some tips on carrying out specific ad targeting!
Another benefit of running Facebook ads for eCommerce is that it allows you to narrow down your target audience and share your offers with them.
You see, Facebook helps eCommerce business owners to hone in on their business audience and target them based on several demographics such as their:
- Shopping habits
- And even income.
Think about it — you’d be targeting someone with hobbies related to your products, which means they are more likely to be interested in your offers.
Reach the right audience with the right message
Not every audience is the same, and people require different incentives to make their buying decisions.
The good news is that with Facebook ads, you can reach different sections of your customers who are at various stages of the Facebook ads funnel with the right message to get them to convert.
For example, someone in the consideration stage will need more information about your products. But, on the other hand, a person in the conversion stage is ready to purchase.
Reaching each audience category with the right message is vital, and with Facebook ads for eCommerce, you can do this effectively.
Variety of ads formats
For every marketing funnel stage, a specific ads format generates the most results. Thankfully, Facebook offers eCommerce owners an extensive range of formats for their advertising.
For example, an audience in the awareness stage will pay more attention to video ads, arousal posts, etc., that primarily educate.
With Facebook ads for eCommerce, you can choose between ten different ads formats when setting up your ads.
It is measurable
Top-notch advertising channels should offer your metrics for keeping track of your advertising campaign. Fortunately, the social media giant does that.
With Facebook pixel, you can measure results from your Facebook ads campaign.
This can be anything from people's actions to how much you spend in converting each customer.
Aside from measuring your progress, this data is also great for Facebook dynamic ads retargeting purposes.
This means you can monitor those who have indicated an interest in your products but have yet to convert. Then, with Facebook ads, you can retarget these people with an even better offer.
Also, measuring results from your Facebook campaign helps you budget well and focus on the ad set that generates the most results.
How to Set Up A Facebook Ad Campaign for Your eCommerce
Now that you know some of the benefits of using Facebook for your business advertising, our Facebook ad guide will walk you through how to get started:
1. Create an account in the ads manager
The first thing you need to do is create an account in the ads manager.
Your ads manager account is your most important Facebook advertising automation tool. After all, it is where you:
- Create your ads
- Monitor your ads
- Manage all your ads campaigns.
However, before you create your Facebook ads manager account, you will first need to set up a Facebook business page. Your business page is your public page for running your business and creating ads.
Here is a simple Facebook ads guide to help you set up one for your business.
Once your business page is up and running, you can now set up your ads manager account.
To do this, you go to Facebook Ads Manager.
- Then, click on ads manager
- Fill in your information
- Set up your payment method
- Finally, save the changes you make.
2. Create your first campaign
Once on your ads manager dashboard, click on the green button ‘create’ to set up your campaign.
Typically, the dashboard should be empty if you have never run an ad before.
As your ads begin to run, you can view your campaign ads sets, ads, and your campaign results from your ads manager dashboard.
3. Select your campaign objective
The first thing to set up is your campaign objective. This is your goal of running the ads.
With Facebook ads, there are 11 different campaign objectives that you can choose from. They are also grouped under the three distinct sales funnels — awareness, consideration, and conversion.
Depending on your goal, you can select the best one for your campaign.
Now, you want to make sure you select the right campaign objective, as Facebook will work with this to deliver the best results from your campaign.
For example, if your goal is to get more people to view your video, you might want to select ‘video views.’ But, conversely, if you're going to get more engagements for your post, the ‘engagement’ objective is an excellent choice.
4. Set up your target audience
Once you have selected your campaign objective, the next step is to create your target audience.
Who are the people that are most likely to be interested in your products? What is their age category? What are their interests and hobbies? How do they shop?
The right target is critical to getting the maximum return on your advertising expenses.
Therefore, when setting up your audience, you should experiment with different targeting options till you find the best audience for your business.
You also want to make sure you have a Facebook minimum audience size of 1000 and then upscale from there.
Facebook allows you to create a custom audience — a list of people already in your company's database. You can also create lookalike audiences — a list of potential customers who share similar characteristics with people that have already bought from or interacted with your business.
5. Set up your budget
Facebook ads have two budgeting options — lifetime and daily budgets.
The daily budget option allows you to set up limits for the amount you wish to spend on your ads per day. On the other hand, your lifetime budget is the total amount you want to spend on your ads for a specified period.
From here, you can select how long you want your ads to run, and specific times you want your ads to be shown.
6. Create your ad
What kind of ads do you wish to show to your audience? Are you looking to create a video ad or show them a carousel of your product images?
This is where you set up your:
- Facebook ad design
- Ad format
- Call to action.
However, your ad format should match the campaign objective you selected.
For instance, video ads generally get more engagement than picture-format ads.
Facebook will show you the available options, depending on your chosen objective.
After selecting an ad format and uploading your creative assets, you can choose where you want your ads to be displayed.
The options available include:
- The desktop news feed
- The mobile news feed
- The desktop right column.
7. Monitor and analyze results from your campaign
Once your ads are approved and live, you want to monitor the results from your campaign.
You can view the metrics for your ads (such as your reach, engagement, clicks, and cost) from your ads manager dashboard.
With this data, you can make the necessary adjustment over time.
7 Best Practices to Help You Get the Best from Facebook Ads
In this Facebook ads guide, we have included seven best practices to help you create more engaging Facebook ads for e-commerce. Let's check them out!
- Create shorter and better copy: Experts have found that best-performing ad copies use simple language that convinces people to take action. Therefore, your copy must be concise and must communicate your ad message.
- Leverage video-based ads: More and more Facebook users consume video content than any other type of content. When you do it right, Facebook video ads can generate more conversions as they are more engaging.
Besides, with clean, high-quality videos that speak directly to your audience, you can begin to see more results from your Facebook ads for eCommerce.
- Use less text on image ads: When using text on your images, keep them short and focus on the essential part of your message.
- Display your products with Facebook carousel ads: Carousel ads allow you to display multiple images of your eCommerce products. With Facebook’s carousel, you can display up to 10 images or videos with specific call-to-action buttons all in one ad.
Also, if you have multiple products with different landing pages, this can be a great way to display each one and lead your audience directly to make a purchase.
- Use engaging call to action: Your call to action must be laser-focused and resonate clearly with your goal.
- Use the proper aspect ratio: Using the wrong ad sizes can negatively impact your advertising results. After all, what good is an ad that your audience can’t see well? Therefore, we recommend using a vertical or square aspect ratio that covers the user’s screen and displays your ads well.
- Animate your ads: Remember, the goal is to capture your audience’s attention. Therefore, animated ads give you a better chance of attracting and engaging your audience’s attention than static ads.
Creating Your Facebook ads Budget: How to Do It Right
One of the things to consider when running the best Facebook ads for eCommerce is how to create your ad budget. But, while there is no hard and fast rule for Facebook ad budgets, there are several strategies to figuring how the best budget for your advertising goals.
Here’s a two-step guide to setting your Facebook ads budget:
1. Determine your campaign goal
Before setting any budget, you first want to examine your advertising goals.
How many sales are you looking to hit? How many customers do you need to achieve those sales?
With a goal in mind, you can set an amount that ensures you get satisfactory ROI.
For example, if your product sells for $50 and your goal is to make $15000 within 30 days, you need to sell 300 units of your products.
2. Calculate your Facebook ad budget
To calculate your Facebook budget, you need to multiply the number of sales you want by the cost per lead.
Your cost per lead is how much Facebook charges you to convert one customer.
This varies by industry and can be anywhere from $2 to $10.
For many eCommerce business owners, the strategy is to run a test ad that helps you determine how much you are charged for every customer you convert.
You can also leverage a Facebook ad budget calculator to help discover how much you need to spend on your ad.
For example, if your cost per lead is $5 and you need to sell 200 products, then your ad spend is equal to 200 x 5= $1000
Now, here is the thing: you don't necessarily have to spend that specific amount on your ad, especially if you are on a low budget.
The trick is to find a balance — start small and then keep scaling your ad till your budget aligns with your sales goal.
How to Measure the Success of Your eCommerce Facebook Ads Strategy
To better understand how your Facebook ad campaigns perform, you need to measure results.
That said, here are the key metrics to look out for:
This is the number of times people see your ads. If your goal is to increase the brand awareness of your eCommerce brand, then you need to measure this metric.
Your cost per thousand impressions helps you know how much you pay per 1000 views of an ad.
If you are running different ad sets with varying costs per impression, spending more on the one with the low cost per thousand impressions makes sense.
You can understand how effectively your ads can drive people to your website or other landing pages with clicks. This is because your clickthrough rate describes how often users click on your ads after seeing them.
For this metric, you want to measure your average click-through rate (CTR) and the cost per click (CPC).
CTR = number of clicks/number of impressions
CPC = ad cost/number of clicks
Note The higher your CTR, the more engagement your ads are getting.
Also, while it varies across industries, a good CTR for Facebook ads is around 0.90%. To increase your CTR, you should create better and more engaging ads,
3. Conversion rate
Conversion refers to the specific action you want your audience to take after seeing your ads, and it varies from business to business.
For some eCommerce owners, a conversion happens when a user buys a product, while email signup is the conversion goal for others.
Nevertheless, your conversion rate measures how often users carry out your desired action.
Conversion rate = the number of conversions/number of clicks
You can also measure your cost per action by dividing the ad cost/ number of conversion
4. Return on ad spend (ROAS)
The average ROAS on Facebook ads measures the revenue divided by the ad spend. The higher the ROAS, the better.
Return on ad spend (ROAS)= revenue/ad cost
Wrapping Up our Facebook Ads Guide
For eCommerce businesses, Facebook ads are a great advertising tool.
But while many people are running ads, only the most strategic marketers can drive great results from their campaigns.
The good news is that with our complete Facebook ads guide, you will be able to set up your own effective Facebook ads campaign.
However, remember to keep testing and tweaking till you discover what works best for your business!
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