Facebook Ads For Ecommerce Stores
What Do Your Stats Suggest?
Are you running facebook ads for your online store but can’t seem to “crack them” and get the return you are after? Have your campaigns stalled, or have yet to even lift off? If so, you are not alone. As you have heard before most businesses fail, and it’s not because they have a bad product or service, most of the time it’s because they don’t know their numbers. And the same goes with facebook campaigns. Most campaigns fail because they don’t know their numbers. Similar to knowing your profit & loss statement for your business, you need to know important numbers and stats for your facebook campaigns. Because sales alone can be deceiving.
At Optemyz our formula for generating a high return on our client’s Campaigns all starts with analyzing the numbers. By assessing the numbers we know exactly where to start inorder to improve the overall performance of the campaigns. From there we get further data that will indicate what steps to take next. Want Us To Take A Look At Your Numbers? Schedule A Time Talk and we can run over your numbers and outline what the numbers are suggesting.
Facebook Ads For Ecommerce Stores
Facebook Ad Metrics
Below are some of the stats we will assess. Keep in mind that none of these stats are entirely separate from the other. So in order to make decisions and understand the full story, and know steps to take you must read all levels of the data.
Here are some important facebook ad metrics to monitor and what they can mean about your ads. None of these metrics are isolated, so it is important to ready every layer of data to ensure you understand the full picture.
Cost Per 1,000 impressions (CPM)
Your CPM is essentially how much it costs you to advertise to your selected audience. This number can be really high ($100+) if this audience is being advertised to by a lot of advertisers. Similarly, this number can be really low ($15 & below) because there are not a lot of people advertising to this audience. Your CPM is a great number to know as it will play a role in all your other numbers, and it leaves clues, but it is not a single metric by which to base decisions off of. Keep in mind that Facebook might also charge you a high CPM if it doesn’t believe your ad is relevant or will perform well with your target audience, suggesting you might want to adjust your audience..
Click Through Rate (CTR)
Your click-through rate tells you a lot about your ad and how it resonates with your audience. On average an ad should receive a 1% or better CTR from a cold audience (people who are learning about your product for the first time). CTR is the key determining factor in what ad is out-performing another ad. Different images, headlines, and even the occasional emoji (🔥) can result in drastically better CTR’s. The wrong people clicking on your ad however will do you no good, so make sure those clicks are resulting in sales and not just coming from people clicking on a cool picture you’ve used in your ad.
Conversion Rate
The conversion rate, or the percentage of people that purchase your product after clicking your ad is one of the most important numbers of all. The industry average conversion rate for an ecommerce store is 2%. So for every 1,000 people who make it to your website you should get 20 purchases. If your store is performing under this average it could indicate that your website does not convert well or that you have been sending the wrong traffic to it.
Return On Ad Spend (ROAS)
The ROAS is the best overall indication of your campaigns performance. The average ROAS for an ecommerce store is 3x and should be what you shoot for initially.
Average Order Value (AOV)
An AOV of $30 and $60 could be the difference between a 2x ROAS and a 4x ROAS and being profitable or not. Shopify, Clickfunnels, WooCommerce and most other ecommerce platforms have apps, plugins and ways to increase your AOV by offering upsells and crosells before purchase to get a higher AOV.
Facebook Ads For Ecommerce Stores
Test. Measure. Refine.
Facebook offers advertisers a breadth of data and insight into their customer’s demographics, interests, buying patterns, and behaviors. If you do not already have this information you can aggregate it during the testing phase. This is what makes the testing phase so important and valuable.
Testing
Testing, is simply the process of running ads and determining what audiences, particular ads, and copy works best for your products and brand. The quality of your testing plays a huge role in the long-term effectiveness of your ads since the right image, video, verbiage, and audience can be the difference between a 1.5x return on ad spend, and 5x return on ad spend. At optemyz we have developed a thorough testing process to ensure we identify the audience and ads that most resonate with our client’s products and brands and lead to the highest return on ad spend.
Measuring
There is a variety of data within Facebook that we acquire through the testing phase that indicates where the adverting is going right, and where there is room for improvement. From this data we can determine if we need to adjust the image or videos we are using, the audiences we are targeting or adjust the sales page we are sending them to. The data will outline the exact action plan you need to follow in order to get the most out of your adverting budget. Which is what we do, simply follow the data’s orders.
Refining
After evaluating the data we will have determined which audiences and ads are in alignment with our goals and which are not. At which point we will begin the process of further dissecting the audiences and the specific characteristics and demographics within those audiences that are leading to the highest return on ad spend. Once we have a broad sense of who is purchasing your product, we will analyze that audience even further to understand the specific behaviors, interests, and characteristics of who purchases your product so we can advertise to others with those same traits. This reduces wasted ad spend and allocates our budget to those who are most likely to purchase your product.