Table of Contents
Facebook has over 2.60 billion active users, and that number is rising every year. With so many people from various different demographics, you can be sure that a large number of your future customers are using this platform on a daily basis.
Facebook allows you to reach people depending on their location, age, gender, and more personal details such as behaviours, life events, and interests. Not only that, but the platform also offers different types of content that can be used to create perfect ads.
When you take the vast user base and combine it with Facebook’s variety of ads and advanced targeting options, it’s easy to see why so many eCommerce marketers choose to advertise on Facebook.
Just take a look at the statistics on Facebook advertising, and you will notice even more reasons why this social media platform is so popular among advertisers. Facebook accounts for 80.4% of U.S. social referral share to eCommerce sites. Moreover, an average Facebook user clicks on 11 ads per month.
If you’re one of the very few marketers who hasn’t started advertising on Facebook, or you just haven’t mastered all the tricks of the trade yet, you’ve come to the right place. This guide will teach you everything you need to know about eCommerce ads on Facebook.
Types of Facebook ads
If you’ve ever wondered what kind of eCommerce ads work well on Facebook, they all do. The platform offers 13 types of ads, and they are all listed below.
Image ads are very simple. You can use a very colourful image paired with interesting text and you got yourself a very effective ad.
These ads run in stories and news feeds. They can be in the form of a video, or even a type of animation such as a GIF.
Video poll ads
Video poll ads also display a video but they allow users to vote on a poll, which adds an interactive component to your advertisements.
Carousel ads allow you to upload up to 10 images or videos which you can use to showcase different products or multiple aspects of one product in the same ad.
Slideshow ads allow you to create short videos by using existing clips, text, or still photos. They are very eye-catching but use much less bandwidth than video ads, so they load faster.
These types of ads are only shown to Facebook mobile users. They allow you to upload Facebook ads for eCommerce for up to five products that customers can click on and purchase the product right away.
Instant experience ads
These are full-screen ads that load 15 times faster than a mobile website outside of Facebook. Also, they go hand in hand with collection ads and allow your customer to buy products without leaving Facebook.
This is another type of ad which is only available to mobile users. As the name would suggest, they serve mostly to collect leads and customer information.
Dynamic ads are shown to those customers who are most likely to be interested in your product based on their browsing and shopping history.
These ads are displayed on Facebook’s messaging app and also have a CTA button that can connect customers to your Facebook page so you can have a one-on-one conversation.
These ads can be pictures, videos, and polls. They appear in your followers’ Facebook stories.
Augmented reality ads
This is a new type of advertisement on Facebook and very interesting to customers. It uses features such as animation and filters to allow customers to interact with your brand.
This is another type of interactive ad that usually comes in the form of a game, which is a type of creative content that customers love.
Creating a Facebook ad funnel
Just like with any other advertising campaign, you need to have a clear strategy and think about how you’re going to take your customers down the sales funnel. Here is how you can do that with eCommerce marketing ads on Facebook.
Integrate your store with Facebook
Before you can start bringing customers down the sales funnel, you need to integrate your eCommerce store with the Facebook platform. You can do this in a few simple steps.
- Install Facebook pixel on your website. Facebook pixel is a piece of code that allows you to run targeted campaigns. This code tracks all of the traffic to your website and it will allow you to attract the right audience, gather analytics, and plan campaigns that will guarantee conversions.
- Set up your products catalogue. When you set up a product catalogue with Facebook, you’ll be able to leverage dynamic campaigns. These campaigns allow you to target people who have already visited your website but haven’t made any purchases before leaving it.
- Set up conversion tracking. This option is important because it will enable you to keep track of how many people converted and on which ads. Then you’ll know which ads are bringing in business and which need to be improved or removed completely from your ad campaign.
Create a custom audience
Your products aren’t meant for everyone and neither are your ads. There’s no point in showing your ads to people who won’t be interested, so you need to set up a Facebook ad by targeting the right audience.
You can do this by including people from your email list, website visitors, and generally people who have engaged with your business. Since they have already shown some interest in your products and browsed your website, you want to target them at the middle and bottom of your sales funnel.
To create a custom audience, you need to go to Facebook Ads Manager and visit the Audience dashboard. When you click Create Audience and select Custom Audience, you will be able to choose from which sources you want to create an audience:
- Website traffic
- Customer list
- Instagram business profile
- Facebook page
The process of creating a custom audience from all of these sources is very similar and not at all complicated. The biggest difference lies in selecting the source of the audience.
You can also create custom audiences for different time periods. You can start off with a simple 7-day period until you test out how a particular audience is responding to your campaign. Once you notice how well certain audiences are responding to campaigns, you can extend that period.
Start your campaign by building product awareness
Once all of that is set up, it’s time to start your Facebook ad campaign at the very top of the funnel. The largest number of people are at this stage, and the main thing you need to focus on at this point is to create content that attracts people.
Now that you have your target audience, you need to create content that will speak to them and resonate with them. In other words, you need to grab their attention. One of the best types of content for this is video.
Don’t forget that the audience you’re targeting at this stage are complete strangers and probably aren’t invested in your brand yet. The main goal here is to keep their attention, and if you use videos, you can do that with people who are talking and moving.
These are the best steps to take when building product awareness.
- Create a new campaign. When you do this, you need to choose an objective. Your best bet is to choose the Conversions objective, as that will target people who are most likely to convert. Name your campaign to identify in which stage of the funnel it’s used, and finally, set up the budget.
- Set up the Facebook ad set. Name the Ad set and select Purchase in the Conversion section. You also need to choose the location for your target audience and place them in a category such as 1% lookalike audience of past purchasers, for instance. Finally, select Automatic Placements under Placements.
- Design your Facebook ad creative. Once you name your ad and upload the video, you need to choose the primary text of the ad where you will convince people in a few words why they need to buy your product. Another thing you need to think about in this stage is the perfect ad headline.
Encourage potential customers to consider your products
After you’ve finished building brand and product awareness, you need to focus on creating a campaign for the middle of your funnel. In this stage, your goal is to get your target customers to click on the ads and view the products on your website.
You can use both videos and images that will allow you to show your products in the best light. The images you use here need to display happy and smiling people, as this can have a big impact on your customer’s mood and ultimately, sales.
Below are listed the best steps for your middle-of funnel campaign.
- Create a new campaign. Just like at the beginning of the funnel, you need to choose an objective, name your campaign, and set your budget. As for how much money you need to put into this campaign, the best option would be to have a higher budget if you have more engagement.
- Set up the Facebook ad set. At this stage, you should go to the Conversion section and select Purchase, targeting the right audience. The best engagement audience is your 180-day Facebook page engagers and Instagram business profile engagers. And once again, choose Automatic Placements.
- Design your Facebook ad creative. The actions you take in this text are similar to that at the beginning of the funnel, but it’s best to ask questions that will get a ‘Yes’ from your ideal customers. Additionally, explain how your product can resolve their problems and pain points.
Finish your campaign with successful sales
The bottom of your sales funnel is filled with people who are one click away from becoming customers. Now is the perfect time to run dynamic product ads.
If you ever asked yourself How to create Facebook ads for my eCommerce website, it only takes three simple steps:
- Create a new campaign. This campaign needs to have Catalog Sales as its objective and be named appropriately. Select a product catalogue from the Catalog drop-down menu and set up a budget. You won’t need a large budget here, as you’re not targeting a large audience.
- Set up the Facebook ad set. At the bottom of the funnel, you need to select specific products you want to promote or even all of your products. The audience section needs to consist of people who are retargeted or have already visited your website. As for the time period, select 14 days at first.
- Design your Facebook ad creative. The best format at this stage is the carousel format. To do this, you need to go to the Catalog Options and select multiple products and the option for a single image. The primary text in this ad needs to invite customers back to your website to complete their purchase.
Set up remarketing campaign
Even though creating your sales funnel campaign is a big part of running an eCommerce Facebook ad campaign, it’s not the only thing you need to think about. You also need to focus on people who have already purchased items from your store, as they are your best customers.
With remarketing campaigns, you can re-engage these past purchasers and bring them straight back to the middle of the funnel with a few tricks.
One of the best ways you can create these remarketing campaigns is with new product launches. No matter if it’s a completely new product or just a new version of an already existing product, the perfect audience for those products is people who have already shown interest in your brand.
Create a special middle-of-funnel campaign that will target 60-day purchasers, those who still have your brand fresh in their minds. Experiment with different images and videos to see which will show the best results.
Another tactic you can use is to target people whose products are about to run out. If you sell products that are perishable, can be spent, and need to be renewed, this tactic can be used to remind customers to purchase another batch of products before their current one runs out.
Let’s say that you sell a box of daily snacks that contains 30 pieces in total. For this, you can create a campaign that targets only an audience that is almost finished with their box and are ready to purchase a new one.
A word about bidding
If you’re worried about the costs of advertising on Facebook, you should probably consider manual Facebook ad bidding. This option allows you to have more control over the cost of your Facebook ad campaign
To understand how bidding works, you first need to understand Facebook’s ad delivery system. Basically, the platform decides which advertisements get shown when advertisers bid for the customers’ attention. If you win a lot of bids, your advertisements are more likely to be shown.
However, this isn’t a situation where the highest bidder wins. Factors such as relevance, buying signals, and trust are there to ensure that users actually see relevant ads. This is beneficial for both customers and advertisers.
There are three different components of the ad delivery system.
- Auction. Facebook uses a formula to determine who wins the auction. This formula is based on how much competition there is, how likely it is that the customer will perform the ad objective, and how valuable the ad is. If you win the bid, the cost of the ad will be the bid amount of the second-highest bid.
- Pacing system. No matter how big of a budget you have, the pacing system will ensure that Facebook will spend it evenly throughout your campaign. You can set a daily or lifetime budget and Facebook will space it up evenly and look for lower-cost opportunities to bid on.
- Advertiser controls. You have a chance to control who you want to target and what kind of advertisement you want a certain audience to see. You can choose all of this when you’re choosing your target audience.
Now that you understand the basics, it’s time to talk about the two different bidding strategies on Facebook – automatic and manual.
Automatic bidding strategies
Automatic bidding allows Facebook to use its algorithm to find the lowest prices for your bids and benchmark them against other advertisers. This type of bidding maximises your budget and uses the algorithm to provide you with the best outcome.
This type of bidding is great if you’re new to Facebook advertising and are trying to find a benchmark for your ad objective costs. Additionally, it’s a great option if you have a limited budget and want to make the most out of the money you have.
Manual bidding strategies
Manual bidding gives you more control over what you want to bid on and allows you to find the objective you’re looking for. All you need to do is tell the platform what kind of objective you have, how much money you want to spend, and Facebook will help you achieve your goals.
However, keep in mind that manual bidding isn’t always available. You can only use it for selected placement and it is set when you’re determining your advertising budget. This type of bidding strategy alters how Facebook uses your budget.
It can be more competitive against other advertisers, manage campaign costs, and drive better cost efficiencies.
Facebook eCommerce ads case studies
Sometimes it can seem that advertising takes too much effort for something you’re not even sure will be as effective as you hope. However, all you need is motivational stories about eCommerce ads on Facebook from companies that took the chance and achieved success.
Here are stories about some of the best Facebook ads for eCommerce.
Mixit is a Czech food brand that brought customisable muesli to the market.
They allow their customers to choose the type of ingredients they have. They have recently included a variety of healthy bars, drinks, and snacks to their offer. In their Valentine’s campaign in 2020, their goal was to drive online sales with special Valentine’s Day offers of their products.
Their Facebook ad campaign had the slogan “love for everyone” and was targeted to an audience from the Czech Republic, Poland, Slovakia and Hungary. The campaign utilised videos that showed their limited-edition Valentine’s Day products.
These video ads were shown in the Instagram-friendly 1:1 ratio square-aspect video ads, as well as in dynamic ads. The campaign ran for one month and aside from using dynamic and video ads, they also took advantage of automatic placements and custom audiences.
In the end, this campaign resulted in a 60% increase in sales during the campaign period and 40% more people reached than in the previous Valentine’s Day campaign.
Loberon is a German interiors online retailer where customers purchase trendy furniture, home furnishing, and accessories.
Their Facebook ad campaign had the goal of attracting new customers in Germany without spending too much money on their campaign. Their prospecting campaigns and Facebook conversion ads for eCommerce managed to reach affluent people who were very likely to make a purchase.
This very successful campaign consisted of dynamic event-based campaign, dynamic value-based prospecting campaign, as well as a dynamic retargeting campaign.
Their efforts resulted in a 54% increase in conversion rate, 42% increase in return on ad spend, and a 44% increase in revenue, compared to the same time period from the year before.
Moda in Pelle
Moda in Pelle is a luxury British footwear brand that has stores all over the UK and a very successful eCommerce store. In 2018, the brand decided to harness its social media presence and use Facebook eCommerce ads to drive sales in a very cost-effective way.
Their Facebook advertising strategy was to take the full-funnel sales approach and match all types and formats of ads with their audiences in different stages of the sales funnel. They were able to systematically attract new customers and lead them down the funnel until they make a purchase.
As they carefully lead their customers through all the stages of the sales funnel, they achieved a considerable increase in sales in their eCommerce store and took a big step in the right direction.
After they started their campaign, they managed to achieve 9.5 times more sales from Facebook and Instagram and an 8.5 times increase in website traffic, compared to the year before.
5 pro tips to rock your Facebook ad campaign
There is no exact formula that will ensure your ad campaign will be successful, but there are definitely some things you can do that will increase the chances of that success.
1. Always work on your audience targeting
At the beginning of your career as an advertiser on Facebook, you probably won’t know exactly how to target your audience and what they want to see. That’s why in the first couple of weeks you need to choose a very specific thing your audience might enjoy, and then broaden it with time.
With Facebook ads targeting eCommerce shoppers, you can also create different ads for specific groups of people who have different goals. As mentioned before, you won’t have the same type of communication with people who are already your customers and those who have never heard of your brand.
If you’re trying to target people from a specific location, you can also use zip and postal code to be more accurate.
2. Use the Facebook Pixel
Even though we already mentioned this, it’s worth repeating because the Facebook Pixel is a great piece of code that can greatly improve your Facebook ad campaign. Its abilities to help you track conversion and create lookalike audiences will definitely make your life easier.
3. Always use high-quality photos and videos
A big factor that can make or break your sale is the type of photos and videos you use in your ads. Blurry and unclear images look unprofessional and probably won’t result in many sales, as 90% of buyers say that photo quality is the most important factor in online shopping.
The text you use isn’t as important in these types of advertisements, but visuals are. They are the thing that grabs your viewers’ attention and helps you make a first impression. If the images and videos are of poor quality, your audience’s first impression of your business and brand will be poor as well.
4. Understand the importance of testing
Assumptions won’t get you anything, so don’t just create a campaign and assume it will work. Whenever you come up with something new, make sure to test it against ads you used in the past to see if the metrics you care about actually improved
If you think you can create one ad campaign and stick to it, think again. Not only will that become boring and repetitive, but it also doesn’t work with the constantly changing practices of Facebook ads. Learn what your audience likes to be able to create new campaigns, and don’t forget about testing.
5. Regularly track and optimise ad performance
When you go to your eCommerce Facebook Ads Manager dashboard, you will be able to monitor all of your campaigns closely, including their metrics and performance. If you notice an ad that isn’t performing as well as others, either remove it from your campaign or find ways to improve it.
Creating Facebook eCommerce ads might seem like a hard feat at first. Hopefully, this comprehensive guide has given you a fresh perspective on how to create Facebook ads for your eCommerce business. Just remember that the best Facebook eCommerce ads require a lot of trial and error.
After you find the perfect target audience, create a great funnel, test it out along the way, and apply all the other helpful tips you just learned about, you’ll be done with your work. As a result, you will create some awesome eCommerce Facebook ads that will bring you many conversions and loyal customers.
Another helpful tip if you really want to see great results from your ads is to hire a Facebook ads service. Our experts in this field know how to create a successful Facebook ad campaign, and they will be more than happy to do it for your brand.