The ONLY Facebook Ad Strategy You Need (Shopify Dropshipping)

Summary

In this Ecom Zone video, Long outlines a comprehensive Facebook ad strategy, detailing the testing, scaling, and retargeting phases. He emphasizes the importance of finding winning creatives and products, optimizing landing pages, and analyzing metrics like cost per click and conversion rates. Long advises viewers on setting up campaigns, targeting the right audiences, and scaling effectively to maximize ROI. He also stresses the significance of continuous testing and learning from ad performance to refine strategies for success.

Takeaways

• 🚀 Phase 1 is focused on testing to find winning creatives, ad copy, interests, and products.
• 💡 A high cost per click (CPC) indicates that your ad creatives aren't performing well and need improvement.
• 📊 Important metrics to track include impressions, CPM (cost per thousand impressions), CPC, CTR, add to cart, checkout initiated, and purchases.
• 💵 Aim for a cost per click below $1, but if you're profitable even with higher CPCs, it's fine to continue.
• 📈 When testing, start with ad sets focused on specific interests and one broad audience. Test a minimum of $5 per ad set daily.
• ⚖️ Scaling can be done horizontally (duplicating winning ad sets and testing new interests) or vertically (increasing budgets gradually by 10-50% every two days).
• 🔄 If ad sets stop performing well, reduce budgets back or kill the underperforming ad sets, then duplicate and test again.
• 🎯 Phase 3: Use Campaign Budget Optimization (CBO) for scaling. Facebook will allocate budget to the best-performing ad sets. Start with a budget of $50.
• 📢 Phase 4: Retargeting is crucial after gaining 400 sales. Set up custom audiences to retarget users who engaged with your ads or visited your website but didn’t convert.
• 📝 Focus on ad creatives and copywriting using frameworks like AIDA (Attention, Interest, Desire, Action), PAS (Problem, Agitation, Solution), and USP (Unique Selling Proposition) to drive conversions.

Q & A

What is the primary goal of the testing phase in Facebook ads strategy?

The primary goal of the testing phase is to find winning creatives, winning ad copy, winning interest groups, and winning products. It helps validate ads, landing pages, and funnels to determine what works best for the specific product and niche.

What should you do if the cost per click (CPC) is high?

If the cost per click is high, it indicates that your ad creatives aren’t working effectively. You need to improve your ad creatives, as high CPCs suggest low engagement and poor performance.

Why is the average order value (AOV) important in Facebook ads?

The average order value (AOV) is important because it affects profitability. The video recommends aiming for an AOV of at least $50, as it's hard to become profitable with lower AOVs given the cost of ads.

What metrics should be prioritized when setting up your Facebook ad columns?

Key metrics to prioritize include impressions, CPM (cost per thousand impressions), CPC (cost per click), CTR (click-through rate), add-to-cart actions, checkout initiations, and purchases. These metrics help evaluate the performance of your ads and determine the success of your funnel.

What does a low CTR (click-through rate) indicate, and how should it be interpreted in relation to CPC?

A low CTR could indicate that your ad isn't engaging enough. However, if the cost per click is low, the ad might still be profitable. It’s important to analyze both CTR and CPC together to determine overall ad effectiveness.

Why is it important not to mix different ad formats in the same ad set?

Mixing ad formats (e.g., video, carousel, image) in the same ad set can cause uneven budget distribution, with Facebook allocating more budget to certain formats (like video) over others. This can lead to imbalanced testing and poor performance for some ad formats.

What is the purpose of 'killing underperforming ads' after two days?

Killing underperforming ads after two days is a strategy to avoid wasting budget on ads that aren’t delivering results. This helps optimize ad spend by focusing on ads that are performing well, based on metrics like cost per click and conversions.

What is the spider structure or tree diagram, and how is it used in ad testing?

The spider structure or tree diagram is a method of organizing ad testing by starting with one campaign and branching out into multiple ad sets with different interests or targeting options. It allows for testing multiple interests while keeping the campaign organized.

When should you move from the testing phase to the scaling phase?

You should move to the scaling phase once you've found a winning creative and interest, have optimized your landing page and funnel, and have more than five purchases for each ad set. At this point, you can begin increasing budgets and testing more interests.

What is CBO (Campaign Budget Optimization), and when should it be used?

CBO (Campaign Budget Optimization) is a Facebook ads setting where the budget is set at the campaign level rather than the ad set level, giving Facebook more control over budget allocation across ad sets. It’s recommended for use in scaling campaigns after identifying winning ads and optimizing performance.