How to Actually Optimise your Facebook Ads for Dropshipping

Summary

In this video, a seasoned dropshipping entrepreneur shares insights on how to optimize Facebook/Instagram ads for success. Covering everything from understanding key ad metrics like CTR, CPC, and CPM, to creating effective ad creatives and testing new formats, the video provides a step-by-step guide to boost your ad performance. The importance of website optimization is also emphasized, with tips on improving product pages, checkout rates, and conversion metrics. With real-world advice on scaling ads and troubleshooting underperforming products, viewers are equipped to improve their dropshipping business and start generating sales.

Takeaways

• 😀 Understand your ad metrics: CPM, CPC, and CTR are crucial for assessing ad performance.
• 💰 Start with a budget of $20 to $50 per day, but be aware that lower budgets may slow down data collection.
• 📊 Customize your Meta dashboard columns to include relevant metrics for better ad analysis.
• 🔄 Test new creatives and ad formats regularly to find what resonates with your audience.
• ⏳ Turn off underperforming ads after two days if they have a CTR below 1%, CPM above $15, or CPC over $1.
• 🌍 Explore different targeting options, including demographics and countries, to optimize your ads.
• 🛒 Monitor your website's add-to-cart, checkout, and purchase rates to ensure effective conversion.
• 🔍 Improve your product pages by building trust with social proof and clear, compelling visuals.
• 🔁 Continuously iterate and scale winning ads while testing new creatives and copy.
• ❌ Know when to kill a product: If you can't break even despite optimization efforts, consider moving on.

Q & A

What is the primary goal of optimizing ads in dropshipping?

The primary goal is to improve ad performance by identifying winning creatives and copy, enhancing the website and product pages, and effectively scaling or terminating products based on their performance.

What metrics should be analyzed on the Meta dashboard to optimize ads?

Key metrics include CPM (Cost Per Mille), CTR (Click Through Rate), CPC (Cost Per Click), CPA (Cost Per Acquisition), and conversion metrics like add-to-carts and purchases.

What should a user do if their CTR is below 1%?

If the CTR is below 1%, the ad should be turned off after two days, as it indicates low engagement and poor ad performance.

How can a low CPM indicate issues with an ad?

A high CPM may suggest that the user is in a competitive industry, selling high-ticket items, or that the ad creatives are not appealing enough, while a low CPM indicates the opposite.

What strategies can be employed to improve ad creatives?

Strategies include testing new hooks, engaging visuals, different ad formats (like carousel or video), and varying headlines and ad copy to attract the target audience.

What are some indicators of a poorly performing website in dropshipping?

Indicators include an add-to-cart percentage less than 4%, a checkout percentage below 2%, and a purchase rate of less than 1%.

What improvements can be made to product pages to enhance performance?

Improvements include building trust with social proof, addressing customer pain points, providing clear CTAs, displaying shipping information, and adding FAQs and customer reviews.

When should a dropshipper consider killing a product?

A dropshipper should consider killing a product if it consistently fails to break even or make a profit, particularly after attempts to optimize ads and the website.

What is the recommended daily budget for ad testing?

A recommended daily budget for ad testing is around $50; however, starting with $20 to $30 is possible, though it may slow the testing phase.

How often should new products be added to a dropshipping store?

It is suggested to add new products regularly, ideally two new products daily, to keep the store fresh and engaging for customers.