Week 4 Full Class

Summary

This script discusses strategies for e-commerce advertising on Facebook, emphasizing the importance of targeting established brands with unique products and a high average order value. It outlines steps for selecting products to advertise, creating ads, and setting up campaigns for immediate sales. The speaker also explains how to manage campaigns based on cost per sale and gross profit, and introduces the Advantage Plus shopping campaign for scaling successful ads, highlighting the significance of testing numerous ads for optimal results.

Takeaways

• 😀 E-commerce is defined as any business selling physical or digital products directly through a website or landing page, without the need for additional interaction.
• 📈 Media buyers are in demand by established brands with unique products, as opposed to generic non-branded stores, which are less stable and have difficulty retaining customers.
• 💰 Higher average order value (AOV) brands, especially those over $100, are ideal for media buyers, as they are more likely to offer higher salaries and have larger profits.
• 🛒 The primary goal for media buyers in e-commerce is to generate the highest immediate return on ad spend (ROAS), focusing on direct sales rather than leads.
• 📊 E-commerce ad management involves real-time decisions based on immediate sales, unlike lead generation where returns may take a longer time to materialize.
• 🎯 When selecting products to advertise, prioritize those with the highest order value, most popular, and those generating the most engagement on social media.
• 📝 AD creation in e-commerce parallels lead generation, requiring multiple creatives, copy versions, and headlines to test different ad performances.
• 📉 For campaign setup, e-commerce differs by selecting 'sales' as the campaign objective and 'purchase' as the conversion event, reflecting the focus on direct sales.
• 🚀 Separate campaigns should be created for each product or collection to effectively test and optimize ad performance in e-commerce.
• 🔍 Facebook's Advantage Plus shopping campaign is a fully automated option for e-commerce, allowing Facebook to control targeting based on top-performing ads from testing campaigns.
• 📉 Management of e-commerce campaigns involves monitoring cost per sale and adjusting budgets accordingly, with immediate action for underperforming ads and gradual increases for successful ones.

Q & A

What is the primary difference between lead generation and e-commerce in terms of sales process?

Lead generation involves a longer sales process where leads are first acquired, warmed up over time, and then sold a product or service. In contrast, e-commerce involves direct sales of products either physical or digital through a website or landing page without the need for additional interaction.

Why are established brands with unique products preferred by media buyers in the e-commerce space?

Established brands with unique products are preferred because they are more likely to generate results, retain customers, and offer stability and higher profit margins, which can lead to larger salaries for media buyers.

What are the key criteria for selecting products to advertise for an e-commerce brand?

The key criteria for selecting products to advertise include having the highest order value, being the most popular in terms of sales, and generating the most engagement on organic social media posts.

How does the return on ad spend (ROAS) differ between e-commerce and lead generation?

In e-commerce, the goal is to generate the highest immediate ROAS, meaning the return comes right away as sales are made directly through ads. In lead generation, ROAS is considered over a longer period as leads are warmed up and converted into sales over time.

What is the recommended approach for creating ads in e-commerce, according to the script?

The recommended approach is to create a number of creatives and different versions of copy and headlines, starting with 25 creatives, 10 different versions of copy, and 10 different headlines, allowing for extensive testing and optimization.

How does the campaign setup for e-commerce differ from lead generation in terms of campaign objective?

For e-commerce, the campaign objective is set to 'sales' rather than 'leads' because the goal is to generate immediate sales rather than acquiring leads for a longer sales process.

What is the significance of the 'Advantage Plus Shopping Campaign' in e-commerce advertising?

The 'Advantage Plus Shopping Campaign' is significant because it gives complete control to Facebook for targeting, allowing the algorithm to find the people most likely to buy the product advertised in each ad, based on top-performing ads from testing campaigns.

How should media buyers manage the testing campaigns for e-commerce?

Media buyers should manage testing campaigns by monitoring the cost per sale and adjusting budgets accordingly. If the cost per sale is at or below the product's gross profit, the budget should be increased by 10%. If it's more than 20% above the gross profit, the adset should be turned off immediately.

What is the strategy for scaling e-commerce campaigns using 'Advantage Plus Shopping Campaigns'?

The strategy involves setting the initial budget at least 30% of the total daily budget, and then managing it by increasing the budget by 10% if the cost per result is at or below the product's gross profit, or decreasing it by 10% to 30% if it's above the gross profit, depending on the performance.

How does the script suggest creating lookalike audiences for e-commerce?

The script suggests creating lookalike audiences based on sales rather than leads, once the company has at least 100 sales. The custom audience is created using the URL of the order confirmation page.

What is the key to success in e-commerce advertising according to the script?

The key to success in e-commerce advertising is putting in the work to test a large number of ads. Success comes from the effort and creativity put into ad creation and optimization, rather than relying solely on strategy.