E-commerce businesses advertising on Facebook share the common goal of gaining more leads and customers. Understanding how to optimize your Facebook advertising campaigns will help your company generate more leads and increase your sales revenue. Here are the top 4 e-commerce optimization needs for businesses advertising on Facebook.
1. Define your Facebook advertising objectives
Your goals and advertising objectives are the most important part of your advertising campaigns. Before running any advertisement, knowing what your objective is will help you understand what to track. You will know when you have succeeded by first defining what success looks like. Here are three common advertising objectives:
- Data: Sometimes, e-commerce businesses want to find their target audience by advertising to a broad audience. An advertising objective like this will allow a company to find out which group of people have an interest in their promoted products. Advertising with the goal of tracking and analyzing data can help businesses who want to find their target audience.
- Emails: Generating email addresses is a large part of an e-commerce business. Because many people don’t buy something on the first view, it can be beneficial to set up an e-mail list that allows you to retarget your potential customers without spending extra money on advertising. An example would be to use a lead campaign to generate e-mail leads for your business with an invitation to your promotions e-mail list or to be part of a list that gets a massive discount on a particular product when it launches.
- Revenue: The most important objective is usually to generate revenue. Knowing your target customer and advertising directly to people who are more willing to buy from you will help generate revenue from your advertising campaigns.
2. Advertise your products effectively
After defining your objective in terms of data, leads, or sales, you must advertise your products effectively to reach your goal. Here are two factors to think about when effectively advertising your products on Facebook:
- Find your target audience: Whether your objective is data, leads, or sales, you must understand who your target audience is. You might have an ideal customer in mind, but many times the data will show additional opportunities for your advertising efforts. Finding your target audience will allow you to target your advertisements to specific groups of people who are more willing to buy from you.
- Use your objectives for guidance: Your objectives are essential in helping you advertise your products. If your goal is data, that means you are still trying to find your target audience. If leads are your goal, you will want to craft an advertisement that clearly states they are gaining something by visiting your page. If you are looking to generate sales, knowing who your audience is and thinking about retargeting your ads to your recent visitors or customers can help increase your revenue.
3. Measure your Facebook advertising performance and CPA
Once you define your objects and find your target audience, you need to have a tool or system in place to measure your performance. This data is called cost per acquisition (CPA) and shows you how much it costs for each visitor, lead, or sale, depending on your advertising objective. On Facebook, you can track your cost per acquisition by using the conversion tracking pixel.
Utilizing the conversion tracking pixel:
The Facebook tracking pixel allows you to install a code fragment onto specific pages of your website to track the performance and success of your ad campaigns. Here are three ways you can utilize the conversion tracking pixel:
- Landing page: Adding a tracking pixel to your landing page shows you how many people landed at your product, promotion, or lead page after viewing your advertisement. This use of the tracking pixel will tell you your cost per click.
- Thank you page: Adding a tracking pixel to your thank you page shows you how many people signed up for your list or added their e-mail address to your promotion campaign. You can determine your cost per lead this way.
- Receipt page: Adding a tracking pixel to your receipt page shows you how many people bought your product after clicking on your ad. Using the tracking pixel this way determines your cost per sale.
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4. Run a retargeting campaign
Because the majority of visitors to an e-commerce site won’t make a purchase on the first visit, it is crucial to track your campaigns using your tracking pixels to save different audiences for future ad campaigns. This activity is one example of advanced Facebook ad targeting. Here are three ways to run a basic retargeting campaign:
- Create a custom audience for site visitors: You can use a pixel that tracks your site visitors from every Facebook ad campaign that you run. You can then use this data to create a custom audience that makes up your site visitors. Retargeting them with the same product can lead to a purchase.
- Create a custom audience for cart abandoners: There is a way to set up your pixel to find out when a potential customer added a product to their cart but didn’t purchase it. You can advertise specifically to these cart abandoners to get them to complete their purchase.
- Create a custom audience to upsell buyers: You can use your receipt page pixels that make up your buyers to cross-sell and upsell them on other products. Someone who has already bought from you has developed trust in your company and are more likely to buy again. Retargeting them with similar products can lead to additional sales.
Create a successful Facebook ad campaign
These four e-commerce optimization needs are beneficial for any business that advertises on Facebook. Understanding how each of these relates to your overall vision for your company can increase your revenue and decrease your CPA for every ad campaign that you run.
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