Today, we’re going to unveil our 2020 drop-in Facebook advertising plan. This approach is one that we’ve used time and time again to scale multiple stores to 7-figures in record time.
We’ll give you a full explanation of what the different components of Facebook ads are, how the Facebook ad algorithm works, how to scale your campaigns, and everything else in-between.
Advertising Budget Strategy A clear understanding of the budgeting and how much money you should allocate to your campaigns is essential to the success of Facebook ads.
Don’t invest too much, and you get enough data to make educated choices. Spend too much too soon, and you’re likely to burn through your budget with mediocre results. So, how exactly are you going to set a good test ad budget?
In short, your advertising budget will be proportional to the cost of your product. The more expensive your product, the more you should expect to spend in order to get the data you need to make progress with your Facebook campaigns.
The general rule of thumb is that your advertisement budget should be 20x the selling price of your product.
Yeah, if you’re selling a $25 product to your store, you’re going to spend around $500 on Facebook ads.
Simple enough! Easy enough!
Facebook Advertising — Behind the Scenes Now that you have an idea of how to correctly budget your product testing advertising, let’s see how Facebook Ads actually operate.
We’ll go through the following: Facebook Advertising Pyramid Model Data & Algorithm Theory Facebook Pixel Facebook Advertising Pyramid Model Facebook ads can be represented in a pyramid with three elements, from top to bottom, respectively: Campaigns Adsets Ads You’ll note that each campaign includes one or more ads. In addition, each ad includes one (or more) advertisements.
We’re going to go into more detail about the role of each part in the post — so don’t worry if you don’t completely understand this right now.
Data & Algorithm Ad Theory Facebook ads are increasingly efficient and profitable for advertisers to use due to machine learning. It uses sophisticated algorithms and large quantities of user data to deliver ads to people who are most likely to take a particular action (in most cases, those who are most likely to purchase).
The types of data that Facebook uses include factors such as age, gender, interest, location, and history of browsing.
If this sounds incredibly complex — don’t worry, you don’t need to understand how all this happens in the backend, or to know how to construct machine learning algorithms.
Facebook gathers all of this knowledge about its users automatically and is able to determine exactly who the prospective customer is based on the data it acquires.
In addition to the data that Facebook gathers from third-party sources, it will also use data from users that interact with your brand; this could include people who visit your site, promote your site, like your Facebook page, etc. Wondering how Facebook can get this data from your site to start with? Okay, it’s just about something called the ‘Google Dot.’
Facebook Pixel The Facebook Pixel is a piece of code that you put on your website that monitors user activity and sends it back to Facebook. Data is then aggregated and analyzed by the Facebook algorithm to decide which types of people are most likely to buy. Depending on these equations, Facebook will then deliver the ads to certain kinds of users.
In terms of the intellectual, nitty-gritty stuff, that’s all you need to know. With this in mind, let’s take a look at how all this is related to our advertising strategy!
Facebook Ads Program To be effective in running Facebook ads, you need to have a program in place that allows you to test audiences, different creatives, and ultimately refine and scale your campaigns.
A well-defined approach would also reduce monetary losses when maximizing the advertisement enclosure.
Phases The ad strategy consists of four phases.
Phase 1: Interest Testing Phase 2: Interest Scaling Phase 3: LAA Testing Phase 4: LAA Scaling Phase 5: End Game Each phase builds on the last phase, providing you with the information you need to find your winning creative and audience combination in as little money as possible.
Step 1: Interest Testing In this process, we’re going to go through a few specifics about the logistics of setting up a Facebook campaign. Don’t skip over this part, as you’re going to need this information for future phases!
Fast Creation Campaign There are two different ways to create a campaign; directed development and easy development.
You can achieve the same effect with either method, but we recommend that you use fast development as it is more effective.
Campaign Information Once you press the Quick Build button, you will be taken to a screen that looks like this: first, fill in the Name of the Campaign, Ad Set Name, and Ad Name. In our case, we will call the campaign “Interest Test 1,” the adset “Interest 1,” and the ad call “Brand 1.” We’re going to modify this information later, so don’t worry about coming up with names too much.
Campaign Goals Next, you will need to set the goal of your campaign.
Campaign goals allow you to decide what action the Facebook algorithm is expected to optimize. There are a number of options, such as brand recognition, lead generation, page likes, etc. One important thing to remember here is that Facebook is very good at figuring out who is likely to take very specific action; so you’ll likely find that post-engagement optimization would only result in post-engagement, and very few clicks or purchases.
As such, we strongly recommend sticking to the optimization of ‘conversions’ when running your campaigns. This will provide you with users who are most likely to make a purchase from your store.
Campaign vs Adset Budgets Finally, you will need to decide whether you want Facebook to optimize your campaign or adset amount.
A campaign-level budget will instruct Facebook to distribute, over the course of the day, the spending on ads in the campaign. This helps Facebook to assign spending to individual advertising based on which advertising it feels will work best.
The ad-level budget will instruct Facebook to spend a specific amount on each ad during the day of the campaign.
While this may seem a little complex, what you really need to learn is this: Campaign budget optimization is better for higher-priced products where more data is required to optimize Adset budget optimization is better for lower-priced products where less data is required to optimize A general rule of thumb is to use campaign budget optimization if your product cost is greater than $15.
So, in our case, we’re going to go ahead and allow CBO optimization as our product is priced at $29.
The last thing you need to set up on this computer is the campaign bid plan.
We checked the various bidding methods and found that the lowest cost was best achieved for us through a range of different ad accounts and stores.
Adset Configuration We’re going to go ahead and set up an adset. The first step is to schedule the purchase conversion case. By doing so, you raise the odds of creating a high-quality traffic that is more likely to be purchased.
Dynamic Creative & Offers: Next, you’ll see the ‘Dynamic Creative’ and ‘Deal’ parts that are interesting but that aren’t something you necessarily want to play with until you’ve had some more experience running ads.
Schedule: Heading to the Budget & Schedule segment, we’re going to set the start date and time for the next day at midnight. This will ensure that Facebook invests your budget optimally during the day, providing the best possible results.
Budget: If you’re using adset budget optimization, you’ll want to go ahead and set the budget for your adset. The daily budget should be $2.50 x (# Of Creatives) Custom Audience: at the moment, leave this segment blank because it will not be used until a later date, once we have obtained enough data from Date 1.
Location: This field will allow you to specify which countries you would like to view your advertisement. We suggest using countries on our special ePacket list (see our Facebook group) that qualify for ePacket shipping from Aliexpress suppliers.
Age / Gender: You can also define the age range and gender you want Facebook to target. Generally speaking, we leave each of them set to their default values. We recommend that you do the same unless your product is explicitly for one sex only.
Languages: Assuming that your website and ads are intended for English speakers, it is recommended that this preference be set to English (All).
Detailed Targeting: This is where you decide which categories of people you would like Facebook to target based on their interests. We recommend that you check for target audiences using your common sense; if you’re selling dog toys, look for ‘dog’ and see what happens. One factor you’ll want to take into consideration, however, is the size of the group; we’re suggesting larger audience sizes, because Facebook appears to favor them and optimizes them more effectively. If your audience size is less than one million people, we suggest that you pick a larger audience — that will essentially turn your target engagement into a broader community of users that Facebook appears to prefer. After you have selected a target interest, you can go back to the name of the adset and change it to your newly selected interest. This will allow you to easily see what is going on with your campaigns without having to go and ‘review’ your adset to see what the targeting is.