Facebook Ads for Ecommerce. Is that works?

Facebook is the biggest social media platform in the world. There are 1.6 billion daily active users and over 2.41 billion monthly (source), therefore it is an excellent place for ads.

Properly targeted Facebook advertisements can be very useful for any kind of e-commerce business. If you don’t have any advertising campaign on Facebook, you are likely missing many opportunities to make money.  

The Importance of Facebook Ads

Advertising on Facebook is important for e-commerce business because it allows you to target a specific audience. Facebook claims to be 89% accurate when it comes to targeted campaigns. If a business wants to target a completely new audience or an audience similar to the current audience, Facebook is flexible. Businesses can focus on location, demographics, interests, and behavior. Facebook also has advanced targeting capabilities. These options include targeting a user audience, lookalike audiences, and business website visitors. Recently, Facebook launched tools that connect in-store visits with certain campaigns. In case you would like to know your offline profitability, these measurements, integrated with sales from the e-commerce platform, will allow the receiving of real-time information. However, only those people will be included, who have turned on their location services. 

With paid advertising, both enterprises and consumers win. Businesses can target their audiences in ways they couldn’t do with organic, and they can easily track the effectiveness of their online and offline advertising. Offline tracking data will show businesses the true value of their paid Facebook ads. Besides, paid media will influence earned media. The more noticeable your publication is for your audience, the higher the probability of your post being shared. “Share” is what keeps social media marketing running. As for consumers, they will see ads that are relevant to them and will have easy access to e-commerce business information. However, we must remember that the presence of a stream filled with organic posts on an ongoing basis is critical. Besides, the coverage of these posts will be much less than it would be if they were promoted, the posts will be visible to everyone who is looking for, including visitors to your social profiles and pages. Having a “tough” timeline is important for your e-commerce business because it shows that you care about it and your audience. The ideal situation is to have advertising on Facebook, leading the user to click on the Facebook page of your business and ultimately visit your website or store to buy the product or service. Syncing both ads and regular posts will allow you to seamlessly interact and increase your ROI.

How Much Does Facebook Ads Cost For Ecommerce Business 

The average cost of advertising on Facebook is $0.97 per click (CPC) and $7.19 per thousand impressions (CPM). If your advertising campaign is aimed at getting likes or application downloads, you can expect that on average you will need to pay $1.07 per like (CPL) and $5.47 per download (CPA). 

Average Facebook Advertising CostBidding Model
$0.97Cost per Click (CPC)
$7.19 Cost per Mile (CPM)
$1.07Cost per Like
$5.47Cost per Action (CPA)

Although these data are based on in-depth research, which estimates nearly $300 million in Facebook advertising spend, these numbers are only average. 

Your e-commerce business may see higher or lower Facebook ads costs. The main factors that determine facebook ads price for e-commerce are:

Audience

A detailed study by Hootsuite on Facebook advertising costs showed that your target audience has a significant impact on the prices of your Facebook ads. Depends on gender, specific age or interest, you can expect changes in advertising costs. For example, if your ad campaign aims to women, the cost-per-click may increase by $0.55. This is $ 0.15 more than if your ad campaign was targeted at men. Looking at age, ads targeting people 55–65 years of age and older usually have significantly higher costs than campaigns targeting people 25–34 years old. That’s because Facebook has a total of 26 million users between the ages of 55 and 64. Although this may seem like a large number, it doesn’t come even close to the more than 58 million people (ages 25 to 34) who use Facebook.

Ad Budget

When you launch an advertising campaign on Facebook for e-commerce business, you set up an advertising budget. Regardless of your budget, be it $200 or $800 per month, this will affect your advertising costs on Facebook. If you set a budget of $200, this will affect your advertising bids, ad performance, and the overall results of your social media campaign. For example, if your company launches an advertising campaign with a monthly budget of $100, you can set a maximum bid of $1 per click. Since the average cost-per-click for Facebook ads is $ 0.97, it’s easy to see that your bid is uncompetitive and is likely to lead to a small number of impressions and clicks. For e-commerce businesses, social strategists recommend a daily budget of at least $5. However, if you spend $5 a day on your campaign, you will spend all of your budget of $100 within 20 days. With this amount of funding, you will not even have money to conduct an advertising campaign for a month. Besides, that high advertising costs provide your business with additional flexibility, you can still make a small budget work for your company. However, decision-makers at your company should understand that a low advertising budget provides fewer conversions due to performance limitations.

Ad Bid

Your advertising bid also affects the cost of advertising on Facebook. Facebook offers several bidding strategies, including:

  • Lower cost bid strategy: This option, also known as automatic bidding, helps your business achieve the lowest possible cost-per-click or action. It also aims to make good use of your budget, so companies are eager to start with this strategy.
  • Target cost bid strategy. This option, also known as manual bidding, allows you to reach your desired cost-per-click or action. This strategy can only be used for campaigns for installing applications, conversion, creating potential customers or selling a product catalog.

Depending on your bid strategy, as well as on the amount of the bid, you may have higher or lower costs for advertising on Facebook for your e-commerce business. In most cases, manual bidding involves higher advertising costs, while automatic bidding makes the most of your budget.

Season

The time of year can also affect the cost of advertising on Facebook.

At the peak of the shopping season, businesses spend more on advertising. Increased demand for advertising space leads to the creation of a competitive market, which can lead to aggressive bids and increased campaign budgets that inflate the cost of advertising on Facebook. Some of the most expensive days to advertise on Facebook include Black Friday, Christmas, New Year, Thanksgiving, Cyber Monday and others. While seasonal factors can increase your Facebook advertising costs, your business probably wants to take advantage of the increased demand from consumers. In response, you can increase your budget for these high-demand months or test your advertising strategy to improve the quality of your ads. 

Ad Quality 

The quality and relevance of your ads (as rated by Facebook) also affects how much Facebook ads cost for your e-commerce business. If you create ads with a high relevance and engagement rating, you will see lower advertising costs. Hootsuite demonstrated the power of ad quality or relevance in a recent study. The company created two versions of the same ad: one with a relevance and engagement rating of 2.9, and the other with a relevance and engagement rating of 8. As a result, the average cost-per-click for a low-priced ad was $0.14, while the high-priced ad was $0.03. When it comes to your relevance and engagement rating, your ads can get a rating from 1 to 10. Ten is the best possible rating and one is the worst one. Facebook assigns a rating of relevance and engagement based on positive and negative reviews. If you want to make the most of your Facebook ads, your team needs to create ads with high relevancy and engagement ratings. For best results, monitor your relevance and measure engagement regularly.

Industry

Although the average cost of advertising on Facebook is $0.97, you can get more information about your expected costs of advertising on Facebook by looking at the average price of advertising on Facebook for your industry. This data provides a more accurate estimate that can help your team build a budget for social media marketing for your e-commerce business. 

Find out how much Facebook advertising costs in a different kind of industry below:

Depending on the industry, advertising on Facebook may offer a cost-effective option to increase brand awareness, attract potential customers, stimulate conversions and much more. Even if you are in a competitive market such as consumer services, you can take advantage of the social media strategy.

Which Brands Are Using Facebook Ads

From that 1.6 billion user, that are using Facebook daily, there are not only students and “simple” workers, but there are also CEOs and leaders of companies. For brands, just posting on Facebook isn’t enough – especially for those, who just getting started. Of course, you can spend money to attract people to your Facebook page and send them to your site, but this only works if you are smart about it. One way to do this is to create optimized Facebook ads that target the right audience. Optimized advertising can help you spend your PPC budget wisely and get a positive return on your investment. The most successful companies are using Facebook ads to promote their products and generate traffic to the website as well. Some of them are: 

  • Amazon
  • The New York Times Square
  • Monday.com
  • NatureBox
  • Winc
  • Shutterfly
  • Bustle and many others

Let’s take a closer look at how exactly looks a Facebook ad from the most successful e-commerce business – Amazon.

This is how Amazon’s event ads appeared on Facebook’s news feed. This ad works well at several different levels: the product sample is displayed, the advertisement shows an impressive (but honest) rating for this product, and you know what event Amazon is promoting right now – Black Friday. E-commerce companies such as Amazon use advertisements to increase sales at certain points throughout the year, and Facebook promotions make this easy. When investing in event advertising, make a list of holidays, shows, conferences, and months of awareness about your business. Thus, you know exactly which marketing campaigns correspond to these events and when they need to be promoted on your Facebook business page.

Why This Ad Works

  • This is visual. Not only is this image larger than showing ads in the right column, but it also uses warm colors, spaces and directional lines that caught eyes attention to the selected product.
  • This is relevant. As a mom of cats, this offer fits my consumer needs.
  • It includes seductive value. Amazon advertised a self-cleaning litter box here that is a great value to any cat owner. Also, he shared strong customer ratings under the product image. 
  • It has a clear call-to-action. Amazon instructs me to click on his ad today, after which the deal with the litter box is likely to disappear.

How to Launch the Effective Facebook Campaign for E-commerce Business

  1. Facebook targeting to narrow your audience. Customize your facebook ads for those people who might be interested in your products or services. Pick up the right settings of your e-commerce ads, based on gender, age geolocation, interest, and others, to maximize the effectivity of your budget. 
  2. Align your ad with the campaign landing page. The content of a Facebook post must be consistent with the content of the landing page for two reasons. First, you get a higher ad relevance score, and as a result, your cost-per-click will be reduced. Over the last couple of years, Facebook advertising has become more competitive and therefore more expensive, so it makes a lot of sense. Second, the alignment between your ads and your landing pages increases your conversion rate. As soon as people click on the ad, they hope to get exactly what the post promised. If they do, your website and brand gain credibility, and potential customers are more likely to trust the company as a whole.
  3. Ensure your Facebook ad copy goes with your visual. Many small businesses – and even larger ones, especially in B2B space – do not have several visuals at hand. When it comes time to launch an ad, a scramble appears to make sure the image is attached. This may cause the non-copy image to be displayed to the Facebook user. If the copy and image are not aligned, they will wonder what the ad is. They are unlikely to click and your ad will be wasted. 
  4. Focus on call-to-action. The best Facebook ads have a clear purpose. Are you trying to raise brand awareness, gain an edge, or sell a product? No matter what, your ad must have a clear call-to-action. Without it, Facebook users will see your ad, but they will have no idea where to click or what to do.
  5. Keep it short and lead with value. You pay for advertising, so you can be seduced as much as possible. After all, you have to explain your product to people. However, when a deal comes to Facebook ads, you need to keep it short and useful. What comes from using your product? How will this help? These are the areas that you should focus on in your copy, and you should make those points clear and concise.
  6. Use simple language that is easy to understand. Copywriting is not high literature. You could right even the poem, but the blossoming language will muddle your message. It’s time to cut down on the verbiage. Your number one priority should be writing ads on Facebook that are easy to understand – for everyone, even the child. When someone sees your ad, they should know immediately: what are you offering; what’s the benefit of it; what to do next.
  7. Test your Facebook ad. The only way that you can use to improve your Facebook ads – test. Facebook makes it easy to spend a small amount of money to try things out. After all, the only way you can ensure your copywriting works is through experience. Try running two different ads – each with the same image but a different copy – and check resonates most with your audience. Which version receives the most likes, comments, and conversions?

Launch Your Facebook Ads Campaign for Your E-commerce Business with Dewzilla 

Want to see how Facebook ads can boost your business to the next level? 

With Dewzilla you will start to generate profit, right after the launch of ads campaign. Our best experts will create professional ads for your business and customize it with your account. It doesn’t matter in which kind of industry you are working, our experienced team will help you get through the whole process.  

Contact us and we will provide you with all the details 

HELLO@DEWZILLA.COM

(447) 366-491-118

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