Facebook Ads for Ecommerce in 2023: A step-by-step guide

Facebook is one of the most popular platforms on which e-commerce brands can achieve their objectives. With Facebook Ads, they can increase brand awareness, drive traffic to their website and boost sales. In addition to reaching the right audience, Facebook Ads also enable companies to measure their success and determine the sales they've generated.

In this way, you can grow your advertising budget and increase your profit margins. As the platform can be quite complex for new advertisers, this guide will give you a comprehensive overview of how to use Facebook ads for e-commerce and how to properly measure and attribute the performance of your advertising.
So, without further ado, let's get down to business. 

How to create Facebook ads for e-commerce?

The first step in launching a campaign on Facebook is to create a Business Manager and a Facebook Page. Once you've set up these two elements, you can create your advertising account. It's a fairly quick and easy process. To create an advertiser account, proceed as follows:

  • Access Facebook professional settings
  • In the left-hand navigation pane, click on " Advertising accounts " under " Accounts ".
  • Click on"Create a new advertising account" in the"Add" drop-down menu

Follow all the steps until you reach the Facebook Ads Manager dashboard, where you can start creating and managing your ad campaigns!

Creating your Facebook pixel

A Facebook pixel is a small piece of code that you can place on your website to track visitor actions such as : 

  • Click on the buttons,
  • Purchasing,
  • Performance data for your Facebook ads. 

You'll need it to measure the actions taken by users who click on your ad. In fact, it will help you determine which ads generate the desired results. Here's how to set up a Facebook pixel:

  • Go to Facebook Ads Manager and click on the hamburger icon in the top left-hand corner.
  • Click on"Event manager" and click on"Connect data".
  • Select"Web" for your data source and click on"Connect".
  • Name your Facebook pixel and click on "Create a pixel".
  • Enter a name and click on"Create a pixel".
  • Click on"API and Meta Pixel conversions".

Adding your Facebook pixel

Shopify makes it easy to add a Facebook pixel thanks to an integration feature that lets you add the pixel without manually modifying the code.

  • Go to"Data sources" on the right-hand side
  • Click on"Continue pixel configuration".
  • Copiez le code et collez-le au bas de la section d'en-tête, sous la balise </head>

If you wish to use Shopify integration, from your Shopify administrator interface, click on"Applications and sales channels" under"Settings".

  • Click on "Facebook & Instagram
  • Click on "Open sales channel".
  • Click on the "Settings" tab.
  • In the "Share data" section, choose your level of data sharing
  • Select your Pixel from the list.
  • Click on "Confirm

Adding a triple pixel

Since the most recent iOS privacy updates, Facebook hasn't been able to track a user's full path as it once did. That's why it's important to install your Triple Pixel, which will help you keep track of your customers' data while helping you evolve with precision. 

In fact, the use of triple pixels ensures that no visitor action is ignored. This means that more accurate advertising data will be taken into account to help you make better decisions. On Shopify, adding the Triple Pixel is pretty straightforward:

  • Click on"Online store
  • Go to"themes" and click on"modify code".
  • Paste it on all layouts under the head tags
  • Add it to the thank-you page by going to "payments" under"settings" and pasting it under "additional scripts".

The objectives of Facebook ads for e-commerce

When you create a new campaign, you'll first be asked to choose an objective for your campaign. The objective you choose will dictate the metrics you track to measure the success of your campaign, as well as what Facebook's algorithm will optimize. For example, a campaign with the"Traffic" objective will measure Link-clicks, while a campaign for"Leads" will measure leads.

In addition, there are higher goals in the funnel, such as "awareness" and "traffic". But the main metric you'll want to optimize is e-commerce sales. This counts one conversion for every purchase made on your website from your ads.

Types of Facebook e-commerce campaigns

It's every marketer's dream to have new customers buy from your online store after seeing one of their Facebook ads for the first time. It's also unlikely to happen for most of your customers. Indeed, the customer journey is quite complicated, to say the least.

Here are some examples of popular e-commerce Facebook ads you should have in your account. Each campaign has an objective and targets specific customers at their stage of the sales funnel.

E-commerce prospecting campaign

This type of Facebook ad campaign is the widest and highest on the funnel. Its aim is to reach potential customers and cold audiences who haven't interacted with your Facebook ads before, depending on the targeting you configure. For prospecting campaigns, here are some examples of audiences to use:

  • A large audience: the point of a large audience is to enable Facebook to use its advanced algorithm to find the customers most likely to convert and reach your target audience. To define a large audience, simply target a country, gender and age. Leave all the detailed targeting blank and Facebook automation will do the rest of the work!
  • A pile of interests: Facebook has been slowly getting rid of specific interests since the iOS 14 update. As a result, interests have become less reliable since Facebook doesn't necessarily hold information for all its users. That's why stacking multiple interests into a set of ads is the most accurate way to achieve this. You give Facebook a wide selection of interests to examine, which Facebook will use as a starting point, then use its algorithm to identify your target audience once it has collected enough data. 
  • A similar audience (LAA): Another popular audience would be a similar audience. In other words, Facebook users who share the same behaviors as your customers or website traffic. For example, you could create an identical audience made up of all former buyers of your store in the last 180 days. Facebook will then find similarities between the members of this list and use these common attributes to discover similar users who are also highly likely to convert.

E-commerce retargeting campaign

Retargeting campaigns are the middle and bottom of the funnel. This type of campaign generally targets users who have already interacted with your ad or visited your website, with the aim of generating sales.

To create a retargeting audience of those who have interacted with your website, you'll need to create a custom audience. In fact, a custom audience is a Facebook feature you use to create audiences from Pixel data or mailing lists you upload. Here are some popular custom audience examples:

  • Website visitors in the last 90 days
  • Add to baskets of last 7 days
  • Former buyers (exclude this audience from targeting in certain cases)
  • e-mails captured on your website (this will only be accurate if the user uses the same e-mail address on Facebook as on your website)

Post-iOS 14 retargeting campaigns

Since Apple's recent privacy updates, these audiences have become weaker and less accurate. Before the update, Facebook had a ton of data on every user who interacted with your ad. Now, most of your retargeting audience will be in your prospecting campaign, as Facebook isn't able to track them as effectively.

In this case, if you're running ads with smaller budgets (under $10,000 a month), it's worth testing your campaign setup without a retargeting campaign. Test it and see if it makes sense for your brand.

E-commerce creation test campaign

Over the past few years, this has become one of the most important campaigns in a Facebook Ads account. Indeed, your ad creative (image or video) will be the most important factor in determining whether or not your ads will be successful. As a result, creative testing is one of the most important (if not the most important) concepts in Facebook Ads. Here's one way to launch your creative testing campaign:

  • Simply run the creations you want to test against each other under the same set of ads. 
  • Make sure your campaign runs on an optimized ad set budget (ABO). This way, Facebook spends your budget on each creative test.

Your creative test campaign should use around 10% of total advertising spend. Then, the winning ad creatives will be pushed into the"prospecting campaign" with the various audiences, ready to be scaled up.

Choosing the winner depends on your objectives. However, the first metric to consider is"Amount Spent", i.e. which Facebook creative has spent the most due to its performance, then the second metric to consider is click-through rate (CTR). Now that we've seen the types of ads, let's move on to the next step in our "how to launch Facebook ads for e-commerce" topic.

The e-commerce learning curve

Once your campaigns have been created, they enter the "learning phase". This is the phase when Facebook takes all the signals you've given it and starts to get to know your target audience. Facebook will exit the learning phase when it has reached 50 conversions in 7 days. However, the learning phase is quite sensitive, and the actions that can reset the phase are as follows:

  • Advertising modification,
  • Updating the copy.

E-commerce budget optimization

There are two ways to optimize your Facebook ads budget for e-commerce:

Optimization of advertising budget

This method allows you to dictate a specific budget for each ad set in your campaign. If you want to ensure that Facebook spends at least $X on an ad set, you'll have the most control with this method. ABO (Ad set Budget Optimization) is best used for testing. You define the budget at the ad set level.

Campaign budget optimization

This method allows you to define a budget at the campaign level. Facebook will then dictate which ad sets will get a budget based on the performance of each ad set within the campaign. For scaling campaigns, where you want Facebook to take control of daily budget optimizations, use CBO (Campaign Budget Optimization). 

E-commerce advertising creatives on Facebook

Creative is the most important part of Facebook ads for e-commerce. It's what your potential customers see first, and it's what interests them about your brand and your website. It's what will have the greatest impact on your return on investment and sales. Here are a few best practices to adopt in your creative work:

  • Always include a call-to-action (CTA) in your ad,
  • Highlight the offer and add dates (if possible) to promote a sense of urgency and/or scarcity,
  • Highlight your brand's unique selling points: why should your customers buy from you? What pain points do you address?
  • Testimonials: show positive comments from former customers using your products and increase your social proof!
  • Create a thumb stop hook for video creations.
  • Create user-generated content (UGC) videos: these are very popular these days and are a great way to create relevant content from past customers and influencers in your brand's niche.
  • Note: keep advertising fatigue in mind and have a steady stream of creatives you can reach.
  • Test idea: see if sending traffic to your product pages or dedicated landing pages will increase conversion rates.

Bidding strategies for e-commerce on Facebook

When you select a Facebook bidding strategy, you tell Facebook how you want it to bid in an ad auction for your online store. While changing the default bidding strategy may be a positive optimization, it won't usually be the reason your ads work the way you want them to. 

Play with bidding strategies to improve already satisfactory performance. However, don't use them to correct your ad's overall performance. Chances are, your creative needs updating or your targeting needs reviewing.

You can change bidding strategies at campaign level (if you're using CBO) or at ad set level (if you're using ABO). Here's a brief overview of the different Facebook bidding strategies:

  • Highest volume (lowest cost): This is Facebook's default bidding strategy. In fact, Facebook will try to get you the most conversions for your budget, and will spend your entire budget.
  • Cost-per-result target (cost cap): Facebook will use your cost-per-result target to bring you conversions around this price.
  • ROAS target: Facebook will maintain your average ROAS at the target you've set yourself.
  • Bidding cap: this is where you define a maximum bid for your ad bids. Otherwise, Facebook bids dynamically according to your objectives.

Finally, each auction strategy has its own use cases and elements to watch out for.

Facebook attribution settings

Accurately attributing your Facebook ads to a sale is necessary to size your ads effectively. Your e-commerce business needs to know where a specific sale comes from, and which part of the user journey a single ad belongs to.

An attribution window is the period of time during which the desired event will be attributed to an ad after the user has interacted. On Facebook, you can customize your attribution window. The default value is " 7 click days or 1 view day ". This means that if a customer buys up to 7 days after clicking on your ad, or 1 day after viewing it, the conversion will be attributed to that ad. The different attribution windows on Facebook are :

  • Clic 1 day
  • 7-day click
  • Click or view in 1 day
  • 7-day click or 1-day view

You can change the window below the ad set level. It's also important to know that the attribution window you choose will be Facebook's optimization window. This means that Facebook will try to show your ad to the users most likely to convert within your defined window.

Disadvantages of Facebook attribution

Since the iOS privacy update, Facebook tracking has become inaccurate. The Facebook pixel alone "can no longer track a user's path from ad-click/view -> conversion with the accuracy it once did". This is where your Triple Pixel comes in handy. 

The Triple Pixel will be able to track and attribute ad clicks to conversions, capturing the complete user journey across multiple platforms (from Facebook to Google to TikTok).

Scaling up Facebook ads for e-commerce

To tailor your ads effectively, you first need to look at specific data. The metrics you look at depend on your objectives. For example, if you're looking at sales, ROAS and cost per acquisition are two important metrics to examine. If you're looking at traffic quality, conversion rate (CVR) will be a crucial metric to track.

Ultimately, determine the goals you're focusing on with your Facebook advertising and examine the metrics relevant to those goals. If your ads aren't performing as you'd like, you'll need to identify where the drop in performance is. Are people not clicking on the ad? Are people clicking and not converting? Using this data, you can find out where your funnel needs to be optimized.

If your ads are performing well, continue to increase your budget slowly. Don't increase your budget by more than 20% every three days. This would shock the algorithm and reset the learning phase.

Conclusion

By implementing all the steps listed above, your e-commerce business is now ready to tackle Facebook advertising! Keep in mind that there are many different strategies and that the Facebook ad landscape is constantly evolving. There's no single roadmap to success with Facebook ads, but with the strategies outlined in this article, you now have an excellent foundation from which to build your own strategies. 

If you don't know how to find a profitable niche product that you can promote and sell quickly, we recommend Minea. It's an all-in-one product search tool. Thanks to its multiple functions, you can find the ideal product for any niche and the best marketing approach to sell it.

Frequently asked questions 

The effectiveness of Facebook ads for e-commerce

Facebook advertising is an exceptional way to boost and develop your e-commerce business. However, for your Facebook ads to work effectively, there are two key elements to master: you need to offer great products to sell and create compelling ads that drive traffic to your landing pages.

How to make money with Facebook ads?

To generate revenue with Facebook ads, it's essential to get four crucial aspects right: sell the right product, create impactful ads, target the right audience and set an appropriate budget. 

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