7 Reasons Why You Should Run E-commerce Ads on Facebook

Vineet Karhail

Last Updated: April 18, 2020

Do you want to run e-commerce ads on Facebook, but not sure if it’s a worth the effort?

When there are around 24 million e-commerce stores around the world, how can you grab online shoppers’ attention?

In this article, I’m going to convince you to start running e-commerce ads on Facebook.

Have you heard of brands like MVMT watchesGymsharkFashion Nova?

The are some of the brands who have gone from zero in sales to doing $100 millions in sales with over 100% yearly growth rates.

And these companies are spending 90% – 100% of their marketing spend on paid channels like Facebook ads, Instagrams ads and influencer marketing.

Made.com, a furniture e-commerce website started off by spending heavily on Facebook advertising, bought Google Ads for popular keywords and within a few years, they are now doing well over $100 of millions in sales.

Let’s talk about a brand that everyone knows – Amazon.com

Amazon is a giant online eCommerce store that sells everything and anything on their website and has an annual revenue of close to $180 billion.

Clearly, they are unbeatable.

But do you know who Amazon is scared of the most these days?

And do you know the company that is the largest competitor of Amazon right now?

It’s not Ebay. It’s not Alibaba.

It’s a company that only started in this decade.

Wish specializes in offering upto 90% discounts on unbranded products, sold by small businesses directly to consumers.

This way, they can reduce the cost of multiple logistics, warehousing, operations, etc.

They completely rely on one strategy : rock-bottom product pricing.

According to some latest figures, Wish is :

  • #1 downloaded app in the U.S. in 2017 in shopping category
  • valued at $8.5 billion with revenues reaching $2 billion in 2018
  • 75 million monthly active users (MAU)

Wish spend over 90% of their marketing budget on Facebook and Google Ads.

As they clocked in $2 billion in revenues, they have explored other channels of growth. And if they choose to spend almost their entire budget on online ads, it’s because they are getting better results from Facebook Ads.

Here are 7 reasons why every e-commerce company should be advertising on Facebook

1. Your customers spend a lot of time on Facebook

Facebook has over 2 billion active users.

That’s 30% of the world’s population and 75% of the internet’s population i.e. people who have access to internet.

It’s safe to assume that your target customers are on Facebook.

Facebook user growth (2008-2018)

On an average, Americans spend over 90 minutes on Facebook reading news, sharing pictures with friends, looking at pictures of friends, interacting with their favourite brands, complaining about poor services.

Your target audience is engaged on Facebook.

And if they are on Facebook, you should be too.

2. There is a huge opportunity gap to take advantage of

In 2017, advertisers spent over $40 billion on Facebook ads.

It seems like the platform must be saturated by now.

But if you look at ad spend per active Facebook user, advertisers spend $20 per year.

If you are an advertiser, you know straight away, that this is a very low ad spend for such an engaged audience.

Let’s look at the same number (ad spend per user) for one of the largest ads platform – TV.

In US, the number of TV viewers are approximately 300 million. (Source : eMarketer.com)

And how much are the US advertisers spending on TV?

$70 billion! That’s approx. $233 of ad spending for one viewer on Television. That’s not even the engaged users.

That’s more than 10 times that of Facebook ad spend per active user.

That’s where the huge opportunity gap lies for advertisers to increase their spend on Facebook and get more business.

3. You can target any user based on hundreds of data points

Highly targeted e-commerce ads on Facebook are very profitable.

One of the top reasons to run e-commerce ads on Facebook is that you can go in as much detail as you want when it comes to targeting your audience.

There’s literally hundreds of data points that Facebook collects from their users.

And Facebook opens up these data points for the business owners and marketers to leverage on.

A highly targeted audience means that you can control who should see your ads and if some groups are not converting well, you can quickly remove them from seeing your ads.

You learn so much about your customers from Facebook ads that you wouldn’t have been able to do on your own.

Stop wasting your ads dollars on attracting people who won’t buy from you.

In fact, I highly recommend any company to start with Facebook ads even with a minimal budget of $5 a day to learn about their target customers.

According to the eMarketer, 96% of social media marketers worldwide said that Facebook 
produced the best ROI for them among all the social media advertising platforms.

4. You can get started on a very low budget

Depending upon your ad type, who you are targeting and your industry, Facebook ads can be as cheap as a few cents.

Surely, if you’re from a highly competitive industry, you may be paying more to convert a visitor.

Run e-commerce ads on facebook with a very low budget.

Facebook remains a low-cost option of advertising for small startups and companies who are just starting out.

I recommend starting with a minimum budget of $300 per month to be able to see results from your campaign and obtained solid data to take advantage of.

That is if even if you are not planning to spend money on ads.

The data that you get from running e-commerce ads on Facebook itself, will pay for your ad spend.

With ad spend, you have to be careful to not spend too much too quickly.

Facebook wants to keep stable advertisers on their platform and if you’re increasing your budgets too much too quickly, they might actually ban you.

And it’s a good thing for you.

You don’t want to scale your ads without first testing your messaging and ad creatives, and optimizing your ads.

On the other hand, having a low budget with respect to your audience size might not give you enough data to make good decisions.

That’s why it’s important to hire a professional media buyer or Facebook ads agency to run ads for you. A professional media buyer can suggest the right strategies to optimize and scale your ads.

5. Setting up Facebook ads is super easy

Apart from the fact that you can started with a low budget, it is very easy to get started with Facebook Ads.

If you are a small website, you can run e-commerce ads on Facebook with the existing posts that you have shared on your Facebook page.

All you need to do is define who you want to target, their locations and interests which can be easily done because you know your customers already.

If you don’t know who your customers are, then it is all the more reason to start with Facebook ads to discover your ideal customer profile or most profitable customers.

Setting up your first campaign on Facebook Ads Manager is a much easier than any other similar ad platforms like Google AdWords.

And the amount of information you can get about your customers behaviours through Facebook is significantly more valuable and cheaper than Google AdWords.

And if you want to reach your goals faster, you can also look at more advanced Facebook ads strategies to launch your ads.

This will not only save you money and cost of advertisement, but also increase your revenues much faster.

6. Use Facebook Lookalike Audiences to find users similar to your customers

Use lookalike audience to run e-commerce ads on Facebook

If you have a database of your customers, you can simply upload that database on Facebook and its algorithm will find audiences which are similar to your targeted audience.

I recommend submitting a database of highly profitable customers types which contains between 1000 – 5000 users.

Definitely not less than 1000 users and not more than 5000 users.

Less than 1000 users, you are not giving enough detail about your customers and the Facebook algorithm will find a lookalike audience which doesn’t perfectly match your target audience.

More than 5000 users, your database might not be a focused database with profitable customers.

At this point, you should be segmenting your database first, before uploading it on Facebook.

This will further reduce the conversion rates or opt ins from the lookalike audience.

7. Retargeting is an advertiser’s best friend

Retargeting opens up so many options that some agencies only focus on retargeting services.

Customers don’t buy from you the first time they look at your website. On an average, it takes them 7 touch points to consider buying from you.

While you can wait for your future customers to come back to your website over the next few weeks or months.

Or you can simply reach out to them with Facebook retargeting, and show them the products they were interested in, or the information they were looking for when they visited your site.

Facebook retargeting is highly accurate and much cheaper than regular ads.

To start retargeting users, you need to install Facebook Pixel on your store’s website. This allows Facebook to track your visitors, and when they visit their Facebook profile, you can show your ads to them much later, even if they have closed your website.

Probably, you already know how they interacted with your brand or website. You can then segment your ads based on users’ activities.

For example, those who abandoned the cart with someone, you can show them an ad with their product and take them to the checkout page directly.

Or if they checked the demo of your product, you can show them a discount coupon in your ads to encourage them to buy the product.

Retargeting allows you to move your audience through the sales funnel in an easy and cost-effective way.

At For The Love Of Growth, we recommend starting retargeting ads with 10% of your budget and then slowly increasing it to 20% – 25%.

When we work with clients, we look at the conversion rates at each step of the customer journey, and build our retargeting strategies based on that.

So that’s it, let us know if you are going to give Facebook Ads a try. If not, why not? Do you face any challenges?

We can help.

For The Love Of Growth is a Digital Agency for eCommerce and SaaS startups to unlock their growth potential using Facebook ads, Content and Sales Funnels. Get your free Facebook Ads Audit to learn how you can improve the ROI of your ads. We will review your ad campaigns and recommend strategies to improve them and get better results. 

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