How to Run Performance Facebook Ads For E-commerce Businesses
Well, what is the exact thing that marketers want to achieve with an online advertising campaign? Great results! Every savvy e-commerce marketer has some kind of performance metric in mind, whether ad click-throughs or new business. However, your goals may not always be met, and if your marketing plan does not succeed, you may end up paying out of pocket.
What if you had to pay only for really successful ads? What if you only had to shell out money if one of your tactics really worked? In this case, performance ads might be the answer for you. It makes perfect sense that you would monitor and improve your e-commerce marketing efforts based on the data you collect. When you use performance marketing, you will better grasp the when, where, and why of your campaigns.
Moving forward, we will explore the advent of performance ads alongside the most important steps to follow if you want to commence your performance ads campaign on Facebook.
What is Performance Advertising?
This advertising form is intended to quickly generate short-term benefits, such as increased sales, subscriptions, or game downloads. The primary distinction between this and brand advertising is the ability to quantify all outcomes and the emphasis on measuring the value of every dollar spent. Platforms like Facebook have made it quite simple to create and monitor these advertisements, so in a culture that values fast feedback, they are very enticing to creatives.
Bobble AI found that in 2021, the e-commerce sector grew by 77% compared to the previous year, which shows that competition is intensifying daily for businesses in this sector. Hence, it is important to invest in the most viable marketing efforts that might propel the growth of e-commerce brands.
According to new research, multinational companies with an emphasis on e-commerce are spending significantly more on performance ads than brand awareness messages. Before investing in Facebook advertising, you should determine the desired consequence of your adverts. Consider formulating a plan before investing in a marketing effort. This may help you attain your objectives and provide better outcomes.
At Acquire, we put together a six-month marketing/finance plan which factors in average order value, target purchases, target revenue, ad spend, our fees, and ultimately the contribution margin at the end of each month. It lays out clear performance targets to help businesses achieve their goals and ensure that we’re on track for success.
How to Deploy Meta Pixel to Measure and Optimize Performance Ads
Meta Pixel, formerly known as Facebook Pixel, is an analytics application that tracks user behavior on your website to determine the success of your Facebook advertising efforts. Overall, Meta Pixel monitors activity on page views; the scale of acquisitions; the total amount of time spent on the page; scroll dynamics; add-to-cart preferences and other variables.
Some people who click on your Facebook ad will not necessarily take the next step, such as completing a purchase, when they arrive at your website. Using Meta Pixel, you may gather information about site users who may be suitable for retargeting with Facebook advertising. With the aid of the Meta Pixel, you can target the correct people with your advertisements. The Facebook pixel may also be used to strengthen your retargeting efforts, allowing you to promote to site visitors again after they have seen a particular page or performed a specific activity.
E-commerce enterprises may leverage performance marketing to display ads for related items. When the customer has previously shown an affinity for this particular offering, this is a wise course of action to take. As a result, he or she will almost certainly return to complete the transaction.
Step-by-Step Guide to Using Meta Pixel
Using Facebook's pixel, you can monitor your clients' journeys as they use various platforms, visit different websites, and use multiple mobile applications prior to making a purchase. Insight into the impact of your cross-device advertisements on sales is now at your fingertips. Simply said, the Meta Pixel allows you to evaluate your adverts' effectiveness by tracking users' actions after they have seen them. That way, you can connect with folks more inclined to do something useful, like make a purchase.
Set the pixel up in its place. As a first step, you will need to install a little tracking code on your site.
Try to get some understanding. You will soon start getting information about your site's visitors, such as where they are coming from, what kind of device they are using, and other demographic details.
Check your actions. Watch as visitors to your site click about, adding items to their virtual shopping carts as they go.
Collect events. Create Facebook Custom Audiences, lookalike audiences, and targeted advertising based on the information gathered from pixel events.
Increase your bid success rate. To get the most out of your advertising dollars, use the lowest-priced bid technique to get your message in front of the individuals most likely to perform the desired action (in this case, making a purchase).
Take a look at what happened and figure out what happened. Analyze your company's conversion events to determine the most effective Facebook advertising approach.
Bottom Line
Ultimately, e-commerce companies wanting to step up their advertising game and get better results should explore performance marketing and all it offers. In contrast to more conventional methods, performance marketing gives marketers more flexibility in terms of strategy, feedback management, budgeting, and identifying new opportunities. Considering these factors, deploying the capabilities of Meta Pixel represents a recipe for success for performance ads.
Acquire is a performance based Facebook, Instagram and TikTok ads agency. If you’re looking for performance-based solutions to help scale your ad campaign, get in touch.
