When there are so many different metrics to look at – its very difficult to understand what type of metrics you need to focus on to scale and optimize your campaigns.
At the end of the day – let’s be honest – facebook is just a tool and a traffic source – so how can we make more money and get a higher ROAS from our facebook ad campaigns?
Because e-commerce is very much about conversion focused metrics, here are the top 4 ways that you need to follow to optimize and scale your campaigns.
1 – Launching your campaigns
Before you first launch your campaigns, remember to make sure all of the things such as your pixel, catalog and ad accounts are synced up with shopify.
You can use Shopify’s native integration with facebook to do this inside of ads manager.
2- Optimizing your campaigns for purchase
One thing that you should look at is to optimize your campaigns for the purchase objective. There is no need to even run a post engagement campaign (PPE they call it) or link clicks when ultimately you’re looking for sales.
Facebook is 1 big AI engine which knows all of the customers data – so they would know exactly what the premium and non-premium audiences are. Even though it’s expensive to run conversion as compared to the other objectives – you’re guaranteed of getting the top 3% of your audience that actually converts – instead of the tire kickers.
3 – Digging into ads manager
Ok – everytime you launch new campaigns – do not try to alter or tweak them if they have not gotten at least 48 hours in run time – this is to ensure that there is some accurate data that has come in and you can make accurate decisions in the process.
Only after the 2-3 day period – open up your ads manager – only then try to dissect what the data is showing.
An example of this (see my image below):
I am running a leads focused (optimize for lead) campaign. The target country is in the US. If you see the cost per lead – I am paying a VERY consistent $0.25/$0.24 per email address that comes through my funnel.
Because I know my industry average is paying anywhere from $1-2 per lead this means that my metrics on this campaign are very good and I should keep it the way it is.
Although on Shopify you may not be doing lead generation campaigns – the same principles apply. If you are getting AT LEAST some purchases during the pre-optimization period – you can expect that campaign to be doing well and you should scale the budget up
For those campaigns without any bottom of the funnel pixel standard events such as:
– Add to cart
You might want to turn them off altogether.
Always looks for your bottom of funnel events to indicate customer ‘higher purchase intent actions’.
Hence for example,
If the ad had 0 purchases but 4 checkout, 3 add to cart
If the ad had 1 purchases but 1 checkout, 1 add to cart
In this scenario because the 2nd ad has a higher bottom of funnel event – in that a purchase actually occurred – it would be more qualified to scale to a higher budget despite the number of checkouts being lower than the 1st example.
4 – Vertical/Horizontal Scaling
Horizontal scaling refers to creating many different ad sets but using the same ad creative/copy combination. The reason you scale is because your audience on your 1st winning ad set may experience audience fatigue overtime, hence you would be creating different ad sets with different interests so that your offer is being driven to multiple audiences.
Diagram of horizontal scaling:
Vertical scaling refers to just increasing the budget of the campaign or ad set overtime. You might want to do this when you see that your ad set is already performing well and increasing the amount of ads being put towards that audience.
Diagram of vertical scaling:(The concept of vertical and horizontal scaling is similar to cloud computing in this diagram – as if you horizontal scale you reduce the reliance of your profit based on 1 adset/audience along, if you vertical scale you’re just generating more revenue from that 1 particular ad set)