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FB Targeting & Budget (9)

03-08-2019 01:42 PM #1 success2019 (Member)
FB Targeting & Budget

Hello Everyone!

Just a quick intro of myself, I am not a beginner in this AM but rather a beginner in Ecommerce sector!

For a quick start, I am trying to learn the setup of fb advertising. I have setup my Shopify store and a product. (I just want to to quickly setup these in order to get a grip of how e commerce works)

Can i get some advise from the experienced one here,

1. For a quick test of FB, how many countries should i first target and which are the countries i should try target first?
2. What is the actually the main different between an Ads set and Ads?
3. For a quick start, how many ads set and ads should i go with?
4. How much budget should i cater for the ads or ads set in the FB?

Hope Amy can help me in this one =)

Thanks every one!

03-09-2019 05:00 AM #2 success2019 (Member)

Any Reply????

03-09-2019 08:57 AM #3 kinged (Member)

Quote Originally Posted by success2019 View Post
Hello Everyone!

Just a quick intro of myself, I am not a beginner in this AM but rather a beginner in Ecommerce sector!

For a quick start, I am trying to learn the setup of fb advertising. I have setup my Shopify store and a product. (I just want to to quickly setup these in order to get a grip of how e commerce works)

Can i get some advise from the experienced one here,

1. For a quick test of FB, how many countries should i first target and which are the countries i should try target first?
2. What is the actually the main different between an Ads set and Ads?
3. For a quick start, how many ads set and ads should i go with?
4. How much budget should i cater for the ads or ads set in the FB?

Hope Amy can help me in this one =)

Thanks every one!

1. It all depends on where you want to sell your stuff and how fast it takes to ship to the countries.
For example US has greate scalabilty but the competition is insane. On the other side if you have a unique angle and product you can kill it.
I would try 5 different countries if i were you. US, UK, Australia, FRANCE and GERMANY

2. adset is the level where you choose who you want to target on facebook and all the settings. Ads are the actual creative that will be shown on th FB newsfeeds.

3. I would cast a wide net and find as many relevant interests as possible.
Create ONE adset PER INTEREST set it at $5 and let it run for 2 days.
After that you should have some good early numbers to take som action on.

4. Usually they say 3-5x CPA but if you're tight on budget go for 1x cpa.
Usually if an offer is good you should get conversions on 1x cpa too.

03-09-2019 09:06 AM #4 stickupkid (Senior Moderator)

In addition, get rid of the "quick". Learning the ropes of FB (+ eCommerce) takes time man, don't see it as a sprint. Don't be suprised if you need to work/test 6 months before hitting green, although with some luck, effecient strategy and persistance it might be in green a lot quicker ;-).

Besides that, all the info you are asking for has been written down multiple times here on the forum. So go dig, a lot of "old" stuff is still very relevant.

At last, start a Follow Along so all the experts can take a look how you approach things, so they can give proper feedback!

Good luck.

03-09-2019 06:28 PM #5 success2019 (Member)

Quote Originally Posted by kinged View Post
1. It all depends on where you want to sell your stuff and how fast it takes to ship to the countries.
For example US has greate scalabilty but the competition is insane. On the other side if you have a unique angle and product you can kill it.
I would try 5 different countries if i were you. US, UK, Australia, FRANCE and GERMANY

2. adset is the level where you choose who you want to target on facebook and all the settings. Ads are the actual creative that will be shown on th FB newsfeeds.

3. I would cast a wide net and find as many relevant interests as possible.
Create ONE adset PER INTEREST set it at $5 and let it run for 2 days.
After that you should have some good early numbers to take som action on.

4. Usually they say 3-5x CPA but if you're tight on budget go for 1x cpa.
Usually if an offer is good you should get conversions on 1x cpa too.
Thanks kinged for your info =)

For ecommerce side, CPA usually refer to the cost price of goods sold + other expenses such as shipping is that correct?

Usually what is the target audience size that you will prefer to have targeted (between how low to how high) as not to have the issue of overbroad too over narrow till not much audience?

Thank you

03-09-2019 06:33 PM #6 success2019 (Member)

Quote Originally Posted by stickupkid View Post
In addition, get rid of the "quick". Learning the ropes of FB (+ eCommerce) takes time man, don't see it as a sprint. Don't be suprised if you need to work/test 6 months before hitting green, although with some luck, effecient strategy and persistance it might be in green a lot quicker ;-).

Besides that, all the info you are asking for has been written down multiple times here on the forum. So go dig, a lot of "old" stuff is still very relevant.

At last, start a Follow Along so all the experts can take a look how you approach things, so they can give proper feedback!

Good luck.
Thanks stickupkid!

Yup i understand there is not such thing as quick as i have been through route of AM for 1 to 2 years time doing mobile and web.

Actually i have tried out FB as well for my own local business but i was just playing with message conversion objective with the aim of getting more customers to have enquiry and replied by my employees for the past 1 year as well.

However for this case of ecommerce with dropshipping, what type of FB campaign objective should i forcus on?

Thanks!

03-10-2019 12:13 AM #7 vortex (Senior Moderator)

1. For a quick test of FB, how many countries should i first target and which are the countries i should try target first?
2. What is the actually the main different between an Ads set and Ads?
3. For a quick start, how many ads set and ads should i go with?
4. How much budget should i cater for the ads or ads set in the FB?

However for this case of ecommerce with dropshipping, what type of FB campaign objective should i forcus on?
Haha I'm honored to have been asked to help - not an expert in ecom yet but will do my best!

You already got some valuable feedback above - here's mine.

1)Would really depend on the product. For example:

-The NATURE of the product and how popular it is in each country is a major factor. For example ice scrapers should convert nicely here in Canada these days, but not in Mexico.

-Shipping times and costs will vary also - if you're using Aliexpress be sure to check shipping methods and durations to make sure to target a geo where shipping isn't prohibitively expensive and shipping times very long.

-What languages you know will also play a factor - for a quick test (or even long-term business strategy) you may not want to target a geo that speaks a language you're not familiar with (unless you can work with someone that knows the language AND has great copywriting skills so they're not just translating directly into bland language that won't entice potential customers to buy).

-How niche is your product? If it's very niche, targeting a small geo won't work, as you'd be targeting a small slice of a small pie = crumbs = no scaling potential. If it's broad then even small geos may be OK.

I would suggest to just pick one geo, do some research on what sells well there, and just test products for that one geo. Otherwise you'd be spreading yourself too thin. You're already having to test demo targeting and advertising angles. If you add several geos on top of that - your test budget would increase considerably. I would much rather test several products for one geo vs. same product across different geos.


2)Answered by kinged. I have nothing to add.


3)Up to you. Kinged has mentioned targeting by interest. I would add that testing several angles is also important. I would pick at least a couple of demographics/interests, and come up with 2-3 angles for each, so 4-6 adsets to start (with each adset targeting a demo+angle; each adset should have a single ad duplicated 3 times).


4)This would depend on whether you value your time or your cash more. If you have more time than cash, then spend less on testing each product and test lots of products - that way you'd only "catch" winners that perform well out of the gate without optimization, but there WILL be wastage on your time (in having to do a lot of research on benefits and angles etc. etc. for each product, just to have some of them "not work out" because you haven't spent enough money or tested enough angles to see their real potential). If you have more cash than time, then spend more on testing each product and test fewer products.


Another thing I want to mention regarding budget - and it ties in with your question regarding which campaign objective you should choose:

I find that optimizing for purchases gets good results more often than not. FB has gotten really skilled at identifying the best-converting customers for us. But if you choose this objective, you need to spend enough money to allow FB to gather the necessary data in order to identify the best audiences. (Do please remember to implement your FB pixel!)

For quick initial testing, you can try optimizing for link clicks. After each adset receives 5-10 clicks, you'll see what the average cost-per-click is. You can pause adsets that have high cost-per-click and keep running the one(s) with low cost-per-click to hopefully gather enough conversions to allow you to see whether there's potential for profit or not. Although a low cost-per-click is NOT a guarantee of a low cost-per-purchase, it's a short-cut if you're wanting to do testing for cheap for many products.

Another tip on targeting: If you believe that the product may have broad appeal, try targeting broad - even the entire geo without narrowing by interest. You can do this with one of your adsets while targeting interests with your other adsets. Before, I had always believed that targeting niche meant higher conversion rates - but as FB got better and better at identifying the ideal audience, this is no longer true.

Just start testing and you'll no doubt tweak your approach along the way. I believe you have enough to go on to get started. Have fun and do let us know how you get on! Once you find a promising product, I (and the rest of the community with members that know ecom better than I do) may have more suggestions for you.



Amy

03-10-2019 07:14 PM #8 success2019 (Member)

Quote Originally Posted by vortex View Post
Haha I'm honored to have been asked to help - not an expert in ecom yet but will do my best!

You already got some valuable feedback above - here's mine.

1)Would really depend on the product. For example:

-The NATURE of the product and how popular it is in each country is a major factor. For example ice scrapers should convert nicely here in Canada these days, but not in Mexico.

-Shipping times and costs will vary also - if you're using Aliexpress be sure to check shipping methods and durations to make sure to target a geo where shipping isn't prohibitively expensive and shipping times very long.

-What languages you know will also play a factor - for a quick test (or even long-term business strategy) you may not want to target a geo that speaks a language you're not familiar with (unless you can work with someone that knows the language AND has great copywriting skills so they're not just translating directly into bland language that won't entice potential customers to buy).

-How niche is your product? If it's very niche, targeting a small geo won't work, as you'd be targeting a small slice of a small pie = crumbs = no scaling potential. If it's broad then even small geos may be OK.

I would suggest to just pick one geo, do some research on what sells well there, and just test products for that one geo. Otherwise you'd be spreading yourself too thin. You're already having to test demo targeting and advertising angles. If you add several geos on top of that - your test budget would increase considerably. I would much rather test several products for one geo vs. same product across different geos.


2)Answered by kinged. I have nothing to add.


3)Up to you. Kinged has mentioned targeting by interest. I would add that testing several angles is also important. I would pick at least a couple of demographics/interests, and come up with 2-3 angles for each, so 4-6 adsets to start (with each adset targeting a demo+angle; each adset should have a single ad duplicated 3 times).


4)This would depend on whether you value your time or your cash more. If you have more time than cash, then spend less on testing each product and test lots of products - that way you'd only "catch" winners that perform well out of the gate without optimization, but there WILL be wastage on your time (in having to do a lot of research on benefits and angles etc. etc. for each product, just to have some of them "not work out" because you haven't spent enough money or tested enough angles to see their real potential). If you have more cash than time, then spend more on testing each product and test fewer products.


Another thing I want to mention regarding budget - and it ties in with your question regarding which campaign objective you should choose:

I find that optimizing for purchases gets good results more often than not. FB has gotten really skilled at identifying the best-converting customers for us. But if you choose this objective, you need to spend enough money to allow FB to gather the necessary data in order to identify the best audiences. (Do please remember to implement your FB pixel!)

For quick initial testing, you can try optimizing for link clicks. After each adset receives 5-10 clicks, you'll see what the average cost-per-click is. You can pause adsets that have high cost-per-click and keep running the one(s) with low cost-per-click to hopefully gather enough conversions to allow you to see whether there's potential for profit or not. Although a low cost-per-click is NOT a guarantee of a low cost-per-purchase, it's a short-cut if you're wanting to do testing for cheap for many products.

Another tip on targeting: If you believe that the product may have broad appeal, try targeting broad - even the entire geo without narrowing by interest. You can do this with one of your adsets while targeting interests with your other adsets. Before, I had always believed that targeting niche meant higher conversion rates - but as FB got better and better at identifying the ideal audience, this is no longer true.

Just start testing and you'll no doubt tweak your approach along the way. I believe you have enough to go on to get started. Have fun and do let us know how you get on! Once you find a promising product, I (and the rest of the community with members that know ecom better than I do) may have more suggestions for you.



Amy

Thanks Amy for the good knowledge sharing!

Usually for a quick start, how much budget would you allocate to each adset? (One small question, if adset has 3 ads, if i allocate $10 to this adset, does that mean it run run $30 total as it has 3 ads in it or it will only spend total $10 and $10 will divide among the 3 ads?)

Do you take into consideration of the cost price of product before you allocate the initial testing budget, or you will usually do a very small budget testing regardless of the cost price of product?

Thanks.

03-14-2019 03:28 AM #9 vortex (Senior Moderator)

Usually for a quick start, how much budget would you allocate to each adset? (One small question, if adset has 3 ads, if i allocate $10 to this adset, does that mean it run run $30 total as it has 3 ads in it or it will only spend total $10 and $10 will divide among the 3 ads?)

Do you take into consideration of the cost price of product before you allocate the initial testing budget, or you will usually do a very small budget testing regardless of the cost price of product?
To answer your questions:

The budget would apply to the 3 ads in total, not per ad.

The cost and price of the product do need to be taken into consideration. Let's say you're selling something for $X and your total cost for each product is $Y (including sourcing, fulfillment, labor, shipping, taxes, etc.), then the most you can spend to get each conversion would be $X-$Y = $Z - and that's without taking the desired profits into account.

As for how much to spend on testing each adset - that would depend on the situation. Generally speaking, I would allocate at LEAST 2-3x $Z to testing each adset. It would really depend on how much confidence you have in a product, and how many products you're testing. If you have a product that you KNOW is in demand, and/or you have the channel to get an especially good deal from the manufacturer, then it may be worth throwing a lot of money into testing lots of angles in order to make it work. On the other hand, if you're just doing the Shopify+aliexpress dropshipping model where it takes you only a couple hours to create a product page and FB camp, and you're mass-testing products, then it may be better to spend a smaller budget on each product and test more products instead.

And of course, whether you have more time than money or more money than time, will play a role in the decision making. If more money than time, then spend more on testing fewer products. If more time than money, then spend less on testing each product but test more products.

These are just very rough "guidelines" - more like some considerations. I'm no expert in ecom yet and am still learning myself, but if you don't yet have a system, then my suggestions would be a good crutch until you develop your own.




Amy

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