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Facebook Ads For Ecommerce [2024 update]

In this guide you’ll learn how to run a successful Facebook ad campaign for ecommerce in 2024.

I’ll share the best practices for setting up (and scaling) ecommerce Facebook ads and ensuring that you scale profitably.

Let’s dive in.

10 Quick Fire Ecommerce Facebook Ad Tips for 2024

  1. Steal your competitor’s best ads: Use the Facebook Ads Library to steal your competitors’ best creative ideas quickly.
  2. Carousel & collection ads are powerful: Use them and combine different creatives including videos, product images and testimonials, within the same ad.
  3. Video ads are king: Nothing captures attention better than video. And most video ads can be shot on your iPhone, you don’t need fancy filming equipment. Use multiple video ads to create product how-to’s, customer testimonials, product benefits and functions.
  4. Target new customers to scale your campaign: Facebook has a massive audience for you to target and the secret to scaling your ecommerce business on Facebook is through new customer acquisition campaigns. Focus on acquiring new customers instead of remarketing for optimal results.
  5. Test new Ad types: Facebook is always introducing new ways to showcase ads and whenever you notice a new tool or feature in the ads manager make sure to take advantage of it right away. In most cases, Facebook will yield better results when you use their new ad features and tools.
  6. Pay attention to reach and frequency metrics. Monitor your ad performance closely and pay particular attention to the reach and Ad frequency metrics. If your reach drops or your frequency is greater than 20 then you need to look at finding new audiences to target.
  7. Optimise for purchases: Despite Facebook giving you a lot of optimising targets it’s always best to optimise your ads for sales.
  8. Take advantage of audience exclusions: excluded audience feature to prevent showing ads to people who have already purchased from you in the past 30 days.
  9. Target Broad Audiences: Facebook’s machine learning has gotten so good that it’s best to let the platform find your customers. Don’t be tempted to use detailed targeting and trust that Facebook will find your customers.
  10. Cost Caps are your friend: Setting cost caps in your campaigns protects you from overspending and allows you to scale your ads profitably.

Why Advertise on Facebook?

Right now, Facebook (Meta) is arguably the best advertising platform for ecommerce stores and there are 3 reasons for this:

  1. Quality – Facebook has so much high-quality data you can leverage to target your ideal customers.
  2. Scale – With almost 3 billion active monthly users. Meta has the audience for you to scale your ecommerce business.
  3. Price – Facebook advertising is still relatively cheap compared to many other ad platforms allowing you to test and run different ads to find a winner.

Hire A Facebook Ad Expert

Are Facebook ads not working for you?

👉 Hire my Facebook Ad agency today and schedule a strategy call to discuss your biggest marketing challenges.

Running Ecommerce Facebook ads [step-by-step]

1. The Set Up

Setting up your Facebook ad account is an underrated step, you don’t want to rush this process.

Getting the technical foundation right is critical.

Take your time making sure your pixel is set up correctly, you’ve added the correct events and your website is connected properly with your Facebook business manager account.

Here’s a helpful checklist to get the technical details sorted:

Technical checklist for setting up Facebook Ads

☐ Set up your Facebook Business Manager
Detailed instructions: Creating a Facebook Business Manager account

☐ Install The Facebook Pixel and ensure it’s connected to your website.

Use the Facebook Pixel Helper Chrome extension to test that you have it set up correctly on your website.

☐ Upload your product data feed to Facebook and check for errors.

More info about setting up your product feed.

☐ Set up Conversion tracking

More info about pixel conversion tracking with Facebook.

2. Building Your Campaigns

Facebook advertising has changed a lot in 2024.

How-to guides from 2 years ago are no longer relevant.

A big trend in 2024 with Facebook ads is the push towards account consolidation.

In other words…

The simpler your ad account structure, the better!

Here is how your ad accounts should be structured in 2024…

The Best Facebook Ad Campaign Structure

A common myth with Facebook ads is that you need hundreds of ads and dozens of ad sets to test. The truth is you don’t need complex campaign structures to be successful. 

In fact, 1 campaign, 1 ad set and 1 ad is often enough to see some good results and I recommend this structure when starting Facebook ads on a small budget.

Trust Facebook’s machine learning to find your buyers and invest more time in the ad creative strategy.

An ideal Facebook campaign structure would include 2-3 ad sets with 3-5 ads. Each campaign you build will also be built around a specific ‘theme’.

For example:

Campaign 1 – Could be focused on new customer acquisition and themed around a specific product SKU like ‘women’s black dresses’. That way when you create ads and messaging everything can be aligned to target customers shopping for black dresses.

Campaign 2 – A second customer acquisition campaign that focuses on dynamic ad creatives targeting broad audiences. You hand of the steering wheel to Facebook and let it use it’s machine learning to find customers for you.

Setting Campaign Objectives & Bid Strategies

Facebook gives you a lot of campaign objectives to choose from but…

99% of the time you want to choose conversions as the campaign objective. 

If you’re growing an ecommerce business profit is your most import ecommerce metric to measure success against. No other objective on Facebook ads better serves this than optimising your campaigns for conversions.

I’ll also mention that our Facebook ad agency uses CBO campaigns 90% of the time and for the bid strategy we set cost caps to protect from overspending and increasing CPAs*.

CPA* = Stands for ‘Cost Per Acquisition’ which is a measure of how much money you’re spending on advertising to acquire a new customer.

Optimising Your Ad Sets

The Ad set level of Facebook ads is where you control audience targeting and let Facebook know what goals you want to acheive.

Many ‘Facebook Gurus’ will tell you to split-test dozens of different ad sets & audiences but the truth is…

You only need a maximum of 3 ad sets per campaign and often 1 ad set is enough.

  1. Broad audiences (highly recommended) – The idea here is to keep your audience targeting fairly broad. Let Facebook’s powerful machine learning figure out and optimise for the right audience. Essentially here, you want Facebook to find your buyers.
  2. Interest Stacks – This is where you use Facebook’s detailed targeting to manually select audiences based on interests and we like to run it alongside broad audiences to see which ad sets are driving lower CPAs.
  3. Lookalike audiences – Although I’m not a huge fan of lookalike audiences as I find it’s hard to scale with them, they can yield some good results early in a campaign so you can look to introduce this audience targeting alongside Broad audiences & interest stacks.

A few more important tips to pay attention to at the Ad set level:

  1. Make sure you have selected the right Facebook Pixel that’s correctly installed on your website.
  2. Always make sure your conversion event is ‘purchases’ because that’s the #1 goal of your campaign. You want to advertise your products to people most likely to buy.

Audience Targeting Best Practices in 2024

Audience targeting on Facebook is where you tell Facebook who you want to show ads to.
Facebook gives you so many different possibilities here and my best advice when starting out is to keep your Audience targeting broad.

As more data comes in you can use Facebook’s analytics tool to refine this and reduce your initial audience sizes.

Interest Stacking (Detailed Targeting)

When targeting audiences, you can introduce interest-based targeting as a way of refining your target audience and optimizing your campaign. However this is often hard to scale and these audiences can degrade your ad performance over time.

How to choose the right Budget For Facebook Ads

What budget should you start with for ecommerce Facebook ads?

I recommend starting with $400 daily and setting cost caps based on your target CPA.

Important: You need to spend a good amount of budget on Facebook ads to reach 50 purchases required by Facebook to exit the learning phase. If you’re not spending enough to reach the required 50 weekly purchases then you will get stuck in ‘learning’ and ad performance will be inconsistent.

You may even need to spend up to 3 times your average order value (AOV) when first starting with Facebook ads. The idea here is to give Facebook enough budget so it can collect valuable data that you can use to optimise your campaign as it matures.

At a minimum you want to choose a budget based on the following:

Minimum Campaign Budget = Target CPA * 7.14 * # of Ad sets.

7.14 = the daily sales needed to exit Facebook’s learning phase within a week.

Target CPA = how much you’re willing to spend to acquire a new customer from Facebook ads. 

For example:

Let’s say you have an average order value (AOV) of $50 and have a target ROAS of 2. Therefore you’re willing to spend $25 to acquire a new customer. You also plan on launching 1 new customer acquisition campaign with 2 ad sets for testing.

Minimum Campaign Budget = $25 * 7.14 * 2 ad sets

Minimum Campaign Budget = $357 daily to achieve your target ROAS of 2.

One of the biggest mistakes I see ecommerce businesses make when advertising on Facebook and Google Advertising is not allocating enough budget to achieve meaningful results. You must assign a proper budget to get through the learning phase and take advantage of Meta’s incredible machine learning and predictive conversion modelling.

3. The Perfect Facebook Ad

Ad creatives are arguably the #1 most success factors for Facebook ads.

Facebook advertising is one of the best platforms for generating and scaling your ecommerce business but there are 3 key things you need to get right for Facebook advertising to work:

  1. You need to have great product(s) to sell.
  2. Ad creatives need to be engaging & drive traffic to your landing pages.
  3. Your ecommerce landing pages must be optimized for conversions.

The Anatomy Of a perfect Facebook Ad

Successful Facebook ads share 2 things in common:

  1. They emotionally engage customers.
  2. They educate and demonstrate a solution to a customer’s problem.

One of the key things to getting Facebook ads to work is using engaging creatives.

And more often than not, this is where a lot of Facebook campaigns fall down.

Here are some 7 simple ways to improve your Facebook Ad creatives:

  1. Research your competitor ads to figure out what’s working. The Facebook Ads Library is a great starting point.
  2. Use videos that show the product being used by customers.
  3. Use video testimonials of customers raving about how great your product is.
  4. Think outside the box and incorporate giveaways using a lead generation campaign to gather emails that you can remarket to.
  5. Utilise dynamic creatives to let Facebook optimise the best creative combinations.
  6. Make sure that the landing page you send Facebook traffic is relevant to the ad.
  7. The call to action (CTA) should be clear and show what the next step is for customers. 

As with the campaign and ad set level. Keep your ad creatives simple and easy for customers to understand.

 

4. Tracking The Facebook Funnel

As soon as your Facebook ads are live, you want to pay close attention to the performance of your campaign.

Otherwise, you can burn through your money quickly.

So…what should you be looking for exactly?

The #1 goal is to make sure that your Facebook Ads are generating more revenue than they cost to run.

Here are the key metrics on Facebook to watch closely:

  1. Ad frequency
  2. Cost per 1000 impression (CPM)
  3. Outbound clicks
  4. Content views
  5. Adds to cart
  6. Checkouts initiated
  7. Purchases
  8. Return on ad spend (ROAS)

Finding Problems in Your Facebook Ad Funnel

Using the views listed above is a great way to quickly identify where your funnel is breaking. This is a great way to tell if it’s your Facebook campaign, product or website that’s the problem and you can work to fix it.

For example: If you’re getting a lot of ‘adds to cart’ but the ‘checkouts’ are low then this is most likely a conversion issue on your ecommerce store and you’ll need to investigate what is causing this.

  • Could shipping rates be too high?
  • Is there a problem with your product price?
  • Does your website lack some key trust signals?

Return On Ad Spend (ROAS)

One of the most important metrics on Facebook to pay attention to is your ROAS.

This KPI is critical to understanding if Facebook is producing a positive return on investment for you and lets you know when you’re ready to scale up your Ad spend.

When it comes to ecommerce, every store will have a different ROAS they want to achieve to be profitable. For your ecommerce store, you might calculate the following:

ROAS of 3 = Breakeven point

ROAS of 4 = Making Money

ROAS of 5 = Crushing it

Before running your Facebook campaigns make sure you work out your breakeven ROAS number so you can set some clear goals for your campaign.

5. Scaling Facebook Ads For Ecommerce

A word of warning…

Scaling Facebook ads is an advanced level of Facebook marketing and you should already be getting a few sales from your initial Facebook campaign before trying to scale.

If you haven’t received any sales from Facebook yet, then you need to go back and work on fixing your campaign before trying to scale.

Scaling Strategies that work

There is a lot of information and strategies to cover when it comes to scaling ecommerce ads and on Facebook and it deserves its own post.

I’ve put together this step-by-step guide to scaling Facebook ads that you can download here.

Get The Guide To Scaling Facebook Ads:

Final thoughts...

Congratulations on making it this far! You have everything you need to launch and scale a successful ecommerce Facebook ads campaign.

It’s over to you.

Which Ecommerce Facebook Ad tip did you find most helpful from this post?

Let me know in the comments below right now.

Author Bio

Author Bio

Jonathan Gorham is the co-founder of Engine Scout and a passionate digital marketer, focusing on topics surrounding ecommerce marketing, SEO, and social advertising. He's based in Melbourne, Australia, and when he's not working, you'll find him relaxing with family or hanging out with friends. Connect with him on Twitter or LinkedIn.

24 Responses

  1. Thank you very much for sharing this useful article with us. It was really helpful. I don’t have any experience in this area. So, is it worth to hire a professional or I can do it by myself? Thanks

    1. If you’re just starting out in business then I recommend learning Facebook ads yourself and taking a D.I.Y approach. Hiring a professional agency can be very risky and expensive so you have to be careful. If you do hire someone then make sure you are holding them accountable to direct sales. Impressions, clicks and likes are vanity metrics. Getting sales and making money is what matters when it comes to Facebook ads 🙂

  2. Thanks for this writeup, I am just about to set up my Ad for my Ecommerce. But when I search for key words in the Engine scout FaceBook search I just don’t get any response. It remains blank.

    1. Hey Tony, the tool works best when you search for broad topics. For example, if you’re selling supplements then you might want to target broad topics like ‘health’ or ‘fitness’ to find relevant audiences who could be interested in supplements.

  3. Hi! Thanks for the article, it is very useful!
    Link missing: Scaling Facebook Ads For Ecommerce Pdf: [empty]

    Could you share it?

  4. Hi Jonathan,

    First of all, very helpful article, thanks!

    Secondly, would you mind sending the PDF on scaling via email? I am not able to download it from the article it seems, looks like it is missing.

    Thanks and best,
    Lex

  5. Hey, thanks for your tips.

    I’m trying this out. I just have a few questions and hope u can help 🙂

    1) Cost Cap
    I’m selling digital products between 3$ – 20$
    Which amount should I enter?

    2) Placements
    Which placements should I choose?
    Advantage+ or which ones?

    Thank u very much

    1. Hey Max,

      1) I’d create separate campaigns for each product based on their price so you can set different cost caps to handle each price point. Start with 20% above your retail price for each campaign and gradually reduce the cost cap to your desired target only after you start getting impressions & sales.

      2) Avoid Advatage+ until you have a successful campaign then you can move this into Advantage+ once you know it works.

  6. Hi there, can not see the scaling pdf, there is no clickable link… I’d love to have a look at it!

  7. Thank you for this information. You are very kind giving out this stuff for free. I am just starting and it’s not easy targeting especially with high competition in a particular product.

  8. Hi Jonathan, I’m not sure I understand the retargeting. Kindly, can you explain: different campaign, same campaign with prospecting, cost cap or not??

    1. Hi Ovi, It’s common practice to set up different campaigns…

      Campaign 1: for prospecting or targeting ‘cold audiences’ which is basically people who haven’t heard of your brand or visited your website before.
      Campaign 2: for retargeting ‘warm audiences’ which are people who’ve visited your website in the past or who’ve bought from you before.

      I’m suggesting a different approach where you combine both of these campaigns together and focus on prospecting cold audiences only. Facebook will automatically include ‘warm audiences’ when you set performance targets e.g. cost caps so you don’t need to worry about setting up a ‘retargeting campaign’. Focus on demand creation through cold audience prospecting as this is the only way to scale with Facebook Ads and you’ll retarget warm audiences with this strategy too.

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