How To Run Facebook Ads For Ecommerce [2021 Guide]

Facebook ads for Ecommerce can be daunting, especially if you’re new or you’re looking to scale.

With all the different targeting options, bidding choices and constant changes, even the most experienced marketers can get overwhelmed.

This guide has you covered.

You’ll discover best practices for setting up (and scaling) winning Facebook ads for ecommerce stores.

Let’s get started.

8 Pro Ecommerce Facebook Ad Tips

  1. Steal your competitors best ideas. Use the Facebook Ads Library to steal the best creative ideas from your competitors.

  2. Carousel ads are powerful. Use them and combine different creatives including videos, product images and testimonials within the same carousel.

  3. Video ads are your friend. Use video ads that showcase the product and your target customers using and loving the product.

  4. Always run a remarketing campaign. Remarket to people who have abandoned the shopping cart or viewed products on your website.

  5. Excluded Recent Purchasers. Use Facebook’s excluded audience feature to prevent showing ads to people who have already purchased from you in the past 30 days.

  6. Test new Ad types. Facebook is constantly introducing new ways to showcase ads and they can ‘unlock’ powerful features as well as outperform other ad types so test them out.

  7. Pay attention to reach and frequency metrics. Monitor your ad performance closely and pay particular attention to the reach and Ad frequency metrics.

  8. Optimise for purchases. Always optimise your ads for purchases whenever possible.

Why Advertise on Facebook?

Right now, Facebook is one of the best advertising platforms for ecommerce stores and there are 3 key reasons for this:

  1. Quality – Facebook has so much high quality data you can tap into and find your perfect customers.
  2. Scale – With almost 3 billion active monthly users. Facebook allows you to scale and drive a lot of revenue for your business.
  3. Price – Facebook advertising is still relatively cheap compared to a lot of other platforms allowing you to sell for profit.


Here are the steps to running Facebook ads for ecommerce in 2021:

  1. Technical Foundations
  2. Creating Your Campaign
  3. The Perfect Facebook Ad
  4. Tracking The Facebook Funnel
  5. Scaling Facebook Ads

1. The Technical Foundations

Getting the technical parts of your campaign set up correctly is critical for success with Facebook Ads.

And I can’t stress this enough…

Take your time getting the technical details right, don’t rush this part!

Luckily, this handy checklist below will prime your Facebook ad account for success.

Must-Do Checklist: Facebook Ads Set-Up For Ecommerce

☐ Set up your Facebook Business Manager

How to do it here: Facebook’s official guide

☐ Install The Facebook Pixel and make sure it is 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 there are no errors.

More info about setting up your product feed.

☐ Set up Conversion tracking

More info about conversion tracking with Facebook.

2. Creating Your Campaign

Facebook advertising has changed a lot recently.

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

A big trend in 2021 has been that Facebook advertising is getting simpler.

No need to overcomplicate things.

Focus on giving Facebook what it needs and let its database do the work.

Ad Group Structuring

Facebook advertising campaigns don’t require a complex campaign structure to be successful.

You don’t need to create 12 campaigns, 30 ad sets and 100’s of different ads.

A simple structure with 1 or 2 campaigns, a few ad sets and ads is all that’s required with Facebooks powerful automation and machine learning capabilities.

In the next steps, I’ll explain each of the 3 levels (campaign, ad sets & ads) that make up Facebook ads and what you need to do at each level.

Step #1 The Campaign Level

Facebook gives you a lot of campaign objectives to choose from.

9 times out of 10, you want to choose conversions. Then click continue to bring you to the ad set level.

Step #2 Ad Set Level

Ad sets are where you’ll set up targeting and tell Facebook which audiences you want your ads shown to.

A lot of ‘Gurus’ will tell you to split test dozens of ad sets.

The truth is…

You don’t need to create 30 different ad sets.

1 or 2 ad sets is more than enough.

Don’t overcomplicate at this point, keep it simple!

Here are the key things you want to set up at the ad set level:

  1. Make sure have selected the right Facebook Pixel that is installed on your website
  2. When choosing a conversion event, 90% of the time you will want to choose purchases because that’s the #1 goal of your campaign. You want to advertise your products to people most likely to buy.

Pro-tip: Occasionally you might select ‘add to cart’ as your conversion event if you’re prospecting cold audiences on Facebook.

What budget should you start with for ecommerce Facebook ads?

Unfortunately, there is no hard and fast rule and this will vary depending on what you sell and how competitive your niche is.

You may 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.

In terms of daily ad spend for Facebook, I’d recommend starting with a maximum of $100 per day while you’re testing the campaign. 

For example: If your AOV is $25, your might have to spend $75 on Facebook ads before getting a purchase.

4. Next up is audience targeting

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 fairly broad.

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

Advanced Audience Targeting

When targeting audiences, you can introduce interest-based targeting as a way of refining your target audience and optimizing your campaign.

You may have to try a few different interest-based audiences before finding one that works so this is something you would want to split test. This tool can help you find hidden audiences to target on Facebook. You can also watch the video to see how it works here:

5. Now it’s time to let Facebook know where you want your ads to be placed across their network. 90% of the time you will want to go with Automatic placements and let Facebook do the work here.

6. Click next to begin creating your ads. Ad creatives are one of the most important aspects of Facebook ads and I’ve dedicated the entire next section to it below.

3. The Perfect Facebook Ad

Before I walk you through what makes a perfect ad on Facebook, I want to share some hard truths about advertising on Facebook.

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

  1. You need a great product to sell
  2. Your ad creatives should be engaging & high-quality.
  3. Your online store needs to 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)

Identifying Breakpoints in Your Facebook 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.

Scaling Facebook Ads For Ecommerce Pdf:

Final thoughts...

Now you have all the steps needed to create a successful Facebook advertising campaign for your ecommerce business.

It’s over to you.

Do you have more confidence running Facebook ads now?

Let me know in the comments below right now.

2 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 🙂

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