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PLAYBOOK FULL FUNNEL FACEBOOK ADS FOR ECOMMERCE MARKETERS

PLAYBOOK FULL FUNNEL FACEBOOK ADS FOR ECOMMERCE MARKETERS

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From Ecommerce components influencing ads'metrics to specific targeting, budget, bidding, placements and creativity that covers every step of the sales funnel, you’ll learn how to setup them all.

From Ecommerce components influencing ads'metrics to specific targeting, budget, bidding, placements and creativity that covers every step of the sales funnel, you’ll learn how to setup them all.

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PLAYBOOK FULL FUNNEL FACEBOOK ADS FOR ECOMMERCE MARKETERS

  1. 1. By Susana Cipriota Co-Founder at Funnely CMO & VP Product
  2. 2. 2 1 The Game: Full Funnel Strategy 2 Formation: Facebook Pixel Setup 3 The Team: Ecomm Variables Impacting Facebook Ad Performance 4 The Plays: Facebook Ad Funnel Components 4.1 Targeting 4.1.1 Demand Generation 4.1.2 Demand Capture 4.1.3 Placement 4.2 Creativity, Promotions and Ad types 4.2.1 Attention 4.2.2 Interest 4.2.3 Desire 4.2.4 Action 4.2.5 Loyalty 4.3 Bidding 4.3.1 Actions 4.3.2 Daily Unique Reach 4.3.3 Impressions 4.3.4 Clicks 4.4 Budget 4.4.1 All About Reach 4.4.2 All About ROI 4.4.3 All About LTV 5. Review The Film: Measuring for Success 6. The Kick Off: Building the Funnel p. 3 p. 4 p. 5 p. 7 p. 7 p. 8 p. 8 p. 9 p. 10 p. 10 p. 10 p. 11 p. 11 p. 11 p. 12 p. 12 p. 13 p. 13 p. 13 p. 16 p. 16 p. 17 p. 17 p. 19 p. 21 Glossary
  3. 3. 3 ith 1.65 billion monthly active users, 1 billion stories posted every day, 100 million hours of video watched every day and 2 billion photos shared every day Facebook is the best channel for Ecommerce advertisers to reach new qualified leads, exist- ing prospects and clients. It’s advertising system has become very robust and full of new features every month. 2.5 million monthly active ad- vertisers utilize Facebook, so e-retailers need a deep understanding of all the best practices to optimize their budget more than ever. From Ecommerce components and KPIs to specif- ic targeting, budget, bidding, placements and creativity that covers every step of the sales funnel, you’ll need to use them all when forming your ad strategy on Facebook. Top performing Facebook ads for Ecommerce come from managing a group of campaigns covering every step of the funnel. The funnel allocation approach is a must for ecommerce advertisers as it’s granularity allows for better- performing ads by lowering the cost per purchase and boosting ROAS and sales. Once the custom audience events are placed in your ecomm site you can start feeding them right away. The magic will not happen if you avoid this step. The granular allocation lets you optimize your investment between lead gen and retargeting campaigns. And the Full Funnel Strategy W REMEMBER, THE AUDIENCES YOU WILL BE TARGETING IN EACH CAMPAIGN ARE JUST AS IMPORTANT AS THE ONES YOU ARE EXCLUDING SO YOU CAN AVOID OVERLAPPING MESSAGES. more granular you map all the steps of your sales funnel, the lower your average cost of purchase will be as you are able to offer better promotions to highly relevant prospects. This is how your group of audiences should look like: 5 1 1 -(2,3,4,5) 2 -(3,4,5) 3 -(4,5) 4 -(5) 5 Qualified Leads Homepage Visitors Product Visitors Add To Cart Clients 2 3 4
  4. 4. 4 Formation: Facebook Pixel Setup ith the world of ecommerce always changing for marketers, using current, cutting-edge technology is a must if you want to take your online sales metrics to the next level. Facebook has upgraded its pixel technology by combining the power of its multiple old pixels, conversion and custom audiences all into one. As an e-retailer, a deeper under- standing of its scope and possibilities will help you plan and execute a rocking Facebook (and Instagram) ad strategy. Today there are already 2.5 million active advertisers on their platform, so a granular allocation of your ad dollars is more important than ever if you need to lower your cost per conversion. Implementation of the Facebook pixel is required to structure a sales funnel for your ecommerce site. With this structure, you will be generating leads to feed the funnel and then remarketing them depending on the actions they take on your site to finally convert them into clients or re-purchasers. The pixel consists of a base code and several events. You can use the 9 standard events Facebook has put together or customize your own. This is a funnel example with 6 of them: Some standard retargeting platforms haven’t been built with a performance focus, so they don’t have the ability to track events. However, this is a must if you plan to master the art of Facebook ads for Ecommerce. Facebook has put together a group of standard events that will help you attribute conversions in your reporting. These include AddToWishlist, AddToCart, InitiateCheckout, AddPaymentInfo, Purchase, and more (check the funnel below as an example). Although you’ll need a developer to insert a Facebook pixel and set up events on your site, the time investment is worth it. You need to be aware of these 3 powerful features available with the Facebook pixel: 1- BUILDING REMARKETING AUDIENCES: The pixel will be triggered by the standard events and Facebook will identify the user depending on their behavior on your ecom- merce site, generating audiences for your ads. 2- CONVERSION OPTIMIZATION: Optimiz- ing your ads for conversion will allow Face- book to deliver them to people most likely to visit, add to cart, or purchase your product. 3- CONVERSION TRACKING: You can learn how successful your ads are by reporting on events. Keep in mind that revenue is not always a great KPI for your ads. Depending on the level of the funnel you are targeting, the KPIs should change. W
  5. 5. 5 The Team: Ecomm Variables Impacting Facebook Ad Performance Ad Variables Targeting Budget Bidding Placement Creative Ecomm Variables Market Pricing Business Margins Product Life Cycle Purchase Frequency Product Catalog Size Ecomm KPIS ROAS CAC LTV AOV Churn Delivery Ad KPIS CPM CTR CPA CR Frequency Relevance Score very online business has it’s own components which will more or less influence it’s Facebook advertising performance. Although all of them are variables on the business side, many of them must remain stagnant due to their importance in the business model. However, it is important to understand their relation to ad metrics. Let’s take a look at some of them in detail: E
  6. 6. 6 The Team: Ecomm Variables Impacting Facebook Ad Performance MARKET: Each market (Country, Region, City) has it’s own online behavior and therefore, it’s own average CPM. While targeting developing markets yields a lower CPM, it will usually re- sult in lower CTRs or conversion rates. Tip: It’s always a good idea to test multiple markets in different ad sets and learn from their metrics. The 2015 Q4 average CPM for the Americas was $8.01, $4.61 in EMEA and $3.46 in APAC. PRICING: Affordable products usually produce a shorter path to purchase due to the emo- tional and impulsive process, while expensive products require multiple touch-points (ad impressions) between the lead and the brand before converting them into a client. However, a higher product price will typically result in a higher margin. Tip: Up-selling strategies with DPA (direct product ads) will help you raise the AOV (average order value) and leverage your biz margins. BUSINESS MARGINS: The higher your business margin, the more you can bid in the auctions to win ad delivery. If your margins are very constrained the space to test, learn and iterate is very limited. Always include margins in your ROI formula to see the big picture and the real ROI. Tip: Some adver- tisers assign the real valvue of the product (Price - Cost of product) instead of the price in the Product feed so they can get the actual ROI driven by DPA directly in Facebook’s ad reporting tool. PRODUCT LIFE CYCLE: The product life cycle is the progression of an item through the four stages of its time on the market. The four life cycle stages are: Introduction, Growth, Maturity and Decline. The acquisition cost level is directly correlated with this cycle. The earlier the business is in the cycle, the more expensive the price will be to get a new client due to the aggressive demand generation process you’ll need to pursue. Tip: Ensure your relevance score is as high as possible so you can lower your CPM. PURCHASE FREQUENCY: The number of times a customer makes a purchase in a given period of time will be directly correlated with the product category. If the purchase frequency for your brand is lower than category rates, your customer is likely spending their money on your competitors. Categories that have high levels of purchase frequency also lend themselves to high levels of attrition among customers. Tip: If your company is based on a subscription model (No purchase frequency), retargeting clients will help lower churn. PRODUCT CATALOG SIZE: We all agree that the best-performing Facebook ads are Dy- namic Products Ads. DPA are a cross-device retargeting solution that helps e-marketers promote their entire Product Catalog. It’s a robust ad type that combines dynamic offerings with optimized targeting. However, it requires a wider product catalog offering for better performance. If you are promoting a uni-product company, this tool is not for you. Although all of the online business components are variables on the business side, many of them must remain stagnant due to their importance in the business model. However, it is important to understand their relation to ad metrics.
  7. 7. 7 The Plays: Facebook Ad Funnel Components TARGETING reating successful Facebook ad cam- paigns for ecommerce usually requires rigorous testing and constant optimiza- tion. Testing helps e-marketers like you identify small tweaks you can make to your campaign settings to drastically increase ROAS. While getting the best value from your ad spend by reaching relevant audiences for your business is challenging, there are many best practices and tips you can use to guide you in this art. The demand generation and demand capture stages should be approached sepa- rately in terms of your targeting strategy. C While getting the best value from your ad spend by reaching relevant audiences for your business is challenging, there are many best practices and tips you can use to guide you in this art.
  8. 8. 8 The Plays: Facebook Ad Funnel Components - Targeting B. Demand Capture Once your qualified leads have visited your ecommerce site, it’s time to remarket to them based on their behavior on your site to ensure conversion and a higher return on investment. Custom audiences and website custom audiences are great technology tools for delivering retargeting campaigns. Ensure a Facebook Pixel and some standard events are in place, and you’re ready to go! A. Demand Generation Lookalike audiences and interest-based target- ing are two tools you can manage to generate qualified leads to your ecommerce site. Reach is crucial when generating demand so you can scale up your results. It’s important to test both targeting types (avoid using them in parallel to avoid overlapping) so you can learn from metrics and optimize. You can combine both of them to narrow big audiences and ensure you are target- ing only relevant leads. All Lookalike audiences are based on a custom audience (From a datafile or from your Website). The suggested size of the seed audience is at least 2,000 people and if possible, use a higher-valued-clients base to leverage the relevance of the lookalike audience. If not possible, you can use clients, basket abandoners, or product visitors as seed custom audience, as well. The best practice to test lookalike audiences is by implementing a process called: Nested Lookalikes. It means creating 2 o 3 different Lookalike audiences (Using the relevance vs wide percentages available, from 1% to 10% of the country) and testing each of them in different ad-sets. You need to ensure you are excluding the ones that are included in the other ad-sets so you avoid overlapping. You will learn which audience brings the lower cost per action and the highest ROI (Usually the one with the highest CPA, but is not always the case). VS.
  9. 9. 9 The Plays: Facebook Ad Funnel Components - Targeting Placements Mapping and understanding the path to online purchase is critical for e-marketers as this exercise will reveal critical touch-points of their customer’s journey to a purchase. Data confirms that every industry is different and that multiple parameters (purchase values, the length of the journey, client profile) influence the customer behavior through the marketing funnel, so you don’t always seal the deal by delivering a single ad. While challenging, it’s crucial e-marketers design campaigns that deliver the right message at the right moment in a customer’s journey to purchase. Gener- ating demand with a lead gen campaign and capturing this intention with granular retar- geting afterwards is a good starting point. But the only way to optimize ROAS is by testing, measuring and learning from each iteration and adjusting your marketing budgets accordingly. To complicate matters, most customer journeys take place on different devices at home, on the go, and at work (9 in 10 consumers start an activity on one device and finish it on another). But don’t panic! You can measure all of these cross-device paths and attribute the right value to each of them in your Facebook advertising reports. In general, the smart- phone is considered the go-to device - 76% of adults who own one use it while they are out and about. It’s always with them and is most commonly used for communication and social activities. The tablet is viewed as the entertainment hub and is often used at home, where 43% of tablets are shared with others. The laptop or desktop is the workhorse — 80% of online adults that own one use it at home, and it tends to be dedicated to import- ant tasks like work or managing finances. The world is no longer transitioning to mobile, as they are already there. With 1.2 billion smart- phones in the world, people spend 3 hours of their day on their mobile phone. 20% of the monthly time spent on mobile is consumed by Instagram, Facebook and Messenger. As a result, these are the channels you should be utilizing to reach your audience. Mobile placements (Face- book News feed Mobile + Audience Network + Instagram) are best ones for creating awareness, demand generation and qualified leads. However, for retargeting campaigns, the News Feed Desktop placement still gets the highest conversion rates in terms of purchase conversion. Additionally, the right column is a great placement for reminding your basket abandoners to come back and move forward with their purchase. Data confirms that every industry is different and that multiple parameters (purchase values, the length of the journey, client profile) influence the customer behavior through the marketing funnel, so you don’t always seal the deal by delivering a single ad.
  10. 10. 10 CREATIVITY, PROMOTIONS AND AD TYPES mong the multiple ad types available on the Facebook advertising platform, there are 4 you should be using when marketing an ecomm site depending on your goal: The Plays: Facebook Ad Funnel Components - Creativity, promotions and Ad types Attention: ‘Are you cool enough?’ Carousel ads are perfect for attracting the at- tention of your qualified leads. You can merge images and videos into one ad so your users can swipe to see them all. They can explore your best-selling products or unlock a story while they swipe. There are endless opportunities for marketers to boost conversion rates in their top-funnel campaigns using carousel ads. Think of high-impact images, try multiple variations, or display lifestyle images vs. products. Images are the first touch-point qualified leads will notice about your post. Canvas is another option for awareness generation, as it creates an immer- sive experience for the user. In terms of promotions, consider including a First Time Shopper Offer in your ad as it can nudge those first-time visitors and convert them into paying customers. First Time Shopper Offer Examples: Free shipping on your first purchase Free shipping and returns on your first purchase A dollar amount off on the first order A Interest: ‘You need shoes!’ Lead ads present a big opportunity for mar- keters to push their prospect database to the next level. You can create a custom form to be completed by a user after they click the SIGN UP call to action. Once you generate interest from your audience, you can collect their contact information and start retargeting them not only through Facebook, but other channels as well. You can now combine Facebook ads with an email or call-center strategy. This is a great strategy and every marketer should try it sooner rather than later. Don’t hesitate to include an Email/Newsletter Subscription Offer in your creative. As you probably already know, building an email list is extremely important for online retailers. By providing an offer in exchange for visitors emails, not only do you increase the chance of a conversion, but you also get their email for re-marketing through Facebook and email at the same time.
  11. 11. 11 The Plays: Facebook Ad Funnel Components - Creativity, promotions and Ad types Action: ‘Get our shoes now’ Link Post ads or Dynamic product ads with a single product are the most effective Face- book ad types for shopping cart abandoners. At this stage it’s not a good idea to remarket to your prospects with multiple offers if they have already added a product to the basket and abandoned it afterwards. We don’t want them to start the purchase process from scratch, but need them to move forward with the current choice instead. With close to 70% of all people abandoning their carts, it’s critical to include the sexiest Abandon Cart Offer possible to provide visitors with a reminder and incentive to come back and complete their purchase. Some ideas: A dollar amount off an order A dollar amount off each item A percentage off each item A dollar amount off shipping Free shipping X% off all items in a category Buy 1 get 1 free Loyalty: ‘Come back,you love ourshoes’ Dynamic Product Ads with multiple products and a cross-selling/up-selling strategy is the best choice at this stage. Ensure you set up Product Sets in your product feed options and you’ll be ready to raise the LTV of your clients and also the AOV. You can test multiple rules and see how the AOV responds. For example, for up-selling purposes, you can divide the product feed into 2 product sets using the Average Price as the dividing line and set the rule to deliver Expensive Product Sets instead of the whole catalogue. Desire: ‘Our shoes are better/cheaper’ Dynamic Product Ads are the elite ads for e-retailers. This magic remarketing tool delivers the best-performing offer from your product feed to people most likely to purchase. You can set up multiple rules to fulfill your business needs such as not displaying out of stock products. DPA combine targeting optimization with offer optimization. At this stage, you need to convince prospects that they want and desire your product and that it will satisfy their needs. If you are still not delivering DPA, please start today, and your ROI will thank you! Ensure you include some kind of Volume/Cart Size Offer. An offer based on the total value of a shopping cart is an effective up-selling tactic to encourage prospects to spend more, increasing your average order size. A strategic way to incorporate this into your online store is to calculate your average order value for previous months and offer a discount or free shipping on all orders 10-20% over your average order value. Some other offer ideas: Buy X items, get free shipping Free shipping on orders over $X $X discount on orders of $Y or more $X or X% off for repeat customers Dynamic Product Ads are the elite ads for e-retailers. This magic remarketing tool delivers the best-performing offer from your product feed to people most likely to purchase.
  12. 12. 12 The Plays: Facebook Ad Funnel Components - Bidding BIDDING lthough bidding may sound like a whole new world full of tricks, you can maneuver through the process by always bidding for actions when selecting the ‘Website Conversions’ objective in the cam- paign creation process, especially for ecomm marketers. Each level of the funnel should be bidding for a different action while the rest are kept constant. However, if you are an intermediate/advanced advertiser, you can test multiple optimization options and learn from them. Let’s dive into the available objectives: Actions Facebook will deliver your ad to people who are most likely to perform that action. This works best when you’re targeting large audiences (+100,000 people) as Facebook can pick out the top percentage of people most likely to act and discard the rest. The actions can be any Facebook Standard Event (or customized event). This option is great for top-funnel campaigns A with a wide lookalike audience and “visiting the landing page” as the action pursued. However, If you are targeting a small audience, as is usually the case for retargeting campaigns, you need to know that Facebook will pick just a percentage of them to deliver to (usually 10%). Ensure you keep your budget low, or the campaign will not consume it all. For example, if your audience size is 50,000, then you can expect delivery to only 5,000. With an average CPM of $8 in America, the logical budget to set for this ad set would be $40. The other thing you need to keep in mind if you choose this action-based optimization is that the Facebook algorithm needs at least 25 actions per day to adjust targeting. Therefore, if you selected Purchase as the event that triggers the action, you need to ensure you are getting 25 purchases per day to let Facebook calibrate the delivery. If this is not the case, the suggested move would be to select the Add to Cart event or any other conversion event further up the funnel (i.e. Product Page Visit). Each level of the funnel should be bidding for a different action while the rest are kept constant. However, if you are an intermediate/advanced advertiser, you can test multiple optimization options and learn from them.
  13. 13. 13 The Plays: Facebook Ad Funnel Components - Bidding Daily Unique Reach Facebook will deliver your ad to as many people within your target audience as possible, but with a limit of no more than once per day. Facebook is not optimizing delivery to people most likely to perform the desired action. There- fore, if you want Facebook to reach all the users in your website customer audience, for example, it will try to show your ad to as many of those as they can with the available budget, regardless of the likelihood of those users performing your desired action. This is a great tool when retar- geting extremely relevant audiences (Shopping Cart abandoners for example) as you will be serving ads to all of them but also avoiding high levels of frequency since delivery is limited to once per day. However, sometimes you will see that your audience performs better with more than one impression per day. If this is the case, you should test if optimizing for impressions works better for you. Impressions Facebook will deliver your ad to as many people within your target audience and as many times as possible, exactly like the Daily Unique Reach option, but without the single daily impression limitation. If your retargeting audience is smaller than 100,000 and contains only lower-funnel prospects that need a final push to convert into clients or are already clients, this is your best option. Facebook will roll out a feature allowing the frequency cap to be set by the marketer. This will be the perfect combination of reaching the entire audience with a set amount of daily impressions (not just one). Clicks Facebook will deliver the ad to people most likely to click anywhere in your ad (link click, comment, like, share) and you will be paying for each click made to your ad. Currently you can select to be charged only by link clicks. This is usually discouraged for Direct response goals, but best for campaigns that are pursuing engagement from their audience. Daily Unique Reach is a great tool when retargeting extremely relevant audiences as you will be serving ads to all of them but also avoiding high levels of frequency since delivery is limited to once per day.
  14. 14. 14 The Plays: Facebook Ad Funnel Components - Bidding QUALIFIED LEADS AWARNESS OPTIMIZE FOR ACTION OPTIMIZE FOR ACTION (IF AUDIENCE <100K = OPTIMIZE FOR IMPRESSIONS) OPTIMIZE FOR ACTION (IF WCA < 100K = CPM) OPTIMIZE FOR ACTION (IF WCA < 100K = CPM) OPTIMIZE FOR ACTION (IF WCA < 100K = CPM) CONSIDERATION PREFERENCE PURCHASE LOYALTY LANDING VISITORS PRODUCT VISITORS BASKET VISITORS CLIENTS Objective: Website Conversion Conversion Event: Landing Page Visiting Objective: Website conversion Conversion Event: Product Visiting Objective: Product Catalogue (multi-product) Conversion Event: Add to Cart Objective: Product Catalogue (single product)) Conversion Event: Purchase Objective: Product Catalogue (cross-selling) Conversion Event: Purchase Bidding & Ad type
  15. 15. 15 The Plays: Facebook Ad Funnel Components - Bidding Automatic vs Manual bidding Although it’s not your actual bid, Facebook uses a max bidding amount to ensure you will not pay more for your bid than it’s worth to you. If you are selecting “Optimize for Action,” by default, you are not asked to set a bid and Facebook will get the most actions at the best price. However, you can always test the manual bidding option if you are an experienced advertiser. Facebook shows a suggested range to guide you in this process, but we suggest you to do the math and set what the action is worth to you. If the event is Add to Cart for example, and your Shopping Cart Abandonment Rate is 60%, your Average Order Value is $150, and your Business Margin is 80%, your maximum bid to turn a visitor into the “shopping cart adder” would be $48. However, if Facebook is delivering less than expected, try to raise the bid (25% more than the highest suggested by Facebook) and see if the ROAS makes sense for your business. While bidding CPC or CPM, ensure you bid high enough (double than the amount suggested, as there is no range in these cases). Bidding too low is the primary reason for not getting your ad delivered. You can always test the manual bidding option if you are an experienced advertiser. Facebook shows a suggested range to guide you in this process, but we suggest you to do the math and set what the action is worth to you.
  16. 16. 16 The Plays: Facebook Ad Funnel Components - Budget BUDGET eads, prospects, and clients we can also call these components demand gener- ation, demand capture and customer retention. In Facebook Ad terms, these can be translated to lookalike targeting, retargeting website visitors, and retargeting website clients. The best-performing allocation model for your ecomm business will depend on multiple parameters. Some of the metrics that impact the three levels of the funnel include CAC, organic monthly visitors, average order value, repurchase rate, and LTV. For example, if your company’s repurchase rate is very low because of the essence of your product, it does not make sense for you to invest ad dollars in reaching out to clients as they are not going to convert. For the purpose of this analysis, let’s imagine an ideal company as a study model and focus on the 3 usual stages of an ecomm company’s journey through Facebook ads. The lower on the funnel a person is, the lower the cost is to convert them on a purchase. But, this is a process that needs a high budget, time and patience. L Stage 1: All About Reach The first stage is all about brand awareness and driving highly-qualified leads to your site. Most of your ad dollars (80% lead gen, 15% retargeting visitors, and 5% retargeting clients) should be invested in campaigns targeting large lookalike audiences based on your clients/ prospects. Usually, this stage of the journey is likely to be your biggest bet in terms of ROI. It’s very expensive to convert a lead into a client with one campaign, so you can’t expect a high return on your advertising investment. Focus instead on metrics such as cost per person reached and their conversion rate from lead to visitor. Try multiple lookalike audiences, placements, creatives and copy to iterate and lower the cost of acquiring a new prospect. The best-performing allocation model for your ecomm business will depend on multiple parameters. Some of the metrics that impact the three levels of the funnel include CAC, organic monthly visitors, average order value, repurchase rate, and LTV.
  17. 17. 17 The Plays: Facebook Ad Funnel Components - Budget Stage 3: All About LTV This is now the perfect funnel! It’s a funnel that allocates most of your ad dollars to retarget- ing clients. Your cost per conversion will be the lowest, and the return highest. Focusing on generating up-selling and cross-selling campaigns with DPA or discount codes is key in this stage. You earned a big client audience and retargeting them is the best option in terms of the cost of conversion. It’s hard to get there, but if you manage to do it, you will validate that the perfect funnel you learned about at your university has been flipped around! Unfortunately, this is not the end of your journey but just the end of one cycle. Once Stage 2: All About ROI The second stage is the perfect time to boost your ROI metrics. You managed to lower your cost per qualified lead, and now it’s time to remarket to them! Remember that the cost of converting a prospect is lower than converting a lead, so your advertising spend will bring a higher level of return. This it the perfect time to re-allocate a large amount of your ad dollars from lead-gen campaigns to retargeting solu- tions like Dynamic Product Ads. The larger your inventory is, the better they’ll perform. The funnel composition model will be around 50% lead-gen, 40% retargeting product visitors, and 10% retargeting clients. you’ve reached the third stage of the funnel and your customer retargeting campaigns have been running for a while, their performance may start to decrease. This could be a sign that it’s time to feed your funnel with fresh leads, and you’ll need to circle back to the first stage again. The lower on the funnel a person is, the lower the cost is to convert them on a purchase. But, this is a process that needs a high budget, time and patience.
  18. 18. 18 The Plays: Facebook Ad Funnel Components - Budget Advertising Spend Per Funnel Level This is how advertising spend cycles would look: ROI Evolution The ROI evolution, with 3 stages included in each cycle, would look like this: This is of course a very sophisticated approach and requires you to track many variables daily before you decide how to reallocate your ad dollars.
  19. 19. 19 Review The Film: Measuring for Success s an ecomm marketer, you must monitor your ad KPIs on a daily/ weekly basis to learn from each iteration and optimize accordingly. You prob- ably already know that Ecomm KPIs are your main marketing objective and they impact the business in the long term. The most important ad KPIs to monitor are: CPM: The cost per thousand impressions is definitely a useful KPI when measuring success - especially in top-funnel campaigns where wider audiences are required. The lower CPM you get, the more people you’ll reach. CTR: Although many people don’t click on ads and go directly to your website from another device afterwards, the click-through rate does a good job of showing their engage- ment level and how it changes over time. CPA: The cost per action is the metric that will reflect success or failure of each campaign in the funnel more clearly. While the action will change from one campaign to another, (visiting the landing page, visiting the product page, Add to Cart, Purchase) it’s very important to keep a close eye on them. A CR: Conversion rates will reflect the health of your funnel and will show you where the drop-off is so you can optimize for conversion. FREQUENCY: Frequency is the average number of times your ad was shown to each person. If your website’s custom audiences for retargeting are not very large, you will notice that this metric gets high quickly. Refreshing your content every 15 days and varying your product feeds for DPA will help combat this. RELEVANCE SCORE: The relevance score calculation is based entirely on the positive and negative feedback Facebook receives from the target audience. If this metric decreases, then Ecomm KPIs are your main marketing objective and they impact the busi- ness in the long term. You must monitor your ad KPIs to learn from each iteration and optimize accordingly. your ad is likely to be more expensive or shown less frequently. It’s important to monitor in both lead-gen and retargeting campaigns. DELIVERY: If your campaign is under-de- livering, try raising your bid, replacing the conversion event with a higher-funnel one, or changing your targeting. Sometimes retargeting campaigns underdeliver because of a small website custom audience, so ensure you re-allocate this budget to your top-funnel campaigns to feed the funnel. Additionally, the long-term metrics that will reflect the success of ad campaigns are ROAS, CAC, LTV, AOV and Churn.
  20. 20. 20 Review The Film: Measuring for Success ATTRIBUTION MODEL Establishing an attribution model is imperative to better understand the lift driven by advertising spend and the touch points responsible for the conversion during the customer journey. Facebook attributes conversions to the day of the click and/or impression. Specifically, Facebook offers con- version tracking based on a 1 day, 7 day and 28 day post-click and/or post-impression model (unfortunately the maximum window is 28 days, so you’re a bit limited if you have a particularly long path to purchase). By default, Facebook will attribute a purchase (or any other action) to a campaign if it happened 1 day after the ad impression or 28 days after the user clicked on the ad. You can change the attribution model to better fit your business, however, we encourage you to consider both view and click events in it, as most people don’t click on ads and then make a purchase directly on another device. Facebook can attribute this transaction to a specific campaign as Facebook users are logged in on all their devices. If you’re using other analytics tools for your reporting, it won’t consider this data, which is why most cross-device attribution from Facebook is not being included. You can change the attribution model to better fit your business, however, we encourage you to consider both view and click events in it, as most people don’t click on ads and then make a purchase directly on another device.
  21. 21. 21 ADSET 1 Lookalike 2% Lookalike 9%, Exclude Lookalike 2% Campaign 1: Website Conversions. Conversions: Landing View Content Conversions: Product View Content *Unique Daily Reach or Impression if audience is <100K Conversions: Add to Cart *Unique Daily Reach or Impression if audience is <100K Conversions: Purchase *Unique Daily Reach or Impression if audience is <100K Conversions: Purchase *Unique Daily Reach or Impression if audience is <100K 2-3 creatives per ad set. Carousel ads / Video Carousel ads / Canvas 2-3 creatives per ad set. Carousel ads / Video Carousel ads 30% of overall ad spend Lookalike 10%, Exclude lookalike 9% and 2% FB + IG + Audience Network FB + IG + Audience Network FB + IG + Audience Network FB Newsfeed Desktop FB Newsfeed Mobile FB Right Column FB Newsfeed Desktop FB Newsfeed Mobile FB Right Column FB Newsfeed Desktop FB Newsfeed Mobile FB Right Column ADSET 2 ADSET 3 ADSET 1 ADSET 2 ADSET 3 ADSET 1 ADSET 2 ADSET 3 ADSET 1 ADSET 2 ADSET 3 ADSET 1 Campaign 2: Website Conversions. 15% of overall ad spend ADSET 2 ADSET 3 Campaign 3: Product Catalogue for FB. Product Feed (Multi Product Layout) Product Feed (Single Product Layout) Product Feed (Multi Product Layout + Cross-selling/ Up-selling Setup) 20% of overall ad spend Campaign 4: Product Catalogue for FB. 15% of overall ad spend Campaign 5: Product Catalogue for FB. 20% of overall ad spend Landing Visitors WCA (30-days duration) Excluding product visitors, basket visitors and clients *This is not a one-size fits all business. This is an standard structure to guide you through the funnel structuring process. Product Visitors WCA (30-days duration) Exclude basket visitors and clients Add to Cart WCA (duration 60 days) Exclude basket visitors and clients Clients WCA (15 days after purchase, 90 days duration) * Instagram for levels 3, 4, 5 can be run with Website Conversion separate campaigns as DPA are not available for this placement yet, use Carousel Ads instead. * If ads are underdelivering, Re-allocate ad-dollars to Level 1 to feed the funnel. * Re-allocate ad-dollars to placement ad sets with higher ROI." FB Newsfeed Desktop FB Newsfeed Mobile + Audience Network IG CAMPAIGN OBJECTIVE AD SET TARGETING BUDGETCREATIVEPLACEMENTOPTIMIZATION CONVERSION FUNNEL AWARENESS CONSIDERATION PREFERENCE PURCHASE LOYALTY The Kick Off: Building the funnel
  22. 22. 22 Resources Funnely’s own data Facebook for Business: https://www.facebook.com/business Facebook Blue Print: https://facebook.exceedlms.com/student/home Facebook for Developers: https://developers.facebook.com Support: https://www.facebook.com/business/resources Jonloomer: http://www.jonloomer.com/ Facebook DR Activation Guide
  23. 23. By Phone (208) 505-8746 By Email info@funne.ly San Francisco 55 E 3Rd Ave, San Mateo New York 33 Nassau Avenue, Brooklyn Buenos Aires Niceto Vega 4736 Contact Us... May 2016

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