One of my ad accounts spent hundreds of thousands of dollars, and as you can see, the cost per result (CPR) or cost per purchase (CPP) is much lower than the industry standard. I’m going to walk beginners through exactly how to do this. One of the hardest things when it comes to running a dropshipping or e-commerce business online is successfully running ads. If you’re not careful, you can waste a lot of money. This will help you avoid that.
I’ll be sharing some results achieved using this strategy and setup. I’ll also give some quick Facebook and Instagram tips that I’ve learned over the past 5 years and applied to multiple 7-figure businesses. Then, we’ll dive into a step-by-step tutorial on how to set up ads for beginners.
Effective Facebook & Instagram Ads Tips
Remember, the better you get at advertising and running social media campaigns, the more money you’ll make. Because the more effective your ad campaigns are, the less you’ll pay for advertising – a huge expense in 2024 for online businesses. Besides product costs and platform fees, ad spend will eat into a big chunk of your profits.
Real Results: The cost per result is pretty good compared to the average. Most are under $10 per purchase, with some campaigns as low as $4.31. I’ve seen CPP on some accounts go as low as $2, which is almost like free advertising.
Key Metric: These campaigns have very low cost per mille (CPM) and cost per link click (CPC). This allows the product to reach a wider audience. However, don’t worry too much if your metrics don’t look exactly like this. Everything depends on the product, price point, market size, etc. The most important thing is the CPR – are you breaking even or profiting from these campaigns.
Facebook & Instagram Tips 2024:
- Target Broad Audiences: After the iOS 14.5 update, data sharing is limited, making interest-based targeting harder. The solution is to target broader audiences, letting Facebook’s algorithm find potential customers.
- Test One Variable at a Time: Don’t test multiple elements (creatives, copy, marketing angles…) simultaneously. Change one element at a time to pinpoint what works.
- Give the Pixel Time to Learn: The Pixel needs time to gather data and optimize ads. Be patient and don’t expect immediate results. The bigger the budget, the faster the Pixel learns.
Step-by-Step Facebook Ads Campaign Setup Guide
1. Create a New Campaign:
- Buying Type: Select “Auction”.
- Campaign Objective: Select “Conversions”.
- Campaign Name: Use a specific, descriptive name for tracking (e.g., “Necklace – USA – 18+ – Testing Marketing Angle”).
2. Ad Set Level:
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Conversion Location: Select “Website”.
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Performance Goal: Select “Maximize Conversions”.
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Pixel: Select the Pixel connected to your Shopify store.
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Conversion Event: Select “Purchase”.
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Budget: Set a daily budget (e.g., $25).
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Schedule: Choose a start date and time (recommended: next day, 12:00 AM or 6:00 AM).
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Audience:
- Location: Select your target country (e.g., United States).
- Age: Set a minimum age (e.g., 18).
- Custom Audiences: Leave blank.
- Advantage+ audience: Select.
- Detailed Targeting: Leave blank.
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Placement: Select “Advantage+ placements”.
3. Ad Creative Level:
- Create New Ad.
- Ad Creative Source: Select “Manual upload”.
- Format: Select “Single image or video” (or “Carousel” if you have multiple images/videos).
- Add Media: Upload your product image/video.
- Primary Text: Write concise, engaging copy that reflects your marketing angle (e.g., “No more bulky wallets!”).
- Headline: Write a short, impactful headline (e.g., “Slim & Convenient Wallet”).
- Description: Provide more information about the product.
- Call to Action: Select “Shop Now”.
- Website Information: Add useful information (e.g., “Free Shipping”).
- Destination: Paste your product page link, not your homepage.
- URL Parameters: Add parameters for tracking (optional).
- Language: Select the appropriate language.
- Tracking: Ensure your Pixel is set up correctly.
4. Duplicate and Test:
- Duplicate Ads: Create 3-5 ad variations, each with a different marketing angle.
- Edit Content: Change the text, image/video, headline, and description to fit each marketing angle.
Conclusion: By testing one variable at a time, you’ll find the most effective Facebook and Instagram advertising strategy for your dropshipping business. Be patient, continuously optimize, and don’t be afraid to experiment!