If you have your own website, driving customer acquisition is an investment you can’t afford not to make. At the top of your toolkit is Facebook ads, but how do you make the most of it and where should you start?
We spoke with AdKings and Clearbanc in our latest webinar and discussed how to lower cost per action for your Facebook ads.
In this blog we’ll cover why Facebook ads are crucial to growing your D2C empire, best practices for setting up and executing Facebook ads, how to get fast shipping tags on your ads, and your Facebook ads investment strategy.
Scroll to the bottom for the webinar recording!
Best practices for setting up and executing Facebook ads
Facebook ads have incredible, almost unparalleled potential for growing a D2C business. AdKings used two real-seller case studies to demonstrate this.
One of their clients went from $150k-250k per month to $862k per month in 30 days, just by adding and optimizing their Facebook ads strategy. Another client went from $200k per month to $3.7M per month in 2 months with Facebook ads.
These success stories show that for D2C brands, Facebook ads have huge scaling potential and should be a key tool in your toolkit for growing a brand.
Some tips from AdKings:
- Think of Facebook as a acquisition tool.
- Facebook is highly scalable. We have clients where we’re spending up to $55k a day on Facebook Ads and generating $100k+ per day.
- Expect ROAS (Return on ad spend) to be 1.6-3 depending on the niche and scale. This means that 33% to 63% of the product price will have to cover the marketing costs.
- Due to that usually a good rule of thumb is to have 65%+ margins on product, even better is to have 85%+.
Your formula for success for creating your converting Facebook ad is:
Offer + Creatives + Media Buying Techniques
In order to master this, you’ll need to…
- Understand your consumer’s dreams, desires and fears
- Create an irresistable offer
- Present your irresistable offer
- Use conversion psychology in photos
- Get clear before launch (check out the video for more about this!)
Your Facebook ads investment strategy
When it comes to investing in your Facebook ads, you need to think about scaling on a marginal returns basis. Some merchants only look at average cost per action, but you should also be looking at marginal cost per action.
Findzu defines this well as: Marginal CPA is the increase in cost before and after a change, divided by the increase in conversions.
The key is to find which ads work to reduce your marginal CPA, and then increase investment into those. The more you invest into marketing that works, the more revenue you generate to reinvest, and your flywheel will take off.
Tip: Clearbanc provides capital based on projected revenue, and Deliverr merchants can get 10% off by going to this link.
How to add 2-day and next day tags to your Facebook ads
What if you could reduce CPA 50%+ with just one addition to your Facebook ads?
Merchants using Deliverr to fulfill their orders get access to Deliverr’s nationwide 2-day delivery network. That means their ads can dynamically show 2-day and (where applicable) next day delivery right on those ads.
Every Deliverr merchant who has enrolled in this program to date has seen a reduction in their Facebook ad spend. We’ve seen a roughly 50% decrease in ad spend for ads that get 2-day tags, and 62% for ads that get next day badging.
[Video] Learn how to craft D2C Facebook ads that convert
Ready to go? Sign up for your free Deliverr account and check out the video below for more advanced strategies for Facebook ad success.
Check out our Discoverr conference to get more of an introduction to Facebook ads