To spread the business more widely, social media is the best platform. When we are talking about social media, Facebook is always considered as the leading platform. Facebook has almost 1.45 million active users daily and nearly 2.45 million monthly.
Being a businessman if you are active on Facebook and not doing any kind of Facebook advertising you might be behind from your competitors.
Today we talk about How to create a Customer Lifetime Value Lookalike Audience on Facebook.
Before we create the lookalike audience CLV(Customer Lifetime Value), let’s come and understand what is Customer Lifetime Value and how to calculate it.
Customer Lifetime Value(CLV)
It is the prediction profit value that a user earns until the customer keeps buying from him or we can say that it is the total profit money which customers spend in your business to make you profitable until he is left buying from you.
This simply reflects that, the longer the customer is buying from you, the more you will earn and get profitable.
How to calculate Customer Lifetime Value
Here we are going to explain the above definition with the numerical example.
Suppose there is a shoe store. They are selling each shoe pair at $50 with a 15% profit. On average, a person buys a single shoe pair twice a year for five years.
So above numerical states that if a person buys a single shoe pair twice in a year for five years he will give you $75 of profit over that period.
Now we discuss how to create a Customer Lifetime Value Lookalike Audience
1. Click on ‘Ad Manager’.
2. Click on ‘Audiences’.
3. Click on ‘Create a Custom Audience’.
4. Click on ‘Customer List’.
5. In this window, Facebook gives guidelines on how to make the CLV life and what are the Identifiers in the CLV file. Facebook only allows either an excel sheet or CSV(Comma Separated Value for uploading the CLV.
6. Download List Template: Facebook allows you to down a sample CLV excel sheet.
7. See Formatting Guideline: Facebook allows you to first see the formatting guidelines for CLV.
8. Import from Mailchimp: If you have the Mailchimp integration then you can directly fetch the customer file from Mailchimp.
9. Click ‘Next’.
10. Now Facebook is asking ‘Does Your List Include a Column For Customer Value?’
Yes: It means you have to enter the customer lifetime value column on your list.
11. No: Just continue without entering the customer lifetime value column.
12. Upload your CSV file here.
13. GIve the name of the audience.
14. Click on ‘Next’
15. Confirm Custom Value Column: Here Facebook asks to select the value for CLV.
16. Edit data Mapping: Here you have to map the data accordingly to upload it.
17. Create an LLA (Lookalike Audience)
Here it is the final step to create the LLA. Just click on ‘Create Lookalike’ the LLA will create.
In this guide, we learned about how to create a Customer Lifetime Value Lookalike Audience. Cloning the existing customers and targeting them will really generate the best revenue as per my personal experience. This LLA gives a great advantage to generate more purchases.
Facebook is one of the biggest social media platforms having 2 billion people as its users. So this may be a great opportunity for marketers to take forward marketing on this platform so as to reach a large audience.
Billions of posts, interests, check-ins are uploading on Facebook daily, which collects huge databases. Here we can target a precise audience according to our business model.
Don’t panic when your Facebook ads are not performing well. There are many reasons why your ads are not performing well. Some of them are as follows:
1.Selecting a wrong Campaign objective
First, we have to choose the campaign objective according to our business model. You should be very careful as by choosing the wrong facebook campaign objective, the ads will travel on the wrong path.
For example, if your objective is to generate the sales and you have chosen the “Lead Generation” as an objective, then it will not allow you to show the “Shop Now” button in the lead generation campaign. This may decrease the chances of sales. Therefore, selecting the right campaign objective is the first priority.
2. Targeting the wrong audience
It is right that Facebook has a huge number of data to target the audience. But we can’t say that it is 100% accurate to give the best result. But if we target in a strategic manner it may give good results.
Now the question arises on how Facebook knows the interest of the audience. When users like any pages, upload check-in and perform any activity, it will collect as an interest. So right audience selection is good to produce a result. This can be done with audience research through the Facebook audience insight tool.
3. The audience is too Broad
Targeting the broad audience may result in more clicks and less CPC, but you can’t identify which people are really interested in your ads/products. Broad targeting is fruitful where you are doing brand awareness for promoting your brand or product. But when you want to generate leads, you should precisely have a target audience to get the best results/leads.
4. Ad Copies and Creatives are poor
When people see your ads then there is a reason why people engage with it. It’s all about the ad copy and creative of the ad. The ad copy and creative majorly affect the Cost Per Acquisition(CPA) and Cost Per Click. Write your best offer/s in the ad copies to convert the user into a customer.
If your creative and ad copies are not eye-catchy then you may lose the lead. Your creatives should describe the meaning of what the user wants.
Write simple language that must be easy to read and should be understandable. Don’t use difficult synonyms to write the copies. The easier the ad copy, the more chances to generate conversion.
You can use Buffer Media Plan to simplify the work:
Pre-Launch Plan: Before launching any campaign on Facebook, you should have a buffer(stock) of ad copies & creatives ready. At least you should make 50 ad copies & 30 creatives to test the different angels.
Launch Plan: Launch the campaign by selecting the right object with your ad copies and creatives you have made.
Post-Launch Plan: Here, you can test new ad copies and creatives which earlier failed to perform well.
5. Choosing the wrong or no CTA(Call To Action) Button
CTA also plays an important role in the ads. If you are not using the CTA button then users don’t know where to click in ads.
Suppose you are running the ads to sell the beautiful charm bracelets and you didn’t add any CTA button. Now if a user likes your product now where he clicks? So, the CTA button convinces the user to click on the ad to buy the product. By this, you may generate sales.
It depends on you – how good you are in strategy making, creatives, writing ad copies for Facebook ads. Once you find the right strategy to target, Facebook will start giving you the best customers. Make sure you keep an eye over analyzing the results daily and weekly basis and fetch significant data to duplicate into other campaigns.
Creatives are an important part of the advertisement that express thousands of words to the users. Facebook recommends the best ad sizes and specifications for the better performance of the ad.
You need to update with the ad creatives dimension for displaying the ad on Facebook.
On Facebook, we can mainly use the creatives in the form of:
Facebook Image Ad Sizes and Specifications
Images are mostly used in a creative way in terms of Facebook ads. Most of the advertisers choose an image to express their product/service to the users. The image should be designed well which must grab the attention of the user.
Images in Facebook ads are used in different destinations like in Feeds, Collections, Carousels, Marketplaces, Stories, etc, with display formats of either Desktop or Mobile. Facebook allows only 20% text on the image. For checking the text on your image you can check it by this tool. https://www.facebook.com/ads/tools/text_overlay
1. Facebook Feed Images
The ads are displayed in the news feed of Facebook where usually we see the posts of the users.
File type: jpg or png
Image ratio: 1.91:1 to 4:5
Recommended resolution: Upload the highest resolution image available.
Text: 125 characters
Image ratio: 1.91:1 to 1:1
Recommended resolution: at least 1,080 x 1,080px
Headline: 25 characters
Link Description: 30 characters
2. Facebook instant articles images
Instant Articles are the article that opens on Facebook. It opens 4x faster than a website which decreases the bounce rate. News and content/blogs are published in this section.
These are video ads that are shown in Facebook feeds. Always use high-resolution videos for the ads with audio. The thumbnail image of the video should not be more than 20% of the text. It will reduce ad delivery.
Most advertisers always have a question: “Which are the best Facebook ads spy tools?”.
The reason behind this question is that they actually want to monitor their competitors that what kind of ads they are making for their services/products, what is the strategy, what are the creatives they are using, what is the landing page and other stuff.
By this, they can do a deep analysis of their ads to make it better from the ones of competitors.
There are many Facebook ad spy tools but some are famous tools which usually many facebook advertisers use.
So let discuss some Facebook ads spy tools for 2020
PowerAdSpy is the best and powerful ad spy tool for Facebook. This tool has a huge amount of data collection of creatives, copies and headlines.
This tool helps you to find hidden niches. This will be a big plus point for you to work in that particular niche to earn more probably because of fewer competitors.
You can filter the ads by its positions. Like you may filter the ads that only display either in News Feed, Right Side or in Stories etc.
Filter the ads by country. This spy tool has data stored worldwide. So you can filter the ads in any country.
You can filter the ads by its CTA(Call To Action) button. Suppose you are running the e-comm ads and also to research the ads with the ‘Shop Now’ button. Then you have the option to research the ads by its CTA ‘Shop Now’.
Magic Adz is one of the best Facebook ad spy tools.
This tool is specially made to spy the e-comm and affiliate marketing ads.
It helps the advertisers to find the hidden Facebook ads with their landing page. This helps the advertiser to do a deep analysis of the landing page, strategy and sales funnel.
Marketers can explore numbers of Facebook ads daily from 50+ countries.
You can research by any keyword that is lying in either ad copies, comments, on their landing page.
Marketers can filter e-commerce ads by just single click from e-commerce platforms like WordPress, Drupal, Shopify, etc.
Advertisers can find best selling products in markets.
Affiliates can filter the affiliate ads by just single click from 22+ verticals.
AdSector is another Facebook ad spy tool that you will really love to use.
By using this tool you can find the best performing ads in the niche you are working in and find the competitor’s ads to make your ads better and winning from them.
AdSector allows you to filter the ads by interest. This gives you more clarity about the audience’s insight for targeting your ad.
By this tool, you can download the landing page by just a single click.
Adsector gives the best analytics in the industry. You can find the details of the ad on one page, by this, it makes it easy to analyze.
You can find the ads by images as per your niche.
4. Social Ad Scout
If you are looking to use an exclusive Facebook ad spy tool then you choose this tool. Social Ad Scout is a great tool. The database of Social Ad Scout has stored millions of ads from 21 countries.
Also, there are a number of filters available to filter-out the ads according to your choice.
You can research the ads for both mobile and desktop ads.
You can research the ads through detailed targeting. For example: which kind of ad(s), competitors are showing to guys of age 25 and people of 50+ in the same niche.
You can download the landing page. The landing page will be downloaded in a zip file.
By this tool, you can research the ads breaking down the targeting.
This spy tool gives you extreme features like you can research the ads by redirects so that you can target software such as Voluum.
ADSPY is the powerful ad intelligence spy tool that has 75+ million ads in 80+ languages across 195+ countries. This makes it a powerhouse of ads.
You can filter the demographics like age, gender.
You are able to see when the ad was originally created what is last seen of the ad.
You can filter the ads by the technology used like Shopify, Woocommerce, Magento, etc.
You can also sort the ads by daily likes and total likes.
ADSPY allows filtering the ads running on specific platforms like Facebook and Instagram.
There are a number of ad spy tools with their pros and cons. You have to just remember one thing that there is no such perfect tool that fulfills your all research needs. Even in the above tools, you can find that one special feature in a single ad spy tool is may not present in another tool.
Note: Please don’t copy or replicate the ad copies, creatives and other things which your competitors are using.
These tools are just to take a hint about what your competitors are doing. Just take the idea from there and use your own creativity to become different from them.
Many people want to advertise on Facebook and are looking to set up their first Facebook ad campaign. Today we will discuss for those beginners who want to set up their Facebook ad campaign.
The ads are run through Facebook’s ad manager. You can reach to Facebook ad manager by the link.
Before making any ad first you have to be clear with ad objective. By this, it means what kind of ad you want to advertise either it is lead generation ad, conversion ad or any post engagement ad, etc.
In the above image numbering is defined as follows:
Main Account Overview
See all campaigns
View all the ad sets and/or check ad sets from the selected campaign.
View all the ads and/or check the ad from the selected campaign.
By clicking on the Create button you are able to create the campaigns.
Let’s learn how to setup/create a Facebook campaign
1. Click on “+Create” Button
Click on the green “+Create” button to set up your first Facebook ad campaign.
2.Select the Campaign Objective
Selecting the campaign objective is very important because of algorithm work according to your campaign objective. So it is very important to select the campaign object carefully to generate good results. So you select the campaign objective according to your business model.
List of Facebook campaign objectives that are available:
Product catalog sales
3. Give a proper name to the campaign(s)
The naming convention for the ad campaign is good to identify the campaign. This can easily manage and organize while doing an analysis.
For example, I am choosing the “Page Like” campaign by selecting the “Engagement” campaign. So I can give “Page Like April 5, 2020” as the name of the campaign. By this, I can easily get to know that I made this campaign on 5th April of 2020. Isn’t it easy?
After giving the name click on the “Continue” button to proceed further.
4. Setup the audience in Ad Set section
Give the proper name to Ad Set too. I am targeting the India location so I am giving “India” as the name of an ad set.
Select the Facebook page from where you have to advertise.
Target the appropriate audience from the audience section.
Location: Choose the location where you want to advertise. It can be either city, state or country. You can also target multiple locations as well. In location there four option available further:
People living in or recently in this location
People living in this location
People recently in this location
People traveling in this location
Age: select the age from 18 – 65+
Gender: Select the gender
Languages: Select the language. You can here add multiple languages too.
Detail Targeting: Select the relevant interest according to your niche. Once you add one interest, Facebook will give you more suggestions that will be relevant to your selected interest.
Placement: Choose the placement. Facebook gives two options for selecting placement.
Automatic: Facebook automatically shows the ad on different platforms. I recommend you to select automatic placement at the beginning.
Manual: Here you can select the advertising platform according to your choice.
Budget & Schedule: Here you have to enter the daily budget. Select the Start Date and End Date for the ad.
Press the Continuebutton to move further.
5. Setup the ad in the Ad section
1. Give the relevant name of an ad.
2. Select the Facebook page which represents your business.
3. Select the format of the image/video for the ad.
4. Select the image/video. But make sure you must have to read the suggestions while uploading the media.
5. Write the best ad copy. Your ad copy must be simple and easy to understand. So that people easily understand what you are trying to say in the ad. As I am running the Page Like ad there is only the option to write the Primary Text.
But when you will run Conversion Ad, there will other options too:
Landing Page URL
Selecting the Call To Action(CTA) button
6. You are able to see the preview of the ad on the right side.
7. Press “Confirm” to launch the ad.
After launching the ad Facebook will take some time to review the ad to confirm that the ad should be made according to its ad policy. If your ad will seem perfect according to the ad policy then the ad will activate.
$5 per lead, that too for monthly LAUNDRY subscription. How cool is that?
This client approached us with a goal – “Get me 100 leads in 30 days within $70 CPA”. But with high-level targeting & custom lookalikes, we just didn’t get him the leads but also lowered the CPA to merely $5.75.
The cherry on the top was the average conversion rate was 63%. Yes, out of 100, 63 became actual customers.
How did we achieve it? It’s pretty simple yet commendable.
Read below the factors that played the most significant roles in achieving the target:
Factor #1 – Creatives
The creatives that we used were highly targeted to the stage in which the customer was present in.
For the COLD audience, we used general videos showing hitting them with different angles like “no time for laundry?”, “busy professionals”, etc.
For the WARM audience, we showed them how our service actually works at the backend, how door-to-door service actually happens & how they can just sit & relax while we take care of everything.
For the HOT audience, we targeted them with our previous customer’s testimonials, 1-week free-trial, etc.
This made sure that they were followed through in a proper sequence that helped them trust us easily.
Factor #2 – Manual Bidding
This may look weird but that’s correct. We used manual bidding for all of our WARM & HOT campaigns & we saw a significant decrease in CPA up to 20%.
In the beginning, we launched our campaign with automatic bidding & saw which audience is performing the best. Once we figured out the best performing audience, then we shifted to Manual Bidding.
We created a new campaign with 4-5 ad sets with the same winning audience in it but the only difference was the bidding. We switched to manual bidding here & placed a target cost of 20%, 30%, 40%, 50% & 60% of actual CPA in those adsets. This resulted in a decrease in CPA of the leads.
We saw few users were just opting in for a free offer & didn’t actually go for a subscription. We took their emails(almost 300 from their database), created a custom audience out of it and also created a lookalike 1% of it.
Now, these were the users who were similar to those non-converting users & we excluded it from all our COLD campaigns. This made sure that we were targeting high-intent & converting audiences out of the entire 3-4M users.
We further saw a whooping 30% decrease in the CPA of the leads.
This was the real gold for us.
By just following these 3 simple yet effective steps, we didn’t only slash the CPA by over 70% but also surprised the client with enough customers to make them super happy.
We have been following the same strategy since then & making a lot of customers for all of our lead generation projects.
We are looking forward to seeing you touching new heights of success by using our little secret strategy.
When you read the word “2.38 billion people” you do want to know what on earth exists which is keeping these many people engaged?
The answer is FACEBOOK. This era belongs to Social Media than anything that has ever existed!
Facebook is one of them. Facebook has a huge collection of user data which may help to target them accordingly to generate leads and optimize the ads further for higher conversion rates.
Initially, Facebook ads may not perform well. It doesn’t mean that Facebook will not perform well. There are ways to optimize Facebook ads for higher conversion rates. Find them below:
CTR(Click Through Rate)
CTR is a way to improve the conversion rate. It indicates how many percentages of people are clicking on the ad.
High CTR means many people are clicking on the ad. If CTR is low it means either ad copy or ad creative or both are not so impressive. They failed to attract or convince people to click on the ad.
To improve the ad copy and ad creatives to convince the people to click on the ad. This will raise the CTR which helps in a high conversion rate.
Optimize for a conversion
When you choose a conversion campaign, you will see a “Conversion” tab. Here you have to select the conversion event for an ad. There are by default some conversion events present in the conversion event tab. You can select the event according to the business model.
By choosing the conversion campaign doesn’t mean that your ad will automatically optimize. You have to tell Facebook also what type of conversion you want. It may be Add to cart, Checkout Initiate, Purchase.
Different events work differently.
Let’s understand clearly with an example.
If you select the “Add to Cart” in the conversion event tab, then Facebook will research the people who are likely to add to carts.
If you select the “purchase” then Facebook also finds the people who are more likely to make a purchase.
Note: Tracking the conversion data is only possible by installing the Facebook pixel on the website.
Optimization for Ad Delivery
In the “Optimization for Ad Delivery” window, you have to choose the conversion goal for your ad. It depends upon what you want to achieve for your business model.
If you select the “Conversions” in the Ad Delivery tab, then Facebook will find that users who are more likely to do the conversion in the form of Purchase(Selected “Purchase” in the “Conversion Event” tab).
If you select the “Link Clicks” for the ad, Facebook will show your ad to users who are most likely to do clicks on the ad. This may not produce many sales.
So these may be the reason for decreasing the conversion rate. So you have to select the right optimization delivery to produce more conversions.
Trust the power of the word; there are more chances to make a user convert into conversion while retargeting them.
Landing Page Visitor:
In the e-Commerce scenario, let the users view your ad and land to the landing page of the product but they don’t buy the product, then you may retarget them by making the custom audience of website visitors of that particular landing page.
Let the users view your ad do an Add to Cart(ATC) but they don’t buy the product, then you may retarget them by making the custom audience who did an ATC in the past few days.
Initiate Checkout Users
Let the users view your ad and initiate a Checkout but they don’t buy the product, then you may retarget them by making the custom audience who did initiate a checkout in the past few days.
Warm Customers(Who has Purchased the Items)
We can retarget mature customers to sell another product. This may result in high profits.
There will be more chances to purchase a second time because customers have already bought from your store and have trust in you.
Example – 1
For instance, let’s say you are selling Girl Gowns and there are 100 customers who have purchased this particular item.
We can re-target them to show new products to that product. Like you show them an ad of beautiful hairbands, gown brooch and etc related to gown accessories.
Example – 2
Think that you are providing a 10 Day free Facebook ad course and 100 people have done registrations for it. Now you have a record of these 100 customers.
Furthermore, you can retarget them to sell the paid Facebook Ad course. This is called the sales funnel.
So in retargeting the chances of sales increase because the users have already engaged with your store/page/ or in your product.
Facebook will generate better results when you are helping back to its algorithm by doing the right optimization outlines.
Also, as soon as the Facebook pixel gets mature enough, Facebook will automatically try to find the people/users who are more interested to engage with the ad to give conversion.
There more to Facebook posting pictures, check-ins, etc. Happy realization right?
Let us know which one best worked out for you, we’ll be happy to know!
Facebook is the best platform to promote your business by paid advertising as tons of users are available on Facebook who is looking to buy your products and ready to use your business services. A few numbers of campaigns are easy to manage but when you have a big project which requires a lot of campaigns, ad sets and ads; the best option to serve the purpose will be Facebook Ads. Facebook has a pretty good feature which is called automated rules. This feature is extremely helpful in managing a big list of Facebook campaigns, ad sets, ads and stay on top of CTR, relevancy score, frequency, conversion rate, and other variables.
In this article you’ll be getting a brief idea about automated rules and how they can be used efficiently.
What are Automated Rules?
First of all, you must understand what is meant by automated rules on Facebook. As you know, managing and monitoring FB paid campaigns is a lot of manual work. When you set-up paid FB campaigns, some ad sets will perform good and some ads will not perform up to the mark.
It is non stop the job to constantly optimize budget, stop non-performing ad-set, decrease, increase a bid and much more.
Facebook provided automated rules which helps you to monitor your campaign and stay updated with the results. By using these automated rules, you can manage a couple of Fb accounts and save a lot of time.
How Automated Rules Work:
Build your Automated Rules with a set of variables…
You can apply automated rules to specific campaigns, ad sets, or ads that you’ve selected, or you can apply all active campaigns, ad sets or ads.
Action: Following are actions that your rule can take if conditions are satisfied:
Conditions: Basis on the below-mentioned conditions automated rules can take action:
Cost per Result
Cost per Add Payment Info (Facebook Pixel)
Cost per Click (Link)
Cost per App Install
Cost per Add to Cart (Facebook Pixel)
Cost per Initiate Checkout (Facebook Pixel)
Cost per Purchase (Facebook Pixel)
Cost per Lead (Facebook Pixel)
Cost per Complete Registration (Facebook Pixel)
CPM (Cost per 1,000 impressions)
You can choose one or multiple conditions. In each case, you can choose from “is greater than,” “is smaller than,” “is between,” or “is not between” else a manually entered value.
How to Create Automated Rules
To create an automated rule for all active campaigns, ad sets, or ads, in your Facebook Ads Manager and click the menu icon (with the three lines) in the top-left corner. Under the Create & manage column select Automated rules.
In the next window, you able to see the dashboard where you will be able to see your created rules. To create rules you can click on Create Rule button in the top-right corner.
Follow the steps to create automated rules based on your objective. It will look like this:
First, you should determine where you want to apply these rules, and before the option to “click on the create button’ you have to fill the entire above information so as to apply rules on the campaign at the ads and ads level.
Like in the above you selected campaign level to apply the rules. Now you have next options:
Turn off campaigns
Turn on campaigns
Send notification only
In addition to the topic discussed above, it is important to know that these options you can apply the rules to campaigns. This is because you set your budget at the campaign level.
In the below image you can see, you are able to increase or decrease your budget basis on campaign performance. If you select a daily budget, this will only impact a campaign using a daily budget; if you select a lifetime budget, it will only impact the campaign using a lifetime budget.
If you want to increase or decrease the daily budget, You will be able to increase and decrease the budget by either a dollar amount or in percentage.
Accordingly set-up your rules, Facebook will take automatic action when your condition will match.
Following the same process you can use other tons of Facebook automated rules to manage your campaign, ad-set, and ads automatically.
After implementing Facebook automated rules on your campaigns, ad-set and ad level you can share your experience, how these automated rules impact your ad performance.
Hope this article will help you in implementing automated rules quickly and more effectively.
In recent years, the digital marketing industry in India has seen immense growth. Firms are fighting to make their way to the top of company listings, making it harder for businesses to find trustworthy and reliable partners.
Here at ROI Minds, we feel that we have found a solution to this problem. Our firm is one of the top-ranked social media marketing companies in India on Clutch, a B2B platform that publishes verified ratings and reviews. This platform gives users the ability to view in-depth reviews of our services, providing much-needed information to potential clients.
Recently, we received our first review on Clutch from one of our former clients in Hong Kong.
For this project, we delivered Facebook Ad campaigns for a group of e-commerce websites. Our client gave us plenty of positive feedback about our exceptional customer service. By focusing on our three core values — innovation, commitment, and consistency — we were able to achieve results and support our partner in reaching business goals.
Another one of our partners — a US-based sporting goods retailer — left us another 5-star review!
This project involves PPC campaigns and Google Shopping ads, which we leverage to increase our client’s revenue. So far, our partner has been very appreciative of our dedication and support:
They’re very involved with our account and take a vested interest in getting us the required results. – President & CEO, Sporting Goods Retailer
We will never grow tired of hearing back from our happy former and current partners!
Anyone who reads our reviews will be able to see that we are succeeding in delivering profitable digital marketing campaigns for our clients. We take immense pride in our perfect 5-star rating average, and hope to add even more wonderful reviews to our profile!
Clutch is already proving to be an excellent resource for us and our clients. Although our Clutch profile is a fantastic starting point, potential clients can learn more about our company on The Manifest, a company list service that works in tandem with Clutch.
We recommend that interested visitors also check us out on Visual Objects, a platform that we use to showcase visual portfolio content.
Have any questions? Want to learn more about our team and our services? Please feel free to reach out! We would love to hear about your business and discuss a potential partnership with you!
Alex is an e-commerce specialist and Facebook Ads Expert. His prowess in this industry has allowed Alex to grab the 2-comma club award. It is because of his proficient and precision skills in Facebook ads and e-commerce that Alex has got his clients business worth more than $100 million.
A facebook Guru, an ads expert Alex has become a successful brand in the 21st Century’s e-commerce expansion ecosystem.
Born in Ukraine, Alex went from SEO to Google Ads, to e-commerce until finally, he stumbled upon Facebook Ads. His interest in Fb Ads was born out of client requirements and this got him started only to become one of the most proactive individuals in this niche.
His understanding of Facebook and the implementation of strategies to get more business from the largest Social network in the world is just awesome.
In talks with Sandeep Kumar, let’s understand the nuances of Facebook Advertising and advanced strategies shared by the expert himself.
The Interview Begins:
Sandeep Kumar: What type of e-commerce projects are you working on? Do you have any niche brand or product under your ambit?
Alex Fedotoff: First of all I like products that have high potential and give provide more profit. These products must have a higher value, they are more competitive. The motive is to use those products that can be scaled up and are waiting to be ignited and ensure higher outcomes. Secondly, I look at the market share of the products and if they have the attributes to reach out to a higher market audience.
Also, our profit margins to work with a product is somewhere between 20 to 40%. Then we try to leverage the most out of that product’s properties and use quick funnels plus custom-built funnels and expand the outreach. It is like taking one product and squeezing it only to get the most out of it.
Sandeep Kumar: Ok, I guess your preferred regions are the markets of Europe and the USA?
Alex Fedotoff: Yeah, our aim is to look for markets in developed countries and benefit from the kind of exposure that they provide for Facebook Ads.
Sandeep Kumar: There is a unique trend that I have noticed. Every time a new store, business or a product is promoted through Facebook Ads, initially, the conversions are good. The business starts to show some growth. But after a few days, say 10 to 15 days later the curve starts to decline. It is almost like an inverted U-shaped curve. Why is that and what is the way out of this?
Alex Fedotoff: Well, starting out you need to understand that it is a competitive landscape. There are more than 6 million advertisers out there who are trying to pitch their product as the best one through the ads. Another reason for this drop can be due to the fact that you have simply outrun the course. This happens when you run Facebook ads heavily, something I call as Ad fatigue. You have exhausted your target market. Because if there are, for instance, 1 million people who can buy your product, it is not necessary that your ad will reach to all of them. It may happen that facebook has not optimized for all audiences. Or it can also be attributed to the reason that your ads are not strong enough to make a lasting impression.
To check the performance for my ads I have set the benchmark of more than 3% unique click rates. Because if that happens it means that my ad is resonating with the audience and I am getting some response. And if the click rate starts to drop down, then it can be because I was not creative enough while posting the ad. You need to know that being creative is the biggest part of success in facebook ads.
Moreover, the Facebook algorithm is very smart. It works in a unique manner. I will tell you how. I have some accounts which are working on the very basic attributes. Like we only have the country gender and age. There are no interests.
Sandeep Kumar: But the pixels for these accounts is mature enough to perform that well like they must have thousands of conversions.
Alex Fedotoff: Yes, the pixels for these accounts is mature enough indeed. But what I do is work in dual stages. First is to provide all the relevant data to your pixel. This is to groom your pixel with the data and as soon as the account starts to perform better, the targeting has to expand. I choose a broad area of audiences and let Facebook optimize it further. And this method works for products that are appealing to a large audience. This is one of the reasons why I work with beauty products because their target audience is almost universal.
And let me tell you something interesting. I have been called to the Facebook headquarters almost after every couple of months. I go there and see what all is happening with their platform. Down the line, Facebook is aiming to remove all kinds of targeting and selecting your interests. It will like answering a few basic questions including the type of industry, ideal customer and the target.
And when you realize it, creativity and message are the only two things that will need your entire focus. This is what everyone should do now too. Just focus on being creative.
Sandeep Kumar: Ok, so moving on, let’s talk about the expenses. What kind of budget do you like to set for a new store?
I have seen some people start the ads with $5 a day budget. But I think this is too less seeing to the CPM rates and the outreach of the big developed country markets. Moreover, what do you think should be the first target of the budget that we can set for a new store, shall it be ‘Add to cart’ or ‘View Content’ or just ‘Purchase’? Also, what is your recommendation for the audience size?
Alex Fedotoff: Ok, so what I do is create 5 different ad sets and then choose 5 different audiences. This will give me a head start and I will have the potential to look at more variables than what I will get with one ad set and one audience.
As for the budget is concerned, I would recommend $20 for a new store initially. But here too, a lot depends on your creativity, your website, and your funnel. If your website is good and can generate more conversions, expanding the budget should not be a concern. But the $20 that you will spend can give you an idea of the click rates and get some more data. The point is to confirm whether your message is resonating with the audience or not. But you need to find a matching audience first and then you can expand on that audience with ease.
Sandeep Kumar: What about the specific pixel that we need to target? Like should it be view content, add to cart, purchase and so on..
Alex Fedotoff: Mos of my ad sets take the audience straight to purchase. Add to cart is when the product has a higher value. View content is not something that I think will make any difference.
Sandeep Kumar: But what I have observed is that people who go for add to cart they just don’t continue their purchase any time soon. And like we can use this to optimize the ads and convert them into sales
Alex Fedotoff: I think that around 60 to 70% of the purchases from Facebook ads go to add to cart. This means that Facebook has a lot of data and they will show these ads to the people.
Sandeep Kumar: Further, I have seen that the US market CPM is way too high. It is like $20 at the very first step. And then I have seen the CPM to be as high as $50, $60 or even $70. What can one do to bring it down?
Alex Fedotoff: Ok, the method to lower down the CPM is increasing the engagement. And to do that you need to add an emotional factor to your ads. Trigger their emotional point and then you can see the rate coming down. But here too the key point is to know your customer. Like what you can do is add a story of a person who had some family issues due to overweight and these issues were resolved after using a weight loss product. Here if your ad which promotes a weight loss product will have a higher chance of conversion than the one which does not trigger an emotional response in the reader.
Sandeep Kumar: Ok, but then another question arises, what should be the ideal size of the ad copy. Because adding a story to it can make it a bit lengthy.
Alex Fedotoff: Well, this depends on the product entirely. Selling a $15 or $20 t-shirt will only require one or two sentences in the ad along with a couple of pictures. But when it comes to selling a gadget that will cost a bit more than you need to add that story angle and build up in stages. Like first, you need something to attract their attention, then tell a story which resonates with that person and then further add some elements to cement their interest.
You need to think about what the buyer must be thinking. Like if they are at work and just scrolling down their newsfeed and suddenly something attractive shows up. This gets them to click on it and converse further with your ad.
This means that you can make a long ad copy if the need arises.
But what I wouldn’t do is add the obsolete elements to make your ad copy more attractive. Like, offering discounts, coupons and other such boring stuff. You need to show the benefits of the product to the end-user, remember, a benefit-driven will resonate more with the audience.
Sandeep Kumar: I have also seen a lot of advertisers add emojis or excessive URLs to their ad copies. Do you think it works to their benefit?
Alex Fedotoff: I guess no because today’s customer has become sophisticated. They want value and not spam. So, if the customer has changed, the marketer also has to change and become sophisticated in order to resonate well with their target audiences.
Sandeep Kumar: let’s talk about dropshipping. Like I have noticed a few changes perpetrated by Facebook this year only when they have included the feedback feature in the drop shipping. Moreover, they have also started declining the stores. What do you think is the future of Drop Shipping in 2019 or 2020 and what should a marketer do to approach these changes?
Alex Fedotoff: The future of dropshipping is strong, as long as people find it profitable and they find the right product to market. The reason a lot of people do drop shipping from China because the margins are good enough to allow them to continue with it.
For a marketer, the recent changes mean that they have to upscale their service and facilities. They need to bring the products to the country, ship them faster and provide better customer service.
This is also important to sustain on Facebook or otherwise, they risk being banned from Facebook or even being a marketer. I have seen some people who I know are banned from Facebook to advertise. And this is not as a business or through some company, but they are banned as an individual.
Sandeep Kumar: And the reason for their banishment is the type of ads they run or something else?
Alex Fedotoff: Yes, it can be due to the type of ads they run. But there are other reasons like a lot of disabled accounts, or they are working from a country which people do not trust that much. I have seen some people facing problems because they were logging in to their accounts from different locations even though they are working in the US.
Understand it as a business and Facebook is also running their own business and want to eliminate risk. And why should they allow such activities? On a larger scale, these smaller risks add up to become one big factor and moreover, why would Facebook want a lawsuit.
This is the main reason they want to work with legit businesses. This means that your business is operating from one location, you work constantly from here, your credit cards are all operating from one location, there are no due bills.
In the end, Facebook is looking for more consistency, that’s all.
Sandeep Kumar: Right, they are running a business. But what is the solution to come out of this?
Like one of my clients was shocked to see that 20 to 25 of her Facebook businesses and ad accounts were disabled in under a minute. Is there a way to come out of it?
Alex Fedotoff: Well, the key is to just give in. All you can do is reach out to Facebook and admit that you were wrong and have not followed the rules in posting your ads. Tell them that you will be compliant in the future. That you want to run your ads with everything done according to the book.
You need to convince these guys that you want to work with them and will show full compliance with their norms and regulations.
Think of the small chance that you have. Like someone sitting in the Facebook, office is reading lines like why have you disabled my account or I have not done anything wrong, or even reactivate my account and such stuff.
No, you cannot do that. Just take the chance that you have, admit your mistakes and get your account back.
Sandeep Kumar: Exactly I have seen people give reasons like, I am new to this business, or that I have done it right, or I don’t know how to do it. These things do not work.
Alex Fedotoff: Exactly, like why should they do it. For them, your business is a risk and if someone sues a business that is run through Facebook, the same person can also use Facebook because they saw the ad to buy a product from this platform only. So, in turn, Facebook is a party to this deal.
Sandeep Kumar: Well, that’s amazing to know. Moving on, let’s talk about scaling the business. I am aware of your suggestions regarding the CBO and other such methods that may help scale the business. But CBO needs a whole new level of understanding. But how can you scale a business from the perspective of a store owner which is growing?
Alex Fedotoff: Talking about CBO understand that it may not work with all the accounts. And it would not be a smart choice to continue working with a method which does not give you results.
Instead what you can do is use the methods that are available to you on a daily basis. For instance, you can modify or add to the regular adsets, tweak your budgeting.
In order to scale, you can use broad interests or a combination of such interests embedded into one adset and set a higher budget for the same.
Another way is to use look-alikes. You will find a lot of such portals that have your target audience’s look-alikes.
All of these are good options to make your business scale up and grow. But at the end of the day, your creativity is something that can make a real difference in it all. Because if you have good ads that are appropriate and are made with creativity, scaling comes naturally. Along with this, you also need to know your customer. Good ads combined with customer knowledge makes for a scalable ad on the whole.
Let me tell why good ads are important. You see that I have trained many people and the only thing that I taught them was how to be creative and develop good ads that are decorated with stories, excerpts that resonate with the audience. And initially, they used to spend $100 per day on their ads. But now, they spend around $3000 to $4000 on these ads and are still earning a profit.
So, the key is to be creative, be empathic, know what your customer is looking for, and be consistent.
Sandeep Kumar: Well, that is interesting to learn. Another thing that I want to ask is what are the things that you would recommend should be there in every ad that we run. Like is there is a set of templates that you can tell us about?
Alex Fedotoff: I wish there was one. But no, every kind of industry has a different ecosystem. So, what I would like to do is first check with someone who has it all figured out in your industry. Someone who knows how to approach the customers, how to run successful ads, to get some ideas, methods, and emulate the model.
Sandeep Kumar: Just like the ads library provided by Facebook. That is an amazing platform.
Alex Pedotoff: Yes, exactly. You can check the library and see what kind of ads are made with reference to a specific industry. Like how do these ads converse with the audience and how do they engage with them. But make sure to add your own unique angle to it. But you also have to find that uniqueness.
For instance, you observe your competitor ads and notice that people are complaining about slow shipping speed or the size does not fit. To get around this, you can mention in your ads something like fast shipping and free returns. That is how you can solve a problem for the audience and pitch the same product with a unique angle.
Again, communicate to your customer what kind of problem does your product solve. Like how can you communicate better with a story that shows a mirror to the audience and convinces them to take action?
You know I have observed some people use testimonials and customer reviews to pitch their products.
Sandeep Kumar: Exactly, a marketer can use these testimonials in their MOFU or BOFU campaigns. Like this can become a tool for remarketing.
Alex Fedotoff: No, use them on the front end. It can happen that the first ad that you show to the people can be a customer testimonial. I have worked with such a strategy and run ads on the front with these testimonials. And these ads run very well.
Because with this you will answer all the objections that a customer may have even before they ask it.
Sandeep Kumar: That’s a cool hack! What about the spy tools? Are there any good spy tools that can let you hack through and get you the customer interests or can they help you understand what interests are your competitors working on?
Alex Pedotoff: I am using X PI. It is a good tool and has a lot of filters. For instance, the time frames, niches, ad platforms and much more.
And when it comes to knowing what interests my competitors are targeting, I do not care what they are doing. You see if they have a well-groomed and mature pixel account and they can afford to target broad audiences, then it has nothing to do with me.
A big part of being an advertiser is that you will have to spend some money without getting any returns. It is a part of your learning curve and it is unavoidable.
Sandeep Kumar: So, in the end, I would like to also ask you about the landing pages. Because I know that these pages have a big role to play when it comes to conversions. What do you think should be there on a landing page of a website that can help us increase the conversion rates.
Alex Fedotoff: The most important thing is the link between your ad and the landing page. Like you need to show the most important thing about your product on the top and visible to the user as soon as he/she lands on the page. Plus, the title of the product has to be benefit-driven. It needs to tell people that this product solves this particular problem. Also, the Add to Cart button should be on the top of the page too. Do not let the visitor search for the buy button. Make it big, make it bold and bright.
Along with this, make sure that the other pages are also visible enough to the viewer. Show the product from different angles, from different perspectives, add some other graphics to the page. Show videos of the product when it is in use. Include all kinds of details on these pages. Add information about the product, what it does, who does it benefit and all that. Add the shipping address on these pages.
Plus, what you can do it gather some feedback about your product and observe what people are looking for. Just implement the new information on your website and clear all the customer objections.