I'm having trouble getting the right ROI on Facebook Ads. Investing almost $80 to acquire a consumer when the price point of my product is $14. Please advise on the best strategies! Thank you.
Getting ROI right can be tricky. First, you need to remember that you should consider the life time value of a customer rather than the product price point as a customer may purchase multiple products or purchase multiple times on your site over a period of time.
For Facebook specificly I would recommend trying out a number of different creatives and monitoring the reports to see which has higher conversion rates. You can also optimise your audience, I would recommend create a number of unique audiences and then comparing the results and seeing what works.
I would highly recommend trying Facebook Dyanamic Ads. They allow you to remarket to users who have visited a product page or added an item to the cart, but not checked out.
We've had a number of clients who have seen very impressive conversion rates at low cost.
Hope this helps
Some very solid advice from Andrew here on understanding customer LTV, using Facebook Dynamic Product ads (our clients see some pretty amazing performance with these ads, but you need >500 visitors before they start to work properly), and trying out different creative.
The two cents I would add is about targeting. I typically break targeting down into 3 groups, starting with most effective:
1) Retargeting - you need hundreds of visitors to serve these ads at any scale, but users who have been to your site are typically highest intent to purchase your products. Facebook Dynamic Product Ads are the best way to capture this.
2) Lookalike audiences based on past purchases - If you have several hundred historical customers (or even email subscribers), you can upload those customer emails and facebook will target people who are demographically similar to your customers. These typically perform better than random new audiences
3) Testing new audiences - As I'm sure you know, Facebook allows for pretty amazing targeting specificity. Try a few audiences simultaneously, see who responds best to your ads, cut the losers and double down on the winnners.
Hope this helps. Our app Dandelion runs FB advertising for you, so try us out if you'd like more help! You can use the code DISCOUNT50 for $50 off your first month of ads.
You can also check out our blog for more tips: https://www.discoverdandelion.com/blog/
I've spent tens of thousands of dollars on Facebook Ads with no success. I've tried all of their products many times over the years. People just don't come to Facebook to spend money. I would concentrate your efforts and budget elsewhere. Here are a few ideas.
1. Hire someone to write a press release and try to get some press for your product.
2. Write weekly blogs related to your industry.
3. Make Youtube videos and ask other people who make Youtube videos in your product category to do a review of your product.
4. Spend money you'd otherwise use on advertising on rewarding your customers for providing referrals.
Depending on the audience, I was able to spend about 75 USD over a week period, and bring in about double that.
In my experience, young girls engage the most, but buy the least.
Men aged 18-24 engage mildly, but are more serious about making a purchase.
Women aged 28 and up engaged less, but actually purchase.
Based on my experience. Still trying and testing...