This post is written by Evan Cutler, the Digital Marketing Director at Prestige Pro Media, an agency focused on digital marketing and conversion rate optimization for eCommerce brands.
With over 2 BILLION active users, Facebook is an important part of an ecommerce marketing strategy. Businesses have been trying to harness the power of Facebook for years now but seem to be missing one important piece: paid advertisement for retargeting customers.
Are you intimidated by Facebook advertising? Confused on what it entails and if your business needs it? Keep reading. We’ll walk you through what it is and tips for making effective Facebook ads to increase your company’s revenue and ROI.
A Basic Intro to Facebook Ads
Facebook ads have become a vital part of many business’s monthly paid marketing strategy. A huge plus side to Facebook ads are the fact that businesses don’t have to spend thousands of dollars to see results. Facebook allows businesses to target the exact market they want to sell to, removing any unnecessary spend on the wrong traffic.
Business owners and marketing teams can also take Facebook Ads to the next level by retargeting potential and existing customers. These ads can focus on getting customers back to their website or an abandoned cart. This is how it works:
- Facebook’s API tracks a specific website’s visitors using cookies that are invisible to the customer, but invaluable to Facebook.
- When a customer leaves the site, the Facebook API shows advertisements to the customer in their Facebook feed or sidebar.
- The customer is reminded of the product or service they recently viewed on that website. The ad prompts the customer to click on the ad to return to the site and complete their purchase.
Guess what? Facebook retargeting ads really work. Blog.Spiralytics.com cited a study completed by the Interactive Advertising Bureau (IAB) which found that “out of 1,000 marketers surveyed, 92% found retargeting to perform the same as or better than search, 91% for email, and 92% for other display advertising.”
To see great results of your own, read on for some of our best tips for creating successful retargeting ads on Facebook.
Tips for Making Effective Facebook Ads
Tip #1: Use Dynamic Retargeting Ads
Have you ever received an email from a company showing a photo of the exact product you were considering while on their site previously? Well, your business can also take advantage of this strategy using Facebook retargeting ads.
Retargeting ads of the past on Facebook only pushed consumers to revisit a website’s homepage. However, businesses have found even more success with dynamic retargeting ads. These ads display a photo of the EXACT product a consumer was looking at while spending time shopping on your site. Putting a photo of the product in a consumer’s Facebook feed/sidebar reminds them of what they were interested in. It also increases the likelihood of the consumer clicking and returning to your site to make a purchase.
This ad strategy translates into a higher ROI because the ads are served to people who’ve already shown interest in your products or services. Take a look at these 5 Facebook retargeting ads that combat abandoned carts.
Tip #2: Offer an Incentive
In order to trigger a customer to visit your site and finish their purchase, it’s necessary to consider why they didn’t purchase the first time around. One of the biggest reasons customers don’t complete a purchase is price. Customers will talk themselves out of a purchase, re-evaluate the want vs. need of a product, and other scenarios. So, how can you combat this?
Retargeting ads are great for getting your business in front of those potential customers. However, if something is holding them back from making the purchase, you need to go the extra mile. Consider a Facebook retargeting ad that includes an incentive such as a percentage off or a discount code.
Incentives, combined with a sense of urgency like a time restriction, can often overcome a potential customer’s hesitation. Discounts on retargeting ads are only available to those who’ve already shown interest in your product, so don’t worry about other people seeing these ecommerce discounts.
Tip #3: Don’t Forget About Existing Customers
So far, we’ve discussed retargeting ads best-suited for those customers that abandoned a cart and didn’t complete a purchase. What about those people that have already bought a product? Are they exempt from Facebook retargeting ads?
No, they aren’t. To think so could result in a big loss for your business.
Previous customers are the perfect audience for retargeting ads, especially through a process called “cross-selling.” Basically, Facebook serves a “complementary” product to the product that was previously purchased. For example, if you sell smartphones and accessories and a customer bought a specific type of smartphone, you can run a Facebook ad with an image of various accessories for their smartphone such as a phone cover.
Advertising new products to previous customers can increase ecommerce retention and your overall lifetime customer value.
If you haven’t already implemented Facebook retargeting ads, give it a try. Just like any new marketing strategy, you may experience a bit of a learning curve launching Facebook ads. Be sure to focus on A/B testing to perfect your ads. The increased ROI and less abandoned carts will be worth the extra time!
Let us know your favorite ways to utilize the Facebook Ads Manager in the comments.