Should ecommerce stores depend on Facebook CBO for better sales?

Facebook is the biggest social media platform in the world. It is a natural place for advertisers to promote their website and apps. The sheer number of users on Facebook and its sister platforms makes it a permanent part of every online marketing campaign.

Ecommerce stores are not alien to these facts. Most dropshipping businesses set up their entire revenue model around mastering Facebook ads. The model has been known to work fairly well and remains one of the avenues entrepreneurs use to make money.

It is fair to say that a large part of an ecommerce store’s success depends on its performance on Facebook.

Running ads on Facebook is generally the way ecommerce stores try to leverage the platform. Since these ads assimilate seamlessly with other content on a Facebook feed, their CTR is much higher than that of an average banner.

One of the relatively new additions to Facebook’s marketing platform is campaign budget optimization (CBO). The following sections will cover Facebook CBO, its role in improving ecommerce sales, and some tips using the new option.

What is Facebook CBO?

Campaign budget optimization (CBO) basically enables Facebook to allocate your budget to different ad sets depending on the performance of each.

Let’s take an example. Assume you have five different ad sets. Each represents a different set of audience you want to reach. You’ve already added a set of creatives for each ad set. When you start running your ads, it is normal that some ad sets will perform better than others.

Facebook CBO basically allocated a larger portion of your budget to the ad sets which perform well. You don’t have to track the performance of each ad set in real time and make changes accordingly. Facebook will automate the entire process.

How is it different from previous Facebook Ads options?

In the earlier version of Facebook Ads, advertisers had to allocate a separate budget for each ad set. This basically meant they had to track the performance of each ad set in real time.

This made the process of running ads on Facebook very tedious. Marketers had to basically sift through a whole range of performance metrics and calculate the right budget allocation for each ad set.

CBO automates the entire process. Advertisers can set an overall budget spanning all their existing ad sets. Furthermore, they can add minimum and maximum allocation points for each ad set This can help them ensure CBO doesn’t allocate all of the budget to one ad set alone.

How does it help ecommerce stores improve sales?

Running an ecommerce store is a fairly complicated process. From setting up a store and optimizing its performance to managing other verticals like customer support and content, the list is long and tedious. If you happen to create an app using an app builder and going from WooCommerce to app, the task is even more difficult.

Managing a Facebook campaign is another part of the process. Given the importance of Facebook in driving sales, it is important for ecommerce stores to optimize their presence on it.

CBO basically takes away the stress of analysing Facebook campaigns in real time. Facebook can automate the budget allocation process based on real-time data. This can provide those running an ecommerce store with some much needed breathing room.

Some tips on using Facebook CBO

Activating Facebook CBO is fairly standard. Advertisers only have to activate a toggle and get going.

Using Facebook CBO doesn’t guarantee success. There are a bunch of other factors that play a key role. The following points provide some good tips on finding ecommerce success with Facebook CBO.

#1 - Keep making solid creatives

The first thing you have to ensure is making a visually appealing set of creatives for your ad sets. Facebook CBO can help bring more efficiency in the overall process, but it cannot improve the visual appeal of your ads.

Adding an image to a Facebook ad can make it at least 75% more effective. The challenge however is adding the right image.

Each ad set must essentially correspond to the ad set it belongs to. Advertisers segment their audience based on certain factors. The same factors must come into consideration when designing a set of creatives.

A universal tip for creating good content for ads is focusing on clarity. Make sure the image and text of the ad make the value proposition clear without a reasonable doubt.

Since most users these days prefer shopping on mobile, you must also make sure your creatives work well on mobile. This is an absolute essential in case you also have a mobile app for your ecommerce store. Given how app builders have made it so easy to convert WordPress website to Android and iOS app, it is not uncommon for a WooCommerce store to have a corresponding mobile app

#2 - Give Facebook time to understand your real audience

You won’t have a phenomenal ROI on your first or second Facebook ad campaign. The Facebook algorithm takes time to match the products on your store with the right audience.

Generally, it takes three to four CBO campaigns for Facebook to find the right segments of audience in every ad set. Unfortunately, many startups give up on Facebook ads after a few underwhelming campaigns.

One useful tip when running a campaign on Facebook or any platform for that matter is being patient. Social media algorithms are very powerful and have a natural incentive to connect businesses to their target audience. They however need some real user data to know which audience works best for a particular advertiser. This means you should be patient in the formative days of your Facebook ads push.

#3 - Experiment with different audience interests

People running ecommerce stores have their own vision of who their audience is. It is difficult for them to think outside their own perceived vision.

However, there are many cases where the audience for a product is bigger than initial projections. How do you know if the products on your ecommerce store have a bigger audience than initial projections?

The simple way to do this is to experiment with different audience interests. Facebook CBO can further help ensure that you don’t waste your budget in case the experiment falls flat.

In conclusion

Facebook is not just a social media platform. It is a massive marketing channel for companies and brands across the board.

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Created on Nov 5th 2020 06:08. Viewed 450 times.

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