3 Problems Every Ecommerce Is Facing With Facebook Ads


#ecommerce #facebook #facebook ads

I took my first sales call almost 8 months back. It was the time when I was all new to the digital marketing world.

I talked to over 150 companies in different sectors including e-commerce, ed-tech, B2B, and real estate. After talking to them, I noticed some common challenges faced by companies with Facebook ads especially in e-commerce segment.

I inferred most of the e-commerce companies are completely overlooking their websites. Many are focusing only on formats of digital marketing that purely focus on acquisition.

They completely miss about central themes of digital marketing. Like optimizing website for conversion. Or getting enough Facebook likes on business page before starting conversion ads. Or that not all Facebook ad campaigns are meant for conversion.

Above that companies are missing to choose right KPIs and ad objective. They are either not tracking the results or are unaware about the different formats that Facebook ads offer.

Marketers are resistant to the changing environment, hence they muddle the process while doing Facebook Ads. I talked to 50+ ecommerce clients in past 8 months and here I feel the three core challenges that every ecommerce is facing with Facebook ads.

Challenge 1:  Tracking Facebook ads performance

One of our client, when came to us, had spent over Rs.15 lacs in three months only to generate sales of Rs.24, 000! The problem is not that the client lost the money; the problem was they had not learned why it didn’t work.

There are digital marketing agencies spoiling the Facebook ads experience. They are spending recklessly client’s money on the ads and have no tracking methodology.

Research suggests, less than 30% businesses use web analytics, call tracking, or coupon codes. 18% of small businesses admit to not tracking anything.

Why companies are not tracking the results? The simple answer is they do not know it could be tracked and how it is tracked or there are tools available that can track every single penny they are spending.

Companies should search for the right digital marketing agency which help them to track Facebook ads as it allows to see how an ads fit into the overall marketing scheme, so you can optimize your strategy as you go.

By finding out how many conversions your company is getting, which ads are generating the most clicks to the website, the dollar amount you’re making per conversion, you bring yourself one step closer to hitting the bulls eye that represents a successful campaign.

Without Facebook ad tracking, you’re in the dark, throwing money at ads with the hope that eventually you’ll stumble upon the perfect one.

Challenge 2: Targeting audience on Facebook

Landing upon the right target audience is always challenging. Especially when you’re just starting your business.

On Facebook, a company can target on the basis of nine options that include location, age, gender, interests, connections, relationship status, languages, education, and workplaces. Each option is useful depending on the final targeted consumer.

To find right audience, we generally have to spend a lot on experimentation and get the right data points. The process is not only time intensive, you also have to shell money to figure out your audience.

To know how Facebook ads work, A guide to Facebook Ads (Part 1) – How Facebook Ads are structured.

Sometimes, it takes so much time that many ecommerce startups end up consuming their budget on the testing processes.

But this problem is also because ecommerce companies are not strategizing for retargeting campaigns.

It is a success mantra in digital ad agencies that the best targeting right now is retargeting!

Research shows that retargeting consistently outperforms all the other targeting strategies and can have huge impact on the results if done right.

We have personally seen that retargeting campaigns can bring down the cost per acquisition by as much as 50%!

retargeting campaign results

Conversions on the first visit are very rare. Statistics suggest that just 2% of the visitors actually buy a product on the first visit. The rest of 98% bounced visitors are brought back by retargeting and re-marketing campaigns.

Challenge 3: Using Facebook ad features

Last week, I talked to a senior digital marketing manager of a travel company that posted a revenue of over $200 USD in 2016-17. They wanted to deploy retargeting ads but weren’t able to do so because they simply didn’t know how to do it!

Yes, that company has a turnover of over $200 USD!

That might sound unusual but such conversations are more frequent than you would expect.

Not long ago I was talking to the founder of an ecommerce store. The client wanted me to handle all his affairs relating to social media management and boost ROI through Facebook ads.

When I discussed the proposal with him, he was baffled to see the ad features and didn’t know we can target a person on Facebook based on her behaviour.

After all, there’s way more to Facebook ads than just just boosting posts and making people like your page!

Many e-commerce companies I talk to are not educated about all Facebook ad features. And even if they are, they find it difficult to select the right ad feature.

“Move fast and break things” is the philosophy of Mark Zuckerberg. Maybe that’s why Facebook keeps rolling out new Facebook ad features.

move fast and break things by mark zukcerberg

To keep up with a company as fast as Facebook, ecommerce companies need to keep their digital advertising team updated. And ask their digital agencies how they are deploying new Facebook ad features.

Conclusion

Setting up a tracking methodology of your Facebook ads spend is necessary if you want to optimize for conversion. Check if you are tracking your Facebook Ads spend, targeting right audience, and using Facebook ad features for maximum output.

Facebook ad strategy must take buyer’s journey into account. Even if you’re strategizing for conversion. Start Facebook with awareness ads. Then go for consideration stage ads and complement it with conversion ads.

Engaging the customers throughout the customer journey rather than just at a point of purchase will reflect the real contraction between the results expected and achieved by the company.

I tried to cover all the relevant points as per my experience. If you have some more points to add or want to share your own experience, please write in the comment section below.

In case you have any other questions or want to know more information, feel free to get in touch with me at ashima@xorlabs.in

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