Advertising Budget - Ad360's blog

Set a Daily Budget

First, to take control of your online marketing, establish a “daily average” budget you can spend on advertising. New stores can gain traction across the web with as little as $5/day ($150/month). From there, a general rule of thumb is 5-10% of your revenue goes back into marketing overhead.

Calibrate Your Custom Audience

Second, you need to begin targeting your custom audiences! You can target customers based on demographic info (e.g. – age, gender, location), or interests they express online. Make sure to dive into research on your custom audiences – they will be your most likely customers!

Retarget Likely Customers

Ok, so you’ve set a daily budget, established large swaths of your custom audience, and now you’ve put out some nice ads. The metrics show that roughly 10,000 users viewed the ad from either their desktop or mobile. But barely any clicked through or bought!

Do not be discouraged, this is normal. Just remember, if even 1% of those 10,000 end up becoming customers, that’d be 100 new orders to your WooCommerce store. So, how do you up that conversion rate to become a truly successful online business?

Automate Ad Placements for Peak Conversions

There is software, easily accessible on the market, that can automate ad placements for the cheapest price and maximum exposure. Retargeting software could further increase your conversion rate to 2-3%, putting in the elite tier of e-commerce stores. In fact, the top 10% of all online stores have a conversion rate of 3.8% or higher.

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Virtually all the most successful e-commerce stores deploy automated ad placements to get affordable ads with great visibility. They also all use savvy digital marketing techniques – like retargeting – to increase their WooCommerce sales. How? By reaching back out to customers who have seen their ads across the web and social media! After a few “touches,” customers are ready to go from “browsing” to “buying.”

Feel free to check out Ad360’s Quick Ads, to trial automated ad placements. It only takes one click to organize your next ad campaign!

Introduction: A Dollar Spent, 10 Dollars Earned

Return on Ads Spent (ROAS) is a key metric for companies advertising online. Businesses may have budgets of different sizes, but many of the core elements of running the campaign remain the same.

Successfully setting a daily Facebook ad budget, testing different ad sets, and engaging the target audience multiple times are all key to growing your Shopify sales. A little marketing planning can go a long way here, so make sure to have a blueprint in place before you begin!

Setting a Daily Budget

First off, Facebook ads provides an option of setting a “daily” or “lifetime” budget – we’d opt for the daily budget while starting out. It provides a chance for more flexibility as the promotional campaign developers.

An amazing feature of Facebook ads is that Shopify businesses do not have to “break the bank” to reach their audience – even $10/day is enough to have your ads be sent out across the 2.7 billion Facebook users! If you consider yourself a “Small-to-Medium” sized store at the moment, aim for a daily budget between $10-30. Your ads will be seen, and the data collected from their performance metrics will be invaluable in how you further develop the campaign.

Test Ad Sets before scaling up

When framing your Facebook ad campaign, remember it’s not just one ad banner you are sending out your entire audience! Remember from our post on Facebook custom audiences that effective Facebook ad campaigns segment their audiences based on key factors (e.g. – demographics, location, interest). For each custom Facebook audience, you likely will roll out a different “ad set.”

Each ad set is specifically targeted to one of your custom audiences, and from there, you can try different versions of the ad as a form of A/B testing. For example, you may have three ad sets prepped for three distinct custom audiences. Within each ad set, you roll out two versions to see which one better drives engagement and boost traffic to your store!

Better to Reach an Audience of 100 10 times than 100,000 people Once

Finally, please note it’s better to concentrate your ad sets to smaller audiences you can reach multiple times, rather than blasting out a single ad to larger audiences. Marketing research has shown that customers need to see your ads 7-8 times before they consider purchasing something from your store.

Thus, it’s more efficient to have a small audience you show multiple ads to rather than a broad audience who briefly see your ads only once. Facebook ads breaks up these factors into awareness, consideration, and conversion. You may have also heard of concepts such as AIDA (Awareness, Interest, Desire, Action) that conceptualize how customers are funneled to drive sales to your store. As you scale up your ads, remember the average customer needs exposure to your store’s promotion multiple times. Otherwise, your ROAS will suffer.

Conclusion: Who can Help Analyze my Facebook Ad Data?

After running a Facebook ad campaign, setting a daily budget, and releasing your various ad sets, it can feel confusing how to make sense of the data collected – that’s where Ad360 steps in! We specialize in analyzing your customer data and subsequently optimizing future campaigns. Better ads mean more sales, so please reach out to try a free demo by Ad360 today!