Although we might take into account what you have previously done with your ads and audience targeting, 90% of the time we will create new audiences and ad designs based on our own research.
This is NOT to discredit what you have done, but in order for us to give you the best results on ad spend, we need to be 100% in control of the campaign we’re running, right down to the details.
Which means we need to personally be involved in the research and design.
So, unless you have previously already consulted us with your ads, most of the time we will build the campaign based on our experience and research of your product market.
Within this ONE campaign, we generally test only 1-2 audiences with 2-3 ad variations, but this is highly dependent on:
In Facebook ads, there’s usually the testing phase, optimization phase and the scaling phase.
As the name suggests, the testing phase is about validating your product idea. If we can deliver a CPL under $5 in this testing phase, it means your product is viable.
It is also at this stage where we find out which part of your funnel requires more work.
Based on the results of our campaign, we will advise you on the next steps YOU can take to further optimize your ad spend.
This could be improving your landing page conversion, or increasing your reservation rate with your email funnel.
Our low budget strategy focuses on being very precise with our audience research and ad copywriting. We do this to minimize waste on your ad spend and we have the experience to know what works and what doesn’t.
So most of the time, we don’t need to test dozens of audiences. Just 1-2 laser targeted audiences with great ad designs will usually generate decent initial results for you.
Our testing campaign is your best shot at finding profitable audiences early on, and we generally aim for a CPL of $2 to $4 with our campaigns.
It’s your responsibility after the handover to continue to monitor, test and optimize your ads if you want even better results.
We highly encourage EC founders to continuously learn as much as they can about Faceobok ads so they can be in active control of their own marketing budget.
Managing ad campaigns require ongoing committement and daily monitoring of ads. Unfornately, this is not what our service package is primiarily about.
While we will manage and run your ads DURING the testing phase, once the results of our campaign have stabilized, we will hand the campaign back to you for management.
We will arrange a consult call to brief you on what we have done and give you advice on how to optimize and scale your ads.
A well-designed ad can improve your CTR rate by as much as 3x. It is literally the face of your product and is the first thing people will see, so it needs to be good enough to stop them scrolling, read your caption, and click through your link.
We don’t use templates for our ad designs. Each and every ad is different, designed specifically using the product renders we get, as well as the audience you want to reach. We carefully consider every aspect of an ad design including colours, layout, choice of fonts etc in order to increase brand perception.
In our experience, 500K – 1M is the ideal size for low budget testing campaigns. It’s big enough for Facebook’s algorithm to optimise (and for you to scale later on), but small enough so that you don’t need a massive budget to generate results.
Firstly, you will need to calculate your cost-per-acquisition (CPA). You can use this formula to find out your CPA:
Purchase rate x (CPL / reservation rate)
For example, if your CPL is $2 with a reservation rate of 5%, and assuming 50% of people who reserved your product will proceed to actually buy it:
50 x ($2 / 5) = $20 (CPA)
That means you’re spending on average $20 to acquire a paying customer. To calculate if you’re profitable:
Profit = (Retail price) – (CPA) – (Cost of Goods incl. taxes & shipping)
If your profit is positive, then congrats you have found a profitable ad that you can now optimise and scale!
The industry average across all niches is USD $4.65 per lead, so this can serve as a guideline.
However, highly competitive markets tend to have higher CPLs
It’s a common misconception that video ads perform better than static image ads. We have never used video ads for the testing phase for a few reasons:
We recommend looking into video ads only if you have tried everything else and your CTR is still very low.
Or, if you already have a winning ad campaign and have the extra time and budget to test something new, by all means try a video ad.
Ads by EC Landings is led by Jenny Chen, an EC founder with 5 years of professional background in social media marketing, graphic and web design.
With her experience in eCommerce, she creates high converting, cost effective lead generation ads for solopreneurs on a tight budget.