Question

How much profit would you say is needed to make Facebook Ads worth it? If profit is low, say less than £30 per sale, would Facebook ads be better for awareness than conversions?  

Answer 1

It depends. Dollar amounts in profit mean nothing without knowing the other variables. Such as quantity and base price. £30 profit on a £35 products is great but not so great on a £8000 product. Even £1 profits can be great if your quantity is in the tens of thousands. Another variable is your ad spend. Spending £5 for your £30 profit is good but having to spend £100 for the same, not so much. Also whether you should create an awareness campaign will depend on monthly budget and niche.  

Comments

@baler362 I've ran some ads and had a could of purchases but the profit made was less than the total campaign spend. Wondering whether it will ever balance. It's the gamble you take I guess. It seems higher spends get the rewards but I can't spend higher amounts as the profit is low.  

Answer 2

Hey mate that rather depends on several variables. What niche are you selling in?  

Answer 3

Cpa would be lower than your margin that is your profit.  

Answer 4

Actually the question is best posed to yourself!  

Comments

@baler362 Feinstein I'm not sure of the power of Facebook Ads or experienced in using it YET. Therefore I have consulted the experts.  

---

@hetaera754 I understand. I’d measure it by how profitable the results are for you vs your other media. Just work at getting truly expert advice on setting up your site and campaigns.  

Answer 5

You’re right it depends on your ad spend, bigger spending (at least 100$/day) usually get better results than 10$/day However, there are huge variables that matter like Niche, pricing, funnel optimization and most importantly creatives used. If the above are improved, you will break even and even profit from Facebook ads even with lower budgets. When you do that, you start growing your customers base and use back end marketing (email, messages. ) and retargeting to grow profits.  

Answer 6

Of course it does! For the next campaigns It will costs so much less to retarget existed customers.  

Answer 7

Well first things first you need to be thinking in terms of LTV (lifetime value) if you have other products and services you can sell the person its okay if you lose a little bit in the front end but you make it back on the back end. #2 you better not be sending traffic to a website like a shopify store you NEED to be using funnels. Shopify has plug ins like zipify pages or gempages so use those instead of sending them to a generic shopify store or use clickfunnels. Maximize your AOV with a order bump and having upsells after they purchase. If you dont have any other physical products make a digital asset like a e book or something and use that as a order bump or upsell to increase AOV and make you more profitable. #3 To get consistency with FB ads you need enough spend point blank period! if your CPA is $20 and you need 50 conversions in the first week with an ad set for it to pass the learning phase you should be spending $120-$140 per day for 7 days at least. Once your ad set is out the learning phase great things can happen! Just focus on CRO (conversion rate optimization) and having enough spend and youll be okay

Comments

@codel many thanks! Point 1 is a good way to look at it. The long game I guess Point 2 noted, was just taking them to a Shopify product page. Maybe I need to create specific landing pages? Point 3 if I had $20 profit per sale I would ideally like a CPA of $5. How much should I spend per day for the 7 day learning phase? And what type of ad is best for learning phase?  

---

@hetaera754 -You need to create specific landing pages if you Conversion is Lead. - How much you want to have ROAS is depends on how you can afford it.  

---

@hetaera754 Yes you need to create specific landing pages or specific funnels. I like to use this format: 2 step order form with order bump-> upsell #1 (typically more of the same product for 50% off) -> upsell #2 ( different relevant product for around same price as the first) -> upsell #3 monthly subscription to product box -> upsell #4 (another relevant product) -> upsell #5 (higher tier relevant product typically 2-3x price of original product. This takes a lot more work to set up but TRUST ME its 10000000000% worth it. You make more, you'll be able to optimize your ads specifically for the people who buy more products throughout your funnel instead of only just buying the first product. I use clickfunnels but I heard zipify pages and gempages are also really good. Steve and evan tan who are ecom gods have an after shopify checkout upsell app but I forgot the name I heard its great if you can find the name of it. Point #3: when you first start running ads for a new offer you want to spend 8-10x target cpa per ad set for at least 3-5 days because its a new offer you need to give fb data and if your offer doesnt convert in 3-5 days while spending 8-10x target cpa per ad set then either your targeting the wrong people, your offer is trash, or something is wrong with funnel (ive gotten by before not spending 8-10x first 3-5 days but thats cause I know what im doing btw) . ideally you want a $5 cpa but that doesnt mean your gonna get it when you first start but using that example thats $40-$50 per day per ad set. You have to split test and see what works for you I suggest running DC or dynamic creative. Watch some youtube videos or take a course before running ads cause you will waste money for no reason to be honest.  

---

@codel thank you for your help!  

---

@codel I think that you wrote is more relevant to companies who has many channels(not just facebook)complicated. To create funnel for Sale as a Conversion campaign on Facebook you just need to create 3 sets of campaigns on FB(awareness-interest-consideration) , each set had different ad copes.