- Setting up a Business Manager
The first thing you need to do if you want to start making some FB ads is create a FB Business Manager. A Business Manager is where all your ad creating and money making begins. Also where all your data is stored.
To create a Business manager head to business.facebook.com and click ‘Create Account’. Enter your businesses name, select a primary page (making a new one), your name and email address. That’s it. Step on complete.
- Creating/Setting up ad account, page, and pixel
Once you have access into your BM, you can create an ad account a page, and a pixel. The page, you should’ve created and linked to the BM when that was getting setup. If not, then create a new page now, make it look nice and professional. Same name as your business. Nothing special here.
Creating an ad account is superduper simple too. Go into your BM Settings and you’ll see ‘Ad accounts’ under the ‘People and Assets’ tab. Click ‘Create a New Ad Account’, type your name, time zone, and currency. EZPZ.
Now this part is extremely important. If you don’t know already, a pixel (according to google) “collects data that helps you track conversions from Facebook ads, optimize ads, build targeted audiences for future ads, and remarket to people who have already taken some kind of action on your website.” As you can see, it’s pretty useful.
Click on the ‘Pixels’ tab in your BM. Then ‘Create Pixel’. To integrate it into Shopify is no trickier. Go to your Shopify Admin, ‘Online Store’ > ‘Preferences’. Scroll till you see the FB Pixel area, then paste your pixel ID, and save it.
- What’s Important in your Ad Account
Your Ad Account is probably the most important part out of your entire Business Manager. It’s where you can view all your campaigns, ad sets, ads, and your account overview.
The reason your Ad Account is so important is because it holds all of that accounts data. Meaning you can view anything you want to see under your Ad Account. Where all your data is stored to see what you have previously tested, how well it did, etc. This is also where you can optimize you bid, estimated action rates, and ad quality to better your chances of winning the Ad Auction. See the next section to learn more on Ad Auctions.
- How does FB ads work?
All of you reading this obviously know about FB ads… But do you know how they work?
If not, you’re about to learn. If you already know, stick around. You might learn something new.
FB ads are targeted to users based on their location, demographic, and profile information. After creating an ad, you set a budget and bid for each click or thousand impressions that your ad will receive. Facebook’s most important ad targeting options. Users then see your ads on FB. Pretty simple if you ask me. And if you can put your ad in front of the right eyes, using Facebook’s highly in depth targeting system, you can get some nice cash in your pocket. So basically, you have a product, you use FB to create an ad and target your market, FB does all the hard work for you, then boom. If you have a good ad/audience, you have more money.
There are also Ad Auctions. In short, every time there is an opportunity to show someone an ad, an auction takes place to determine which ad will pop up. The winner of the auction is determined by the total value of each ad. The total value is calculated by the Bid, Estimated Action Rates, and Ad Quality.
Estimated Action Rates and Ad Quality together make Relevance. So the ad with the highest Bid and Relevance will win the auction and be shown to the audience.
- 3 Levels of FB ads
Before running any ads, you need to understand the 3 Levels of FB ads.
- Campaign – This is where you choose your objective of the campaign. The most common one is Conversions. This is also where you can setup your budget using CBO.
- Ad Set – This level is for Optimization (for conversion campaigns), Budget (unless you selected CBO), Schedule (runs 24/7), Targeting, Placement (Start with Auto Placements), and Bid Type (Start with lowest cost option).
- Ad – This is (obviously) where you create your ad. You have to decide the FB/IG page, Creative Type (image, video, slideshow, carousel, collection, etc.), Text (body text and headline), Call to Action Button, and Website Link.
- Setting up a campaign
Setting up your campaign properly is pretty useful when it comes to running ads. Your campaign is the start of making money from FB because you can run ads without a campaign.
- Picking your objective – Choose the best one for what type of ad you are running. The most common or most useful if you are selling off shopify, is conversions.
- Give it a name – It’s best if you chose a name that fits what’s going on. So when you have a lot of campaigns they are easily distinguishable and organized.
- Audience targeting – Now you can either create a new target audience or used a saved one. To make a new one, just click ‘Create New’ and form the audience you think would be the best to sell to. The meter to the right will tell you if it is too specific or too broad.
- Ad Placement – This is where your ad will appear. FB, by default, has “automatic placements” which includes FB, IG, and Audience Network, but generally will use the placement optimized best for you. You can also check off where you do not want it to go. For your first campaign and as a beginner FB ad specialist, I recommend sticking with the automatic placements.
- Budget and Biding – This is where is gets a little confusing/difficult. Your budget is definitely something you should test and what works best for you, then scale. A standard budget/bid is >>>>
- Setting up your ads – After selecting your prefered Fb ad type, insert your ad copy and creative. Make sure to make multiple sets to test out different angles. Then you can choose to select an existing FB page or create new ads.
And boom… first campaign is setup and ready to make some money!
- Prospection vs. Retargeting
If you didn’t know, it is very important to know which type of campaign you’ll be running. Prospection (Cold) or Retargeting (Hot).
Prospection is when you are targeting people who have never seen or interacted with your ads, product, or store before. Since this is a cold audience, it is very important you remain testing till you find something that works.
Retargeting is when you showing ads to a warm audience. Meaning people who had any type of interaction with your ad, product, or store. This is an easier target to hit because its people who already know who you are. Most likely already know exactly what you’re about and all they need is a little push/incentive to make a purchase.
Basically, Prospection = new audience; Retargeting = old audience.
- Most common terms
–Learning Phase: The beginning of an ad set when it is not fully optimized, or still ‘learning’. A change to an existing adset can set you back into the learning phase
-Lookalikes (LLA): An audience who is very similar to your current customers. LLA’s are likely to be interested in your products.
-CBO: Campaign Budget Optimization. A way of optimizing the distribution of your campaigns budget through each adset/audience.
-CTR: Link Click Through Rate. The percentage of people who saw your ad and clicked on it
-CPM: Cost Per Thousand (Mille). This is how much you want to pay to reach 1000 people. A pricing option.
-CPC: Cost Per Click. This is a great option for beginners, as it is a lot cheaper. You pay for how many times the ad was clicked. The default pricing option.
-DPA: Dynamic Product Ads. They give you the ability to granularly target people with highly relevant ads at all stages of the sales funnel
-ROAS: Return On Ad Spend. The profit margins on how much you spend for ads and how much you sell.
-Frequency: The average number of times a user sees your ad.
-Impressions: The number of times an ad was viewed.
-Reach: The number of people your ad was shown too.
-Post engagements: When people perform actions on your page.
-Landing page views: When a person lands on a specific page of your site after clicking your ad.
- FB ads best practices
–Creatives: Creatives can be the most difficult when it comes to testing and if they are good or not. But they are also what draw people in the most.
But one key tip is to always be testing creatives, and never use the same creative for Prospection and Retargeting campaigns. Use new creatives and maybe a discount in your retargeting campaigns to get that customer a little push. Make sure to test every piece of viable creative you can as well. The FB video templates are actually something worth trying as well.
But as some reference here is a bad creative, then a good one:
Bad – For instance, this is a terrible ad creative. Sure, it’s back pain. But where’s the product? For all I know this guy could have a perfect back and just be stretching. Horrible creative.
Good – This right here is one of my all time favorite ads. It couldn’t have caught my eye any better than saying its durable, then showing a grown man standing on it. Extremely engaging and eye catching creative.
You need to show users why your product is the best. You can’t just say it’s the best and except them to beleive you.
It’s really important to remember seeing is believing!!!!
Copy: Copy is what gives the audience an incentive to buy, shows them how it can benefit them, solve their problem, or any reason as to why they should buy your product.
But how do you write something to make someone spend their hard-earned cash in just a few lines? Make it good, engaging, and flow.
Bad – Not like this. Nobody cares what your brand name is, they’ve never even heard of it. Why should they buy the shoes? Are they comfy, do other people like them, are they cool, hip, trendy, etc?
Good – Refer back to the ‘Good’ ad from the creatives section. Amazing copy. Tells exactly why they need a new suitcase in nice words that all flow. Also gives credibility, “Former Louis Vuitton and TUMI…” giving reassurance of the suitcase’s greatness.
-Testing: Testing creative/copy is simple. You run it, if it works, scale; if not, try another one. You keep trying different copy and creatives until you find something that works.
But testing products on FB is a different animal.
- Finding a product – FInd something that isn’t being sold by everyone. Something new and unique. Eye catching. If you are picking a competitive product, make sure you have a unique angle that will set you apart from others
- Finding an eBay or Aliexpress supplier – I prefer eBay because you can find suppliers who ship from the US.
- Building a one product store – On whatever platform you choose, a simple/clean store is all you need.
- Setup FB ads/Pixel – Regard to the second section if you forgot how.
- Launch prospection ads – $100 Daily total budget across 3 broad interest related to your product niche. Create 6 ads and have those same 6 ads under each 3 ad sets. 3 different creative types + 2 different copy variations = 6 ads.
- Launch retargeting ads – You shouldn’t have much traffic to your site so keep a small budget. $10 for daily budget, just targeting visitors for now.
- (Optional) Buy IG Shoutouts – $200 budget. If you break even, it’s a really good sign.
- Optimize – Wait a minimum of 24 hours before even thinking about making changes. Cut obvious losing ad sets/ads and replace with new tests. Double down on obvious winning audiences or ad angles. Then wait another 24 hours.
- Decision time – After 2-3 days of running your ads, if you aren’t close to breaking even, stop. Just trust me, I know you won’t want to but it’ll save you money to stop now.
- Next steps – If you did see some success, continue to scale your ads. Start taking steps to turn it into a real brand. Look to order products in bulk from Alibaba and send to a 3PL. Trust me, you make much more money this way compared to a dropshipping store.
-Optimization: A key factor in your money making process from running ads. With optimization you can get everything you want exactly how you want it, or fix things that have been broken. 3 key tips I always use are:
- Go through the funnel – Start with the conversion events at the top of your funnel and work your way down. Are your costs normal? Is there a spike in cost after a certain event? This helps to see if customers are getting stuck somewhere in the funnel
- Start with your ads – When you are looking at your ad sets, make sure you are looking at the performance of your ads PRIOR to making a decision. This is one of the most common mistakes I see beginners make. Certain ads will resonate better/worse with certain audiences.
-Scaling: Scaling is super important to *scale* your money on FB. But don’t do it too fast. One good day of performance DOES NOT mean go scale up. Does not mean you found a winner. I usually wait 2-3 days before scaling accordingly.
To scale properly, there are a few things you can do. I recommend starting small and not doing all of these at once.
- Increase the budget of your winning ads
- Deeply look into FB audience insights
- Create LLA’s
- Expand to different locations
-Policies: FB is very serious about how and what you are advertising. So here, I’m going to explain what will not get approved and all that. First, all ads get reviewed before they are put in play, normally taking about 24 hours.
They check your ad’s images, text, targeting, and positioning, in addition to the content on your ad’s landing page. Your ad may not be approved if the landing page content isn’t fully functional, doesn’t match the product/service promoted in your ad or doesn’t fully comply with our Advertising Policies.
If you get disapproved and you think it should be allowed, you can contact Facebook. If it is rightfully disapproved, you can edit it and try again.
There is a whole list full of what is prohibited and restricted. You can find the list and more on disapproval here: https://www.facebook.com/policies/ads/
If you want a more in depth version of this guide, make sure to check out my course adsalchemist.com
Hope you guys enjoyed this free FB ads guide.
If you have any questions, feel free to reach out to me on Twitter.