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An Introduction to Facebook Advertising in E-commerce Business – Episode 1

Why do you need your Ecommerce business to be in front of a social media platform such as Facebook? According to Statista, there are more than a billion accounts actively participating in engagements on Facebook each month. If you aren’t targeting a billion of the world’s population, I assume you are missing out on a rather large chunk of sales right there.

Why do I believe your E-commerce business needs a customized Facebook Ad Campaign?

Let’s just say that I feel inspired by online retailers such as Pigtails and Ponys and Joseph Nogucci who drive 70% of their monthly sales revenue using only Facebook Ads. Sounds pretty impressive, doesn’t it? In fact, Nogucci claims he has seen ROIs more than seven times the amount he had spent on Ad sales directly.

If you are feeling inspired by their achievements, it is time you should embark on this breathtaking journey with me. Let me guide you through a step-by-step process on how you can nail your first successful Facebook Ad Campaign.

So without any further Ado, let’s begin.

What Are Facebook & Instagram Ads?

Facebook and Instagram Ads are such which pops up on your social media live feeds once in a while as sponsored ads. Facebook ads are run via Facebook Ad Manager and you can now create Instagram ads too using the Facebook Power Editor. These ads are used to promote local businesses, service businesses, online businesses, mobile applications, drop shipping businesses, e-commerce products and much more. Such is the nature of Ads, that even Facebook markets its own consultancy campaigns using its respective Facebook Ad service.


Why Facebook Ads are Extremely Important for Your Business in Today’s Day and Age

Social media has now become an essential part of our daily lives. At an average, a user has at least 5 different social media accounts and spend a total of 1 hour 40 minutes of daily activity on these networks each day. With the passage of time, the use of social media has increased ever than before. As billions of users log in to the platform each day, small and medium scale businesses are moving towards investing their advertising budgets in social media campaigns more rather than putting their trust in traditional advertising. Traditional advertising becomes a lot less relevant if your target market is teens, millennials or people in the online businesses. To make things more simple, it is now observed that these individuals have their eyes more on social media rather than a TV or a magazine or a newspaper.

Why do I believe Facebook Ads are more Important? It’s because Facebook has now become the King of Social Media. It has more than 1.37 billion people logging into the platform on a daily basis. The gradual increase in the population sphere of Facebook users is estimated to increase up by 16% each year according to Zephoria. So, if Facebook is the king of social, then Facebook Ad becomes the king of social ads by default. It’s why most small and medium-sized businesses are shifting their marketing strategy towards social and spending more on social.

Quick Overview of Social Media Growth, Outreach and Data Analysis

With more than billions of users active on Facebook each day, increasing your social media following becomes a somewhat daunting task. Brands such as Coca-Cola, Pepsi, and Oreo have gathered a large number of followers, but not all businesses have stable brand names! To create your brand name, you should first understand a few things.

Who Can See Our Facebook Ads & How Do They Appear?

It is clear that only the users who have an active account on Facebook can see Facebook Ads. Someone who is not on Facebook cannot see the Ad. Luckily, more than 2 billion westerners are today on Facebook. Facebook becomes a part of our online personality.

We surf the Internet on a daily basis and as a result, we often find ourselves searching for a number of topics. Facebook, on the other hand, has trained algorithms which track our research data by observing how we interact, who we interact with and what we are looking for?

Using this information, Facebook allows its machine learning pixel algorithms to display similar products/services/businesses on our Live Feed. I suppose you are now aware why your Live Feed shows posts from the magazine we read and the brands we follow.

How do Advertisers Make the Most of It?

Advertisers are smart people. They find which information is valid for what purpose based on their specific business prospect. If you are a Facebook Advertiser, you know what your product is and how you can brand it to sell on the market. You make a compelling post, or a sponsored ad campaign to run on Facebook. Being an advertiser, you can make use of this large amount of data that Facebook contains about different people online.

When we talk about the Facebook advertising mechanism, no other tool works similar to it. You can perform specific target marketing with Facebook Advertising Campaigns. Let me give you an example,

If your product is sold explicitly for farmers in Louisiana state county and it is only usable for ducks, you can target specific duck farmers within that county. Your product will now only prompt users searching similar products for their ducks within the state of Louisiana.

Why is Facebook Advertising Necessary in E-Commerce Businesses?

Today, e-commerce stores have become more common as compared to traditional stores. People rely on making more purchases online, rather than getting into the hassle of driving down to IKEA, Wall-mart or Tesco to make a purchase. Now coming down to the original question… Why is Facebook Advertising important in E-Commerce? It’s because you want your product to be where the major audience is. Opening a shop and relatively not marketing it to the larger masses is one thing, but missing out on detailed, targeted marketing opportunity is an atrocity. It’s like you know where your customers are and you know they are looking for the product, and you know how to reach them, yet you still let them slip away.

If you want to reach out the millennials of today, they are more interactively engaged with their smart technology products rather than searching for ads on classified sections of the newspaper. They now have craigslist for that! But, people are more lethargic than you perceive them to be and they want everything to be served and cooked in a dish as a prepared meal! Facebook Advertising is what allows you to do that and allows business owners to cash the social media platform as a ready source of earning!

Some Alarming Facebook Facts!

Before we delve in any deeper into the world of Facebook Advertising, I would like to clarify our audience that there are some solid and shockingly amazing facts on Facebook advertising which have pretty much convinced me to invest in this marketing strategy.

The world is changing with social media, and hence, the way products are advertised is as well changing. Why Facebook? Here are some factual statistical data on it.

  • Facebook has more than 2 billion active users each month.
  • More than three-quarters of the 2 billion population is online using a mobile phone.
  • At an estimate, approximately 57 billion users are online on Facebook using smartphones.
  • Approximately, 18 billion users are known to be accessing Facebook through desktop and mobile.
  • More than 57 Billion active mobile logins daily on Facebook

World Demographics

  • More than 40 million businesses have active Facebook pages from around the world.
  • Almost 42% of modern marketing teams consider Facebook, a major marketing podium.
  • On a daily basis, more than 100 hours worth of videos is watched on Facebook.
  • The average person spends around 20 minutes at a minimum on Facebook in a day.
  • 53% of the audience on Facebook is female, while the remaining 47% is male.
  • More than 56% of the people belonging to the 65+ age group who are online on the Internet are active Facebook users.
  • More than 87% of the people belonging to the 18-29 age group who are online on the Internet are active Facebook users.
  • More than 74% of all college graduates are online on Facebook.
  • Almost 50% (half of the world’s population of the people belonging to 18-24 age group check Facebook first thing in the morning.
  • The most common age group on the Facebook range in between 25-35 years old.

US Demographics

  • 87% of the users belonging to 18-25 age group having access to the Internet are online on Facebook.
  • 79% of the users belonging to 30-49 age group having access to the Internet are online on Facebook.
  • 56% of the users belonging to 65+ age group having access to the Internet are online on Facebook.

Basic Advertising and Marketing Statistics

  • More than 92% of social engagement specialists use Facebook as a tool for advertising & marketing.
  • Facebook accounts for 18% of the overall mobile digital advertising worldwide. 5 million organizations invest in mobile Facebook marketing.
  • Almost 9% of the overall global digital marketing and ad spending is done through Facebook.
  • Females are targeted more as compared to Males on Facebook for advertising.

Ad Statistics

  • 85% of the Facebook Ads are country-specific instead of location specific.
  • Almost, 45% of the Facebook Ads are targeted based on customer interests.
  • 23% of spendings are based on Post Engagements
  • 20% of spendings are based on Click Rates
  • 13% of spendings are based on Conversions
  • The Most Popular CTA on Facebook is the Shop Now

Most Traffic and Engagement Facts

  • People tend to log in to Facebook during the mid of the week usually from 1 PM to 3 PM
  • Posting something at 7 PM gets more clicks compared to posting something at 8 PM
  • Thursdays and Fridays are usually when the engagements are up by 18%

Why Do Most Social Media Campaigns Turn into a Disaster?

Facebook has now grown into a full flesh social media marketing platform. It has now become a globally recognized marketing tool among most digital marketing agencies and individuals. Hardly, any marketing specialist is leaving behind Facebook as a resource for marketing their products, services, and campaigns. Yet, they suffer major drawbacks! The question still probes why?

What most Facebook advertisers fail to understand is how they miss out on learning the basics of interest based target marketing. For example, making searches more country-specific rather than location specific. It is ridiculous to determine that 85% are focused on country-specific target marketing and this needs to change. It’s one of the leading cause why most startup fails and end up questioning their product or service which might be flawlessly perfect.

Most of these failures are observed in the E-Commerce Industry.

Learning Outcomes and What’s Next?

So, by the end of this first episode on Facebook Advertising in E-Commerce… We learned,

  • What Facebook and Instagram Ads are and why they are important in this modern age?
  • A Brief on How Social Media Outreach, Growth and Data Analysis Works.
  • Why is Facebook Advertising Important in the E-Commerce Business?
  • And Some Interesting Facts on Facebook (The King of Social Media)

Stay tuned, we will soon be launching the Episode 2 of our series which will take you to a deeper depth of Facebook Advertising in E-Commerce Businesses. We will discuss Ad effectiveness, how they work out for advertisers in e-commerce businesses and some other important points before you proceed with your first social media campaign. Till then, Cheers 🙂

Resources: wordstream, zephoria, business2community, techcrunch, omnicoreagency, hootsuite & shipstation

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