Anton shares what’s working best right now in the world of Facebook ads.
Hey, how's it going, everybody? Anton Kraly here, and welcome to another episode of the eCommerce Lifestyle Podcast. So this episode, I'm going to give a fair warning right now. If you're not actively running an online business and actively spending a decent amount of money on Facebook, for Facebook ads, it's probably not going to be all that relevant to you. Maybe you want to listen to possibly use this in the future, but at the same time, I know that a lot of people that listen in, maybe this is you, are running big eCommerce stores, following the Drop Ship Lifestyle model I teach at dropshiplifestyle.com, and can possibly benefit from this. So again, for all of you that are already out there actively running ads, spending money, making money, this is really going to help you, and if you're not yet, then maybe save this one and come back once those sales start to come in.
So what I want to talk about as I drive into the office today is something that's been working really, really, really well for us for the past maybe two or three weeks on Facebook, so literally what's working right now on Facebook ads. There was one feature that was rolled out, I don't know, it was a long time ago, and it was called campaign budget optimization, so CBO for short, campaign budget optimization. Now this is something that ... It's funny. When it was first rolled out, you saw all these people online like, "Oh, I tried it, doesn't work. Yeah, this sucks, blah, blah, blah, blah, blah." And really what it does is, typically the way it used to work and the way you still can set things up and the way things are set up by default is, in Facebook, you make your campaigns, then inside your campaigns you make your ad sets, and typically budget is controlled at the ad set level.
So let's just say I had a retargeting list of website visitors from previous seven days, and I said I want to spend $100 for that audience. Then that would be set at the ad set. So seven day website visit retarget. Okay. That's my ad set. Budget is $100, right? Then let's say I had another audience that was website visitors from days 8 to 14, and then maybe that one my budget was $50. Again, that would be set at the ad set level. And then maybe I had an ad set in that campaign that was to retarget website visitors from 15 days to 30 days, and again, maybe that one, that ad set budget was $100.
So what Facebook started to allow us to do was say, okay, instead of going in there in all of those ad sets and setting that budget, you can make one campaign with all of your relevant ad sets in it, and then you can choose to set your budget at the campaign level. And then what Facebook will do is look at your ad sets and they'll think, "Okay, which ad sets are getting the most results?" Now, when I say results, that could mean different things because you tell Facebook what you want it to optimize for.
So in your ad sets, let's just say you were bidding for unique reach because they're retargeting campaigns, and you know it's a good list, so you just want people to see your ads. Then when you set up those ad sets, your objective would be unique reach. Then when you go ahead and you turn your campaign budget to let's just say $300, what Facebook is going to do is distribute that $300 throughout your ad sets, however many you have. Let's just say three for this example. They're going to distribute it where it's getting you the best results. Again, the results are what you ask for. In this case, the results would be daily unique reach. Okay?
So this is something that, again, from whenever it was first a thing, whenever it became an option inside Facebook ad accounts, I saw all these posts on Facebook and again in forums saying, "Oh, this is such a waste. Doesn't work. Blah, blah, blah, blah, blah. Don't use it." And honestly, I made the mistake of falling into the trap of not using it because I thought, well, other people said they tried it. I'm not going to try it.
So once I finally did though, because I just decided to experiment, I started to ... Really what happened is I started to take over more of our Facebook ads because we're spending a lot of money and I wanted to kind of have hands on experience to see what's happening. I gave it a try, and we've been having amazing results with it. So what's working now, I'm not going to say it's as simple as using campaign budget optimization because it's not. The way that it's working the best for us, there's two big things that I want you to take in if you're going to start using this yourself.
The campaigns that it's working the best for us for are our retargeting campaigns. So again, what we did is we have a campaign now that's called retargeting, and in that campaign we have all of the ad sets that we want to retarget to. So we really do have website visitors, seven days. We have add to carts, seven days. We have viewed content, 14 days, so seven to 14. We have viewed content up to 30 days. We have the 60 day ... an ad set for 60 days, an ad set for 90 days. We have our audiences in there of people that have engaged with our content on Facebook, and those audiences are in an ad set retargeting people that have engaged with us on Facebook. We have one, an ad set for people that have engaged with our stuff on Instagram, and again, this retargeting campaign has all of our possible retargeting lists that we're going to use as unique ad sets in that campaign and campaign budget optimization is turned on. Okay? So that's the first thing you need to know. That has been working absolutely amazing for us, so something you should do, but here's the key. That's not all you want to do.
When you're making your ad sets inside of this campaign, you should also have different objectives. So what we usually do is have sometimes the objective of unique reach. Sometimes we do have conversions. Sometimes we have landing page views, so you want to split up what your objectives are to see what Facebook can get you the best results for, and by best results I mean best return on adspend at lowest cost. And the other big, big thing that has I think changed the game ... Word of warning, it's not enabled in every Facebook ad account yet, so you'll have to check yours to see if this is enabled. Don't just think like, "Oh, I don't have any new features ever, so I'm not going to have this," because I'll tell you, we have a couple dozen ad accounts, and the ones that they enabled this feature in are not even our biggest spenders. It seems like almost random, so check to see if you have it.
But when you're bidding, remember I was talking about how at the ad set level you set campaign objectives? Oh, I got a truck blocking me here. Let me see if I can get in here. This is what happens when you drive. I'm trying to get into the office right now, and I got a big truck blocking the entryway and I'm in the middle of the road. Hold on. But here's the big thing ... I'll back up and wait down here while this guy pulls out. When you're setting your objective in your ad set level, what you want to do is when you choose your bidding type, you want to choose a feature that is called ... Oh ... cost cap bidding. Okay?
There's two different options you'll have there, actually three. By default, what Facebook is going to try to do is get you the cheapest possible results for whatever it is you're bidding for it, so I think it's called like lowest price. The next option that everybody has is called bid cap, and with that you could set a cap on how much you want Facebook to bid. So let's just say what you're going for is the daily unique reach, right? Let's say that's the objective. And let's say you use the bid cap as far as your strategy, and you say, "I will bid no more than $10 per cpm," so $10 per thousand impressions. You could do that, right? The problem is, if there is an audience inside of your audience where cpm is let's just say $12 instead of $10, you will never get your ads shown to those people because you used bid cap and told Facebook, "Do not go over this. This is my hard limit."
So what you want to use is this new feature that again is in maybe about 30% of our accounts right now, and it's called cost cap bidding. Now, when you use cost cap as your basically what it's looking for, what the objective is, you could say ... Let's just say you say, "Okay, I want to use cost cap bidding, and I will pay no more than $50 a conversion." Well, what's good about that is instead of just going up to $50 as the maximum Facebook spends, it will actually spend more because the $50 will be the average instead of the max.
So again, the two big takeaways I want you to get from this is, first of all, when you're setting up your retargeting campaigns inside of Facebook, use campaign budget optimization and then put all of your retargeting ad sets in that campaign. The second thing is when you are setting up your ad sets and you're choosing your objective and how you want to pay, use cost cap bidding. Don't set a bid cap, but use cost cap bidding. Okay? It's two different things, but cost cap has just been working leaps and bounds better for us because it's getting us exposed to our better audiences while maintaining our great return on adspend. So, again, if that just all went over your head, it's not because of anything special that we're doing, it's just because you're not big into Facebook ads yet. But for the ... I know it's going to be the minority of people listening right now that are already doing great with Facebook ads, implement what I just told you. It's going to make you a lot more money. For everybody that's not there yet, don't worry about this stuff yet. It's more advanced. It's when you're growing, and you'll get here eventually. If you're just starting out, and again, this is all totally over your head, my advice would be to go to dropshiplifestyle.com, get enrolled in one of our programs, start getting sales, come back and listen, and then just scale things from there.
So hope you found this valuable. As always, if you did, I would definitely appreciate if you can leave us a review in iTunes. I really appreciate seeing those, means a lot to me. So if you could hop in iTunes for a second, search for eCommerce Lifestyle with Anton Kraly, and leave a review, I would definitely appreciate that. With that being said, I am in the office now. The truck moved. So I'm going to go in and get to work, and I will talk to you all soon. See you, everybody.
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