OscarMike
Active Member
Hi everyone, I would like to share a Facebook ads case study for one my print on demand stores.
I'm selling a gold necklace with a message card in the box. I'm using picture ads. I'm using Gearbubble as my print on demand supplier because they also take care of the customer service.
One of the drawbacks of, say, using ShineOn with Shopify is that you have to take care of the customer service yourself. It's not the end of the world, but it's one less headache to deal with.
I'm selling my necklace for $99.95. Normally, I don't sell products for this much. I'm doing this for multiple reasons. One of the reasons is perceived value. I believe gold necklaces have a high perceived value in the prospect's mind. I believe I can get away with charging more money for it and thus having a higher profit margin.. Another reason is due to the average cost per sale from my other campaigns. I've discovered that it's not uncommon to have a cost per sale in the $60-$70 range while the Facebook algorithm is still in the learning phase. To leave the learning phase, I need 50 sales in 7 days. 50x$60 means I would have to spend $3000 in 7 days. Numerous IM gurus I've listened to say that it's common to lose money during the testing phase, while I collect data. If I charge $99.95 and my breakeven is $80, I can potentially make a profit starting on day 1 of the campaign.
One youtuber I've been watching lately is Anthony Eclipse. He specializes in TikTok ads, but his strategy can be applied Facebook ads as well.
He recommends spending $50 on a CBO campaign (known as an Advantage campaign on Facebook). I'm doing a CBO campaign, not an ABO campaign.
He claims that it's possible to get at least 1 sale after spending only $50.
I created 3 adsets with 3 different interests targeting. Each adset has 2 ads. I split test everything. The interest for ad set 1 is Engaged Shopper, the interest for ad set 2 is Online Shopping, and the interest for adset 3 is no interest.
I launched my campaign at midnight 2 days ago, and got the results back within 1 day.
Ad set 1: Amount spent: $18.12. 10 link clicks. CTR 1.43%. CPC $1.81. 3 landing page views. 1 add to cart, no purchase.
Ad set 2: Amount spent: $22.71. 11 link clicks, CTR 2.29%. CPC $2.06, 2 landing page views, no add to cart
Ad set 3: Amount spent $10.95, 5 link clicks, CTR 1.01%, CPC $2.19 1 landing page view, no add to cart.
In all, I spent $51.78 (slightly over $50).
Another youtuber told me that if an adset has a cpc above $1 and/or my CTR is below 1%, I should stop spending money on that adset. By that metric, this campaign was a failure because my cpc for all 3 adsets was above $1.
According to PPC Coach, a successful campaign during the beginning of the test phase should see 3 sales (or more) after spending $100. 2 sales, it's iffy, 1 sale it's a failure. He talks about this in this Father's Day Mug Case Study, where he sells a mug for $20.
But if I can get 1 sale after spending $50, and my breakeven is $80, I just made $30 profit.
I also learned that if an adset gets at least 1 add to cart after spending 1/2 the breakeven, I should continue to spend the breakeven amount to see if I can get a sale. If I get a sale before I spend breakeven, I keep spending money on the adset (until it's no longer profitable to do so).
I'm using picture ads. Someone once told me that video ads perform better than picture ads when dealing with cold traffic.
What do you guys think?
Thanks
I'm selling a gold necklace with a message card in the box. I'm using picture ads. I'm using Gearbubble as my print on demand supplier because they also take care of the customer service.
One of the drawbacks of, say, using ShineOn with Shopify is that you have to take care of the customer service yourself. It's not the end of the world, but it's one less headache to deal with.
I'm selling my necklace for $99.95. Normally, I don't sell products for this much. I'm doing this for multiple reasons. One of the reasons is perceived value. I believe gold necklaces have a high perceived value in the prospect's mind. I believe I can get away with charging more money for it and thus having a higher profit margin.. Another reason is due to the average cost per sale from my other campaigns. I've discovered that it's not uncommon to have a cost per sale in the $60-$70 range while the Facebook algorithm is still in the learning phase. To leave the learning phase, I need 50 sales in 7 days. 50x$60 means I would have to spend $3000 in 7 days. Numerous IM gurus I've listened to say that it's common to lose money during the testing phase, while I collect data. If I charge $99.95 and my breakeven is $80, I can potentially make a profit starting on day 1 of the campaign.
One youtuber I've been watching lately is Anthony Eclipse. He specializes in TikTok ads, but his strategy can be applied Facebook ads as well.
He recommends spending $50 on a CBO campaign (known as an Advantage campaign on Facebook). I'm doing a CBO campaign, not an ABO campaign.
He claims that it's possible to get at least 1 sale after spending only $50.
I created 3 adsets with 3 different interests targeting. Each adset has 2 ads. I split test everything. The interest for ad set 1 is Engaged Shopper, the interest for ad set 2 is Online Shopping, and the interest for adset 3 is no interest.
I launched my campaign at midnight 2 days ago, and got the results back within 1 day.
Ad set 1: Amount spent: $18.12. 10 link clicks. CTR 1.43%. CPC $1.81. 3 landing page views. 1 add to cart, no purchase.
Ad set 2: Amount spent: $22.71. 11 link clicks, CTR 2.29%. CPC $2.06, 2 landing page views, no add to cart
Ad set 3: Amount spent $10.95, 5 link clicks, CTR 1.01%, CPC $2.19 1 landing page view, no add to cart.
In all, I spent $51.78 (slightly over $50).
Another youtuber told me that if an adset has a cpc above $1 and/or my CTR is below 1%, I should stop spending money on that adset. By that metric, this campaign was a failure because my cpc for all 3 adsets was above $1.
According to PPC Coach, a successful campaign during the beginning of the test phase should see 3 sales (or more) after spending $100. 2 sales, it's iffy, 1 sale it's a failure. He talks about this in this Father's Day Mug Case Study, where he sells a mug for $20.
But if I can get 1 sale after spending $50, and my breakeven is $80, I just made $30 profit.
I also learned that if an adset gets at least 1 add to cart after spending 1/2 the breakeven, I should continue to spend the breakeven amount to see if I can get a sale. If I get a sale before I spend breakeven, I keep spending money on the adset (until it's no longer profitable to do so).
I'm using picture ads. Someone once told me that video ads perform better than picture ads when dealing with cold traffic.
What do you guys think?
Thanks
