In this case study, I will show you a campaign that is working really well for me. This is a Facebook e-commerce campaign for a men’s fashion brand.
I want to show you how I was able to achieve 18.91 ROAS! (Return on Ad Spend) using on the cold audience (without retargeting) using Facebook Dynamic Product Ads
This is a new test that I did. This campaign can be used as an addon campaign to the Golden E-commerce Funnel explained in my last case study.
Following is the screenshot my Facebook ad manager. You can see that I am getting ROAS in the range of 17.51 to 21.20!
I will breakdown the process step-by-step
Step 1: In your campaign tab go to ‘create’ and select catalogue sales. You also need to select your product catalogue.
Step 2: Next you will select the product set of the catalogue. I had selected ‘All Products’ but I feel it is better to create a product set of best selling products here (Will explain why shortly)
The main change here is that you will select the option: “Show relevant products to prospective customers, even if they haven’t visited your website or app” and not “Retarget products to people who have visited your website or app.”( We this usually while retargeting
Next, you will add an audience of 1% lookalike of people who have purchased your product in the past
You will add a daily budget and rest everything you will keep as default: Automatic placement, bid strategy-lowest cost etc. Finally, you will create a regular carousal DPA ad.
So what exactly you have done till now?
With all this, you have asked Facebook to show your carousal ads and best-selling products to people who have indicated interest in buying that product even if they have never visited your website. You have also told Facebook to show your ad to people who are similar to your past buyers.
Facebook has a lot of user behavior data and based on this data Facebook can find people who are going to buy a product.
Say you are selling sports shoes Facebook will pick that product from your catalogue and show it to people who are similar to your past buyers and have indicated interest in buying sports shoes ( eg. browsing sports shoes on your competitor website/Amazon)
Now You Try It
This is how you can use the Facebook dynamic product ads and bring in new people to your e-commerce store and get very high ROAS. If you have any doubts or need any help contact me. Happy to help!
This method works because
- You make use of Facebook’s algorithm and allow it to show any of your product to the right set of people without restricting the targeting.
- You give more control to Facebook. Facebook is able to show your ads to people have high intent of buying your product
- You get high ROAS (in my case 18.91!) on cold traffic.
- This is highly scalable and you can keep on increasing the daily budgets till you are getting high ROAS.
Hope you can see the potential this strategy for your E-commerce business.
Yes, it takes some hard work and testing to get high ROAS but now you have a proven and tested method go and use it now.
Ready to get started?
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