A specific issue for campaigns based on Dropshipping is scaling. It also implies that, with the right strategy, the company may realize its full potential in terms of sales and popularity. This is a thorough article on how to add Meta advertisements to your dropshipping and e-commerce store.
Levels of FB Ads
1. Campaign
The first step is to tell Facebook why you are running this campaign. Choose the desired objective, which in this case would be Sales (Conversions).
2. Ad Set
Next, define your target audience. Choose broader interests rather than various small interests for better performance. Set a nominal budget—not too much, not too little.
3. Ad
Finally, decide what you want to show in your ad. Write a compelling ad copy or caption and select the ad creative. Keep the ad copy short and simple, and include persuasive elements like “ORDER HERE,” “LIMITED STOCK,” “LIMITED TIME OFFER,” or “LIMITED EDITION.”
When to STOP & SCALE the Campaigns?
3-Day CAP Rule
This rule applies at the ad set level:
- Day 1: Check if your ad set brings clicks at a moderate rate.
- Day 2: Monitor for any Add to Cart events.
- Day 3: Look for Purchases.
f the criteria are not met, pause the ad set instantly. If you get a purchase, wait for three days and monitor the progress. If purchases are consistent, scale up the budget. If the pattern breaks, restart the CAP rule.
Here’s a detailed breakdown of the CAP rule applied across various scenarios:
| Day 1 | Day 2 | Day 3 | Day 4 | Day 5 | Day 6 | Day 7 | ||
| Example1 | C | A | P | P | P | Scale | Scaling | Wherever the pattern breaks, apply CAP from the beginning. |
| Example2 | C | A | P | Non P | APPLY CAP Day 1 | |||
| Example3 | C | C | Stop | |||||
| Example4 | No C | Stop | ||||||
| Example5 | C | No A | Stop | |||||
| Example6 | P | No P | APPLY CAP Day 1 | |||||
| Example7 | P | P | P | Scale | ||||
| Example8 | C | P | P | No P | APPLY CAP Day 1 | |||
| Example9 | A | A | No P | Stop | ||||
| Example10 | A | A | P | P | P | Scale | ||
| Example11 | A | A | P | No P | APPLY CAP Day 1 | |||
| Example12 | C | P | P | No P | APPLY CAP Day 1 | |||
| Example13 | C | A | A | Stop | ||||
| Example14 | P | C | APPLY CAP Day 1 |
Types of Scaling
1. Vertical Scaling
Increase the budget to scale.
2. Horizontal Scaling
Expand the location, targeting audience, platforms, placements, etc.
Following these guidelines, you can effectively scale your dropshipping campaigns on Facebook and Instagram, ensuring maximum reach and conversions while optimizing your ad spend.
Meta Ads Scaling Strategies
1. Safe Scaling
Increase the budget by 20% daily for the ad set. Wait 24 hours to observe if this increase has a positive effect. If the increase is beneficial, adjust the budget upwards again.You shouldn’t alter the budget if you are losing money. However, if you are experiencing a loss, reduce the budget by 20%.
When to Apply This? Apply this if you have newly launched the campaigns and have no prior data to make recommendations.
2. Aggressive Scaling
Double the budget and let it run for 24 hours. If it proves to be profitable, double the budget again after monitoring the results for another 24 hours. If the campaign is at break-even, continue with the current budget. However, if it shows a loss, reduce the budget by 50%.
When to Apply This? Use this if the ROAS is more than usual (more than 3.5% or 4%).
3. Balanced Scaling
Duplicate the best-performing ad set. Do not change the budget. Replace the interests with a broader audience. If it works, continue using this approach. If it does not work, keep testing new interests.
When to Apply This? If your ad set is performing better than average but not so well, you should make adjustments. Also, if you are an experienced marketer running a new campaign, it’s important to evaluate your ad set’s performance thoroughly.
Important Factors for Scaling
1. Understand PMF
A product’s ability to meet a significant market need is known as its product-market fit, or PMF. PMF is often cited as 90% of the magic behind successful advertising campaigns. No matter how sophisticated your ad strategy is or how well-executed your campaign is, if the product you’re promoting doesn’t meet a genuine demand in the market, it will be challenging. In fact, achieving scale and long-term success might be unachievable.
How to Identify and Achieve PMF:
- Analyze your market effectively to find out what the consumers require, what they want, and what they dislike.
- Regard your customers’ feedback as valuable and always look for it, as well as consider its analysis.
- Carefully test several iterations of the product and/or marketing messaging to accurately determine what appeals to the majority of your target audience.
- Analyze the competition to find out what products are popular and what makes them so.
2. CBO
Campaign Budget Optimization (CBO) is a Meta advertising strategy that allows advertisers to set a single campaign-level budget, and Meta will optimize delivery across all ad sets within that campaign.
When to Use CBO to Scale Campaigns:
- When Testing Multiple Audiences or Creatives: If you have several ad sets targeting different audiences or using different creatives, CBO can help by allocating more budget to the best-performing combinations.
- For Scaling Successful Campaigns: Once you have identified a successful campaign through testing, using CBO can help scale the campaign by automatically optimizing budget allocation to maximize performance.
- For Campaigns with a Clear Objective: CBO works best when you have a clear campaign objective, such as conversions or lead generation, where the algorithm can focus on maximizing results.
3. Role of Frequency
- Frequency < 2: No ad fatigue; you can scale up the budget.
- Frequency = 2 – 4: The budget can be increased, but CPR would be high.
- Frequency > 4: Cost would be too high, and results would decline.
In the first case, use Vertical Scaling. In the latter two cases, horizontal scaling was applied.
How to Analyze the Ads?
Age Group Analysis
Find out which age groups deliver more results, clicks, and, hence, lower costs per each of the metrics. Utilize these concepts for changing targeting and budgeting, namely to operate at peaks of effectiveness.
Placement Performance
If you are running conversion ads, assess the performance of individual ads with regards to the placement. Maximise by focusing on those placements from where the best outcomes can be obtained and correct the bids.
Platform Comparison
Examine the results on several platforms, such as Audience Network, Facebook, and Instagram. Spend money on the platforms that offer the best return on investment for your particular objectives.
Device Insights
Analyze performance across devices (desktop, mobile, tablet) to optimize bids and tailor creatives that resonate best with users on each device type.
Time-Based Analysis
Analyse the optimal times of day and week for advertisements to perform. Schedule campaigns to run during peak engagement periods to maximize impact.
Ad Format Effectiveness
Test and compare various ad formats (image, video, carousel) to determine which drives higher engagement and conversions among your target audience.
Audience Overlap
Identify overlap between different audience segments to avoid competing with yourself. Optimize targeting to ensure efficient ad delivery to distinct user groups.
Geographic Performance
Evaluate how ads perform in different regions or countries. Adjust targeting or messaging based on regional preferences or market conditions.
Creative Testing
To maximize ad performance and raise target audience engagement, A/B test creative components such as headlines, images, and calls to action.
ROI Analysis
Measure the lifetime value (LTV) of customers acquired through Meta ads. Bids should be optimized in regard to fresh, intriguing offers.
