Should We Run FB Ads As a New Shopify Store?
Now that you finally launched your brand new Shopify store, you are gung ho and ready to make some sales! Not going as smoothly as you think it should? We hear this all the time. Let’s dig in and find out what metrics play a major role in any online site’s marketing success.
Since you have a new site, allow us to reiterate how much of a TEST running Facebook ads out the gate would be. If our agency works with a new website, we always ensure that businesses fully understand this. Let’s go through a couple important things to keep in mind.
First, with Facebook ads, the return is heavily dependent on two things: the website conversion rate and the average order value. Facebook ads are meant to amplify an already working foundation, but it unfortunately is not what makes the sale (the site does). It’s important that you make sure that you don't start running a new FB ads campaign expecting that alone to be the "fix," if you will. Obviously the Facebook ads need to be working well on-Facebook to produce a good ROAS, but if the website metrics aren't ideal, then the ROAS simply won't be there.
Here are some general site metric correlations to keep in mind when running FB ads. If the conversion rate on the site is on the lower side, then the AOV must be high. And conversely, if the AOV is low, then the conversion rate must be high. Additionally, if we don't yet have the site data on those metrics with enough traffic, then it is really challenging to know whether or not we'll get a good ROAS because we won't know if the site foundation is optimal yet. If our metrics on Facebook are awesome but the website metrics end up being just so-so, then it'll be challenging if not impossible to get a good return, or ROAS (return on ad spend). This can be challenging financially for a lot of businesses, particularly when just getting started. Take a look at this helpful graphic we created to show where you need to be to get the highest ROAS possible:
With all that said, it's important for any new store owner to consider the investment, time commitment and risk involved when you're running FB ads to a brand new website. With a minimum ad spend at $2k per month, plus our ad management fees starting at $2.5k per month, it comes out to a $4.5k per month investment for 3 months ($13,500 total across those 3 months of running the ads). We do this math to show you that you want to make sure your site is in a good place before diving into FB ads with an expert agency. The 3 month time frame is standard for testing and optimizing a brand new Facebook ads funnel.
After starting the ads, ideally we'd love to reach a minimum 2+ ROAS (meaning you'll 2x your money invested on FB) soon after starting, but that doesn't always happen immediately with a "yet-to-be-cracked" Facebook ads funnel. It's best to expect it to take the ~3 months to reach ideal ad campaign metrics, but even then it's not guaranteed; particularly when we don't quite yet know the true site metrics.
Launching a Facebook ad campaign for your new store can seem like a big investment, but once you've solidified your site metrics, your FB ads will be one of the most powerful tools for your Shopify marketing strategy. It all starts with mastering your website metrics. Make sure your site is performing well in order to get the BEST return from your Facebook advertising campaign.