From its origins as a digital yearbook for Ivy League students in 2004, Facebook has indeed come a long way.
For instance, nobody could have envisioned that nearly 20 years later, it would supplant TV as an advertising platform for a fraction of a cost.
From the exclusive enclaves of Harvard–and later Yale and Stanford–today’s Facebook users are estimated to be nearly three billion from all corners of the globe.
Now, businesses may think that the primary purpose of creating a Facebook pages is to get as many likes or follows as possible. So, their marketing strategy is designed to achieving this goal.
After that, they no longer have any idea of how to get their followers to take the next step toward dipping into their pockets for their wallets.
The fact is that more than 9 in 10 of your visitors have no intention of buying. It is now up to you to convince them otherwise.
Sure, it is nice to see the number of followers tick up, and you may enjoy bragging rights over their competitors. But your social standing will not impact your profits in the long run unless you do something.
And that is where Facebook Retargeting ads comes in.
When you are personally managing your Facebook advertising/Facebook retargeting ad, you may have an idea of who your customers are based on their profiles. But do you know the reason why they visited your website or Facebook page?
You might say because they are paying customers.
How much are you betting that your assumption is correct? Are you willing to wager your company’s fate? Scratch that. You do not need to make that bet because it is essentially what you are doing anyway.
Make sure that the data supports your assumption if you are going to mortgage your future.
How can you convert them into loyal customers rather than one-time customers?
Facebook retargeting ads is an invaluable tool that will help identify the people who visited your website and then study their data to spot patterns and intent.
You can then use this data to create compelling ads to make them revisit your site and make a purchase.
Facebook Retargeting ads can help your company in a myriad of ways.
The first step is preparing a list of the prospects you want to target.
Creating the list is quite easy because there are multiple tools you can use, such as analytics, visitor profiles on your website, or your brick-and-mortar store. You can also gather data through your customer relationship management software.
You can prepare your customer list in the following formats before you can upload them on Facebook:
Your custom audience may also be identified by the country/city/state/provide where they are based. The Zip Code may also be entered as an identifier, along with the birth date and gender.
You can launch your Facebook ad campaign using the Facebook Ads Manager tool.
But first, you need to install the Facebook pixel. It is a small modification to your code, which is a powerful tool to track users and their online behavior after interacting with your brand.
Once they click on your ad, added an item to their cart, or visited your website, you ensnare the customer in your web of omnipresence.
Even if they leave, you can follow the cookie crumbs to easily track them across the Internet.
Everywhere they go, they will be reminded of you, like the one that got away, or perhaps an itch on their back that they could not reach to scratch.
Installing the Facebook pixel is quite straightforward. Before anything else, you need the following elements:
A. Creating a Facebook pixel
B. Add the Pixel
The next step is to add the pixel code into your website’s source code. You can choose to do it manually, use a partner integration, or email the instructions to your website administrator or engineer.
Generally, you only need one pixel across multiple business sites.
But there are times when you need to add multiple pixels, like when there are two separate ads on your website. The marketing agencies may decide to run separate pixels for their dynamic ads.
1. Head on to Ad Creation to create your dynamic ad. Make sure to select the audience who already interacted with your services and products on Facebook or other platforms. You can then retarget them first.
2. Next is to select your retargeting option. There are multiple ways to do this.
3. There is an option to identify the number of days where the last audience activity was recorded. Enter your answer.
4. Show Advanced Options if you want to include Lookalike Audiences in your Custom Audience targeting. Lookalike Audience refers to that underserved segment of potential buyers who share similar intent and goals with your existing customers.
The catalog is necessary to create your Dynamic Ads.
The catalog is a repository of all your products that you want to advertise on the platform. Facebook retargeting ads recommends creating a single catalog rather than different inventories to minimize confusion.
If you already have an eCommerce website from Shopify, you can integrate it seamlessly into your ad campaign. If not, you will have to create your business Catalog.
You click on Commerce Manager to get started.
With retargeting campaigns, you can tailor your ad according to the specifications of the customer.
For instance, you can target prospects who visited your website or competitor sites as they browse for products that interested them.
The question is, why did they not convert?
You can then tweak your ad to address the pain points of the customer, making them more likely to buy.
Using Facebook Retargeting ads, you can increase site visits by over 700%!
The first stage is to get them to click on your ad because the same data revealed that the customers are 26% more likely to make a purchase when they do.
After defining the parameters of your Custom Audience, you can then begin to launch your facebook retargeting campaign.
Go back to your main business profile page, and move your cursor to the top-right of your screen to select “Create an Ad.”
Simply follow Facebook’s instructions on how to start your campaign, including your budget, your audience, the frequency of your ad, and the schedule to display your ad.
You also need to outline your marketing objective to give Facebook an idea of your business goals. In this way, it can further hone on the types of customers you want to target.
For instance, eCommerce sites are for-profit organizations. Facebook will target the audience not only for their buying capacity but whether or not they are likely to engage with your business.
As you can see from the options, some websites are not interested solely in profits. They may want to expand their brand reach, generate leads, increase engagement, and website traffic.
Facebook is an affordable platform for marketers to display their dynamic ads.
You can already advertise for as little as $1.00 a day. In fact, it is recommended that you first low-ball Facebook, especially during the early stages.
The idea is to run analytics to determine which among your ads yield the most ROI. You can then rationalize your future budgets.
For instance, you can optimize your poorly performing ads or abandoning them together to focus on your more successful facebook campaigns.
You need to remember the three primary factors for how Facebook will present your ads to your target/custom audiences:
There is a reason why Facebook created the Lowest Cost option, and it is ideal for:
The Lowest Cost It is not the best determinant of the cost per action (CPA) rate, although Facebook claims that it will try to bring you the cheapest cost results.
The final cost will hinge on the bidding activity. The stiffer the competition, the higher the rates.
When launching your Facebook retargeting campaigns, make sure to create different types of content.
The idea is to test your ad using trial and error.
Different ads may have different outcomes depending on conditions, target/custom audiences, and frequency.
You can even take the shotgun approach. Launch simultaneous ads at once and see which one sticks. Analytics will give you a good glimpse of where you are successful and which areas you went wrong.
It is better to target your top prospects and customers first rather than deploy your ad to all your customers. You can get better results this way as your data will have less noise.
Facebook Retargeting ads is a novel way to advertise to your prospects without being too creepy about it. It is also a more affordable way to get the word out about your brand and direct your prospects to your sales funnel.
More importantly, do not forget A/B testing on all your Facebook ads to reduce guesswork in your future marketing campaigns.
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By strategically combining Performance Max and high-intent Search campaigns, we not only increased lead volume but improved overall efficiency and ROI. This rapid and measurable improvement underscores the value of data-driven optimization and expert campaign management.
This case study is a testament to what can happen when a well-structured campaign meets expert strategy and continuous optimization. Whether you're launching a new property or looking to boost occupancy in a competitive market, PPC.co delivers real results—fast.
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If you’re running an e-commerce or retail business, you already know that visibility is everything. The best product in the world won’t sell if no one sees it. That’s where paid ads for ecommerce comes in.
Done right, they drive traffic, conversions, and repeat customers.
Done wrong, they drain your budget and leave you wondering what went wrong.
Whether you’re spending $500 a month or $50,000, your goal is the same: profitability. Not just clicks, and certainly not just impressions. You want to turn ad dollars into real, predictable revenue.
So how do top-performing e-commerce and retail brands make their paid ads work?
What are they doing that you’re not?
This guide breaks it down step-by-step, so you can start running profitable ads with confidence.
Before you launch a single campaign, you need clarity on your audience and goals. Are you trying to boost first-time sales? Increase average order value? Each objective requires a different strategy and metrics for success.
Don’t fall into the trap of launching ads just to “see what happens.” Paid media works best when it’s part of a bigger strategy. So before you log in to Google Ads or Meta Ads Manager, get specific about what success looks like.
If you want to run profitable paid ads, knowing your numbers is the foundation of your entire strategy. Without a clear understanding of your margins, break-even points, and how much you can afford to spend to acquire a customer, you’re essentially gambling with your ad budget.
And in e-commerce, that can get expensive fast.
Let’s start with the most critical numbers you need to know:
Your break-even ROAS tells you the minimum return you need on your ad spend to not lose money. It’s calculated by dividing 1 by your gross profit margin.
So if your margin is 50 percent, your break-even ROAS is 2.0. That means for every $1 you spend on ads, you need to make $2 in sales just to break even.
For example, let’s say you’re running Facebook Ads and spending $1,000 on a campaign. If your break-even ROAS is 2.0, you need to generate at least $2,000 in revenue to avoid losing money. Anything above that is profit. Anything below that eats into your cash.
Once you know your numbers, you can reverse-engineer your ad strategy instead of throwing money into the void and hoping for results. For instance, if your AOV is low (say $25), you might struggle to profit from ads unless you have a very low COGS or high conversion rates. In that case, you might want to:
On the other hand, if your AOV is $150 and your margins are strong, you have more room to compete in ad auctions, bid more aggressively, and test multiple audiences and creatives without instantly wiping out your profit.
A lot of beginner advertisers focus entirely on immediate return from ads. That’s understandable – but short-sighted. If you’re breaking even or slightly losing on the first sale, that might still be a smart move if you’re building long-term customer relationships.
That’s where Customer Lifetime Value (LTV) comes in. If you know that your average customer places three orders a year, each worth $60, then their LTV is $180. If you spend $40 to acquire that customer with your first ad, but earn $140 more over the next 12 months, that ad was extremely profitable in the long run.
Top e-commerce brands build their paid strategies around LTV-to-CAC ratio – how much they earn over time compared to what they paid to acquire the customer.
A healthy ratio is usually 3:1 or higher. So if you’re spending $50 to acquire a customer, you want to earn at least $150 from that customer over time.
Once you understand your numbers, you can plan your ad spend with precision. You’ll know exactly:
Let’s say you want to make $5,000 in profit this month, and your product has a 50 percent gross margin. That means you need $10,000 in sales. If your target ROAS is 2.5, you can spend up to $4,000 in ad spend to hit that goal. With those numbers in hand, you now have a roadmap for campaign budgeting, not just a shot in the dark.
Every ad platform has strengths. But if you try to use them all at once, you’ll burn through your budget without learning much. Instead, pick one or two that align best with your business model and customer behavior.
If you’re selling visually appealing products like apparel, skincare, or home goods, platforms like Instagram and TikTok can deliver strong returns – especially with the right creative. If you’re focused on high-intent buyers, Google Search and Shopping Ads are goldmines. And if you’re targeting professionals or B2B retail buyers, LinkedIn may offer surprising results.
Test channels strategically. Start with the one that matches where your customers spend their time and scale from there. The best platform for you is the one where your ideal customers are already shopping, scrolling, or searching.
One of the biggest mistakes retailers make is casting too wide a net. You don’t want everyone to see your ad – you want the right people to see it.
On Google, this means targeting high-intent keywords that signal buying behavior. Focus on terms like “buy,” “best,” “free shipping,” or product-specific searches. On Facebook, Instagram, or TikTok, you’ll want to dial in your custom audiences using demographic data, lookalikes, interests, and behavior.
Don’t forget retargeting. Most people won’t buy the first time they visit your site, but retargeting brings them back when they’re ready. Set up ads that follow people who viewed a product, added to cart, or engaged with your brand but didn’t check out.
The more relevant your targeting, the more efficient your spend and the higher your return.
Creative is the make-or-break factor in most e-commerce ad campaigns. You can have perfect targeting and the right product, but if your ad doesn’t grab attention in the first two seconds, it won’t convert.
Your creative needs to do three things quickly:
Use high-quality product photos or videos. Show your product in action. Highlight a clear benefit or solve a specific problem. Incorporate customer reviews or user-generated content to build trust.
For paid social, test multiple creatives at once – video vs. image, UGC vs. branded, short-form vs. long-form – and let performance data guide your iterations. On search platforms like Google, focus on copy that’s compelling and packed with relevant keywords. Test different headlines and descriptions to see what gets the best click-through rate.
Sending paid traffic to your homepage is a rookie mistake. You want every click to land on a page that’s designed to convert. That means fast load times, mobile optimization, and a clear call-to-action.
If you’re promoting a specific product, send users to that product page and not your full catalog. If you’re offering a bundle or a seasonal deal, create a dedicated landing page with copy, visuals, and layout tailored to that offer.
Remove distractions. Reduce friction. Make it stupid-easy for people to buy. The less effort it takes, the more sales you’ll see. And don’t forget to A/B test. Sometimes a simple tweak to your headline or CTA can double your conversion rate overnight.
Once your ads are live, your job isn’t done. In fact, this is where it really begins. You need to monitor performance regularly, looking at more than just the surface-level metrics.
Click-through rate (CTR) tells you how well your ad is capturing attention. Conversion rate shows how well your landing page is sealing the deal. ROAS tells you how profitable your campaign is. And CPA helps you compare efficiency across different products or audiences.
Watch for early indicators of success – or failure.
Treat your campaigns like living systems. Tweak, test, and improve them continuously.
Once you find a winning combination – an ad, offer, and audience that works – it’s time to scale. Increase your budget gradually while keeping an eye on performance. Scaling too fast can tank your results, so go step by step.
Duplicate high-performing campaigns to test new audiences or creatives. Experiment with upsells, bundles, or time-limited offers to increase AOV. Layer in email or SMS marketing to retarget paid traffic and drive repeat sales.
And just as importantly, don’t be afraid to kill underperforming ads. If something isn’t working after a reasonable test period, cut it. Your budget should be flowing to what works – not what you hope will work.
One of the biggest mistakes in paid advertising is chasing one-off sales without thinking about the bigger picture. Winning e-commerce brands think in terms of customer lifetime value.
If your first sale breaks even, that’s fine. (As long as you have a plan to turn that customer into a repeat buyer. ) You can use post-purchase emails, loyalty programs, and retargeting ads to bring people back.
At the end of the day, when you view paid ads as the beginning of a customer relationship – not the end – you unlock real long-term profitability. And at PPC.co, that’s where we want to help you! We offer industry-leading PPC management services for ecommerce and retail brands who want to stop wasting ad spend and start generating real ROI.
Contact us today to learn more!
