Facebook Ads MUST KNOWS In 2022 To Be Profitable | Shopify Dropshipping

Facebook Ads MUST KNOWS In 2022 To Be Profitable | Shopify Dropshipping

Hey everyone, welcome back to the channel! Today, we'll be discussing the must-knows for Facebook ads in 2020 and beyond. As an ecommerce and dropshipping expert, I've been using Facebook ads for two and a half years now and have learned the ins and outs of the platform. Knowing your KPIs is crucial for success with Facebook ads, as it allows you to make informed decisions about your advertising budget. In this video, we'll be covering the different KPIs and what to look for, including impressions, CPM, frequency, CTR, CPC, checkouts, cost per checkout, return on ad spend, and break-even point. It's important to understand these metrics to efficiently and effectively scale your ad campaigns.

To start, impressions refer to the total number of times your ad was shown to people, while CPM is the average cost to show your ad a thousand times. A good CPM is around $10-$20, with anything over $25 being relatively high. Click-through rate, or CTR, measures the percentage of people who saw your ad and clicked through to your sales page. A good CTR when cold testing is around 1-2%, and should increase as you narrow down your audience. Cost per click (CPC) measures the average cost of each click from your ad to your website, and should ideally be under $2.50, with numbers below $1.50 being even better.

Checkouts refer to the number of people who converted to customers through your ad, while active cart measures the number of people who added products to their cart. Cost per checkout (CPP) and cost per purchase (CPP) measure how much it costs to acquire each individual customer, with the goal being to lower this number over time. Return on ad spend (ROAS) calculates the total website conversion value divided by your ad spend, with a good ROAS being around 100.

Finally, break-even point is the point at which your ad pays for itself, and can be calculated by dividing the cost of the ad by your profit margin. To determine your break-even point, you'll need to know the number of customers and inquiries needed to reach that dollar amount, and should ideally be factored into your ad budget to ensure profitability.

In summary, knowing your KPIs is vital for success with Facebook ads, and understanding these metrics will allow you to make informed decisions about your advertising budget. By analyzing and optimizing your ad campaigns based on these metrics, you can efficiently and effectively scale your online dropshipping store. Thanks for tuning in, and don't forget to like and subscribe for more content!