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How To Reduce Costs With Advertising | Shopify Dropshipping Tutorial

Published on: December 6 2022 by Shri Kanase

How To Reduce Costs With Advertising | Shopify Dropshipping Tutorial

How To Reduce Costs With Advertising | Shopify Dropshipping Tutorial

yo what is going on everybody shri
kanasa here so how to reduce
costs when it comes to advertising now
one of the biggest things
a lot of people that do ecommerce want
is lower advertising cost
with higher number of sales and of
course that is literally a dream for
everybody that does online business
including me but how easy is it to
actually get those lower costs
when advertising how easy is it to
continue scaling while your cost for
advertising is going down because
it is definitely possible if you do it
correctly to have a lower cost
when it comes to advertising while
increasing your sales with your
ecommerce store now if you have been
following me for a while you'll know
that i released a video on my channel
where
i went over how i was doing roughly ten
thousand dollars
per day in the year of 2020 towards the
early portion and during that time
when i was doing ten thousand dollars in
sales i was mostly using
google ads for that store and i was
spending only roughly 500
to a thousand dollars to do ten thousand
dollars in sale so
it is definitely possible in my own
experience to have lower cost when
advertising
this video is going to go step by step
on exactly how you personally
can do it but without wasting any more
time let's just jump right into it
the first thing you'll have to do in
order to actually get those costs to go
down
is to destroy that like button until it
turns blue i promise it's gonna take
just two quick seconds
okay hopefully i've done that but let's
start by toking about what the
advertising cost is even determined by
and this is one thing a lot of people
don't even know believe it or not it's
extremely important to know what your
cost is determined by
in order to kind of deal with it and
find a way to lower that cause because
if you don't really know what's even
going on behind the scenes
you're basically just throwing your
money up in the air and then watching it
come crashing down because that's what
happens
when you just let the system do its
thing so here are a few things you'll
have to know regarding what determines
the actual cost
of the ad so the number one thing is the
number of competitors
on that advertising channel let's face
it if there's a lot of people competing
against each other
regardless of where it is the cost is
automatikally going to go up especially
if they're competing for one
same thing and that is exactly what
happens when it comes to advertising in
general and it doesn't really matter
what advertising platform you use if the
platform you're using or if the interest
that you're targeting on that platform
have a lot of competitors for that the
people that are competing for that
interest or
in that platform are going to compete
against each other
what usually happens is that they start
bidding against each other so if one guy
bids 50 cents the next one will bid 60
cents and so forth and this just
continues to go
on and on it kind of starts to stack one
on top of the other and this causes the
overall
cpc for everybody using that platform to
increase so the number one thing that
really definitely um
impacts your cost when it comes to
advertising is the number of competitors
in general number two thing
is the cpms now a lot of people just
throw this word out there saying the
cpms went up or cpm's went down
but they don't really even explain what
cpm is so so cpm is actually known as
the cost per
thousand impressions and that basically
means that that is the cost that you are
charged for reaching up to a thousand
people now this doesn't mean that they
clicked on the ad but this just means
that the ad was actually shown to them
each advertising platform each interest
that you target
is gonna have a different cpm again
that's gonna be impacted by some of the
other things which i'm about to mention
but again number one thing is the number
of competitors so
cpm is directly impacted by how many
people are trying to reach those same
exact thousand people
but overall this number definitely
impacts the total cost
of your ads in addition the third thing
that impacts your cost
is the advertising page quality now what
do i mean by this exactly
if you're targeting a page which is
higher quality with a lot more
quality audience which actually
interacts with the ads and actually buys
something
of course the advertising platform will
charge you more for that it doesn't
matter
if you're using an instagram influencer
if you're using a facebook page
you could be using whatever you want if
the page quality of that page is very
high
you can be expecting to pay a bit higher
for that page normally
not something that is really bad if
you're getting a good return on ad spend
for targeting that page however this is
not always the case and we'll be toking
about more
regarding this later on in this video
but the fourth thing is the quality of
your own website and your own products
why that is simply because the ctr is
going to be influenced by the quality of
your website
and the quality of your products
including your ad so if you're using
facebook ads
the first impression people have is that
of the image ad or the video ad which
you have
for that product if your image ad or
video ad is not up to par
for the audience if they're not really
interacting with it these advertising
platforms are automatikally going to
determine
your page and your product as a low
quality product
especially if you're using google and in
that case your listing is going to start
heading more towards the bottom your
advertising cost
is going to increase over time so this
is another thing that definitely impacts
your cost
and this all comes down to the overall
ctr of the product and your ads but just
knowing
what impacts the advertising cost is not
enough because now you need to know how
to deal with it let's start off by
toking about people's
most popular platform and that is
facebook ads
how can you be battling these raising
costs when it comes to facebook there
are several things
you can do when it comes to facebook
guys the number one thing is if you're
using
image ads for facebook you may want to
try switching from those image ads to
video ads
normally if you follow me again you know
that i definitely recommend using image
ads
over video ads simply because not a lot
of advertisers do that we want to always
find a way
to stand out of the crowd and using
image ads is the best way to do that
but this is not always going to be the
case because with an image ad you may
notike that your cost is actually higher
than what it would be with video ads and
that simply because
with a video people often spend more
time looking at it
interacting with it etc that leads to a
lower cost overall so if you do notike
an increased cost when it comes to using
image ads you may definitely want to try
changing from that image ad into maybe a
video ad but in addition
you want to be trying different video
ads all the time because just using one
video ad all the time it's not going to
work you'll often notike that the cost
starts to go up
with that video you want to find a video
which leads to a higher number of
percentage viewed you can be looking at
the 75 percent
viewed or 95 viewed at columns to
determine this
but those two columns are extremely
important when it comes to judging your
ads the higher that number
the better it is and the lower your cost
is going to be when it comes to facebook
but just the ad is not enough you need
to be focusing
on your interest as well so what do you
do with the interest
number one thing i recommend is
narrowing down your interest maybe from
a very very broad
interest with a large variety of
audience to maybe something more narrow
so if you're trying to sell a bike on
facebook ads
you may want you may want to target the
main interest bike but then your bike is
a special bike designed only for kids
then you may want to narrow that
interest down from bike to kid's bike as
well and whoever's at the top funnel
of bike will not be narrowed down into
kid's bike and the main reason why we do
this is because we want to kind of
narrow down on our audience make it
easier for facebook to find the right
people for us because if you make it too
broad
your costs may be low in the beginning
but you may not end up getting any sales
compared to if you just narrow down from
the beginning have maybe a little bit of
higher cpc
cpms etc but in the end actually get
sales and in the end
sales determine everything and they
determine how much we can be spending so
your number one metric that you should
be looking at is this cost per purchase
and narrowing down definitely helps with
that the second thing you can do is test
different interests which are more
closely related to the product so
instead of just
targeting the interest bike at the top
you may want to just grab that all
together and just target
one ad set to the interest kids bike
that's just going to help you get closer
to the interest that you actually want
to target and the audience that you want
to reach
this can definitely lower your cost
especially if you follow the number one
thing
which i mentioned which is switching
from image ads to video ads and whatever
video you use
using multiple different variations
making sure that video
is right for that audience but the third
thing you can do with facebook is target
different countries
normally targeting just the us is not
the right way to go
simply because with us there is a large
amount of audience everybody and their
dog wants to target the us
instead you may want to try targeting
the top five countries or
major e-packet countries if that is
where you provide
service to of course the number one
thing is that you are able to actually
ship to those countries so if you're not
able to ship
don't just target them to lower your
overall cost because it will lower it
but you might end up getting sales from
those other countries which you don't
ship to
that is definitely one thing you can do
to lower the overall cost but these are
most of the things
for facebook but this brings me to my
last point with facebook
and that is simply using bitcaps now
with the facebook ads when you're
creating an ad set
you'll notike that it lets you actually
set a bid cap and let you choose the bid
that you don't want to spend more on per
click and this normally i do not do but
this is another
option for you if you're looking to
really lower your cost
especially with a product which is
already a winning product for you and
you're just trying to find different
ways
to lower that cost simply set a bid cap
try out different bids for the cpc and
see
how that goes but these four things if
you do one after the other and if you
combine all of these
we'll definitely let you lower your cost
when it comes to facebook and
these things can also be applied to
other advertising platforms
similar to facebook like twitter
pinterest tiktok etc
but moving on to google eyes now with
the google ads it's a completely
different
game simply because google runs on
different metrics compared to facebook
with
google you have to be focusing on things
like the images the search engine
optimization
relevance of your products etc and some
of these things do also apply to
facebook but overall
it is sort of a different strategy
number one thing you want to be doing
if you're trying to lower those costs is
to have higher quality images especially
the first image
which everybody sees on your ads or also
the variant images because
with higher quality images what you're
going to notike is that you're going to
get an overall increased
ctr for those ads and for those products
when you have an increased ctr your cpc
is going to go down and in my own
experience
i've notiked that every time my ctr has
gone up while my cpc has gone down
my cost per purchase has lowered and my
roast has increased and that is one of
the biggest things you can do in order
to increase your overall profitability
for your store but in addition you want
to be making sure that you're doing
proper search engine optimization
for your titles and product descriptions
and the product images without
proper seo tikniques you will now be
able to achieve the results that you
want
with google because these words that you
use which are search engine optimized
are basically interests that you're
giving to google to go
target with google shopping ads
generally you will notike that you're
not able to put any interest directly
like you would with facebook to target
and these search engine optimized
words are the words which acts as
interest so that is why
you want to always be focusing on proper
seo tikniques when it comes to
selling on google ads but this brings me
to the third point which is simply
increasing the selling cost of your
products now this is going to lower the
overall cost of your advertising because
you're going to be making more sales
with the same amount of advertising
spend
so overall that is going to be similar
to just lowering your advertising spend
in general and what i've personally
notiked with google ads is that it takes
the same amount of effort maybe
sometimes even the same amount of
ad spend to get sales with a high tiket
product compared to a low tiket product
and that is definitely a benefit when it
comes to google it so you want to be
putting in the work trying to
make sure that you find those high
tiket products i've made tons of videos
on this
on my channel which you can check out
i'll leave the link for that google ads
playlist
in the description below but this brings
me to the fourth point and that is
relevance now with facebook you also
need to be relevant making sure your
interests are relevant to your products
with google it's a little bit different
you want to make sure that the search
engine optimized keywords
are relevant to your product meaning if
you're trying to sell a cat necklace
make sure you don't mention the keyword
dog necklace anywhere in your
description because then
google is going to mark that as a search
engine optimized keyword
it's going to try and rank you for that
keyword which you obviously
don't want because it is not relevant to
what you're trying to sell so make sure
that your search engine optimized
keywords are relevant to what you're
selling and your images and everything
also matches along with that but
that brings me to my last point and that
is simply give more control to google if
you want to lower your
overall cost you can do that by simply
starting a smart shopping campaign
i normally recommend this after having
50 to 100 sales
with a google shopping campaign in
general if you don't have that
do not start a smart shopping camp in
because smart shopping campus are very
smart but they need data
to work and the reason why they're so
smart is because once you have enough
data once you have enough
conversion history google then starts
going out and doing its own tricks
and trying to find new sales at a lower
cost overall so
you won't be setting any types of bids
you won't be having much control over
the campaign
that is simply because google is now
taking things in its own control
and trying to minimize the cost
completely in my experience
smart shopping campaigns have worked
wonders but they do definitely require a
lot of patience
and time but this is exactly how you
reduce costs when it comes to the two
main advertising platforms
you can of course apply these same
strategies on other advertising
platforms as well but if you find any
type of value in this video
smash that like button and smash that
subscribe button and i'll see you guys
next time