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088: (Part 2) How To Drive More Ecommerce Sales With Facebook Advertising

Posted by Austin Brawner on August 26, 2015

If you’re not driving more ecommerce sales with Facebook advertising, then you’re missing out on one of the best “demand generation” systems available to your business.

Facebook advertising has been responsible for producing 2x, 3x, 4x even 10x returns on adspend for some of our clients…and if you’re not getting that with what you’re doing now, here’s how you can start.

The person responsible for helping some of our clients see those kinds of returns is Facebook advertising expert and friend, Andrew Foxwell.

Foxwell (we call him Foxy!) is one of the most revered Facebook marketers today. He has worked with 8 figure+ businesses, a U.S. Congressman, our clients, and even us.

This episode is part two in a 2-part series that will teach you how to drive more ecommerce sales with Facebook. Part one is an overview of Facebook advertising, what’s possible, and we lay the foundation to becoming successful. In part two we dig in a bit deeper and show you how to sell for results with facebook advertising.

Key Takeaways from the Show

  • How to structure Facebook advertising campaigns for success for your ecommerce store.
  • The targeting power of Facebook and how to best use it to your advantage
  • How to find the highest converting ad campaign in the shortest amount of time.
  • How to a create large, highly-qualified “Lookalike” audience that generates sales on demand.

Links / Resources

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Transcript

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This is Andrew Foxwell with Foxwell Digital, and you’re listening to the Ecommerce Influence podcast.

Transmitter: Welcome to Ecommerce Influence; where the best and brightest online business minds teach you how to grow your ecommerce company from one million dollars to 10 million-plus. To learn all of the strategies from past experts, download the episodes at ecommerceinfluence.com.

Hey there podcast listeners, welcome back to another episode of the Ecommerce Influence podcast. Today is part two in a two-part series where we are covering Facebook advertising for ecommerce, and how you can use it to get 2X, 3X, 4X, 5X and even up to 10X return with what you do on Facebook advertising. Now this is a two-part series and this is part two of that two-part series with Andrew Foxwell. He is the Facebook advertising master or wizard or whatever you want to call him. He is one of the best and in part one, he lays the foundation for part two. So in part one, he covers, you know, why you should be doing Facebook advertising, how people have succeeded with Facebook advertising and like I said, lays the foundation for part two here which is really selling for results on Facebook and know how to structure your adverting to make it the most efficient and of course, get your return on ad spend is high as possible. But if you haven’t listened to part one yet, make sure you go back and do that before listening to part two. In fact, just do that now and then you can come back to this. And the reason we are talking about this is because we know how powerful it is, and there was a quote that we read in the first episode and I don’t have it in front of me, but the gist is this: the people who want to save money on advertising, it’s like the person who is trying to stop the clock to save time. So really what we are trying to say here is, advertising is crucial to your business and Facebook advertising is one of the best places to go. So, we’re going to jump into that now, we already gave a quick background on Andrew Foxwell in the first episode, so we we’re not going to do it. We are going to jump right in. But before we do, we want to remind you that there is a guide that we put together to help you get started; it’s called Facebook Advertising for Ecommerce Quick Start Guide. Andrew helped us put it together, and outlines exactly how to get started with Facebook advertising, how to optimize what you are currently doing if you are already doing it. You can get that guide in one simple way and we’ve actually got seven guides that you’ll get at one time in addition to the one that we are giving you, which is pretty awesome. Plus, there’s some training videos you can use and you can get all of that by going to ecommerceinfluence.com/insider. So head over there now and get your Facebook Advertising Ecommerce Quick Start Guide. With that being said, let’s just jump right in.

Chad: Andrew, maybe if we could start off pretty broad like we always do, how does an ecommerce company new to Facebook advertising, successfully build Facebook ad campaigns to sell?

Andrew: Before you do anything else, you want to set expectations for yourself so we talked about that in the last episode being a big part of it by saying you know, “What do I hope to expect from this?” Then the next thing is you get together and I always tell people to define three to five interest groups that you want to go after in this. And what I mean by interest groups are, those are three to five customer segments that you want to talk to, that you may know that work and some of them you may want to experiment with. So, think about all of the attributes of those people; where do they eat, what do they shop for, what do they like on Facebook, who are they and do they have kids or not and that type of thing. So drawing up those consumer portraits kinds of is the next step and then getting together the way you want to talk to each of those groups. So, finding ad creative and ad copy and defining that, and putting together and packaging this or ads that you are going to show to them. So the things are saying if I could hand a flyer to this segment, what would it say and what would be on it? And so those are kind of the first steps of setting up for success is defining who you want to talk to, what you want to say to them, and then defining what your expectations are and then from that expectation relating your budget and saying, “Okay, I know what my expectations is that I have let’s say 1000 dollars to test on this” and so then you can kind of start to break down the daily budgets and then if you do it for a month, you just take that amount, divide it my 30 days and then you can know what you are willing to spend per day and go from there.

Chad: Awesome. Now, what about somebody who has some experience, who has gotten this far, or experienced some success because some of these people who are listening might have done some of these things already. Like what would you look to improve or optimize first if they are already at this point?

Andrew: So the first thing that I see that’s common in advertising campaigns is looking at the difference between mobile and desktop and looking at the kind of split between that, and then also looking at it as it relates to ages. So, in the advance reporting function of Facebook which many people don’t ever go in, and John [Unclear 0:05:29] has written quite a few articles about this but I can always help to talk through it as well, and there’s options in there that you can break down your advertisements based on where they are converting and where they are maybe seeing the impressions and then where they may be buying. So, it’s important to look at that breakdown right away because it’ll help you to see kind of the path that people are taking to purchase. A lot of times they’ll see advertising campaigns, people have targeted to the newsfeed of the desktop and the mobile devices, and the problem with that is that actually mobile, because there’s so much more inventory or where there’s more people on mobile will take almost all of your spend which is okay but desktop is generally sometimes more where people can buy. So you may want to split those two things up. Another one is looking at the ages and saying “Okay, looks like actually, I don’t need to be targeting people over 60 because they just don’t convert for me or people that are under 25, they just don’t buy or they are more expensive to show ads to.” So you can eliminate the outliers on that. So those are some of the initial things that I look at when I start looking at accounts. And then I also look at kind of the organization overall so I always tell people, if you run Facebook ads but you look at it and you are still confused, that’s a problem. So what are you going to do to organize it either via naming convention or understanding via the campaign and the asset structure and now we are getting into some very technical stuff; but those are some of the initial pieces of how are you going to organize it so that when you go into it, it makes sense so you know what you turn up and what to turn down or turn off.

Chad: Yeah, I mean, maybe if we could, I mean I remember that, I remember specifically when you started with us, I remember actually being overwhelmed by looking in our backend with all the random campaigns we tried and I said, “All right, it’s just a hot mess in here, I have no idea what goes where.”

Austin: Right, it’s a nightmare.

Facebook Advertising for Ecommerce Quick Start Guide

Chad: It was awful. And it’s like in everything; it’s in my personal line, in our team line and everything and then you took that structure and that organization and you taught me some of that; would you be willing to break down a little bit of that structure so people can start to see how that’s done a little bit?

Andrew: Absolutely. I mean traditionally on Facebook what you had from a structure point of view was you had campaigns, those are the main containers that your ad sit in and then you have ads and the campaigns were just a container and then the ads had all different, what are called objectives. So you were able to, within one campaign, run an ad for page likes to go out to get people to like your page, along with an ad for website clicks for people to click to your website, and they were on the same campaign. About a year and a half ago, Facebook introduced what are called ‘ad sets’ and they are now the intermediary between campaigns and ads. And so when you actually set up a campaign, the first thing they ask you is, “What do you want to do? What’s your objective?” And your objective is to either get clients to the website or get page likes or page post engagement or there’s a whole bunch of more objectives that you can use. The ad set in that now is where you put the targeting, the ad set is where you put the budget, the ad set is where you put the placement, and that’s where you set the time that it’s going to run. So the ad set now serves as the container that then holds the ads. The reason for this is because in the old model, if you had a campaign that had ads with multiple objectives in them, they didn’t actually didn’t know Facebook’s algorithm and everyone was having a hard time understanding which thing to optimize for within that campaign. So, the algorithm was looking at that and saying wait, “Do I do this? Do I go for page likes or do I go for this?” So one of the beautiful things on Facebook is that it automatically will optimize for what your objective is. So if you separate them at the campaign level by objectives, you have a campaign for clicks to your site, you have a campaign for page post engagement, and you have a campaign for page likes. Actually, the Facebook algorithm looks at that and says, “Oh, I’m going to find people, out of the audience you are targeting that are most likely to do what you are saying you want.” So that split is really an important one and is something that not a lot of people know and kind of differentiate between that. So that’s something that can get people very confused and because the ad manager itself, when you are creating an ad, doesn’t do a great job of doing this and so this might be a good time to talk about why the power editor is really important but that’s kind of the structure that you want to start thinking about and there’s a way you can kind of break it down and start to think about okay, I want a campaign that does this and the ad sets within that are this and the ads are going to deliver X. So, one thing that is interesting is, I actually draw it out for people and I can send you guys a template that will be made available in the show notes but you know, it’s draw it out, write it out, write it out and see what it looks like before you start building. If you are sitting in the ad manager and that’s the first time you thought about your campaign structure, that’s also a problem ‘cause you’re – this is good, I’m just going to place the order and so that is not going to help you actually to be strategic about it.

Austin: You mentioned [Unclear 0:10:52] briefly, and I think that’s an interesting topic to go into a little bit deeper, what do you typically recommend for people that start with objectives? What do they choose, maybe just like a basic [Unclear 0:11:08], what they could use for objectives to get going.

Andrew: Sure; I mean objectives really, the one that ecommerce has used probably 90% of the time is conversion. So you are actually going for – you are entering yourself into the Facebook algorithm, you are asking for conversions. So that’s the objective, and it’s called website conversions that most people use. Another common one clicks to the website and that will go to a wider swathe of your audience because there’s more people that Facebook has data on that click to websites than they have data on that have actually purchased or convert. So, those are the two that are used most often. Now some advertisers have used page post engagement objective as well in ecommerce and what that does is that enters you into the algorithm to get people to engage on a post and it will get you a lot of shares, and get you a lot of comments and likes. Sometimes that can be helpful as well in terms of letting things kind of run wild within a community that let’s say is more [Unclear 0:12:17] for you. So the website conversion thing and the website clicks, that’s more of a top funnel thing.

You want to get people in there that are going to do the click or they are either going to convert. And then kind of this mid-funnel is “Okay, so maybe they have been to my website, maybe they like my page” and that’s where you can start to think about page posts engagement and maybe page likes and thinking about using these tools that are making people more familiar with your brand, helping then understand maybe a part of your mission and how that relates to what you are selling. And then retargeting is the one that’s down below and then for retargeting ads, you are going to be using primarily the website conversions objective because you know that they have been to your site, they like you and they are ready to purchase.

Austin: That makes sense, why don’t we dive into the – you mentioned the power editor briefly and I know it’s a very important tool; can you break down and just give people an idea, difference between the power editor, first the regular editor, who should use which one and maybe just talk a little bit about the advantages, but do you use exclusively power editor at this point?

Andrew: Yeah, so the power editor is an advanced tool from Facebook, it’s free with your Facebook account, and it’s a tool that allows you to launch and iterate ads at a more rapid rate than the ads manager. I do use the power editor exclusively to build ads at this point because it makes my life so much easier. The main function that power editor does that I really love is, it has a duplicate function; so you can actually select an ad or an ad set and hit ‘Duplicate’ and put it in another place. So you know, when you are trying to test multiple things in doing A-B testing, that’s a very useful tool that will save you a lot of time and a lot of headaches. For people that are getting into it, even if they are brand new in it, I encourage them to you know, learn the power editor – learn the ads manager but then starting to understand the power editor and then once you are in the ads manager, you’ll see the same framework we talked about that structure of campaigns, ad sets and ads and then under that the power editor – you know, once you start using it, you are going to say “Okay, that’s where those things go, I get that. Those things are the same, they just kind of display differently.”

I still monitor my ads in the ads manager because it’s easier, the power editor is really not – it’s an editor, it’s not meant for managing which [Unclear 0:14:47] words are important, so that’s an interesting concept that [Unclear 0:14:50]. So the reason that you would really want to use it as someone let’s say you are that person who has done a little bit with it, is once you get in and start looking at the advanced stuff of okay, it’s these age ranges, it’s these devices, the power editor also makes it easier to do that. So it makes it easier to try to kind of split and dominate things and then the final option – the final reason really why the power editor is great is because it allows you have access to features that maybe aren’t available in the ads manager. So when Facebook pulls up new things, they always are actually in the power editor and so that’s where you are going to see things first and yeah, so for example in the power editor, you can right now, if you are going to target people with iPhones you can actually limit which iOS they are on and so you can target people on certain iOS. On the ads manager, that’s not something you are able to do but you can actually do that if you know but that’s effective. I have a client that their app really only is effective on certain iOS versions actually and so that’s a necessity for us to do that.

Austin: Sure. Now you mentioned in part one but I want to back over it because I know people are there that are still dealing with or still thinking about the organic side. A couple of years ago, you would get likes and you would promote to the people that liked your page and that was a big strategy. It’s no longer really that effective, what is your take on the effectiveness of the objective being to get likes for your page? Does it matter anymore? Is there any reason why people would want to do that? What’s kind of your take on that at this point?

Andrew: It’s a great question and it’s one that actually if you as an advertiser, those of you that are listening to this, are thinking about advertising if you get the concept down that I am about to talk about, you are farther ahead than a lot of people. That concept is really that everything is mutually dependent on each other and so the first thing to do is sit down and look at your ads, look at your Facebook page and try to complete a sale yourself from Facebook, so just do that.

Austin: Okay.

Andrew: That’s to understand that and the next piece of this is okay, so right now you want to sell, so the natural thing is, “I want to go for website conversions” but what if your product, you want to explain more and then instead of trying to sell it to them right away, you want to create an advocate or you want to try to warm them up down the road. So an example of a way to do this would be that you do an ad for let’s say website clicks or website conversions, you get new people over there and then using your website costume audiences retargeting pixel, you actually send instead of another ad, the thing you should buy. You send them an ad that says, “Like my page and find out more” and you get them to like your page and then over time build your advocacy funnel of fans. So along side of you are building, you’re building new people coming in, you are also sending ads to your new fans, saying “Hey, thanks for being a fan, here’s 10% off.” And you say, “Hey by the way, we went surfing today, check it out.” And you start to give them more of an experience and in parallel what you create is you have – you can have a funnel where it’s going along and it’s selling product and you can also have a funnel where people are understanding your value and they get who you are, and then in time you create much larger LTVs or Lifetime Values because they get you and they get what your brand is about; they get what your product is about, they get what you are trying to achieve and the problem with that is that it takes a longer range view to be able to do this upfront. But if you are someone who has seen success with Facebook and you want to try to turn it up, this is one way that’s very unique that other people aren’t thinking about it and doing which is using page likes and using fans and advertising small amounts of money to fans to let them know about certain things that are happening. We talked about the brewery in part one, that’s an example of using that strategy. “Hey, here’s who we are, come like our page. There’ll be some special offers, we’ll let you know about.” And John uses this strategy heavily and he’s talked about it publically on his blog which is, you know, his readers ultimately turn into customers because they are providing him value. So it’s another way to kind of use those tools together to drive a much larger experience for people.

Austin: When you think of that concept, I always think of the difference being short-term greedy and long term greedy. The short term greedy business owner is going to focus on purely getting that conversion, and the long term greedy business owner, long term greed is the idea of progressing somebody and building a much more valuable customer at the time. I look at a company like Dropbox and I think they are the epitome of a long term greedy company because for so long they got people in at a low level, and they just – they didn’t capture all the value, they gave a lot back for capturing very little value for years. They are still doing that but at the point now where – you know, we use Dropbox as a company and we rely on it so much. They could double the price and we have very little options.

Andrew: Same here, absolutely.

Austin: And so when I think of concept, that’s a perfect example of – at least for somebody who is not really – or maybe in concerned of trying – concerned about being too promotional, I guess – or we got clients that are very brand-focused and they are worried about coming off as sales, but that’s a great strategy to provide value and also capture value at the same time, to build long term customers. I like that strategy a lot and I think it’s really interesting.

Chad: Yeah, and I also think that – you know, we talked about this in the previous episode, this ecommerce gravy train coming to an end and the people who are on this train as it continues on, are going to be the people who think like this and who think about their Facebook advertising in this way and like we said, not just a one-night stand, “Hey click on my ad, buy a product” and that’s going to be the difference maker and I think that’s going to be happening in the next couple of years. If you haven’t listened to that episode of the ecommerce gravy train coming to an end, we’ll put that in the show notes because I think every ecommerce business owner should listen to that one.

Austin: It’s very similar too with what we are building with a lot of our email marketing campaigns, the concept is very similar because we like to provide a very good mix of valuable content, sharing the brand, the story, what’s going on with direct response advertising and that has worked so well for us and it’s the same sort of thing on what – the concept you brought up, it’s not new but I think for people who haven’t – who don’t understand that there’s that multiple, I guess, would it be just to use the Facebook like you were talking about? So it would be different ad units at the same time, displaying value-based and then conversion-based advertising; is that kind of the way you would describe it?

Andrew: Yeah, exactly, it’s using the different type of ad units and the different types of audiences together to mutually support one another. So, I mean, the framework is like what you are talking about which is you know, this that long-term piece which is thinking about how are people traveling through things, how do they understand what you are about; because ultimately even if you are selling just a product, your company has a story, there’s something to tell there and even if you take the market Sheraton method of answering the questions that your customers are asking, and you do that and you use content to support it along the way so that by the time they are ready to make a purchase, they can’t make it fast enough because they already did; that’s what you are trying to set them up for. And look, if you can do things where you can introduce an ad to people and they have never heard of it before and they buy it and it works, great, do that all day long but don’t forget about those people that have purchased and telling them thanks and offering to their loyalty as well. That’s a big deal.

Austin: I would love to hop on – and we’ve covered some of it but I always like to ask this question because it usually draws out, I guess, other answers or other components that we haven’t discussed yet. What are some of the big mistakes that you see people make when they try to take advantage of Facebook advertising, maybe people who haven’t as much experience on it, what type of things have you seen?

Andrew: I mean, big mistakes that people make are – we have talked about some of them but some of it is – expectations is the biggest one; so they think that it’s sort of a magical thing that will do a ton for them right away. So that’s a mistake. The other one is, using placement; desktop, mobile placement as a function of not understanding the difference between those. And so they’ll let the ad show wherever on Facebook and that’s just not going to be effective because Facebook if you let it show wherever, it will show on mobile devices and on the right-hand side of Facebook because that’s where the most inventory available. Then another big mistake is not doing enough experimenting.

They’ll say, you know, “I tried it to my best and then –” Well, okay, I get that and I know they didn’t do anything but did you know that you could also do these other ten things? And so I think it just likes goes back to expectations; I mean those are the mistakes of thinking about you know, the framework as they work together, instead of this narrow view and a lot of times, the success I see and the frustration is because people have had a narrow view about it and frankly, some of that comes from other people telling them that they can do it, make a zillion dollars or whatever, or like you’re going to set it up and it’s going to work. And the final one I’ll say that I mistake that people make is that they work with an agency that they don’t trust. So even if it’s a small agency, they are like they’ll call me and they’ll say, “I don’t really fundamentally trust this person –” and if you are doing that, I mean, I understand that and they make me – I mean, a referral from somebody else but if you don’t fundamentally trust them or if you can call and be like “Does this make sense what we are doing right now?” like maybe not, that’s a mistake and you want to make sure that you adjust that quickly because you want a partner and if you are going to have somebody who is helping you with Facebook advertising that can explain it. So along the way you are learning, I mean, even if you don’t ultimately decide to continue, you feel like you have learned a lot and it’s been educational as well.

Chad: You know, I think about – coming back to mistakes a little bit, I think the one that I felt most when I was working with you was my inability or my lack of knowledge or whatever it was as we got started. The whole targeting thing, we talked about how incredibly powerful Facebook is for targeting but because I was new to it, I was very surface level in the way I thought about that and I felt like it wasn’t a mistake but the first time around after you opened my eyes a little deep, I was like “Dang, that was kind of a mistake, I should have gone deeper with this targeting” is there any way that we can revisit targeting a little bit and like how people should think about that on a much deeper level than perhaps what I started out with? After I started with you and you explained some things to me, I explained like 45 minutes and build this entire – what I think it was like 50– I think it was like an entire page, a list of different targets and how we can hit them.

Andrew: Yeah, I mean I think what people – the mistake that people make on targeting, and I’m glad you brought that up Chad, which is, they’ll go in and they’ll say, “Okay, my person, they stop at Nordstrom, they shot at GAP, and they have Andersen Windows in their house, so I’m going to target GAP, Nordstrom and Andersen Windows. Well, the reality of it is, those are gigantic [Crosstalk] this is not just going to be doing anything for you. So, those are all interests. So either you need to combine those interests with something else as a layer, so a look-alike audience, a look-alike audience plus interests, or the interests plus the certain demographic information or you know, what you and I did is, yours were very high-level big company and then I said, “Okay, out of these companies, what are the things like – tell me more about them.” And you were like, okay, they use Shopify, they use Dropbox but they also do this and they also look like these people, and so instead of thinking of the large companies upfront, try to think about the second level of that.

Think about the people that they are – the products they are using every day versus the ones they may shop at or may be interested in. If your audience size, and I mean it’s a function of that too targeting, Facebook will always recommend that your audience size should be over a million, which to me is like – I get it but that’s a lot. And in some cases, you can have a million but you want to probably start with people that are kind of in that 250,000 to 500,000 range if you can, and having a smaller is not necessarily going to be a bad thing right off the bat because you’re going to get really qualified people there. Anyway, that’s kind of the way that you want [Unclear 0:28:45] don’t think about the first level but think about the kind of second level as it relates to this.

Chad: Yeah, I think that’s huge for people listening and who haven’t maybe tried this yet because I think – I look back and I really look at that one moment of okay, I was only at the first level and it took some prompting for me to get to the second level and that’s when the breakthrough for me and my mind happened. I was like, wow, this second and third level, now I am starting to see the power of what this is capable of and of course, playing around within power editor was the thing that really allowed me to even dig deeper because of all the things, the interest that I could find. I was like, wait, this is an interest that you could actually target this? So anyway, I really wanted to bring that up.

Facebook Advertising for Ecommerce Quick Start Guide

Austin: And that goes up to what you were saying earlier, which is experimentation; you can go in and look in and understand what you can target by just going around and searching for what you can target, you know breaking it down and creating a fake campaign when you are not spending any money on it and just learning. Oh, this is an opportunity for us to look at, yeah, it is more powerful than I think –

Andrew: Yeah, the one thing that you can do, I mean, that we didn’t mention in the last episode, but you know, you can get in there and actually if you can go into your ads manager on Facebook, Facebook.com/ads/manage and you go into Audiences, which is on the left-hand bar, under there it says ‘Create Audience’ and you can create what’s called a saved target group. And that actually is a group that you can use later in advertising that gives you all of the targeting functionality but allows you to experiment without actually going into the ‘create ads’ flow. So you don’t have to go into like you are going to create an ad, you can use this to experiment and that’s a great place to begin if you are thinking about the experimentation around targeting; it’s to use that so you can target audience to kind of start messing around.

Austin: So last time we talked a little bit about the happy hour, the business that created that event; do you have any other interesting campaigns or campaigns that you are proud of, just like themes that you can talk about that maybe you thought weren’t going to work or you had an idea, and they just performed better then you could have even imagined?

Andrew: The good news is that the answer is yes; like there’s always like fun examples of things I mean one of them is that a mutual client of ours, an ecommerce client, and I set up for them last fall, we were doing some Black Friday things, and we set things up and it went really well. And then the winter came and then spring came around and it was going to be high season in summer for them to sell their products and what I did was set up some look-alike audiences up there, customers, then I did a lot of research around what pages the people like and then I found a new thing that was on – you can create actually a look-alike audience off of your conversion pixel on Facebook; so if you have a conversion pixel that’s on the ‘thank you’ page of your website that fired when somebody makes a sale, you can say to Facebook, find me people that look like the people that convert and the beautiful thing about that is it actually it dynamically updates with new data. So that’s huge. So this was a new thing that I didn’t know you could do, and I fired that up for them and then that has brought then 300% return on ads spend. So 3X return on ad spend since the beginning of the year consistently because that audience we were getting some of the people through the door to convert so often the audience is constantly refreshing with new people and re-finding itself so that’s been a huge success for us.

Another one is, I work with a really big company at a really big venue and it’s in Nashville, so I’m doing that and they – we set up some campaigns for them and I have been doing a lot of testing and we have actually found out that when we create content that’s around “social context” we call it, so if there’s a big show coming up with a big star in it, we can create content that says, “Hey what do you think they are going to wear” or “Here’s the ten funniest things that this person has said on stage” thinking in kind of a buzz-feed listical format that if you do that and you run ads to people that are fans of theirs and then you can retarget those people, then those sales will be – I mean, you are getting CPAs at very inexpensive rates and I’m talking like a tenth of what their average value is. So obviously works really, really well. And so it’s kind of like it’s a traditional direct response methodology but you are saying to them, you’re introducing it to a new way and that was a total win idea that has worked really well.

Austin: That was good I mean, and also just to dive into that, you look at – you mentioned 3X ROI but it’s a difference between – the thing that you mentioned, how do you really explain how scalable it is because we’ve watched a company go from like basically being a high, mid-six-figure company to like mid-seven-figure company in just a couple of months because of the amount of traffic – because it is still scalable. You just add more in, add more money to the top of the funnel and that trickles down and you are getting 3X. So you can – as much as they can grow, and much as they can fulfill on the back end is really how fast they can grow; and that to me has been the most exciting thing to see because I think we are living in a very exciting time because a company, if they can get their messaging right and they’ve got something, they’ve got a brand, they’ve got very cool products, they can turn it on and go and scale faster than I think anyone has ever been able to scale before especially just with digital ads. That’s the coolest thing I think I have seen from working with you and seeing some of the work you have done; it’s just the scale of how quickly people can move.

Chad: This is the closest you’ll get to printing money.

Austin: Yeah, it is. I think you are right.

Andrew: I mean, the thing is, what’s interesting about this is, if you look back in terms of direct response advertising that I have done and I have worked with Square and Fitbit and huge companies, the success that came from those companies was because of the foundation that we built. So to get it right, you have to experiment and do a ton of experimentation and learn and just like introduce all the stuff all the time and it’s very heavy in terms of the work that you are doing but then once you have this foundation, then you just keep turning it up and you get to say, “Okay, I’m going to introduce this now” but this other stuff is still running, “I am going to introduce this” but you know, other things are continuing to perform because Facebook also algorithmically knows that it works. So if Facebook wants to show ads that it knows are going to be successful and that’s part of the thing, and there are certain accounts that basically tagged for success and because of the website and because of the ads and because of the targeting that you are doing and you look at the Relevant Score on Facebook, which is like the Google Quality Score, and the Relevant Scores are very high and these are ads we are showing to people that have never heard of us before and have never been to anywhere to our site and the Relevant Scores out of ten are pretty consistently sixes and sevens. That’s a big deal and this is why people are saying, “I am so glad you showed me this.” It’s like a great thing in ecommerce and I think that’s a really fun and exciting thing that you can do on ecommerce and I think for those of you that think, “My product is more expensive or you know, my product is a little bit more different”, there’s so many different ways that you can approach it just to really sell it on Facebook and I think the reason I bring it up the brewery and arts example is because those are not traditional things that maybe the people on this podcast would be thinking about but they also work. You don’t have to have an online – you can have an online store but having a physical space is also those of you that do, can be really, really helpful and they can work well.

Austin: Well, what’s also interesting – you are on the same team, that’s one thing that I always try to remember because even if you are paying – so you are paying Facebook and like you mentioned about the kind of, staring accounts that are doing well, it’s in their best interest and your best interest for your ads to perform because that just means that you will scale up your ad spend and that they love nothing more than helping you get to a point where your ad is converting and making money because that means you’re going to scale and increase your ad spend with them and they continue to reward that and they are going to continue to serve that ad, and that is fundamentally, that’s just a very unique cool thing because you are working with a company that it’s in their absolute best interest to serve your ad to the most relevant people possible of making you the most money because every time you make money, they make money and everyone is happy.

Andrew: Yeah, I mean, it’s just crazy; I mean, the final example, that I just wanted to share, that’s like a big win is there was a client that was running a conference, they run a conference and they do a lot of email marketing to their people to get them to in-person events. They work with government employees; well, we’ve been working with them for about a year, a little over and their CPAs cut by 70% and their conversion increased the amount of email signups to 650% increase of email signups year over year. So that’s the type of thing that literally they actually are on pause with us now because they are taking a marketing budget and they just bought a new company. And that sounds like oh, we’ve worked so hard [Unclear 0:39:01] but you know, they’re going to do this for the next ten years. They just need a little bit of cash for the next few months so they could buy this company. But I mean, that’s insane, that’s what transformative thing for their business that allows them to change what they were doing and so it’s really neat. They just beat their last year goal of their conference attendees as well, and hopefully going to exceed it and all they have done is use Facebook advertising. I mean, that’s the only channel and email that they – -the only two that they are using and they are using them together, and I think that’s kind of [Unclear 0:39:32] but it’s too a lot – our businesses have taught me about email as it works with Facebook and how those two channels really are mutually supportive of one another.

Chad: Yeah, it’s definitely true and I had these conversations with people who come in and talk to us about email and like I said, one of the questions I always ask is like what are you doing with Facebook advertising because the more traffic you can send, the more quality traffic you can send, the better the email systems you can work and it definitely goes hand in hand.

Austin: It allows you to spend more; if you can capture people and you can email them on the back-end after they have made their first purchase and get them to make a second purchase, oh my gosh, you can spend more than anybody else in your market. And when you can do that, you are unstoppable because it just feeds on itself. So that’s great. I would love to ask one more time, because I know we asked about resources but on this section, we got a little more granular and I was wondering if you have maybe specific articles or foundational type resources that – you mentioned John [Unclear 0:40:41] there’s a lot of articles you can go there; do you have any like specific ones that you can think of maybe regarding targeting or some of the stuff that you have talked about that you would recommend that we could mention here and then put in the show notes?

Andrew: Yeah, I have some articles I can absolutely send. There’s a lot of different stuff I’m – you know, places like Facebook, inside Facebook, Venture Beat, that are – some resources that are just good to read and frankly stuff that a PowerPoint presentations or you know, that Facebook has given, that regular people don’t see; so there’s some of that as well that’s public that’s out there that a lot of people are out there that don’t find it and so those are some of the main places. So if this is a topic that is personally interesting to you’re making investments to Facebook and you want to talk or find out more, the places to follow are like John [Unclear 0:41:35] obviously and then following along and Facebook and following the report I mean, Josh Constantine from Tech Crunch and Anthony Ha from Tech Crunch, those guys are both very effective in terms of their reporting on Facebook and way that they think about it. And then the other person that is a big guru in the industry that thinks about things very differently, there’s a guy named Dennis [Unclear 0:41:55] and Dennis is crazy smart and comes up with very unique ways to approach Facebook advertising. So I get a lot of inspiration from them as well.

Chad: And then of course, where can our listeners connect with you?

Andrew: So you can find me at foxwelldigital.com or Andrew@foxwelldigital.com is my email or @andrewfoxwell on Twitter or @crazyfoxwell on Twitter who is my business partner and wife.

Chad: Awesome and then the final question here, what we would like to ask in the end usually for every episode is, based on this entire discussion today, what is the one thing that you would recommend listeners go do right after they listen to this?

Andrew: Well, I’m going to be a little bit more specific here than in the first episode and I would say, go in and actually try to look at saved target audiences and take a look at that. If you have not done [Unclear 0:42:46] advertising, go in, look at those saved target audiences, start to mess around and play around and see what’s in there; your mind’s going to be pretty blown. I would start there and start thinking about that and that’s the one takeaway that I would give.

Chad: Then that’s definitely interesting and I went from a five in my targeting audience when we first started, to probably 60 and it was purely from playing around in there so that’s a great piece of advice. Andrew, thanks for coming on to this series on Facebook advertising for ecommerce, we really appreciate it, we respect your work, and we can’t wait to continue working with you in the future.

Andrew: Absolutely; thank you so much for having me, it’s been a pleasure.

Thanks for joining us on this episode of Ecommerce Influence podcast part two of the two-part series with Andrew Foxwell. As we mentioned in the beginning, you can get a Facebook Advertising for Ecommerce Quick Start Guide that we put together with Andrew; it outlines exactly how to get started with Facebook advertising and how to optimize what you are currently doing if you already are doing it. You can get it in one simple way and that is at ecommerceinfluence.com/insider and when you get there and you login, you can actually get seven of our guides. So there are seven total guides, plus some training videos purely for ecommerce helping you grow your brand online. If you have not subscribed to this podcast and you are listening right now, make sure you do subscribe and also leave us a review, positive, negative, any type of feedback is much appreciated. You can do that on iTunes, we’d love to hear from you and we will see you on the next episode.

Transmitter: Thanks for listening; to get even more actionable insights from the most influential experts and the most successful CEOs in ecommerce, to help you grow your business from one million dollars to 10 million plus, visit ecommerceinfluence.com.146

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  • Michael Jamin

    Hi, I’ve registered an account with you, but was unable to download your free guides. I’m getting an error message that says I don’t have access to this, even though I’ve registered. Thanks for your help.

  • Mikko Horneman

    Great podcast again guys. We’re in small market and our return on adspend on Facebook is between 25x and 50x. Lower end of the scale is on normal facebook ads and the higher end comes from dynamic retargeting.