3 Questions that Determine Your Facebook and Instagram Ad Performance

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Nosto – an official partner of Shopware and now Facebook – offers a straightforward and easy way for you to deliver personalised shopping experiences for your customers. Today they lend their expertise regarding the best Facebook and Instagram ad performance.

If you’re already using Facebook and Instagram ad campaigns to boost your sales, you’re well on the way to becoming a sales boosting superstar! But the truth is, this practice involves more than just simply launching a campaign and crossing your fingers for positive results. Ask yourself these 3 important questions to make sure your business is truly benefitting from Facebook and Instagram advertising.

1. Is your ad audience the right size?

The size of your ad audience plays a huge role in your campaign’s success, so it’s crucial to find the ideal sweet spot based on your budget and brand initiatives. Here are two scenarios where aiming too high - or too low - will hurt your campaign efforts.

Scenario #1: The massive audience outreach

Consider a men’s clothing brand with an annual ad budget of a few thousand dollars. This company is targeting all male Facebook users in a particular region.

The downside: While the company’s target audience is massive, but their budget is not - which means they will have burned through their annual budget before even scratching the surface of their target consumers.

The lesson: In theory it’s attractive to target anyone and everyone on social media, but if you’ve allocated a specific amount of money for ads, smart thinking is key. Consider targeting a smaller group of consumers by segmenting based on affinities to categories, lifetime value, brands, etc. Upload customer emails and phone numbers to Facebook to allow you to target consumers who have already expressed interest in your brand. By doing this, your ads will target a smaller group of users - but all the right ones.

Scenario #2: The small audience outreach

Consider the same men’s clothing brand, but this time they’re aiming to be more conservative by targeting a few thousand people. About 1,000 see their ad, 30-50 people have clicked and visited their webstore and 3 people have purchased something.

The downside: The company did not consider targeting consumers who are actually interested in their products.

The lesson: Consider retargeting existing customers, or create lookalike audiences based on recent fans of your Facebook page and recent buyers. Creating a lookalike audience based on these two attributes will decrease your audience size, but it’s an effective way of targeting those who you know are interested.

2. Has ad fatigue kicked in?

In life, all good things must come to an end. In the world of Facebook advertising, this is called ad fatigue.

Ad fatigue occurs when an ad has been shown to the same audience more than a few times. Here’s how an ad eventually reaches this state:

1. Facebook and Instagram show your ads to a subset of users in your target who are most likely to conduct the desired action.
2. Over time, the ad is shown to a new batch of users in your target audience.
3. The ad then reverts back to the first batch of users who did not convert the first time.
4. At this point, your ad has been shown to everyone in your audience - this is when ad fatigue kicks in.

The lesson: While ad fatigue is not entirely avoidable, you can slow down the process and make the most of your ads by:

1. Reviewing the ad’s creative and re-launch for the same audience.
2. Targeting a new audience.

3. Is it time to refresh your ad relevance score?

An ad relevance score is Facebook’s way of determining which ads should be shown to which audience. The more relevant your ad, the higher the score will be. Simple concept, right? Well, it gets tricky.

An ad with a low relevance score is a red flag for your campaign. As the relevance score decreases, your CPC (cost-per-click) increases - which means you’re increasing your ad spend on an ineffective campaign. It also signals any - or all - of the following issues:

1. You’re not targeting the right audience in your campaign.
2. Your campaign’s messaging and/or imagery may not be the right fit for your target.
3. You’ve shown the ad for too long and it no longer makes an impact on your audience (i.e. ad fatigue).

The lesson: Focusing on the issues above will help you avoid a consistently low ad relevance score. One strategy is to perform A/B testing to identify patterns in ads with higher scores, and adjust your low-score campaigns based on these results.

While tackling these 3 important questions is key to implementing a successful Facebook and Instagram ad campaign, the work doesn’t stop here! Download our Ecommerce Guide to Facebook and Instagram Audiences, where we provide an in-depth approach to personalising your ad campaign like a pro.

Download free guide now

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