With the sheer numbers of Facebook users, it can be easy to get carried away building ads for large audiences. However, often smaller is better. Using hyper-targeted ads on Facebook could be a powerful way to increase your click-through rates and get customers buying from your store.
Luckily, Facebook is the perfect platform for hyper-targeting. No other online platform has as much consumer data that can be used to an advertiser’s advantage to build precise ads and grow his/her business.
At PropelAd.com, we work with over 1,000 eCommerce stores and have come to understand their needs well. I will be talking you through how you can utilise hyper-targeting on Facebook best for your eCommerce store.
What is Hyper-targeting on Facebook?
Hyper-targeting simply is showing highly targeted ads to a very specific group of people on Facebook. Instead of building ads pointed at 100,000s of people, it targets small, thought-out audiences consisting of a couple of thousand or less.
The trick with hyper-targeting on Facebook is to create many ads for precise dynamic regions or offerings. Each of these ads will be tailored specifically towards an audience and designed to be most appealing to their behaviours. It’s accurate and effective and can be done in a number of ways.
Advantages of Hyper-Targeting
Hyper-targeting through Facebook has yielded significant results for merchants. As ad builders are customising ads for customers based on specific traits and behaviours, these ads can be precise and designed to be appealing to a consumer. As they are so tailored, they are effective at increasing conversion rates and ROI.
Utilising Custom Audiences
One of the most effective ways of using hyper-targeting is through Facebook Web Custom Audiences. Custom Audiences are comprised of customers who have an already established relationship with your brand; by using your knowledge of this audience, you can adapt and develop ads that match their behaviours when they interact with your store.
Custom Audiences can be segmented into groups. From email sign-ups to existing Facebook fans to past customers, ads can be developed to appeal to these different groups. Brands can utilise their knowledge of these to upsell, cross-sell, and get customers who have shown interest to click through and convert.
Using Facebook Web Custom Audiences
Using lookalikes can be an effective way to engage with an audience and grow your customer base. These are ads tailored towards an audience with similar interests to your current fans on Facebook and therefore will hopefully have an interest in your eCommerce store.
Setting up a Lookalike Custom Audience is remarkably straight-forward. Simply choose an objective – which in this case is Create New Lead – and then choose an audience, which is “People most likely to become customers (lookalikes).” You can choose the top 1% most relevant matches (for better targeting and a smaller audience) or broaden the scope to the top 10% most relevant matches (for looser targeting and a broader audience).
From here you can choose what you want to sell. Ads can be created on a product, collection, or store level.
From here you can make the final touches to your ad by selecting where you would like to target, picking a call to action, and an image for you store’s ad.
And finally, set a daily budget that you would like to spend on your lookalike ad. Voila! You have made a lookalike ad.
Retargeting ads can be implemented to hyper-target your customers. Showing them an ad of a product that they have already expressed interest in and then encouraging them to come back is one of the top ways to drive sales for your brand.
Retargeting has proven to be one of the most effective marketing techniques for merchants. This type of ad has a relatively small audience and therefore can be tailored specifically to the audience’s browsing behaviours.
It is easy to set up a retargeting ad; you can pair it with your other Custom Audience ads such as lookalikes and automatically retarget these audiences. This is done by a simple click of a button and setting of a retargeting ad budget when building your lead generation ads. Pairing retargeting with an ad such as lookalikes is one of the most successful ways to drive sales; customer tend to think about a purchase before buying, and hitting them with retargeting will often bring them back and convert them to a sale.
Additionally, Custom Audiences to retarget can be made with the sole objective of retargeting. The steps are the same to building lookalike audiences with a simple few stages that are speedy to set up.
Retargeting Success Story: The Loop Loft
The Loop Loft is a blog-turned-eCommerce store that sells pre-recorded drum loops. The brand looked to Facebook’s retargeting to help drive sales. Using Custom Audiences, they created highly focused retargeting ads that featured images and copy directly related to their interests.
The results led to conversion rates being off the charts, with retargeting clicks converting into sales at an astounding 21.5%. They also experienced ROI of 796%. For every dollar spent on PropelAd retargeting, The Loop Loft generated an additional $8 in revenue, proving the validity of this type of hyper-targeting.
Abandoned Cart Retargeting
Abandoned cart retargeting is taking retargeting to the next level. As abandoned carts are a ubiquitous problem for stores with up to 70% of carts being discarded, this form of hyper- targeting can lure them back to retrieve their cart.
Abandoned Cart Success Story: The Brothers Cut
The Brother’s Cut is an eCommerce store specialising in men’s apparel. They, like many other eCommerce stores, wanted help recovering abandoned carts. By building hyper-targeted ads for audiences consisting of customers who had abandoned their carts, the company got 80% of people who clicked on their abandoned cart ads to convert, helping substantially decrease their abandoned cart numbers.
Hyper-targeting is about learning about your customers and building ads that will most appeal to them. The methods above are excellent ways to increase click-through rates and drive sales. Using Facebook’s advertising tool kit is one of the most effective ways to hyper-target and could be a powerful way to grow your eCommerce store.