7 Tips to Create High Converting Facebook Ads for Ecommerce & Dropshipping

According to the Australian Bureau of Statistics Population Clock, there are approximately 26 million Australians. Facebook’s recent data shows that there are 19 million monthly active Australian Facebook users, representing approximately 65 per cent of the total population. The largest demographic of Facebook users is between the ages of 25-39, with 6.3 million active users.

Facebook remains Australia’s most used social media platform, making it a vital tool for marketers. Ads on Facebook reach 17 million Australian internet users, highlighting its effectiveness in capturing a wide audience. The platform has seen an 11.7 per cent increase in ad reach compared to last year, adding 1.8 million potential targets. This growth underscores Facebook’s ability to connect advertisers with a broad and active audience, solidifying its role in digital marketing strategies. 

The popularity of Facebook presents ecommerce and dropshipping businesses an opportunity to increase conversions through Facebook ads. If you’d like to know how to create high-converting Facebook ads for ecommerce and dropshipping businesses, we’ve put together the best-performing Facebook Ad strategies that can help you increase conversions and sales.   

What makes Facebook ads so effective for ecommerce brands?

Creating Facebook ad campaigns can be incredibly beneficial for ecommerce and dropshipping brands, as it can offer outstanding reach at a relatively low cost. However, running Facebook campaigns is getting trickier these days.

Recent research found that organic reach and engagement rates are decreasing daily on social media platforms. Ecommerce marketers and entrepreneurs have started to wonder if Facebook ads are worth it. Additionally, Apple’s privacy and tracking policies concern marketers, as they’re required to ask users for their permission to track them across apps and websites owned by other companies. Despite these growing concerns, Facebook is not going anywhere, considering the massive reach offered by the platform. 

Want to create high-converting Facebook ads for your ecommerce store? First, you must understand what makes Facebook ads highly effective for ecommerce brands.

Extensive reach 

Reach serves as a gateway to other important social media metrics. High reach on social media channels indicates that more people have seen the social post. This increases the likelihood of engagement such as likes, comments, shares, and link clicks. These interactions can help create a deeper connection between the brand and the target audience.

Incorporating social media channels with extensive reach into your marketing plan can be incredibly valuable. High reach can help expose the brand to a wider audience. Even if your target audience doesn't interact with your post, the visibility alone can lead to the brand being remembered. This can lead to increased brand awareness, which can increase the likelihood that your target audience will think of your brand when making future purchase decisions.

With millions of active Facebook users, the platform allows ecommerce businesses to reach potential customers from various age groups, locations, and interests. This provides a vast audience base for ecommerce brands to target. Ecommerce stores looking to expand their market internationally can reach potential buyers worldwide. 

Advanced targeting options 

Reach measures the number of people who have seen or could potentially see your content. However, the quality of reach - whether the people you reach are part of your target audience and whether they interacted with your content, is crucial. Therefore, it makes sense to create Facebook ads that attract the right audience and resonate with them. Leveraging targeted advertising to increase quality reach can help improve your conversions and sales.

Precision in audience targeting emerges as a linchpin for the success of your dropshipping store. It ensures that your ads resonate with individuals who are not just passive viewers but potential customers showing genuine interest in your products. Facebook’s sophisticated targeting capabilities allow ecommerce brands to create highly specific ad campaigns.

Brands can target users based on a wide range of criteria, including age, gender, location, interests, behaviours, and even previous interactions with the brand. This level of precision ensures that ads are shown to the most relevant audience, enhancing the likelihood of engagement and conversion. Additionally, custom audiences and lookalike audiences can help brands target users who are similar to their existing customers, further improving ad effectiveness.

Cost-effective advertising

Whether you want to increase awareness of your online store or to promote sales, online advertising is an excellent tool that can help you achieve your business goals. Online advertising is always paid for, but its cost is determined by different ad types. There are two types of ads - search advertising and display advertising.

Search advertising is one of the popular forms of Google ads, in which brands pay to have their ads displayed above or below organic search results in search engines. Search ads have three main components - a headline, display URL, and description text, designed to generate qualified leads and persuade users to click through.

Display advertising is a way of inserting advertising banners with a clear call-to-action (CTA) button and ad copy on social media channels and websites that points users toward the products. Display ads have the potential of reaching over 90 per cent of online users, as they appear across the entire Google Display Network (GDN), which includes social media, banner ads on sites, and personal email inboxes.

For small online retailers, digital advertising can be expensive. Online advertising can cost between $100 - $10,000 per month. Facebook ads can be tailored to fit various budgets, making them accessible to both small and large ecommerce brands. On average, marketers can pay the following for Facebook ads:

• $0.26 - $0.30 per click

• $1.01 - $3.00 per 1000 impressions

• $0.00 - $0.25 per like

• $0.00 - $5.00 per download

Brands can set their own budget limits and bid strategies, ensuring they only spend what they can afford. The platform offers various pricing models, such as cost-per-click (CPC) and cost-per-impression (CPM), allowing brands to choose one that aligns best with their goals. This flexibility helps maximise return on investment (ROI) by ensuring that ad spend is used efficiently.

Robust analytics 

Data is crucial in the world of Facebook advertising. The journey doesn’t end with launching a Facebook ad campaign. Facebook’s comprehensive analytics tools provide detailed insights into ad performance. Ecommerce brands should leverage Facebook Insights and other analytics tools to track key metrics such as reach, impressions, clicks, conversion rates, and return on ad spend (ROAS). This data-driven approach allows brands to assess the effectiveness of their campaigns in real time and make informed decisions. 

By analysing performance metrics, brands can identify which ads are working best and optimise their strategies accordingly. Whether it’s tweaking audience targeting, refining ad creatives, or adjusting the budget allocation, a data-driven approach ensures ongoing optimisation, campaign success, and better results over time. 

Retargeting capabilities  

Retargeting ads play a vital role in keeping your business going. It helps foster customer loyalty, maximise conversion potential, and reduce cart abandonment. Facebook's retargeting uses the Facebook Pixel, which tracks user behaviour on the advertiser's website or app and creates custom audiences based on their interactions. If the users leave the site without making a purchase, they'll be presented with retargeted ads the next time they log into Facebook, reminding them of the products they viewed or related products to help increase the chances of conversions. This personalised approach significantly increases the likelihood of conversion, as it targets users who have already expressed interest in the brand. 

Facebook offers powerful retargeting tools for ecommerce brands to win back lost sales. With the right remarketing tools, ecommerce brands can inspire people who have visited their business website or app to take action or make a purchase.

Engaging ad formats

Facebook offers different ads in various formats, which can effectively showcase products and engage your target audience.  

Photo ads

Whatever your business goals are, a Facebook photo ad is a great way to increase awareness of who you are and what you do. Photo ads offer a clean, simple format to use with an inspiring imagery and engaging copy. Facebook’s photo ads are your best option when you want to drive people to your site, create an ad in minutes, and raise awareness of products. In a Facebook study, a series of photo-only ads outperformed other ad formats in driving unique traffic. You can create a photo ad directly from your Facebook page by publishing and boosting a post with an image. If you have a tangible product to promote, a photo ad is a great place to make it pop and stand out in the feed.  

Video ads

Video on Facebook is getting richer, deeper, more vibrant, and more diverse. Video makes up half of the time that people spend on Facebook. Facebook’s video ads allow ecommerce brands to tell their story with sight, sound, and motion. Brands can show off their products’ key features and captivate users' attention with engaging video ads. Whether it’s through social video ad formats, such as Feed, Stories, and Reels, or online video content where in-stream ads appear, you can reach people where they’re spending their time through video ads on Facebook.

Video ads come in a range of lengths and styles – from short, feed-based ads that you watch on the go, to longer videos that you watch on the sofa. You can upload a video you created or create one in Facebook Ads Manager using video creation tools. Boosting a post turns a video that’s already on your business page into a video ad, so you can reach a bigger audience. 

Stories ads

Stories are a customisable, edge-to-edge experience that lets you immerse people in your content. In a survey conducted by Facebook, 73 per cent of people agree that stories enable them to experience new things outside their everyday lives. People love stories because they’re authentic and inclusive. Facebook Stories help people feel part of a large community and connected. 62 per cent of people say that they plan to use Facebook Stories even more in the future. 

Facebook Stories match how people are already interacting with their phones. People hold their phones vertically about 90 per cent of the time and Facebook Stories are optimised for a vertical, full-screen view that feels natural and allows people to enjoy videos and photos quickly.  

Messenger ads

According to Facebook’s research, 1.3 billion people use Messenger every month. The easiest way to take advantage of Messenger’s global reach is to run ads on Messenger. Facebook’s Messenger ads help people start conversations with your business, which helps you drive the results that matter. Messenger ads work just like ads across other Facebook platforms - the platform automatically delivers ads to the placement that’s most likely to drive campaign results at the lowest possible cost. Additionally, you can use the same creative for Messenger that you’re already using for Facebook and Instagram. 

People will usually see Messenger ads in the Chats tab in their Messenger app. When they tap on an ad, they’ll be sent to a detailed view within Messenger with a call-to-action that will take them to the destination you chose during ads creation - whether that's your site, app, or a conversation with your business on Messenger. With Facebook Messenger ads, you can get personal with current or potential customers and add interactive or automated features. 

Carousel ads

With Facebook’s Carousel ads, you can showcase up to ten eye-catching visuals in a single ad, each with its own link. Carousel ad format is available for Facebook, Instagram, Messenger, and Audience Network. Using Carousel ad format, ecommerce brands can highlight different products, showcase specific details about a product, service, or promotion, or tell a brand story that develops across each Carousel card.

You can use Carousel ads in the following instances:

• If you want to show off multiple products: Feature different products on each card that links to their own landing pages. Give customers more options and help raise your click-through rate. 

• If you want to highlight the features of a single product: Use each Carousel card to show different product angles or details to better inform customers. 

• If you want people to actively engage: Tell a compelling story that develops across cards - the interactive format encourages people to swipe through for more. 

• If you want to explain a process: Give people a step-by-step tour of how your business or product works. 

Facebook optimises the order of the carousel images, based on each card’s performance. If you’re using this ad format to tell a sequential story, make sure you opt out of the automatic optimisation feature. 

Slideshow ads

Slideshow ads are video-like ads made of motion, sound, and text. You can create a Slideshow ad with images or videos that you already have or use stock images in the ad creation process. These lightweight clips help you tell your story beautifully across devices and connection speeds. Slideshow ads load quickly, so they play well on every connection speed. Unlike some video ads, Slideshow ads are quick and affordable to create. You can create a Slideshow ad in minutes from desktop or mobile. 

You can use Slideshow ads in the following instances:

• If you need to create an immersive experience quickly: Slideshow ads are easy to make and edit with low production costs, but they have most of the experiential benefits of video. 

• If you want to make great ads directly from your page or phone: Choose from free stock images, rich video-editing tools and a wide range of music. 

• If you want to simplify a complex process or narrative: When walking people through sequences or steps, images can help you show rather than tell. 

• If you need to reach people with slower connections: Slideshow ads use five times less data than videos. You can use a Slideshow version of your video ads in markets where people have slower connections and older devices. 

Facebook’s Slideshow ads can enable businesses to make a video-sized impact without a video-sized budget.

Collection ads

Collection ads let people discover, browse and buy what you offer. When your loyal customers are ready to browse products or make a purchase, they expect a clean and fast-loading mobile experience. Make it easy for your customers to browse products in a smooth and immersive way with Facebook’s Collection ads. 

Collection ads feature a primary video or image with three smaller accompanying images below in a grid-like layout. When customers tap on your Collection ads to browse or learn more, they’ll be seamlessly taken to a fast-loading visual post-click experience powered by Instant Experience - all without leaving Facebook or Instagram. 

You can choose from the three templates, Instant Storefront, Instant Lookbook, and Instant Customer Acquisition, for your collection ads. With Facebook’s Collection ads, you can capture users' attention and boost lead generation, and the sales funnel guides them from discovery to checkout. 

Playable ads

Facebook’s Playable ads offer people an interactive preview before they download the app. Users can play the game directly from your ad before they install the app. This try-before-you-buy experience drives higher quality and higher-intent users to install your app. With Facebook’s Playable ads, you can create an immersive preview by showcasing your app or game with a lead-in video in News Feed or Stories that prompts people to play.

Playable ads are made up of three parts:

• Lead-in video: Playable Facebook ads begin with a short video of your demo, with “Try Now” below to indicate that your ad is interactive. 

• Game demo: When a user taps a playable ad, they will be able to play a short, interactive, and full-screen demo of your game without having to install anything. 

• Call to action: A call to action lets people tap to install the app from the App Store or Google Play Store. 

Before launching your Playable ads, make sure that your video and demo match. Keep the tutorial simple and show CTA throughout the demo. Consider testing different copy and see what encourages more people to play.  

Best tips for creating Facebook ads that convert

Facebook advertising platform gives you access to audiences that show actual interest in your offer. However, if you want to be successful, you need to know how to craft Facebook ad campaigns that convert and increase your sales. 

Want to know how to create high-converting Facebook ads? We’ll share some of the best-performing ecommerce Facebook ads strategies and a few tips for 2024. 

Ad creative and copy working together

Creating high-converting Facebook ads involves a strategic blend of ad creative and ad copy to capture users attention effectively. Both ad copy and ad creative are equal parts of a whole and neither is more important than the other. The visuals attract viewers and ad copy closes the deal. The ad copy and ad creative of a Facebook ad should work together harmoniously to amplify the overall impact and effectiveness of the ad. 

When these two components complement each other, they can more effectively communicate the intended message, evoke the desired emotions, and prompt the desired actions from the audience. Contrarily, when ad copy and ad visual don’t go together, it creates a jarring experience for your target audience, leading to confusion. They’ll be unlikely to click the ad, and your ad will be wasted.

Glossier creates a powerful synergy between ad creative and ad copy

Glossier, a beauty brand, uses high-quality, aesthetically pleasing images of its products paired with a concise, relatable, and benefit-focused copy. For instance, to promote its product ‘Brow Flick + Boy Brow’, Glossier runs a Facebook ad campaign. The Facebook ad shows a close-up of their product in use, accompanied by the ad copy: “Want more brow for your brow? Meet Brow Flick + Boy Brow: The most natural-looking way to fill in your brows”.   

Nailing your audience targeting by geo and interest

Precise targeting ensures your ads reach people who are most likely to be interested in your products. Facebook’s advanced targeting options allow you to narrow down your audience by interests, behaviours, gender, location, and use ad targeting to find the people who are most likely to take action. Once your ad starts running, the platform will learn who is engaging with the ad and, over time, narrow your audience so you reach more of the right people.

Facebook’s interest and geo-based targeting is highly effective for ecommerce brands. By using these targeting options, ecommerce brands can design high-converting Facebook ads that are shown to users most likely to be interested in their products, helping to achieve desired outcomes such as sales, sign-ups, or other actions. Ecommerce brands can craft tailored ad messages that resonate more deeply with potential customers by leveraging data on user interests, behaviours, and locations. This targeted approach not only increases engagement and conversion rates but also optimises ad spend by focusing resources only on the most relevant and high-potential audiences. Consequently, brands can drive higher sales and achieve better return on investment (ROI) from their online advertising efforts.  

Rothy’s utilises Facebook’s Interest targeting to maximise ROI

Rothy, a footwear brand, launched a successful Facebook ad campaign by targeting users interested in both shoes and sustainability. Rothy’s shoes are washable, as they’re made from sustainable materials, so interest-based targeting was a perfect match. Additionally, Rothy’s incorporated demographic parameters such as gender and age into their Facebook advertising strategy. As a result, the brand saw a 72 per cent increase in sales. 

Strong value proposition

“In our business, our value proposition is at the heart of everything we do for our customers,” said Michael Stahl, Chief Marketing Officer, SERVPRO. A value proposition tells prospects why they should choose your business over your competitors by clearly highlighting the unique benefits and advantages of your products. It’s crucial for your business’ success and survival in this competitive ecommerce landscape. 

If your Facebook ad visual is captivating enough to grab attention, you only have a few seconds to entice a click with your Facebook ad copy. To craft high-converting facebook ads, it’s crucial to be extremely clear about the value you offer to your customers and articulate it in a few words. A clearly defined value proposition provides a foundation for your offering. It not only increases the quantity but also the quality of prospective leads. When designing your Facebook ad, make sure that you include your unique selling point to attract users' attention, encourage them to click the CTA button, and drive traffic to your website.

Daniel Wellington crafts a benefit-focused value proposition

A popular watch brand, Daniel Wellington’s Facebook ad presents a strong value proposition by showcasing their minimalist and timeless watches alongside a promise of quality, design excellence, and free returns. This combined approach appeals directly to consumers seeking stylish, durable fashion accessories with a sense of timeless elegance. The ad’s ‘Find your favourite now’ prompt encourages engagement by suggesting personal choice, while the ‘Shop Now’ button provides a clear CTA, streamlining the path to purchase. This advertising strategy enhances brand differentiation, boosts click-through and conversion rates, builds trust through customer-friendly policies, and solidifies Daniel Wellington’s competitive position in the watch market.   

Social proof

Humans form opinions and perceptions about a product or service based on the opinions and actions of other people. It’s a psychological phenomenon. Social scientist Robert Cialdini emphasises that social proof is very powerful. It holds significant influence over people's decisions.

Customer testimonials form an important part of the sales funnel. Data shows that nine out of every 10 consumers read customer reviews before making a purchase. Not only that, a whopping 79% of consumers say they trust online reviews just as much as they trust a friend’s recommendation. Friend and family recommendations are also how 40% of consumers find new brands to follow. To increase the chances of conversions, businesses should incorporate social proof in their Facebook ad campaigns. It can also showcase how other people love your brand and products, which can positively impact your customer’s purchase behaviour. 

Mizz Bloom incorporates social proof in their ad campaigns 

To craft high-converting Facebook ads, Mizz Bloom, a USDA-certified organic, vegan, and cruelty-free skincare brand, incorporates customer testimonials in different and creative ways in their Facebook ad campaigns. This Facebook advertising strategy not only helps build customer trust but also boosts sales and improves conversion rates.

Action-orientated CTA

A call-to-action (CTA) button serves as a signpost, guiding users on what to do next: purchasing your product, visiting your website, contacting your business, or signing up your newsletter. It should be used in all avenues of marketing, including digital ads, print ads, websites, email marketing campaigns, and social media posts and ads. 

When designing ecommerce Facebook ads, you should use actionable CTAs to inspire action. The action-oriented CTAs guide user behaviour, boost conversions, enhance user experience, improve engagement, and drive revenue. It can help you get an immediate response from the users. Some of the examples of action-oriented CTAs to include in your Facebook ads are Shop Now, Sign Up Today, Get Started, Learn More, Buy Now, and Download Free Guide. 

Koala uses actionable CTAs to drive sales and conversions

Koala, a popular mattress brand, effectively used the Easter period to create a sense of urgency in their Facebook ads. By leveraging the holiday season, they crafted a compelling CTA that encouraged immediate action from potential customers. Their ad likely included time-sensitive offers, such as limited-time discounts and special Easter promotions, which motivated users to purchase before the deal expired. The combination of a relevant seasonal theme and a clear, urgent CTA helped Koala drive higher engagement and conversions during the Easter period.     

Tracking and technical set-up

To maximise the effectiveness of your Facebook ads, it’s crucial to set up proper tracking mechanisms. This involves implementing tools and practices that allow you to gather data on how users interact with your ads and your website. Proper tracking and technical set-up ensure you can monitor your ad performance and make data-driven decisions. 

Installing the Facebook Pixel and implementing Facebook’s Conversion API can ensure precise tracking of user interactions and conversions, enhancing ad performance and accuracy. The Facebook Pixel is a piece of code that you place on your website. It helps you track user actions, measure the effectiveness of your ads, and build custom audiences for retargeting. With the Conversion API, you can track user actions directly from your server, ensuring data accuracy and privacy. This tool, in particular, is useful for tracking conversions offline or in-app, providing a more comprehensive view of user interactions. 

ASOS utilises Facebook Pixel to facilitate ad strategies 

The British online fashion destination, ASOS, wanted to attract new customers and increase sales in the short term and increase search demand ahead of the peak holiday season. To achieve this goal, ASOS utilised Facebook Pixel to track user behaviour on their website, from product reviews to purchases. This data helps them retarget users who abandoned their shopping carts with Facebook ads that remind them of the items they left behind. 

Measuring Facebook ad success

Facebook ad metrics are crucial for assessing advertising campaign performance. These metrics help advertisers evaluate how effectively ads engage the target audience, track return on investment, and make informed decisions to refine ad strategies. There are several types of Facebook ad metrics. However, knowing what metrics to measure for the success of the Facebook ad campaign is crucial. 

To determine the success of your Facebook ads, you need to analyse metrics such as click-through rate (CTR), conversion rate, landing page views (LPV), return on ad spend (ROAS), and cost per conversion. Evaluating both your advertising metrics and Page insights can give you a holistic view of your success on Facebook. For advanced advertising metrics and testing, ecommerce and dropshipping businesses can consider using tools and platforms such as Facebook Ads Manager, Google Analytics, and A/B testing. 

Allbirds enhances the effectiveness of their Facebook ad campaigns  

Allbirds, a sustainable shoes and clothing brand, launched Instagram and Facebook video ads using a variety of creative and ad copy to attract new customers and increase online sales of its new Dashers running shoe. To identify which ads generate the highest CTR and conversion rate, they measured the success of their ads and adjusted their strategy accordingly. This Facebook ad campaign was a huge success and saw a 48 per cent lift in purchases when using the full mix of creatives. 

Summary

Facebook is a dominant force in social media advertising. Many marketers believe that it consistently delivers a better ROI than other social media platforms. The platform’s sophisticated targeting options make it an incredibly effective tool for reaching specific target audiences. Understanding what your ideal customer wants and where they are in their buying journey is crucial. This way, you can create Facebook ads that resonate with your target audiences, guiding shoppers towards purchasing your products.