Whether running Facebook ad campaigns for eCommerce businesses turns out to be profitable or not largely depends upon the Goals and strategy adopted by the businesses. Facebook boasts of an average of 2.7 billion users every month.

Facebook Ads For E-commerce Site

Placing a Facebook ad helps eCommerce businesses leverage all the data Facebook inherently receives, to reach a larger number of audiences and drive up their sales. However, as with every marketing campaign, this too needs a strategic approach ideally with a clear goal and a well-thought budget. If done correctly Facebook ads can increase your revenue by many times, but a poorly structured ad with the same cost per purchase can end up doing little in getting you leads let alone converting them.

Facebook Ads

To successfully run ads and leverage their power, you can structure your ads keeping in mind a few things. First of all, deciding your budget and the size of the campaign is very important. You need to decide on what size of audiences you wish to reach, how much you are willing to invest, and accordingly decide on the campaign.

A smaller campaign will help you reach a smaller population but the cost per purchase on average may also be smaller for you unlike with larger campaigns that need a big sum of money to be able to reach and build a bigger customer base. With the big campaigns, the average cost to acquire a customer also increases and this may not be very favorable for smaller eCommerce businesses.

There are some companies who invest in large campaigns initially, very much aware of the expected loss, but knowing full well that it is going to be highly beneficial for the business in the long run. These are often the Businesses that have external funding and do not have to pay from their pockets to run the campaigns. Having a large reach and engaging potential customers in large numbers eventually brings in more customers neutralizing the initial loss and turning in great profits in the long term. 

However, along with the size of your campaign, the structure of your ad and the purpose are equally important. More ads do not necessarily mean more customers. Every browsing user on Facebook may not click through your ad. It has to be engaging enough to prompt the user to check it. Video ads are proven to achieve larger customer engagement than images. Further, having people in your ads, be it models or actual customers improves the user engagement rate tremendously. Through engagement, you can drive huge traffic to your eCommerce website which is one step closer to acquiring your new customer. 

There are a number of ways you can grab the attention of potential customers through ads and influence them to make purchases. The time-tested idea is to always have a form of offer going on. It can be a flash sale, or a great discount on a particular product or even something like a buy 1 get 1 free. The trick is to set a product price without reducing your margin too much.

To ensure you get the full benefit from Facebook ad campaigns, there is one thing you must know how to do and that is leveraging customer and user data. In the digital age, it seems like a no-brainer but many businesses still do not give this aspect as much importance and thus are not as successful as they would have been if their marketing decisions were data-driven.

For eCommerce websites that have been around for quite some time, their accounts have naturally grown in size and hence they already have a good amount of customer data to target lookalike audiences using Facebook. These lookalike audiences on Facebook are Facebook users who match the behaviors of existing customers of the targeting eCommerce site. 


New businesses with little to no customer data, can leverage Facebook’s customized targeting based upon peoples’ interests, behaviors, age, etc. To build their customer base. The more traffic you can drive from the Facebook ad campaign and email the more insights about your customers you gain which in turn can be used to retarget the potential buyers.  It is important to keep tracking and tweaking your ads to find out what works well and brings more conversions.