Shopify: Facebook Ads Tutorial - From Zero To $1000/Day In Adspend

This video is a tutorial on how to run profitable Facebook ads for a Shopify store, using a case study of how the speaker went from zero to over $1000/day in advertising spend.

This video by Dan Vas was published on May 20, 2022.
Video length: 19:30.

This YouTube video titled 'Shopify:

Facebook Ads Tutorial - From Zero To $1000/Day In Adspend - YouTube' is a tutorial by Josh Bach on how he was able to go from zero to over $1000 a day in advertising spend with a new Shopify store. He shares his strategies and techniques for running profitable Facebook ads for e-commerce businesses, including finding winning combinations of audiences and creatives, testing new iterations of creatives, and stabilizing, optimizing, and scaling successful campaigns.

The video also discusses the challenges and changes in transparency on the Facebook platform, particularly after the iOS 14.5 update.

• The video is a case study and guide on running profitable Facebook ads for a Shopify store.
• Strategies for starting a new ad account include making educated guesses about the target audience and ad content.
• A step-by-step system for running successful Facebook ads includes finding new audiences and winning ad combinations, testing new iterations of creatives, and stabilizing and scaling the campaign.
• Challenges and considerations include the loss of transparency after the iOS 14.5 update and the need for careful planning and optimization to achieve profitability.
• Core sound marketing principles include focusing on problem-solving products and being strategic in testing with restricted budgets.
• Month-to-month results showed that revenue increased after finding new audiences and resonating creatives.
• A methodical and patient approach involved starting with a small budget for testing and gradually scaling with winning combinations.
• Revenue figures and return on ad spend showed a five times return on ad spend in the second month and the majority of revenue generated in January.
• Scaling and confidence in Facebook ads involved graduating winning combinations into prospecting campaigns and continuously testing new angles and audiences.
• Optimizations and conversion rate improvements increased the online store conversion rate and average order value, leading to improved margins and return on ad spend.
• A step-by-step system for audience testing and creative testing involves finding audiences, conducting creative testing, building a foundation, and continuously testing and iterating.

Shopify: Facebook Ads Tutorial - From Zero To $1000/Day In Adspend - YouTube

Introduction

• The video is a case study and guide on running profitable Facebook ads for a Shopify store.
• The speaker, Josh Bach, shares his experience of going from zero to over $1000/day in advertising spend.
• The video is valuable for those interested in e-commerce or planning to launch a Shopify store.

Strategies for Starting a New Ad Account

• 80% of the work occurs before launching the campaign.
• When starting a new ad account, there is no prior data to leverage.
• You need to make educated guesses about the target audience and ad content.
• Once you find a winning combination of ad and audience, move on to creative testing.
• Creative burnout is a common issue, so it's important to find new creatives to test.

Step-by-Step System

• Step 1: Find new audiences and winning ad combinations.
• Step 2: Test new iterations of creatives with existing winning audiences.
• Step 3: Stabilize, optimize, and scale the campaign with the winning combinations.
• Give Facebook a higher budget to exit the learning phase quicker.
• Confidence in scaling comes from testing on restricted budgets in previous steps.

Shopify: Facebook Ads Tutorial - From Zero To $1000/Day In Adspend - YouTube

Challenges and Considerations

• After the iOS 14.5 update, there is less transparency on the platform.
• Loss of transparency affects tracking customer actions on websites.
• Server-side attributions and conversion API can help mitigate the loss of transparency.
• Running profitable ads requires more than just putting any ad on the platform.
• Ad campaigns need careful planning and optimization to achieve profitability.

Core Sound Marketing Principles

• Consumers have not changed the way they buy or the reasons they buy.
• Focus on problem-solving products.
• Be strategic in testing with restricted budgets to control spending.

Month-to-Month Results

• From November to January, spent $26,300 and generated $140,992 in revenue.
• Most revenue was generated in January after finding new audiences and resonating creatives.
• Used the first two months to build a foundation before letting Facebook spend more money.

Methodical and Patient Approach

• Started with a small budget in November to test different audiences and creatives.
• Gymshark audience was a clear winner with a $17 per purchase cost.
• Continued audience testing in December and focused on iterating on creatives.
• Implemented prospecting scaling strategy in January with retargeting.

Step-by-Step System

• Step 1: Audience testing
• Step 2: Creative testing
• Step 3: Pushing the gas on winning combinations
• Implemented warm and hot retargeting
• Utilized retargeting to bring in more profits

Revenue Figures and Return on Ad Spend

• Generated over $22,000 in revenue in the second month with only $4,000 in ad spend, resulting in a five times return on ad spend.
• Didn't scale harder due to lack of foundation.
• Invested a month into creative testing in January.
• Majority of revenue, $140,000, was generated in January.
• Spent the first two months testing before pushing for higher spending.

Scaling and Confidence in Facebook Ads

• Graduated winning combinations of audiences and creatives into prospecting campaigns.
• Spent $12,800 due to confidence in the foundations and variables.
• Continued monitoring the ad account and testing new angles.
• Conducted audience testing and creative testing to find new pockets of audiences.
• Spent $21,661 and generated $115,000 in revenue.

Optimizations and Conversion Rate

• Implemented conversion rate optimization to increase online store conversion rate.
• In December, doubled the online store conversion rate and increased average order value.
• Increased confidence to scale due to improved margins.
• Maintained online store conversion rate and average order value in January.
• Retained and improved overall return on ad spend from 5.2 to 5.3.

Step-by-Step System: Audience Testing and Creative Testing

• First, find your audiences through testing.
• Next, conduct creative testing to find winning combinations.
• Build a foundation of audience and creative combinations.
• Continuously test and iterate to find new angles and audiences.
• Follow this system to scale and improve return on ad spend.

Section 1: Scaling Facebook Ads

• Before scaling, it's important to do creative and audience testing.
• Once you find winning ads and audiences, you can start increasing your budget.
• Stabilization and profitability are key when scaling campaigns.
• In December, new audiences and creatives were found, leading to increased budget and amazing results.
• Hard work should be done prior to launching and spending money on Facebook ads.

Section 2: Understanding Customers and Hard Work

• Understanding why customers want to buy your product is crucial.
• Focus on the fact that you are selling to other human beings.
• All the hard work should be done prior to launching on the Facebook ad platform.
• Continuously test creatives and audiences to optimize results.
• Once you have the right inputs, let Facebook do its thing and scale.

Watch the video on YouTube:
Shopify: Facebook Ads Tutorial - From Zero To $1000/Day In Adspend - YouTube