By Susana Cipriota

Co-Founder at Funnely
CMO & VP Product
Glossary
1 The Game: Full Funnel Strategy p. 3
2 Formation: Facebook Pixel Setup p. 4
3 The Team: Ecomm Variables Impacting Facebook Ad Performance p. 5
4 The Plays: Facebook Ad Funnel Components p. 7
4.1 Targeting p. 7
4.1.1 Demand Generation p. 8
4.1.2 Demand Capture p. 8
4.1.3 Placement p. 9
4.2 Creativity, Promotions and Ad types p. 10
4.2.1 Attention p. 10
4.2.2 Interest p. 10
4.2.3 Desire p. 11
4.2.4 Action p. 11
4.2.5 Loyalty p. 11
4.3 Bidding p. 12
4.3.1 Actions p. 12
4.3.2 Daily Unique Reach p. 13
4.3.3 Impressions p. 13
4.3.4 Clicks p. 13
4.4 Budget p. 16
4.4.1 All About Reach p. 16
4.4.2 All About ROI p. 17
4.4.3 All About LTV p. 17
5. Review The Film: Measuring for Success p. 19
6. The Kick Off: Building the Funnel p. 21

2
Full Funnel Strategy

W
ith 1.65 billion monthly active users, in your ecomm site you can start feeding more granular you map all the steps of your
1 billion stories posted every day, them right away. The magic will not happen sales funnel, the lower your average cost of
100 million hours of video watched if you avoid this step. The granular allocation purchase will be as you are able to offer better
every day and 2 billion photos shared every day lets you optimize your investment between promotions to highly relevant prospects. This is
Facebook is the best channel for Ecommerce lead gen and retargeting campaigns. And the how your group of audiences should look like:
advertisers to reach new qualified leads, exist-
ing prospects and clients. Its advertising system
has become very robust and full of new features
every month. 2.5 million monthly active ad-
1 Qualied Leads

vertisers utilize Facebook, so e-retailers need

1 -(2,3,4,5)
a deep understanding of all the best practices
to optimize their budget more than ever. From
2 Homepage Visitors
2 -(3,4,5)
Ecommerce components and KPIs to specif-
ic targeting, budget, bidding, placements and
creativity that covers every step of the sales
3 Product Visitors
3 -(4,5)
funnel, youll need to use them all when forming
4
Add To Cart
your ad strategy on Facebook. 4 -(5)
5
Clients
Top performing Facebook ads for Ecommerce
come from managing a group of campaigns
5
covering every step of the funnel. The funnel
allocation approach is a must for ecommerce
advertisers as its granularity allows for better- REMEMBER, THE AUDIENCES YOU WILL BE TARGETING IN EACH
performing ads by lowering the cost per
purchase and boosting ROAS and sales. CAMPAIGN ARE JUST AS IMPORTANT AS THE ONES YOU ARE
Once the custom audience events are placed EXCLUDING SO YOU CAN AVOID OVERLAPPING MESSAGES.

3
Formation: Facebook Pixel Setup
W
ith the world of ecommerce always
changing for marketers, using
current, cutting-edge technology
is a must if you want to take your online sales
metrics to the next level.
Facebook has upgraded its pixel technology
by combining the power of its multiple old
pixels, conversion and custom audiences all
into one. As an e-retailer, a deeper under-
standing of its scope and possibilities will help
you plan and execute a rocking Facebook
(and Instagram) ad strategy. Today there are
already 2.5 million active advertisers on their
platform, so a granular allocation of your ad
dollars is more important than ever if you
need to lower your cost per conversion.
Implementation of the Facebook pixel is
required to structure a sales funnel for your
ecommerce site. With this structure, you
will be generating leads to feed the funnel
and then remarketing them depending on
the actions they take on your site to finally
convert them into clients or re-purchasers.
The pixel consists of a base code and several
events. You can use the 9 standard events
Facebook has put together or customize your
own. This is a funnel example with 6 of them:
Some standard retargeting platforms havent
been built with a performance focus, so
they dont have the ability to track events.
However, this is a must if you plan to master
the art of Facebook ads for Ecommerce.
Facebook has put together a group of
standard events that will help you attribute
conversions in your reporting. These include
AddToWishlist, AddToCart, InitiateCheckout,
AddPaymentInfo, Purchase, and more (check
the funnel below as an example). Although
youll need a developer to insert a Facebook
pixel and set up events on your site, the time
investment is worth it.
You need to be aware of these 3 powerful
features available with the Facebook pixel:
1- BUILDING REMARKETING AUDIENCES:
The pixel will be triggered by the standard
events and Facebook will identify the user
depending on their behavior on your ecom-
merce site, generating audiences for your ads.
2- CONVERSION OPTIMIZATION: Optimiz-
ing your ads for conversion will allow Face-
book to deliver them to people most likely to
visit, add to cart, or purchase your product.
3- CONVERSION TRACKING: You can learn
how successful your ads are by reporting
on events. Keep in mind that revenue is not
always a great KPI for your ads. Depending on
the level of the funnel you are targeting, the
KPIs should change.
4
The Team: Ecomm Variables Impacting
Facebook Ad Performance
Ecomm KPIS
Ad KPIS
Ecomm Variables Ad Variables
Market
Targeting CPM ROAS
Pricing

Business Margins Budget CTR

Product Life Cycle CAC
Bidding CPA
Purchase Frequency

Product Catalog Size

Placement CR
LTV
Creative
Frequency

E
very online business has its own components which AOV
will more or less influence its Facebook advertising Relevance Score
performance. Although all of them are variables on
the business side, many of them must remain stagnant due
to their importance in the business model. However, it is Delivery
important to understand their relation to ad metrics. Lets Churn
take a look at some of them in detail:

5
The Team: Ecomm Variables Impacting Facebook Ad Performance
MARKET: Each market (Country, Region, City)
has its own online behavior and therefore, its
own average CPM. While targeting developing
markets yields a lower CPM, it will usually re-
sult in lower CTRs or conversion rates. Tip: Its
always a good idea to test multiple markets in
different ad sets and learn from their metrics.
The 2015 Q4 average CPM for the Americas
was $8.01, $4.61 in EMEA and $3.46 in APAC.
PRICING: Affordable products usually produce
a shorter path to purchase due to the emo-
tional and impulsive process, while expensive
products require multiple touch-points (ad
impressions) between the lead and the
brand before converting them into a client.
However, a higher product price will typically
result in a higher margin. Tip: Up-selling
strategies with DPA (direct product ads) will
help you raise the AOV (average order value)
and leverage your biz margins.
BUSINESS MARGINS: The higher your
business margin, the more you can bid in the
auctions to win ad delivery. If your margins
are very constrained the space to test, learn
and iterate is very limited. Always include
margins in your ROI formula to see the big
picture and the real ROI. Tip: Some adver-
tisers assign the real valvue of the product
(Price - Cost of product) instead of the price
in the Product feed so they can get the actual
ROI driven by DPA directly in Facebooks ad
reporting tool.
PRODUCT LIFE CYCLE: The product life cycle
is the progression of an item through the four
stages of its time on the market. The four
life cycle stages are: Introduction, Growth,
Maturity and Decline. The acquisition cost
level is directly correlated with this cycle. The
earlier the business is in the cycle, the more
expensive the price will be to get a new client
due to the aggressive demand generation
process youll need to pursue. Tip: Ensure
your relevance score is as high as possible so
you can lower your CPM.
PURCHASE FREQUENCY: The number of
times a customer makes a purchase in a given
period of time will be directly correlated with
the product category. If the purchase frequency
for your brand is lower than category rates, your
customer is likely spending their money on your
competitors. Categories that have high levels
of purchase frequency also lend themselves to
high levels of attrition among customers. Tip: If
your company is based on a subscription model
(No purchase frequency), retargeting clients will
help lower churn.
PRODUCT CATALOG SIZE: We all agree that
the best-performing Facebook ads are Dy-
namic Products Ads. DPA are a cross-device
retargeting solution that helps e-marketers
promote their entire Product Catalog. Its
a robust ad type that combines dynamic
offerings with optimized targeting. However,
it requires a wider product catalog offering for
better performance. If you are promoting a
uni-product company, this tool is not for you.
Although all of the online business
components are variables on the
business side, many of them must
remain stagnant due to their
importance in the business model.
However, it is important to
understand their relation
to ad metrics.
6
The Plays: Facebook Ad Funnel Components

TARGETING

C
reating successful Facebook ad cam-
paigns for ecommerce usually requires While getting the best value from
rigorous testing and constant optimiza-
tion. Testing helps e-marketers like you identify your ad spend by reaching relevant
small tweaks you can make to your campaign
settings to drastically increase ROAS. audiences for your business is
While getting the best value from your ad challenging, there are many best
spend by reaching relevant audiences for your
business is challenging, there are many best practices and tips you can use
practices and tips you can use to guide you in
this art. The demand generation and demand to guide you in this art.
capture stages should be approached sepa-
rately in terms of your targeting strategy.

7
The Plays: Facebook Ad Funnel Components - Targeting
A. Demand Generation
Lookalike audiences and interest-based target-
ing are two tools you can manage to generate
qualified leads to your ecommerce site. Reach
is crucial when generating demand so you can
scale up your results. Its important to test both
targeting types (avoid using them in parallel to
avoid overlapping) so you can learn from metrics
and optimize. You can combine both of them to
narrow big audiences and ensure you are target-
ing only relevant leads. All Lookalike audiences
are based on a custom audience (From a datafile
or from your Website). The suggested size of
the seed audience is at least 2,000 people
and if possible, use a higher-valued-clients
base to leverage the relevance of the lookalike
VS.
audience. If not possible, you can use clients,
basket abandoners, or product visitors as seed
custom audience, as well. The best practice to
test lookalike audiences is by implementing a
process called: Nested Lookalikes. It means
creating 2 o 3 different Lookalike audiences
(Using the relevance vs wide percentages
available, from 1% to 10% of the country) and
testing each of them in different ad-sets. You
need to ensure you are excluding the ones that
are included in the other ad-sets so you avoid
overlapping. You will learn which audience
brings the lower cost per action and the highest
ROI (Usually the one with the highest CPA, but
is not always the case).
B. Demand Capture
Once your qualified leads have visited your
ecommerce site, its time to remarket to
them based on their behavior on your site
to ensure conversion and a higher return on
investment. Custom audiences and website
custom audiences are great technology tools
for delivering retargeting campaigns. Ensure a
Facebook Pixel and some standard events are
in place, and youre ready to go!
8
The Plays: Facebook Ad Funnel Components - Targeting
Placements
Mapping and understanding the path to online
purchase is critical for e-marketers as this
exercise will reveal critical touch-points of
their customers journey to a purchase. Data
confirms that every industry is different and
that multiple parameters (purchase values, the
length of the journey, client profile) influence
the customer behavior through the marketing
funnel, so you dont always seal the deal by
delivering a single ad. While challenging, its
crucial e-marketers design campaigns that
deliver the right message at the right moment
in a customers journey to purchase. Gener-
ating demand with a lead gen campaign and
capturing this intention with granular retar-
geting afterwards is a good starting point. But
the only way to optimize ROAS is by testing,
measuring and learning from each iteration and
adjusting your marketing budgets accordingly.
To complicate matters, most customer journeys
take place on different devices at home, on
the go, and at work (9 in 10 consumers start
an activity on one device and finish it on
another). But dont panic! You can measure all
of these cross-device paths and attribute the
right value to each of them in your Facebook
advertising reports. In general, the smart-
phone is considered the go-to device - 76%
of adults who own one use it while they are Data confirms that every
out and about. Its always with them and is
most commonly used for communication and industry is different and that
social activities. The tablet is viewed as the
entertainment hub and is often used at home, multiple parameters (purchase
where 43% of tablets are shared with others.
The laptop or desktop is the workhorse values, the length of the
80% of online adults that own one use it at
home, and it tends to be dedicated to import- journey, client profile) influence
ant tasks like work or managing finances.
The world is no longer transitioning to mobile, the customer behavior through
as they are already there. With 1.2 billion smart-
phones in the world, people spend 3 hours of the marketing funnel, so you
their day on their mobile phone. 20% of the
monthly time spent on mobile is consumed by dont always seal the deal by
Instagram, Facebook and Messenger. As a result,
these are the channels you should be utilizing to delivering a single ad.
reach your audience. Mobile placements (Face-
book News feed Mobile + Audience Network +
Instagram) are best ones for creating awareness,
demand generation and qualified leads.
However, for retargeting campaigns, the
News Feed Desktop placement still gets the
highest conversion rates in terms of purchase
conversion. Additionally, the right column is
a great placement for reminding your basket
abandoners to come back and move forward
with their purchase.
9
The Plays: Facebook Ad Funnel Components - Creativity, promotions and Ad types
CREATIVITY, PROMOTIONS
AND AD TYPES
A
mong the multiple ad types available
on the Facebook advertising
platform, there are 4 you should
be using when marketing an ecomm site
depending on your goal:
Attention: Are you cool enough?
Carousel ads are perfect for attracting the at-
tention of your qualified leads. You can merge
images and videos into one ad so your users can
swipe to see them all. They can explore your
best-selling products or unlock a story while
they swipe. There are endless opportunities
for marketers to boost conversion rates in their
top-funnel campaigns using carousel ads. Think
of high-impact images, try multiple variations, or
display lifestyle images vs. products. Images are
the first touch-point qualified leads will notice
about your post. Canvas is another option for
awareness generation, as it creates an immer-
sive experience for the user.
In terms of promotions, consider including a
First Time Shopper Offer in your ad as it can
nudge those first-time visitors and convert
them into paying customers.
First Time Shopper Offer Examples:
Free shipping on your first purchase
Free shipping and returns on your first purchase
A dollar amount off on the first order
Interest: You need shoes!
Lead ads present a big opportunity for mar-
keters to push their prospect database to the
next level. You can create a custom form to be
completed by a user after they click the SIGN
UP call to action. Once you generate interest
from your audience, you can collect their
contact information and start retargeting them
not only through Facebook, but other channels
as well. You can now combine Facebook ads
with an email or call-center strategy. This is a
great strategy and every marketer should try it
sooner rather than later.
Dont hesitate to include an Email/Newsletter
Subscription Offer in your creative. As you
probably already know, building an email list
is extremely important for online retailers.
By providing an offer in exchange for visitors
emails, not only do you increase the chance of
a conversion, but you also get their email for
re-marketing through Facebook and email at
the same time.
10
The Plays: Facebook Ad Funnel Components - Creativity, promotions and Ad types
Desire: Our shoes are better/cheaper
Dynamic Product Ads are the elite ads for
e-retailers. This magic remarketing tool delivers
the best-performing offer from your product
feed to people most likely to purchase. You
can set up multiple rules to fulfill your business
needs such as not displaying out of stock
products. DPA combine targeting optimization
with offer optimization. At this stage, you
need to convince prospects that they want
and desire your product and that it will satisfy
their needs. If you are still not delivering DPA,
please start today, and your ROI will thank you!
Ensure you include some kind of Volume/Cart
Size Offer. An offer based on the total value
of a shopping cart is an effective up-selling
tactic to encourage prospects to spend more,
increasing your average order size. A strategic
way to incorporate this into your online store
is to calculate your average order value for
previous months and offer a discount or free
shipping on all orders 10-20% over your
average order value. Some other offer ideas:
Buy X items, get free shipping
Free shipping on orders over $X
$X discount on orders of $Y or more
$X or X% off for repeat customers
Action: Get our shoes now
Link Post ads or Dynamic product ads with
a single product are the most effective Face-
book ad types for shopping cart abandoners.
At this stage its not a good idea to remarket
to your prospects with multiple offers if they
have already added a product to the basket
and abandoned it afterwards. We dont want
them to start the purchase process from
scratch, but need them to move forward with
the current choice instead.
With close to 70% of all people abandoning
their carts, its critical to include the sexiest
Abandon Cart Offer possible to provide
visitors with a reminder and incentive to come
back and complete their purchase. Some ideas:
A dollar amount off an order
A dollar amount off each item
A percentage off each item
A dollar amount off shipping
Free shipping
X% off all items in a category
Buy 1 get 1 free
Loyalty: Come back, you love our shoes
Dynamic Product Ads with multiple products
and a cross-selling/up-selling strategy is the
best choice at this stage. Ensure you set up
Product Sets in your product feed options and
youll be ready to raise the LTV of your clients
and also the AOV.
You can test multiple rules and see how the AOV
responds. For example, for up-selling purposes,
you can divide the product feed into 2 product
sets using the Average Price as the dividing line
and set the rule to deliver Expensive Product
Sets instead of the whole catalogue.
Dynamic Product Ads are the
elite ads for e-retailers.
This magic remarketing tool
delivers the best-performing
offer from your product
feed to people most
likely to purchase.
11
The Plays: Facebook Ad Funnel Components - Bidding
BIDDING
A
lthough bidding may sound like a
whole new world full of tricks, you
can maneuver through the process by
always bidding for actions when selecting the
Website Conversions objective in the cam-
paign creation process, especially for ecomm
marketers. Each level of the funnel should
be bidding for a different action while the
rest are kept constant. However, if you are an
intermediate/advanced advertiser, you can test
multiple optimization options and learn from
them. Lets dive into the available objectives:
Actions
Facebook will deliver your ad to people who are
most likely to perform that action. This works
best when youre targeting large audiences
(+100,000 people) as Facebook can pick out
the top percentage of people most likely to act
and discard the rest. The actions can be any
Facebook Standard Event (or customized event).
This option is great for top-funnel campaigns
with a wide lookalike audience and visiting the Each level of the funnel should be
landing page as the action pursued. However, If
you are targeting a small audience, as is usually bidding for a different action while
the case for retargeting campaigns, you need to
know that Facebook will pick just a percentage the rest are kept constant.
of them to deliver to (usually 10%). Ensure you
keep your budget low, or the campaign will not However, if you are an
consume it all. For example, if your audience size
is 50,000, then you can expect delivery to only intermediate/advanced
5,000. With an average CPM of $8 in America,
the logical budget to set for this ad set would be advertiser, you can test
$40. The other thing you need to keep in mind
if you choose this action-based optimization is multiple optimization options
that the Facebook algorithm needs at least 25
actions per day to adjust targeting. Therefore, if and learn from them.
you selected Purchase as the event that triggers
the action, you need to ensure you are getting
25 purchases per day to let Facebook calibrate
the delivery. If this is not the case, the suggested
move would be to select the Add to Cart event
or any other conversion event further up the
funnel (i.e. Product Page Visit).
12
The Plays: Facebook Ad Funnel Components - Bidding
Daily Unique Reach
Facebook will deliver your ad to as many people
within your target audience as possible, but
with a limit of no more than once per day.
Facebook is not optimizing delivery to people
most likely to perform the desired action. There-
fore, if you want Facebook to reach all the users
in your website customer audience, for example,
it will try to show your ad to as many of those
as they can with the available budget, regardless
of the likelihood of those users performing your
desired action. This is a great tool when retar-
geting extremely relevant audiences (Shopping
Cart abandoners for example) as you will be
serving ads to all of them but also avoiding high
levels of frequency since delivery is limited to
once per day. However, sometimes you will see
that your audience performs better with more
than one impression per day. If this is the case,
you should test if optimizing for impressions
works better for you.
Impressions
Facebook will deliver your ad to as many people Daily Unique Reach is a great
within your target audience and as many times
as possible, exactly like the Daily Unique Reach tool when retargeting extremely
option, but without the single daily impression
limitation. If your retargeting audience is smaller relevant audiences as you will be
than 100,000 and contains only lower-funnel
prospects that need a final push to convert into serving ads to all of them but
clients or are already clients, this is your best
option. Facebook will roll out a feature allowing also avoiding high levels of
the frequency cap to be set by the marketer.
This will be the perfect combination of reaching frequency since delivery is
the entire audience with a set amount of daily
impressions (not just one). limited to once per day.
Clicks
Facebook will deliver the ad to people most
likely to click anywhere in your ad (link click,
comment, like, share) and you will be paying
for each click made to your ad. Currently you
can select to be charged only by link clicks.
This is usually discouraged for Direct response
goals, but best for campaigns that are pursuing
engagement from their audience.
13
The Plays: Facebook Ad Funnel Components - Bidding

Bidding & Ad type

QUALIFIED LANDING PRODUCT BASKET CLIENTS

LEADS VISITORS VISITORS VISITORS

Objective: Objective: Objective: Objective: Objective:

Website Conversion
Conversion Event:
Landing Page Visiting
Website conversion Product Catalogue Product Catalogue Product Catalogue
(multi-product) (single product)) (cross-selling)
Conversion Event:
Product Visiting Conversion Event: Conversion Event: Conversion Event:
Add to Cart Purchase Purchase

OPTIMIZE FOR ACTION

(IF WCA < 100K = CPM)

OPTIMIZE FOR ACTION (IF WCA < 100K = CPM)

OPTIMIZE FOR ACTION (IF WCA < 100K = CPM)

OPTIMIZE FOR ACTION (IF AUDIENCE <100K = OPTIMIZE FOR IMPRESSIONS)

OPTIMIZE FOR ACTION

AWARNESS CONSIDERATION PREFERENCE PURCHASE LOYALTY

14
The Plays: Facebook Ad Funnel Components - Bidding
Automatic vs Manual bidding
Although its not your actual bid, Facebook
uses a max bidding amount to ensure you
will not pay more for your bid than its worth
to you. If you are selecting Optimize for
Action, by default, you are not asked to set
a bid and Facebook will get the most actions
at the best price. However, you can always
test the manual bidding option if you are an
experienced advertiser. Facebook shows a
suggested range to guide you in this process,
but we suggest you to do the math and set
what the action is worth to you. If the event is
Add to Cart for example, and your Shopping
Cart Abandonment Rate is 60%, your Average You can always test the manual
Order Value is $150, and your Business Margin
is 80%, your maximum bid to turn a visitor bidding option if you are an
into the shopping cart adder would be $48.
However, if Facebook is delivering less than experienced advertiser. Facebook
expected, try to raise the bid (25% more than
the highest suggested by Facebook) and see if shows a suggested range to guide
the ROAS makes sense for your business.
While bidding CPC or CPM, ensure you you in this process, but we
bid high enough (double than the amount
suggested, as there is no range in these cases). suggest you to do the math and set
Bidding too low is the primary reason for not
getting your ad delivered. what the action is worth to you.
15
The Plays: Facebook Ad Funnel Components - Budget
BUDGET
L
eads, prospects, and clients we can also
call these components demand gener-
ation, demand capture and customer
retention. In Facebook Ad terms, these can be
translated to lookalike targeting, retargeting
website visitors, and retargeting website
clients. The best-performing allocation model
for your ecomm business will depend on
multiple parameters. Some of the metrics that
impact the three levels of the funnel include
CAC, organic monthly visitors, average order
value, repurchase rate, and LTV. For example,
if your companys repurchase rate is very
low because of the essence of your product,
it does not make sense for you to invest ad
dollars in reaching out to clients as they are
not going to convert.
For the purpose of this analysis, lets imagine
an ideal company as a study model and
focus on the 3 usual stages of an ecomm
companys journey through Facebook ads.
The lower on the funnel a person is, the
lower the cost is to convert them on a
purchase. But, this is a process that needs a
high budget, time and patience.
Stage 1: All About Reach
The first stage is all about brand awareness
and driving highly-qualified leads to your site.
Most of your ad dollars (80% lead gen, 15%
retargeting visitors, and 5% retargeting clients)
should be invested in campaigns targeting large
lookalike audiences based on your clients/
prospects. Usually, this stage of the journey is
likely to be your biggest bet in terms of ROI. Its
very expensive to convert a lead into a client with
one campaign, so you cant expect a high return
on your advertising investment. Focus instead
on metrics such as cost per person reached
and their conversion rate from lead to visitor.
Try multiple lookalike audiences, placements,
creatives and copy to iterate and lower the cost
of acquiring a new prospect.
The best-performing allocation model for your ecomm business will depend
on multiple parameters. Some of the metrics that impact the three levels
of the funnel include CAC, organic monthly visitors, average order value,
repurchase rate, and LTV.
16
The Plays: Facebook Ad Funnel Components - Budget
Stage 2: All About ROI
The second stage is the perfect time to boost
your ROI metrics. You managed to lower your
cost per qualified lead, and now its time to
remarket to them! Remember that the cost of
converting a prospect is lower than converting
a lead, so your advertising spend will bring a
higher level of return. This it the perfect time
to re-allocate a large amount of your ad dollars
from lead-gen campaigns to retargeting solu-
tions like Dynamic Product Ads. The larger your
inventory is, the better theyll perform. The
funnel composition model will be around 50%
lead-gen, 40% retargeting product visitors, and
10% retargeting clients.
Stage 3: All About LTV
This is now the perfect funnel! Its a funnel that
allocates most of your ad dollars to retarget-
ing clients. Your cost per conversion will be
the lowest, and the return highest. Focusing
on generating up-selling and cross-selling
campaigns with DPA or discount codes is key in
this stage. You earned a big client audience and
retargeting them is the best option in terms of
the cost of conversion. Its hard to get there,
but if you manage to do it, you will validate
that the perfect funnel you learned about at
your university has been flipped around!
Unfortunately, this is not the end of your
journey but just the end of one cycle. Once
youve reached the third stage of the funnel and
your customer retargeting campaigns have been
running for a while, their performance may start
to decrease. This could be a sign that its time
to feed your funnel with fresh leads, and youll
need to circle back to the first stage again.
The lower on the funnel a
person is, the lower the cost
is to convert them on a purchase.
But, this is a process that
needs a high budget,
time and patience.
17
The Plays: Facebook Ad Funnel Components - Budget

Advertising Spend Per Funnel Level

This is how advertising spend cycles would look:

ROI Evolution
The ROI evolution, with 3 stages included
in each cycle, would look like this:

This is of course a very sophisticated

approach and requires you to track many
variables daily before you decide how to
reallocate your ad dollars.

18
Review The Film: Measuring for Success

A
s an ecomm marketer, you must
monitor your ad KPIs on a daily/
weekly basis to learn from each
iteration and optimize accordingly. You prob-
ably already know that Ecomm KPIs are your
main marketing objective and they impact the
business in the long term.
The most important ad KPIs to monitor are:
CPM: The cost per thousand impressions is
definitely a useful KPI when measuring success
- especially in top-funnel campaigns where
wider audiences are required. The lower CPM
you get, the more people youll reach.
CTR: Although many people dont click
on ads and go directly to your website from
another device afterwards, the click-through
rate does a good job of showing their engage-
ment level and how it changes over time.
CPA: The cost per action is the metric that
will reflect success or failure of each campaign
in the funnel more clearly. While the action will
change from one campaign to another, (visiting
the landing page, visiting the product page,
Add to Cart, Purchase) its very important to
keep a close eye on them.
CR: Conversion rates will reflect the health your ad is likely to be more expensive or shown
of your funnel and will show you where the less frequently. Its important to monitor in both
drop-off is so you can optimize for conversion. lead-gen and retargeting campaigns.
FREQUENCY: Frequency is the average DELIVERY: If your campaign is under-de-
number of times your ad was shown to each livering, try raising your bid, replacing the
person. If your websites custom audiences for conversion event with a higher-funnel one,
retargeting are not very large, you will notice or changing your targeting. Sometimes
that this metric gets high quickly. Refreshing retargeting campaigns underdeliver because
your content every 15 days and varying your of a small website custom audience, so ensure
product feeds for DPA will help combat this. you re-allocate this budget to your top-funnel
campaigns to feed the funnel.
RELEVANCE SCORE: The relevance score
calculation is based entirely on the positive and Additionally, the long-term metrics that will
negative feedback Facebook receives from the reflect the success of ad campaigns are ROAS,
target audience. If this metric decreases, then CAC, LTV, AOV and Churn.
Ecomm KPIs are your main marketing objective and they impact the busi-
ness in the long term. You must monitor your ad KPIs to learn from each
iteration and optimize accordingly.

19
Review The Film: Measuring for Success

ATTRIBUTION MODEL

Establishing an attribution model is happened 1 day after the ad impression or

imperative to better understand the lift
driven by advertising spend and the touch
points responsible for the conversion during
the customer journey. Facebook attributes
conversions to the day of the click and/or
impression. Specifically, Facebook offers con-
version tracking based on a 1 day, 7 day and
28 day post-click and/or post-impression
model (unfortunately the maximum window is
28 days, so youre a bit limited if you have a
particularly long path to purchase).
By default, Facebook will attribute a purchase
(or any other action) to a campaign if it
28 days after the user clicked on the ad. You
can change the attribution model to better fit
your business, however, we encourage you to
consider both view and click events in it, as
most people dont click on ads and then make
a purchase directly on another device.
Facebook can attribute this transaction to
a specific campaign as Facebook users are
logged in on all their devices. If youre using
other analytics tools for your reporting, it
wont consider this data, which is why most
cross-device attribution from Facebook is not
being included.

You can change the attribution model to better fit your business,
however, we encourage you to consider both view and click events
in it, as most people dont click on ads and then make a purchase
directly on another device.

20
 CONVERSION
The Kick Off: Building the funnel
FUNNEL

CAMPAIGN AD SET TARGETING OPTIMIZATION PLACEMENT CREATIVE BUDGET

OBJECTIVE

ADSET 1 Lookalike 2% FB + IG + Audience 2-3 creatives

AWARENESS Network per ad set.
Campaign 1: Website Lookalike 9%, Conversions: FB + IG + Audience 30% of
ADSET 2 Exclude Lookalike 2% Landing Carousel overall ad
Conversions. Network
View Content ads / Video spend
Lookalike 10%, FB + IG + Audience Carousel
ADSET 3 Exclude lookalike 9% and 2% Network ads / Canvas

ADSET 1 Conversions: FB Newsfeed Desktop 2-3 creatives

Landing Visitors WCA Product per ad set.
CONSIDERATION (30-days duration) View Content
Campaign 2: Website FB Newsfeed Mobile 15% of
ADSET 2 Excluding product Carousel
Conversions. + Audience Network overall ad
visitors, basket visitors *Unique Daily ads / Video spend
and clients Reach or Impression Carousel ads
ADSET 3 if audience is <100K IG

ADSET 1 Product Visitors WCA Conversions: FB Newsfeed Desktop

(30-days duration) Add to Cart
Campaign 3: Product Exclude basket visitors Product Feed 20% of
ADSET 2 *Unique Daily FB Newsfeed Mobile
Catalogue for FB. and clients (Multi Product overall ad
PREFERENCE Reach or Impression
Layout) spend
if audience is <100K
ADSET 3 FB Right Column

ADSET 1 Conversions: FB Newsfeed Desktop

Add to Cart WCA
Purchase Product Feed
(duration 60 days) 15% of
Campaign 4: Product
ADSET 2 Exclude basket visitors FB Newsfeed Mobile (Single Product
Catalogue for FB. *Unique Daily overall ad
and clients Reach or Impression Layout)
spend
if audience is <100K
PURCHASE ADSET 3 FB Right Column

ADSET 1 FB Newsfeed Desktop

Conversions: Product Feed
Clients WCA Purchase (Multi Product
Campaign 5: Product (15 days after 20% of
ADSET 2 FB Newsfeed Mobile Layout +
Catalogue for FB. purchase, 90 days *Unique Daily overall ad
Cross-selling/ spend
duration) Reach or Impression
if audience is <100K
Up-selling Setup)
ADSET 3 FB Right Column

LOYALTY
* Instagram for levels 3, 4, 5 can be run with Website Conversion separate campaigns as DPA are not available for this placement yet, use Carousel Ads instead.
* If ads are underdelivering, Re-allocate ad-dollars to Level 1 to feed the funnel.
* Re-allocate ad-dollars to placement ad sets with higher ROI."

*This is not a one-size ts all business.

This is an standard structure to guide you
21
through the funnel structuring process.
Resources
Funnelys own data

Facebook for Business: https://www.facebook.com/business

Facebook Blue Print: https://facebook.exceedlms.com/student/home

Facebook for Developers: https://developers.facebook.com

Support: https://www.facebook.com/business/resources

Jonloomer: http://www.jonloomer.com/

Facebook DR Activation Guide

22
Contact Us... By Phone
(208) 505-8746
By Email
info@funne.ly

New York San Francisco Buenos Aires

33 Nassau Avenue, Brooklyn 55 E 3Rd Ave, San Mateo Niceto Vega 4736

May 2016