Why online shops need Facebook ads

Horoshop company (provider of services for creation and promotion of online shops, regular speaker at BABY EXPO business workshops) conducted a survey of online shop owners and marketers about effectiveness of advertising in Facebook compared to other promotion channels.

The questions were answered by representatives of 83 online shops from different niches. The most popular were clothing (16.4 per cent), footwear (12.1 per cent), electronics (8.6 per cent) and accessories (6 per cent). Another group of questions were answered by 19 marketers who set up Facebook Ads.

WHAT ADVERTISING CHANNELS ARE USED BY ONLINE SHOPS

78.6% of online shop owners use Facebook advertising for their businesses. This channel wins by popularity with contextual advertising (60.7%) and SEO (59.5%). 59.5% of respondents are satisfied with the results of Facebook Ads and plan to continue using this channel.

WHAT CHANNELS GENERATE MORE TRAFFIC TO WEBSITE

36.9% of online shops have the most traffic generated by Facebook, 33.3% generated by Google Ads and 21.4% generated by SEO.

WHAT ADVERTISING CHANNELS GENERATE MOST SALES

35.7% of online shops have the most sales generated by Facebook ads, 29.8% by Google Ads and 20.2% by SEO. Alexander, analyst at TurboWeb, set up dynamic product advertising for a cosmetics online shop. According to Google Analytics, in two years the online shop has increased monthly revenue from FB advertising from 0 to 900,000 UAH. Alexander also noted that dynamic advertising of seeds and seedlings on FB yields twice as much as all advertising in Google (including Shopping), with the same cost-effectiveness. Elias, PPC IM at Enterprise Department Netpeak, said that dynamic advertising of ROI clothing on FB is 20-25% more effective than in Performance Google.

HOW MANY FACEBOOK ORDERS DO YOU HAVE PER MONTH

31% of online shop owners have up to 5 orders per month. 10.7% have 10 to 25 orders and 21.4% have more than 100 orders. Sergey, Middle PPC Specialist at Netpeak, advertised a wristwatch store. At the beginning, the owners allocated $100 for test advertising. Now the store gets about 100 orders per month at $2. We started with dynamic remarketing, then added new audience catalog and conversion campaigns.

HOW MUCH MONEY IS MONTHLY ALLOCATED BY ONLINE SHOPS FOR FACEBOOK ADS

50% of online shop owners allocate $100 to $400 per month on Facebook advertising. 11.9% of respondents allocate $500–1,000 and 10.7% allocate $1,000–2,000. Victoria Nazaruk, SEO analyst at Golden Web Digital, shared the textile manufacturer’s case: “The client came with a very negative attitude to all promotion tools. We started with a small budget of $150 per month. Now the budget is more than $700.”

HOW MUCH ONE ORDER FROM FACEBOOK COSTS

The survey showed that in most cases (58.4%) one order from Facebook costs between $1 and $5. 14.3% of respondents indicated that one order was $5-10 for them and 11.9% that $10-12.

HOW MANY ONLINE SHOPS USE FACEBOOK PIXEL

71.4% of online shop owners use Facebook Pixel to increase advertising efficiency, and 6% plan to start doing so. But 7.1% of respondents don’t know what it is.

HOW ONLINE SHOPS SET UP DYNAMIC REMARKETING

The survey showed that 22.6% of online stores set up dynamic remarketing in Facebook Ads, and 22.6% in Facebook Ads and Google Ads simultaneously. Yuri Pirch, founder and CEO of K2, shared the case of the online shop of bike accessories: “A client asked to set up ads on Facebook. Dynamic retargeting worked well. With a minimum budget of $5 a day, we received 1,092 sales for $8,000 during six months. The value of each sale is $0.84. And this is only due to the fact that we have returned users to website”.

OUTCOMES

The survey of online shop owners and marketers showed that: 78.6% of online shop owners use Facebook advertising; 63.1% of online shop owners set up their ads themselves; 35.7% of online shops generate the most sales via Facebook ads; 36.9% get more traffic to website via Facebook than via other channels; 50% of online shop owners advertise from $100 to $400 monthly in Facebook; in most cases, one Facebook order costs between $1 and $5; 59.5% of respondents are satisfied with the results.