PPE Ads Strategy – Shopify Tutorial
In this blog post I’m going to show you my strategy when it comes to PPE ads. PPE ads are what I use to see if I have a winner or a loser without spending more than $5. Yes you read that right, with PPE ads, when I spend about $4-$5 I pretty much know if I should kill the ad or if I should continue with this ad.
WATCH THE VIDEO BELOW
Ultimately, when you do Facebook ads you want to optimize for Website conversion.You want to optimize Purchase Conversion to be exact… If you do this, you are basically telling Facebook that you want them to send then traffic that is likely to BUY SOMETHING. If you optimize for Add to cart they will send a lot of people that add to cart but not necessarily buy, if you optimize for view content they will send you traffic that will look at your website, but not necessarily add to cart. So it makes sense to optimize for Purchase conversion right?
Well, not really. The problem is if you are just starting out, you don’t have any data. What makes Facebook advertising powerful is they have something called the Facebook Pixel. The Pixel is a tracking code that you put on your Shopify store and it tracks EVERYTHING. The number of people that viewed your content, the number of people that added to cart, that bought, etc.
After a while, Facebook literally know EVERYTHING about these people. Their Algorithm is so powerful that they are able to look at the data and know exactly who would be most likely to buy your products. This is why at some point you don’t even need to be super specific when you do your targeting in Facebook. Facebook already has enough data so they know to whom they should show the ad.
But if you are just starting out, you DON’T HAVE ANY DATA so what you want to do is start by optimizing for add to cart first, then when you have at least 25 add to cart per week then you can switch to purchases. It can get expensive quickly though because every time you want to test a new product, you have to start with add to cart, then wait a few days until you have about 25 add to cart, then you can switch to purchases…You can spend easily $30 testing a new product this way (Which is still cheap when you think about it, but there is a better way).
This better way is doing PPE ads. PPE stands for Page Post Engagement and the whole point of those is to find you people that are mostly likely to engage with your Ads. THEY PROBABLY WON’T BUY, BUT EVERYTHING IS OPTIMIZED IN A WAY THAT THEY ARE LIKELY TO ENGAGE WITH YOUR POST. They will like your post, comment on it, click on it, etc.
Why am I using these? Because it is a way for me to know if people are interested in my ad QUICKLY. If people are not engaging with your ad, chances are HIGH they won’t buy the product anyways, so why would you try and optimize for add to cart or purchases? If you do a PPE ad and nobody is engaging with your ad, it means people don’t care about it and if you optimize for add to cart of purchase, you will just lose money.
So here is how I do it. I always test a new product with a PPE ad. I never spend more than $4-$5. After I spend about $5, these are the metrics I’m looking at (I recommend you to watch the video on top of the post it will make things easier for you to follow):
In your Facebook reporting you want to add these columns: Page likes, Post Comments, Link Clicks, CPC (Cost per link clicks), and Cost Per Post Engagement. After you spent about $5 you want to check if you have any page likes, post comments, and link clicks. If people liked your page, it means they like your ad. It doesn’t mean they will buy, but at least you know they like the product! If people leave positive comments on your ad, it means they took the time to write this message and it means they are invested enough and maybe this is a good sign. If people click on your ad this means they were interested enough to go see what this product is all about and this is great news. The number of link clicks is probably the most important because it means not only did they like the post, but they wanted it enough that they actually clicked on the link!
Now what you want to analyze is the CPC (Cost per link clicks) and the Cost Per Post Engagement. If after $5 spent I see that my Cost per post engagement is higher than $30 cents, and my CPC (Cost per link clicks) is higher than around $1.25 or something like this, I kill the ad. What this tells me is that people are not interested enough in my ad and most likely even if I optimize for add to cart or purchases, it won’t work.
***Sometimes some ads have super high CPC and Cost per post engagement and do well when you optimize for Add to cart and Purchases, but in 98% of the time these ads will fail and you will lose money***
Because the odds of these ads working even though their CPC and their Cost per post engagement is high, I just kill these ads automatically. I hate to lose money.
If my ad has a CPC and Cost per post engagement lower than around $1.25 and $30 cents, I delete delete the PPE ad and I create a Add to cart Ad. Then when I have enough Add to carts, I switch to Purchases.
This is what I use for all of my ads and it allows me to spend as little money as possible when I’m testing my ads. It is SUPER EASY to see if you have a loser with this method, so that you don’t lose too much money.
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