Gabriel St-Germain: Facebook Ads Scaling Strategy For Dropshipping

Introduction

Hey everyone, Gabriel here and in this video I’m gonna be talking about how I took a brand new Shopify store to over 5k a day and adspend within just about 10 days, and this was all done with Facebook, ads and look-alike audiences, so I’ll be taking You, through the exact process that I used to build these campaigns and scale it to 5k a day as well as mistakes to avoid and tips for increasing your performance.

Numbers

First off I want to show you guys some numbers, I’m not gonna be going into the strategy right away, but I just want to show you guys the numbers, so you can see how quickly it’s scaled and what kind of results you can expect with This strategy so July 20th.

Expenses

This was before we even started so, as you can see, $ 0 spent and then, if I go to July 21st, this was the first day of I’d spent on Facebook.

You can see $ 200 spent $ 300 spent and the return on adspend was quite underwhelming 0.5.

Losing Money

We were actually losing money at this point, but it that’s pretty normal and you’re just starting out in testing products.

Profit

The 22nd 1.45, as you can see, the amount spent increased as well, so it’s sort of doing a little better, still, not great, for this particular store. We determined that including the cost of the products, the payment, processor fees, as well as other fees like support, team and everything we determined that we wanted our return on adspend at 1.5, at least that’s for a break-even and 2.0 is what our goal was, because I Don’T return on adspend of 2.0 we do making 20 % profit on the on the total sales.

2.0 is what we were aiming for.

Let’s keep going see what happened July 23rd.

You can see that’s been increased again. 1.5 case spent 2.6 K in sales. Let’S take a look July 24th.

Big Jump

Again, another big jump in I’d spent 3.4 k spent 5.5 K in sales. Return on adspend did take a pretty big hit just because of how suddenly we increase the budget, but that’s normal July 25th, as you can see, return on hot spins recovering a bit 1.7 for July 26th.

This was the first day where we actually did above 5k in ad spend, and the return on adspend is almost 2.0 so 1.96.

This is that this is when we started becoming very profitable right, so we made about 20 % profit on this. 10 point. 6 K and sales that day and then the 27th again 5 K not spend 1.88, so it took a little bit of a hit but still profitable, still doing great and then the 28th again 6.2 K.

We went way past the 5 K Dana. It’S been actually but 5 K a day was just a number that I picked return on adspend 1.96, as you can see it’s being very profitable and then the 29th again 5.5 K a and I’d spend 2 point 3 5 into return on adspend.

A Profitable Campaign: Case Study

This was a very profitable campaign and it didn’t end there. I’M just gonna stop it at that, but it kept going. I’M actually still running ads on this store. Let me just show you the lifetime. There you go so you can see $ 187,000 spent. Three hundred seventy three hundred sixty six thousand in profit, so about twenty percent of this, maybe a little bit less, because 20 percent is at 2.0 return on adspend, so maybe like 18 20 percent profit on this $ 367,000 since July 20th.

Super Profitable

This store has been super profitable and almost all of it was done with Facebook ads.

The Strategy

Without further ado, let’s get right into the strategy that I used alright.

Requirements

Before we can get started, there are a few requirements that you need to be able to pull off a campaign like this.

Proven Product

First off you need a proven product. That’S getting a lot of sales, so you don’t want to start scaling your product that you’re just testing right now, when you’re scaling, you need to be sure that the product is profitable.

You’ve already started getting sales on it. You know that there’s a lot of interest for the product – it’s not not every product can be scaled right, so this is very important. If you try to scale the wrong product, you will not get good results and you’ll just waste a lot of money.

You need a proven product, that’s getting sales if you need help on how to find good, proven products.

I actually have another video on my channel about that.

Video Ad

I suggest you check it out. Another requirement is that you need a good video ad, so video ads are king right now, I’m sure you guys have heard that before, but it’s true video ads outperformed all other form of ads right now by quite a large margin and there’s a specific type of Video ad that works well, so I’m actually going to show you guys an example.

Example

This is from the Facebook shows, so these Facebook shows are their drop, shipping all kinds of product and they’re making an absolutely killing because they’re using video content and as you can see, 2.1 million views.

It’s an egg peeler and I’m gonna show you the video just so you guys can see the type of video that works well right.

An Engaging Video

You want to have an engaging video like this with sub titles text on screen, so that people don’t have to turn on the sound to know what the video is about and yeah. You want a bunch of social proof in the video people using your product like this.

This is great yeah, so you guys get the idea.

This is from blue, create, I believe, yeah blue, create.

Inspiration

You can just check out these show pages right like I want one, I want one by howlers and then you can see all their episodes each one of these episodes are dropshipping products and they’re making absolutely killing because they’re making their own videos their own High quality videos that so, let’s, let’s take a look at this they’re, all using the exact same style right.

It’s just dumb people, demoing the product and then text explaining what it does – and this is the exact format that works really well for video ads.

Take a look at their page for inspiration. Don’T just steal the odd and make your own ads.


Tips

Fiverr

I personally send my products to people on Fiverr and I get them to record clips using it, and then I edit my own ads so yeah.

Good Video Ad

This is very important. You need a good video ad, that’s engaging, or else you won’t be able to scale it.

Another thing is you want to have the pixel already installed on your store? I’M not gonna be covering how to do this.

Pretty Basic

This is pretty pretty basic. You should know how to do this and if you don’t take a look at one of the millions of video tutorials online, how to do so. It’S super easy, but you want to make sure that you have your pixel installed on your site because, as I mentioned before, this strategy is all about using look-alike audiences to scale and you need to have a pixel installed.

Look-Alike Audiences

You can create custom audiences and create look-alike audiences.
Alright, so once you’ve got all the requirements down, you’ve got a good video and the pixels installed on your site. What you want to do is you want to create the post in your ads manager and use that same post ID for all your ads.

This is very important. A lot of people just create new versions of their ad for each ad set, and what this does is it’ll spread out the engagement across all the different versions of your ad.

Post IDs

What you want to do is just use one post ID and use that post ID for all your ads so that all the engagement gets added to that one ad.

Business Manager

How you want to do this? Is you just go to your page, your business manager and then page posts, and then you create the post here.

You select video, you add your text in your video and then once you create the post, it’ll give you a post ID and every time you create a new ad, you just select to use existing post and you enter that post ID and so yeah.

Social Proof

This is really important so that your ads have a lot of social proof and a lot of engagement, which will help a lot with your click-through rate and your conversions. Okay.

Pixel

Now that you’ve got the video post set up, the next step is warming up your pixels so that you can build a look-alike audiences.

The Strategy: sum-up

This whole strategy is built around look-alike audiences, so you need to have some data on your pixel before you can create custom audiences to build look-alike audiences from so.

Basically, you need to get some traffic on your site to get started so there’s two ways that I like to do.

Instagram Influencers

This number one is promoting your product with Instagram influencers.

This usually works really well Instagram. Influencers get a lot of traffic for really cheap compared to Facebook Ads, so this is a really great way to start warming up your pixel and start getting sales on your website.

Another way is to run a paper engagement campaign to worldwide, excluding the big four countries.

The US, UK, Australia and Canada to get super cheap video views, and then you can build a 95 % video viewers, custom audience and build your first look-alike audience from that which usually works really well.

Warming Up

Those are the two ways that I like to start warming up. My pixel, and you need to do this because the rest of the strategy uses look-alike audiences and look like audiences won’t work.

Well, unless you have a warm pixel, which means a pixel with a lot of actions taking on it a lot of sales, a lot of visitors and whatnot.

Okay, so once you’ve got a warm pixel, that’s when you can really start testing a lot of different audiences and start scaling your ad spend.

Different Look-Alike Audiences

Essentially, what you want to do is create as many different look-alike audiences as possible to test and then start those off at a 50 dollar budget and test really as many different look-alike audiences as you can. So.

What I like doing is having a separate campaign for each of the main four countries for dropshipping, which are the US, the UK, Australia and Canada, and then for each of those campaigns I will try.

I will test all the different look like audiences.

Results

I can so these are the ones that I usually like to start with. 95 %.
Video of yours buyers in the last 30 days Add to Cart in the last 30 days.

Initiate checkout in the last 30 days website visitors in the last 30 days and then the top visitors by time spent the top 25 % visitors by time spent in the last 30 days.
And so I will build custom audiences for all these audiences and then test.

The different levels so for the United States, I test, I make a one percent audience, a one to two percent audience and a two to five percent audience and then for the other three countries.

Audiences

I do a two percent audience, a two to five percent audience and a five to ten percent audience because they have a smaller population, so I’ll build three audiences for each of these custom audiences and then one for each of the countries.

Ad Sets

So really you want to create as many ad sets as possible so that your you have more and more you’re more likely to have winning ad sets right.

That’s what I do.

Tests

I really I test as many as possible and I start them off at a $ 50 budget $ 50, because if you use a budget, that’s too small saying like $ 5 ad sets a lot of people recommend $ 5 ad sets.

I don’t personally like them, because sometimes you’re able to get really good results with 50 with $ 5 ad sets. But if you try to increase the budget to 50, it’ll be a completely different result, because at $ 5 on Facebook just isn’t able to optimize your budget spending right.

A Clearer Picture

Once you started off at $ 50, you actually get a much clearer picture of how the asset will perform if you try to scale it at this point, you want to start identifying your top performing ad sets and focus on scaling those, and that’s really where The bulk of your budget increase is gonna come from.

So how I like to do this, is I like to take the top performing ad sets and then duplicate them into a manual bidding ad set with a much higher budget?

Usually, I start off at $ 200, instead of the from $ 50 from the original ad set.

Manual Bidding

What manual bidding does is it puts a big cap on how much you’re willing to bid for a conversion, and this helps Facebook maintain a steady cost per conversion while increasing the budget on your ad set.

Here’s how you would go about this, so this is just an example ad set and say this ad set is performing really well and you’re, getting a cost per conversion of a cost per purchase of fifteen dollars.

For example, what you would want to do is take the odd set duplicate it into the original campaign, duplicate it and then, and then I would change the name.

I would write and be right here for manual bidding – that’s not important, but it’s just so.
You can keep track and then increase the budget to two hundred dollars and then set a big cap right here.

Analysis

If your cost per conversion was fifteen dollars, usually I find that the best bit cap is um two to three times your cost per conversion. So, if we’re doing fifteen dollars, you’d want to do fifteen dollars times two or times three.

Let’s say 35 dollars per purchase and this would be a good place to start and see how that performs.
You’re gonna have to test yourself to see which bit chaps work well for your ad sets, but setting a bit chap really helps increasing increasing the budget for your top performing ad sets, rather than just straight up increasing the budget like like, you would regularly write.

Things to Know

This is really really useful to know. You definitely want to take advantage of manual bidding because it really helps you scale.

Your top performing ad sets without losing the performance afterwards, you’re gonna want to keep an eye on these manual bidding ad sets to see how they’re performing so, usually I let it run for 48 hours to make sure that you get enough data to see how it’s performing and if it’s still working well at that point you can keep increasing the budget, fifty percent every 48 hours.

That’s usually what I like to do so say it’s doing well at $ 200 for 48 hours straight, then you can increase the budget to 300 dollars and then wait another 48 hours and see if it’s still performing well and then again, another 50 % increase to 450 and so on, and you can keep increasing these budgets and you’ll.

Have these ad sets with massive budgets that are performing really well and having a steady cost per conversion um if it doesn’t work well same thing, if it’s below your breakeven return on adspend, you just kill the ad set okay.

Retargeting Campaigns

Last but not least, you’re gonna want to make sure that you have a good retargeting campaign going while you’re running these ads.

Retargeting is where you’re gonna get the easiest conversions and that’s where the bulk of your profits are gonna come in.

Videos about Retargeting

This is really important, so there’s a lot of videos out there on how to set up a good retargeting campaign.
But basically you want to retarget people from those custom audiences, so initiate checkout in the last seven days at the curtain.

In the last seven days, initiate checkout in the last 30 days at the cart in the last 30 days, all your website, visitors in the last 30 days and even 95 % video viewers and 75 percent video viewers.

These are all audiences that you want to retarget, and this is where you’re gonna get the cheapest cost per conversion and the bulk of your profits.

You want to make sure that you have a good retargeting campaign setup before you do any of this.
That is pretty much it guys.

That is the general idea for this Facebook Ads strategy.

Scale

I use this to scale multiple stores to multiple thousands of dollars a day and add spend, and it usually works really well as long as you’ve got the requirements a good product. That’S getting a lot of sales, a good video ad and a warm pixel.

That’s pretty much the idea.

I hope this helped you guys. Let me know in the comments below what you guys want to see next and yeah