Facebook Ads Strategy For E-commerce

With over 2.6 billion monthly active users, your potential customers are likely on Facebook (and the Facebook-owned Instagram.) That’s why Facebook is a great channel for e-commerce, whether you want to get more awareness, traffic, or sales. It the best channel for promoting your business and brand compare to all others.

So for you to set up a profitable Facebook campaign, you should always define the end goal for your brand. I bet you need more conversion for your brand, then give a try Facebook ads. For you to set up a campaign you need to have these in place:

1.Setting up your Facebook Business Manager

Business Manager is a Facebook tool that helps you organize and manage your business. Here you can control all your pages, Ad account and Ads manager in place.

It is also where you can collaborate with your partners or employees

.Facebook ads for E-commerce

You log in with your Facebook profile and complete the instructions and then boom you are done. You have the business manager account.


2.Installing the Facebook pixel

A pixel is a piece of javascript code that you install on your website to track the conversions that happen on your website.

It works by loading a small library of functions that you can use whenever a site visitor takes an action.

How to create Facebook pixel:

  1. Go to Events Manager.
  2. Click Connect data sources and select Web.
  3. Select Facebook pixel and click Connect.
  4. Add your pixel name.
  5. Enter your website URL to check for easy setup options.
  6. Click Continue.
  7. Add the pixel to your website.

You can use one pixel across your whole website, including multiple pages of your website.


3.Understanding Facebook Audiences

Understanding this concept will save you a lot of money. It is where all the treasure lies. If you crack it then you will be able to launch profitable campaigns.

Audiences is a section within Business Manager where you can create lists of people to target with your ads. There are several different features available within the audiences section to help you define these lists, but they can be divided into two broad categories: retargeting and prospecting.



Here you are converting a warm audience into customers as they have already interacted with your business.

If you’ve ever browsed a brand’s website and then found yourself targeted by its ads every time you open Facebook or Instagram, that’s called “retargeting,” and it’s one of the most effective forms of Facebook advertising. That’s why you get repeated customers.

You can create retargeting audiences using the Custom Audiences feature, located in the Audiences section of Business Manager. Custom Audiences offer you the option to tap into all the data captured by your Facebook pixel and business pages.


Finding new customers is an even better way to scale your business using Facebook ads than retargeting past customers and converting website browsers.

Looking for new customers is often referred to as “prospecting” and involves advertising to those who have not purchased from you or interacted with your business online.

To help, Facebook created two useful tools that help businesses find the best potential new customers:

1. Lookalike Audiences

One way Facebook finds good prospects for your business is by using a list of customers or leads you’ve already collected. Lookalike Audiences use the data from your Custom Audiences to create a new audience filled with Facebook users that share similarities with your existing customers.

2. Interests, behaviours, and demographics

If you don’t have a list of past customers or website visitors to create a Lookalike Audience, you can use Facebook’s interest, behaviours, and demographic data to create prospecting audiences using the saved audiences option.

Here’s a breakdown of each category, with examples of sub-groups within each one:

  • Interests relate to pages and content Facebook users have interacted with (e.g., K-pop, scuba diving, exercise)
  • Behaviours are actions taken by users that were recorded by Facebook (e.g., celebrating a birthday, moving to a new city, having a baby)
  • Demographics include user profile information (e.g., new moms, engineers, college grads)

There are likely several audiences you’ll want to test from all of the options available within interests, behaviours, and demographics. The Audience Insights tool can help you narrow down these options and identify categories for testing.

You should test a new audience always as you could one day find an audience that beats the odds.

So now let’s see how the E-commerce funnel will look like:


Facebook ads for eCommerce: The three-step funnel strategy

Sales are the ultimate goal, few will buy your product the first time they see it. High-value conversions mostly happen after a user has interacted with your brand over multiple touchpoints.

1. Brand Awareness

If they don’t know who you are, they’re not likely to buy from you — no matter your product or service, or its success outside of Facebook. That’s the problem brand awareness campaigns solve.

The goal here is to make people connect with the brand/product/service. Once they know the brand, they will know who the company is, what they can buy from them, what its standards are, and the benefits of investing in their product or service.


2. Engagement

Imagine seeing two different Facebook ads for the same product: One has 500 likes, 50 comments, and 20 shares. There’s no interaction on the other.

Social proof is a strong weapon. The more positive engagement on your ad, the more likely viewers are to stop and interact with it. That’s why, after brand awareness campaigns you should do an Engagement campaign.

In the engagement, the campaign uses a video that highlights the benefits, the advantages or the main strength of the product or service.



After two touchpoints with your Customers now is the time to transact with them. You have got their attention and built enough trust with them.

Conversion is focused on selling the products to people who already know this product because they are a fan of the page or have visited the e-commerce site several times before deciding to buy.

For this kind of campaign, use the carousel to show more products at a glance or a customized image with products you have to sell.

Now it will easier to transact with them since they’ve developed a relationship with the brand and decided what they were most interested in



Facebook ads are an incredible tool for e-commerce companies when done right. Once you install the pixel, understand the best audiences to target, and make the right ads for those audiences, it’s a match made in heaven.

For more information on e-commerce growth strategies outside of Facebook ads, check out Hawke’s guide on creating a basic digital marketing strategy for e-commerce.












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