If we had a $ for every time someone asks us how quickly they can make money from Facebook ads, we’d be running Evocative Media from our own private island, Richard Branson-style.
(We’d probably pick something closer to Sydney though, just so our amazing clients can come visit and sip on strawberry mojitos while we chat about growing their biz).
Jokes aside, we love when people ask this question…
…because it usually means they care about generating revenue with social rather than vanity metrics like comments and likes. (YES! Now we’re talking)
….or that they’re super keen to try Facebook ads after seeing our case study where we generated a whopping $2.6 million in revenue for a client. Now they want some of that Facebook ads magic in their life, too.
But, while we’re all about the enthusiasm, in some cases, this question can make us a tiiiiny bit uneasy.
That’s because this question can be loaded with the expectation that Facebook ads always produce results quickly.
Like, the-next-day-you-launch-your-first-campaign kind quickly.
And the truth is… these overnight successes are super rare.
So if you’re thinking “But wait, why not? All the other Facebook experts I’ve spoken to have told me we could be making lots of $$$ from day one”, this blog post is for you.
Here are some of the main things that influence how quickly your store can turn a profit from Facebook ads.
How much money your store can make and how quickly it can do so depends on the amount of historical data you’ve accumulated in your account.
What’s so special about that data?
Several things, as it turns out.
For one, you won’t be able to run retargeting campaigns… and these are your bread and butter when it comes to Facebook ads.
You’ll also be limited when it comes to the types of Custom and Lookalike Audiences you can create… again, these usually yield the best results.
Finally, with no data to review, you won’t know what works and what doesn’t, so you’ve got to embrace that learning curve!
(But don’t worry, it doesn’t have to be a slow and painful one. More on this in just a sec).
Another thing that will impact how quickly profits will start rolling in is your Facebook ads budget.
The advice is pretty basic here: the bigger the better. Or, as much as you can afford.
But the more $$$ you can spare, the quicker you’ll accumulate that all-important historical data.
You’ll also be able to test a bunch of different creative, copy and targeting combos (& find the winning formula faster) without spreading your budget too thin.
Okay, so might be thinking: that all makes sense, but can you give me an actual number?
Glad you asked!
We recommend that brands tie in their Facebook budget with their AOV – aka the average amount of money customers spend in their online store (for more info on this, check out this article – link to AOV).
Usually, we suggest spending 50 x AOV per month. So, if your customers are spending $100 per transaction, your ideal Facebook ads budget would be $5,000 per month (to start).
Facebook and Insta ads are just one part of the profitability equation.
Things like website user experience and automated email marketing campaigns make a HUGE difference.
It’s easy math: if you raise the conversion rate of your website from 5 to 10 percent, let’s say, by making a few tweaks to the checkout process and writing better welcome emails….
….you’ve just doubled what you’ve made from your Facebook ad campaigns… without having to spend an extra cent on advertising.
And if the conversion rate of your website is pretty low (like, 0-2%), you’re going to struggle making a profit from any kind of advertising until you give that website some much-needed TLC.
A holistic approach to marketing your online store is the way to go if you want to boost your revenue like a boss.
Last but not least, the secret sauce: a Facebook ads strategy that transforms a campaign from mediocre to crazy lucrative.
In Facebook ads lingo, we call it a full-funnel strategy.
It’s what makes all the difference between a campaign that takes ages to barely break even, and one that quickly boosts the revenue of your online store.
That’s what we used to help an eCommerce client of ours generate over $400,000 in revenue in 30 days (check out the case study).
Curious how we made that happen?
Get in touch with our team and we’ll spill all the secrets if you ask nicely