Paid socials also known as digital advertisements on social networks are one of the cornerstones of e-commerce marketing. Its primary purpose is for customer acquisitions, but it can also be used to strengthen your brand, retarget people who visited your website, and much more. With paid socials, it is possible to be incredibly specific when you target an audience, because you can target on very specific parameters.
We talked with one of the leading experts on paid socials, to hear her best advice for paid socials in e-commerce in 2022. With over 7 years of experience in digital marketing, Julie Amanda Nyholm is one of the leading paid-social experts in Denmark. She is working daily with a plethora of e-commerce companies at Pl & Partners A/S as their Paid Social Team Lead.
We asked Julie to give her one essential piece of advice to an e-commerce marketer and she explains:
“As a paid social specialist at a performance marketing agency, I often come across many different projects and companies. But one thing reoccurs:
Start by making content. Good content.
That is the first and most important thing you should focus on in your paid social strategy. Regardless of budget. Regardless of what kind of e-commerce you are.
Just take a look at this example of an e-commerce store’s KPIs:
This specific e-commerce company had an annual advertising budget of $38.000. Just by changing their content, their revenue grew by $61.112 in a year.
If you keep testing, then you quickly understand what kind of content makes your customers click. It makes your Click Through Rate (CTR) increase.
Try it for yourself. Think of some good ideas to improve your content. We often see, that it is native content that works and creates the best results. This is content that is unpolished and typically filmed on a phone.
You don’t need to have a million-dollar budget to make a commercial a success - Julie Amanda Nyholm
When you have created a recipe on what content works, then the focus should be on the two V’s:
Variation and Volume
It’s a numbers game
You will often experience a big increase in clicks when you have just changed your content. In the next couple of days, your click rate will typically decrease. Your customers are experiencing ad fatigue. They are getting tired of seeing the same content again and again.
Luckily you can help them: For an e-commerce company with an ad budget of over $15.000 we recommend that they rotate their content 2-3 times a week. For example, you could have 3-5 content concepts in 3-4 variations.
Get your content department or content co-worker to reuse the same footage, pictures, or other creatives. You can just create a different CTA, or ad copy, or change the overall color of the ad. You don’t have to reinvent the wheel every time. Do you have an ad budget under $15.000 a month? Don’t worry, there is still hope. Change your content once a week or a couple of times a month, it can still make a huge difference.
The key word is variation. And the more good content you can create and use, the better. As a performance marketing agency, we can build incredible and awesome strategies on the platform. But it rarely is a success, if we don’t have the right content to work with.
Ideally: Change content as often as possible. Can you do that?
Then you just increased your chances to experience massive growth”.
Now that you got the awesome content on lock, your focus should be on what channels you should use. Custimy can give you an overview of your customers’ most used channels. More than that, Custimy can also divide your customers into distinct segments. One of these is the “most valuable” segment, which is the most profitable, has the lowest acquisition cost, and much more.
Targeting your customers that actually drive growth is by far the best way to grow your e-commerce. Being able to see what products they like and what channel they use is just a bonus (a massive bonus though).
You can then take these most valuable customers and do a lookalike audience on Facebook to find similar customers. This way you stop making assumptions about your customer base and instead let the data do the talking. Instead of focusing on demographics and age when you build your audience, focus on meaningful KPIs such as Customer Lifetime Value and Customer Acquisition Cost.
Customer Lifetime Value or CLV is a KPI that shows you, as the name suggests, the lifetime value of a customer. This number is based on different data points, and it is essential that any modern e-commerce know its customers’ CLV.
Why? Because without knowing your CLV, you don’t actually know how much profit you make on each customer. This way you don’t know how much you can and should pay for acquiring customers on your paid channels. Custimy shows you your customers’ CLV alongside multiple other KPIs.
Customer Acquisition Cost or CAC is another KPI. But while CLV is focused more on growth, CAC is about cost efficiency. Knowing how much money a customer costs to acquire is also essential, so you can see if a specific customer helped you grow your e-commerce.
Focusing on these two KPIs is a good start to becoming more data-driven. Custimy uses these two alongside multiple other data points to create strikingly precise audiences.
Create a content plan as Julie described together with data-driven audiences from Custimy and you will be able to take your e-commerce to the next level.