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In previous posts and videos, you've seen me talk about how you can scale your ads and why you should do so once you start aiming for greater things for your eCommerce business. Pretty simple and straightforward; you just need to pick which ones are well performing in terms of your ROAS and the ad's engagement and overall statistics. We've also discussed how your ads can help you determine your winning product and how you can boost that ad to ultimately make a name for yourself.
But if you haven't noticed, we haven't pretty much talked about what you should do with those ads that haven't been performing quite as well. Should you pause those ad sets or completely turn them off, or should you proceed to delete those and just try to make one that you think would perform better?
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Let's give some love to those unnoticed ads for a change and focus on them right here, right now. In this post, I want to show you what you can and should do with poorly performing ads and ad sets.
Dealing With Poorly Performing Ads
The easiest way to determine which ads are not doing so well is by going to your Facebook Ads account and sorting your ads by Cost per Website Content View, which is basically the cost to get someone to view our order form in ClickFunnels.
If you would take a look at my ads here, the one that is consuming most of my ad budget is over at the top, priced at $4.18. Obviously, this one is too expensive because we're only averaging at $1.28. On the other hand, if you want to see which of your ads are making you money, use your Cost per Outbound Click as your baseline; if your ad's Cost per Website Content View is less than this number, the ads is definitely profitable, because it costs you less money to have people check it out.
Another factor to consider when deciding whether you should turn off your ads or not is, of course, the Amount Spent column. So, sort your ads by that, and again, use your average Cost per Outbound Click as a reference; any ad that spends above what you are making on average should not be allowed to operate.
But what about those that are spending below the average Cost per Outbound Click? In my opinion, these ads need a little more experience to be able to prove their worth. So, what I would do is I would allow them to run for a bit longer to gather enough data (probably around a week or two). I would have them spend budget until its ad spend is approximately equal to my Cost per Website Content View and make a decision from there.
Generally, we will look at most (if not all) of our ads' statistics to be able to separate the good ones from the bad, and depending on your product's price, it will vary. One thing you should take special note of, however, is that you should not just look at your ROAS alone when making a decision regarding your ads' profitability. Remember that we are trying to build a funnel, and every funnel purchase would mean a different ROAS. The ideal scenario would be, your customers will choose to purchase every single item on your funnel and successfully check them out of their carts, but of course, there is no real way to determine the probability of that happening (which is why we stick to worst case scenarios when writing our numbers down).
So, now that you know how to determine which of your ads are underperforming, you can easily turn them off by clicking on the switch on the lefthand side of your screen.
That's it! You're all set to make some profit!
To give you some benchmarks for a $24 product, if you're selling it for retail, what I aim for is under-a-dollar Cost per Website Content View, around $3 or $4 Cost per Website Add to Cart value (up to $5 maximum), and in terms of spending, if it spends $3 with no clicks, and if it spends $5 and the Cost per Website Content View is over $2, I would turn it off. If I'm being really strict, I would actually let that run up tp $8 and then I'll turn it off, because even if it gets at least one Add to Cart, it's still going to be $8 worth of Website Add to Cart value, which is still a little bit high for me.
Let's Wrap It Up!
You know what they say, if you know that something is not doing you any good, regardless of how much you have invested on it, it is always a good idea to let go of it sooner rather than later; if you keep on holding onto things that harm you in any way, you are only going to end up losing a lot more than what you would have should you decide to let go of them now.
Let's try to relate that to your ad sets. The moment you notice that a certain ad is making you lose money instead of doing its actual job, what else is left to do than to turn it off and let the better performing ones flourish by investing more on them?
Every dropshipper far and wide only wants the best for their own businesses, and it's high time you do, too. Turn off those ads -- don't worry; you don't have to delete them off of your Facebook Ads account permanently! Your ad will still exist in your database, and who knows, maybe you can still utilize them when the right time comes!
If you have any more questions about ClickFunnels and how you yourself can create a profitable sales funnel for your dropshipping store, how you can determine which of your ads are performing well and which ones are not making the cut, or anything regarding this video, feel free to personally contact me via the Contact Form HERE. You can also leave your comments and feedback below, and our team over at WagePirate will definitely get back to you with a response. For more reviews, news and updates, don't forget to subscribe to our YouTube channel!