Optimizing Dropshipping Facebook Ads Cost has never been simple. Especially in the context of thousands of businesses/organizations that are and have been participating in the dropship industry. Competition is something you must face. But that’s okay, you can read this article to supplement of useful knowledge about Facebook Ads Cost for Dropshipping. I will analyze and answer important questions about the reasonable cost of Facebook Ads for Dropshipping.
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Basic Things About Dropshipping Facebook Ads Cost
I will share the basic but no less important things about Facebook Ads Cost at the beginning of this article. I want you to understand the basics that drive Facebook Ads costs. And since we’re talking about Dropshipping Facebook Ads Cost, you can’t miss it.
Audience size
Audience size directly affects your advertising budget. The larger the audience size, the lower the CPC will be. Because the more specific and easy to convert your audience is, the higher prices Facebook Ads will offer you.
For example, if you’re looking for broad targeting and an audience size of over 5 million people. That could result in a low cost-per-click (CPC) of between $0.01 and $0.20. On the other hand, smaller audiences (less than 10,000 people) can cost between $1 and $4 per click.
Relevance of the ad to the target audience
Facebook evaluates ads based on their relevance to the audience (machine learning stage). For example, if you have an ad with high relevance, you can get low CPM suggestions. It will probably be less than $2. On the contrary, when your ad is not really suitable for the target audience. The CPM can be very high at about $10-20 or even higher than $20.
Facebook Ads checks how good your ad is at reaching the right people by looking at its quality and using machine learning. They show your ads to a specific group, see how they react, then check out your ad style and suggest a price. Understanding how this machine learning part works is key to spending smart on Facebook ads.
Competition from other competitors and ads
Competition from competitors and ads with the same audience will be what you need to pay attention to here. Importantly, the competition level changes based on the advertising market and the area you’re focusing on.
More specifically, advertising costs on Facebook can spike by about 30-40% on special holidays. Or it will even increase 50% higher. If it is a holiday with large purchasing power from customers such as Xmas, Thanksgiving, Easter, Year-end, etc. To summarize, I want you to pay attention to the 3 important things above. It’s very basic and easy to understand to start discussing the more important part right here. It is Dropshipping Facebook Ads Cost.
>>> Read more: 10 Must-Join Dropshipping Facebook Groups 2024
How Much Do Facebook Ads Cost For Dropshipping?
Businesses renting Facebook Agency Accounts from SpeedX Agency for dropshipping have observed increased costs for running Facebook Ads compared to last year. This increase in costs has caught their attention. Actually, this is quite clearly to me. I’ve noticed that big Dropshipping businesses often spend a ton on advertising each year.
How much should I spend on Facebook dropship ads each month?
In general, you should allocate a large budget to winning, high-performing ads. To know specifically how to find such ads, you need to read the final content of this article. But basically, for small and medium-sized businesses whose business models have not yet expanded. A monthly budget of $700 to $1,000 is reasonable.
How much to spend on Facebook Ads dropshipping per day?
There’s no exact answer to the above question. However, I will also give specific suggestions in the following content about specific budgets for certain products including: fashion, electronics, home appliances, cosmetics.
Fashion
For clothing products and fashion accessories, you must use a special technique. To find winning products and winning advertising copy. Simply because I am sure of one thing for you: not all fashion products receive the attention of customers. Customers only focus on tracking and shopping for fashion products that suit them or are trending.
Although fashion products are very attractive, it is extremely difficult to compete with competitors. Decide if you’ll compete with popular fashion items or focus on niche products for a specific audience. Basically, the cost strategy on Facebook Ads for this industry is:
- Budget: $50 – $100 per day
- Objective: Target an audience interested in fashion who follows specific brands or trends.
- Content: Focus on highlighting new seasonal product launches. Pay special attention to the popularity of Reels and the collaboration with KOL/KOC.
Electronic
For electronic products, it is important to clearly identify whether your audience is retail individuals or wholesale electronics stores. From there you can build your ads as well as your budget allocation strategy for those ads.
Wholesale electronics stores face tough competition due to other dropshipping businesses in the same industry. And of course they are also very strong if you have not clearly defined the product niche. And below is the suggested budget for electronic dropship products.
- Budget: $100 – $200 per day for wholesale, $10 – $50 for retail.
- Objective: Targeting people interested in technology, looking for electronic products with specific needs.
- Ad type: Carousel ads with many products, focusing on features and benefits. You also need to explain how those electronic products work if that’s what customers are interested in.
Houseware
Household appliances are quite useful and popular products with Facebook users. Easy to buy, sell and advertise is the advantage of this industry. However, that’s why you may have a lot of headaches due to high competition. However, I want to suggest you two types of budgets so you can advertise this type of product:
- Budget: $5 – $20 per day for test campaigns, $30 – $100 per day for winning campaigns.
- Objective: Targeting audiences interested in furniture, home and office appliances, and people looking for products to improve their lives.
- Ad type: Image ads with product comparison content or instructions for use.
It’s still important when advertising for home appliances that you find winning products. Winning products will help your advertising campaign win and generate large numbers of conversions and profits.
Cosmetics
Cosmetics are currently one of the products that attract the most attention from customers. Cosmetics are no longer just for women, men are also keen on products for skin and hair care.
Running Dropshipping Facebook Ads for cosmetic products requires you to really invest in advertising budget. Because you’re likely competing with other cosmetic brands on Facebook. And therefore, the proposed budget for this industry will also be higher, specifically:
- Budget: $50 – $100 per day
- Objective: Target an audience interested in beauty who follows specific brands or trends.
- Ad type: Video advertisement introducing products and effectiveness of use.
Guide For Optimizing Dropshipping Facebook Ads Cost
So How To Do Facebook Dropshipping properly and effective? The following content focuses on useful methods to optimize Facebook Ads Cost for Dropshipping. When running Dropshipping Facebook Ads, you’ll encounter various costs, including advertising and shipping expenses. So please continue to follow the content below to understand how to effectively optimize Dropshipping Facebook Ads Cost.
Use A/B Testing
A/B Testing has been one of the most important tools of Facebook Ads since its launch. I also always prioritize Facebook advertisers who are proficient in this tool to optimize costs when possible. Essentially, this tool helps you compare and contrast different versions of ads. But if you understand it better, you can optimize costs very effectively.
You can make two nearly identical ads but change some small elements in one of them. You can keep the same ad video but change 2 different types of CTA, or different Description, etc. And when using A/B Testing, this tool will give an assessment of performance and you can see which ads have higher performance. Step by step, you can find the highest performing ad versions to focus your large budget on.
To discuss about Facebook Agency Ad Account Rent from SpeedX Agency, I want to talk about its unlimited features and ability to scale ads with large budgets. If you want your Facebook Ads dropshipping campaigns to operate in the best condition, you should use this service.
More specifically, when using the premium account rental service from SpeedX Agency, you can advertise stably and optimally with advantages such as:
- Received special priority from Facebook: Ads are approved extremely quickly, without interruption while setting up a campaign or advertising. Advertising has stable spending capacity.
- No budget limit: Scale ads is now simpler with Agency Account. You can run multiple ads with unlimited budget.
- No more account errors: Priority from Facebook helps you avoid having to deal with restricted or suspended accounts.
- Optimize ad metrics: Facebook Agency Ad Account is the best solution for you to optimize ad metrics like CTR, CPM, CPC and increase ROI, ROAS.
You can advertise freely with unlimited features and effectively manage multiple high-budget ads. You also don’t need to pay advertising tax and are sure to receive the latest offers from SpeedX Agency.
Refer to more experiences
This article is just one of thousands of other useful articles about Dropshipping Facebook Ads Cost. Here, I want you to go immediately to Facebook and join groups related to Dropship or Facebook Ads (or both is better). Why do you need to join these groups? Experienced individuals in the industry regularly update their knowledge, allowing you to benefit from their expertise.
You can learn about various topics like updated dropshipping news, targeting strategies, and cost optimization techniques. Consider it a valuable resource to enhance your skills in optimizing Dropshipping Facebook Ads costs.
Summary
To sum up, I hope you gain valuable knowledge and experience from reading this article. During the process of optimizing Dropshipping Facebook Ads Cost. If you encounter any difficulties, or bans or restrictions from Facebook, you can immediately contact SpeedX Agency. Our team of advertising experts has various methods to help you tackle challenges on paid advertising platforms.
