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Person getting ready for a jog.

Kicking Dynamic Creative Ads to the Curb: How we Decreased CPA by 66% For Joyn

Person getting ready for a jog.

Joyn represents everything positive about the future of movement. True, we’re biased, but one of the best parts of what we do is choosing who we work with. And the truth is, our jobs are much, much easier (and more fun!) when we believe in our partners’ business. So, it goes without saying: we’re big fans of Joyn. 

Simply, Joyn is a movement app for every body. Built on the conviction that feeling the joy and freedom of movement shouldn’t be exclusive to muscular influencers in size 00, Joyn’s online library includes a wide range of videos led by instructors that are positive, warm, and inclusive—truly. At the beginning of each class, the instructor introduces themselves, shares their pronouns, and takes a moment to talk through their recommended modifications to the movement they’re about to facilitate. That way, people that might need to be seated can still have fun and participate. 

When Joyn reached out to us in late 2020, they had a well-established brand, product market fit, and a growing (and super excited) audience. But what they were looking to accomplish was replicating their positive growth across multiple channels and supercharging it with a growth marketing agency like Tuff. 

The Backstory

When we jumped in and got access to Joyn’s Facebook Business Manager, there was already quite a bit of historical data accumulated from past campaigns they had been running.

Similarly to many new Tuff clients, Joyn knew that Facebook Ads were a key tactic for scaling their subscription user base, so their in-house team jumped in, whipped up some creative, and launched ads to start getting a finger on the pulse of which combination of targeting and creative would drive the most conversions on the site. 

Truthfully, for any startup seeking product-market fit, this is the perfect approach. Get scrappy, launch some ads, glean some learnings, and when you’re established and ready to scale, call in more resources. 

When we stepped in, we did it with a pointed goal: drive down CPS. We paired with a clear game plan:

  1. Dig into the historical data 
  2. Test Non-Dynamic Creative 
  3. Get UGC Influencer Style Creative 
  4. Optimize what performs, ditch the rest

Joyn’s Facebook Dynamic Creative Ads: Were they Working?

After pulling and organizing the historical data, we realized that Joyn was relying heavily on dynamic creative ads, giving us an excellent place to jump in and uncover more insights. 

Dynamic ads require the Facebook strategist (or whomever is executing the ads strategy) to jump into the platform and upload several different types of creative along with several different headlines and body copy. Then, when the ad is published, Facebook—using its algorithm—automatically tests different combinations, eventually prioritizing the combinations that are most effective (“effectiveness” is measured based on whether you’ve chosen to run a conversion, traffic, video views, reach, brand awareness, or app install campaign). While generally, marketers can see some positive results using this approach, there are some significant drawbacks:

  • It’s a challenge to drop in creative that’s going to be cohesive no matter what combination Facebook serves
  • It’s relatively challenging to optimize on the fly with dynamic creative campaigns

So, we decided to take matters into our own hands and launch non-dynamic ads. The results speak for themselves. 

Launching Non-Dynamic Ads: a 66% Decrease in CPS

Our main goal when we launched non-dynamic ads was to first optimize spend toward the best performing asset. Although typically when we pivot to test new Facebook strategies (whether it’s a new audience, new bid type, or new ad creative) results are far from immediate—especially given Facebook’s seven-day attribution window.

But, after just $545 of spend, we saw a sharp drop of 62% and within the very first week we saw a 66% decrease in CPS. 

  • Dynamic Spend: $6,583.44 | 153 Start Trials | CPS: $43.03
  • Non-Dynamic Spend: $1,744.40 | 121 Start Trials | CPS: $14.41

faceboook cps decrease chat

True, non-dynamic ads aren’t for everyone. They necessitate a much closer eye and the oversight of someone that can spend time reallocating budget to best performing assets and manually testing creative combinations frequently. When done right, though, the results speak for themselves. 

Fresh Creative: Tapping Into Influencers

Next up on our agenda for Joyn was to deep dive into their creative assets and emerge with…

  1. A full assessment of the creative that’s historically been performing at the top of the pack
  2. Clear ideas for new types of creative we’d like to test

Here’s a peek at what that looked like.

We noted that the strongest-performing creative tended to be shorter videos that open with high energy and/or full-screen movement. Both of our best-performers featured a modified way to access the movement, and bright colors with quick, varying shots. Finally, we were immediately able to see recognizable Joyn branding. 

Strength Training Video  |   Yoga Video

So, the next steps: recommending fresh creative. Joyn’s library of body-positive movement classes is populated by a cohort of inclusive, positive, extremely personable coaches. So when we recommended testing influencer content, we were able to create fun, big-energy new creative on a few day turnaround without having to source or negotiate with influencers. 

We were able to get two raw videos back from two of Joyn’s most memorable coaches, Kanoa Greene and Anna Chapman, use Joyn’s internal team for some extra editing and text overlay, and deploy them without a hitch. 

While there are a few extra steps to take (both on the Joyn Instagram page and on the influencer’s personal page) once we began promoting the two videos, the results were extremely interesting.

  • Kanoa Greene Influencer Campaign: $643.18 | 14 Start Trials | CPS: $45
  • Best-Performing Audience: “Female Leaders” — CPS: $14.81

The name of the game for Joyn: drive a CPS of less than $20. And while our results for Anna’s influencer campaign were not quite as tight, serving Kanoa’s ad to fresh audiences, rotating in new copy, and testing new placements have us seeing results that are closer to what we’re aiming for. 

Ready to See What Works Best For You on Social?

While we have been able to deep dive into both creative strategy and rigorous optimizations with Joyn, no two brands are built the same. Have a suite of creative you think we could supercharge? 

Let us take a deep dive into your brand and develop a strategy built for your business. 

Download a Sample Growth Marketing Proposal

tuff-six-signs-its-time-to-update-your-facebook-ads

Six Signs It’s Time to Update Your Facebook Ads

Editor’s Note: This post has been updated with new links and examples for you to use! 

Has your Facebook ads performance dipped? Maybe your ads never achieved your desired outcome like increased eCommerce sales or lead generation. Facebook ads performance can drop off — or never take off at all –– for a variety of factors, but one of the most crucial is your ad creative (copy, images, and video). 

Across our clients, Tuff manages anywhere from $1,500 – $100,000 / month in Facebook ad spend. This article pulls from this experience and outlines six factors we’ve identified that can indicate it’s time to update your Facebook ads creative. 

If you don’t have the time to read these detailed explanations, here’s the tl;dr on when to know it’s time to replace your Facebook ads creative: 

  • Campaigns costs are going up / objective completion
  • Ad frequency is getting high causing dreaded ‘ad fatigue’ 
  • Facebook ‘Ad Diagnostic’ scores are ‘below average’
  • Google Analytics is telling you performance has declined 
  • Facebook makes an update to any part of the user experience
  • You’re not selling more or generating more leads despite an initial bump in performance after the campaign launch 

If your ads just didn’t perform in the first place, check your targeting. Even the best ad creative will tank if you aren’t targeting the right audience.

Before jumping into this read, please note, much of what we discuss is irrelevant if your tracking is out of whack. This article assumes that the Facebook Pixel, Google Analytics, and/or other tracking mechanisms are in place to measure your Facebook Ad performance. Unless otherwise stated, all mentions about measurement and metrics are in reference to data available in the Facebook Ads manager and Google Analytics. 

Campaign costs are going up. Is the cost for your campaign objective going up?

We typically focus on Facebook campaign objectives of traffic, leads (website conversions), or eCommerce website purchases. If you’re seeing the average costs for these objectives go up, it may be time to update your ads. For instance, if your campaign used to average $4 per website conversion, but now averages $6, it may be time for an ad refresh.  

Before you get an update underway, verify that the ad set level learning phase is complete (it takes at least 50 events to exit the learning phase, so depending on your budget and campaign objective, it could take a few weeks to exit the learning phase!), no major edits have been done to the campaign, and that there aren’t external factors at play. For instance, an eCommerce apparel brand might see spikes around the holiday shopping season but then dip at the start of the new year. Or a boot camp designed to help med students study might see huge growth at the beginning of the semester, but then taper off after a few months.

Your ad frequency is getting high (AKA ad fatigue)

Ad frequency is an average of how many times people in your target audience have seen your ads. It’s calculated by dividing the total impressions by the total reach. 

Although there’s no hard and fast rule to abide by, our team likes to evaluate ads for declines in performance at around a frequency of 2. Ad frequency is more of an art form to evaluate though, because frequencies that trigger declines in performance may vary by industry and audience. We have seen frequencies of over 10 lead to conversions in niche B2B verticals. 

High frequencies often lead to a phenomenon called ‘ad fatigue’ wherein your audience is simply tired of seeing your ad. Unlike paid search where intent is high, social ads are intrusive, and interrupt a user’s feed. High frequency and decreasing performance may mean your audience is tired of your ad, and that you should fire up new copy and creative. 

Facebook Relevance Scores are Average or Below Average

Facebook has assigned a ‘relevancy’ score on ads for years. In summer 2019, they broke out relevancy into three categories outlined below. The relevancy scores are now out of three possible ratings, above average, average, and below average. If your ads are scoring ‘below average’ especially in the ‘conversion rate ranking’ or ‘quality ranking’ category, consider a media and copy update. 

Facebook Ad Relevance Diagnostic Categories 

  • Quality Ranking – does your ad ‘fit’ within your audience’s newsfeed? Your ad will receive the worst rating of ‘below average’ if your audience feels like the ad is salesy, trashy, or spam. 
  • Engagement Rate Ranking – similar to organic post’s engagement metrics, are users liking, commenting, and sharing your ad? If your ad can make these things happen you’ll land best marks of ‘above average’ in this category.  
  • Conversion Rate Ranking – will users take the conversion action you’ve optimized your campaign for? Scoring an ‘above average’ here, means users are more likely to ‘convert’ from your ad than average Facebook ads. 

These Facebook Ad Relevance Diagnostics are scored comparatively across ads on Facebook. The ‘below average’ rating in any category will also tell you if you’re in the bottom 35%, 20%, or 10% of ads overall. Poor marks in ad diagnostics are one of the best indications your ad creative should be updated. 

What does Google Analytics reporting tell you?

Google Analytics can be a great arbiter of truth by offering an unbiased look at your Facebook Ads performance. At Tuff, we’ve made it a practice to gut check Facebook campaign reporting with Google Analytics reporting (don’t be surprised when you see that the analytics differ between the two platforms – we often find our Facebook metrics to be slightly inflated compared to Google Analytics). 

Using UTM parameters on all Facebook ads allows us to see how the campaign objective, audience and creative perform. In Google Analytics, take a look at your Facebook campaign and individual ad set’s cost per session over time. Look at goal completions. If costs are going up or conversions are going down as reported by Google Analytics, it’s a good indicator that it is time to refresh your ads. 

Facebook makes (another) update

Facebook and Instagram are constantly evolving to improve the user experience, and some of those changes call for updates to your ad creative to stay timely and relevant. For example, TikTok and Instagram Reels have changed the way people watch video. Short, vertical videos edited in a style that matches a particular sound are killing it right now. 

When an update like this happens, it might be time to update your antiquated video creative to stay relevant. Remember, social ads interrupt a user’s feed – make sure you’re interrupting it with content that makes sense. 

How’s your bottom line looking?

Facebook and Google Analytics tracking isn’t perfect for a variety of reasons, so at the end of the day, it’s important to evaluate your own balance sheet. Are more or fewer customers becoming leads or making purchases online? Have increases to Facebook campaigns correlated with upticks in business? 

Because of differences in attribution between the two platforms, we often see goal increases in organic and direct site traffic that correlate with an increase in Facebook spend, even though Facebook has a seemingly negative ROAS. 

Is that uptick starting to wane? Use common sense, if you launched a $10,000/month Facebook campaign and saw an uptick in business, the campaign is likely playing a role. When performance declines, it’s time to reset.

Conclusion

Facebook thrives on novelty. People are on Facebook for a number of reasons, but when they’re in the app or on Facebook.com, it’s rare they’re looking for an advertiser’s product or service specifically. Ads should be optimized to stop someone’s scroll and get them to take action. 

As a rule, it’s often good to start planning your next round of Facebook ads before performance ever dips. This way, you’re not caught on your heels when one of the above factors causes a dip in performance. Though great ads paired with ideal audiences can have a tenure of several months, we like to plan for new Facebook Ads creative every 4-6 weeks.

Facebook mobile.

[Case Study] Facebook and Instagram Ads: How to go from $0 to $43,000/day Ad Spend on Facebook in 60 Days

Facebook ads for mobile apps.

Crunch time. An App partner (iOS & Android) needed to get a massive volume of installs ASAP to support a critical holiday important for their annual revenue and new customer acquisition. 

Over 60 days we went from $0 to $43,000 per day ad spend on Facebook & Instagram. Along the way we helped the app achieve its best revenue day ever, tripled their Instagram following (a positive side effect of the massive spend, and engaging ad creative), and brought in millions in lifetime value (LTV), all while keeping cost per install (CPI) on target. 

We’ll be using “CPI” a lot in this article, so take a moment to sear its meaning into your brain before you read on. Say it with me: “CPI = Cost per Install” 

Here’s what’s included:

  • Overview
  • Campaign Setup and Results Summary
  • Days 1-30: Testing to Find Facebook Ads, Audiences, and Settings that Scale
    • Creative that Scale 
    • Audiences that Scale
    • Ads Settings that Scale
    • Tracking Troubleshooting
  • Days 31-60 The Ramp Up and Final Push
    • More testing; audiences, creative, and settings 
    • Push Budgets to Winners  
    • Event Specific Creative Push 
    • Emergency! Account Spend Limit Hit & Workaround 
    • Emergency! App Stability 
    • Final Push and Rising CPI
  • Summary 
    • Top Ads
    • Performance 
    • Final Assessment and Key Takeaways

Campaign Setup and Results Summary: 

App install campaign data from Facebook Ads.

  • The Client: iOS and Android App with in-App Purchases 
  • Primary Channel: Facebook and Instagram App Install Ads
  • Supporting Channels:
    • iOS App Store Ads 
    • Google App Install Ads 
    • Pinterest App Install Ads 
    • Email (To drive in-app purchases and user-adoption post install) 
  • The Geo: 🇺🇸
  • The Results:
    • 60 Days
    • $263,000 Spend 
    • 97,975 Installs 
    • $2.68 Cost per Install (CPI) 
    • 9.2m Facebook Reach 
    • 26.8m Facebook Impressions 
  • Best revenue day in company history 
    • Bonus Performance Metrics
      • 2.1m video views 
      • 54,000 post reactions 
      • 11,000 post shares 
      • 6,000 New Instagram followers
      • Multiple ad variations went viral 
      • Featured in the App Store

Days 1-30: Identify Facebook Audiences, Creative, and Settings that Will Scale 

After an initial planning, strategy, and goal alignment phase we jumped in. In order to protect costs and efficiency, we spent the first 30 days testing creative concepts including layout variations, and ad copy; we tested 68 audiences, and different bid optimization strategies. This section will get into what and how we tested in the first 30 days. 

Finding Creative the Scales

We went through years of creative in the Facebook Ads Manager and identified ad variations and their attributes of top past performers. We looked at metrics like click through rate (CTR), cost per install (CPI), ad quality metrics and more to identify top ads. We looked at the ads copy, creative, CTAs, and ad formats (single image, carousel, and video). 

This research revealed: 

  • Top formats: Carousel, Single Image, Video 
  • Top creative: was explanatory or had humor 
  • Top Audiences were list and event based lookalikes 

The research resulted in 12 ad concepts to be paired with the different ad formats and creative. We used existing client creative, and worked with their design team on new creative options. 

Creative testing leaned on Facebook’s algorithm to serve the ad variation that would work best. Ad sets typically had 2-6 creative variations, and the Facebook algorithm would move budget to top performers, but the Facebook Algorithm didn’t work alone. 

The Tuff team would monitor ads daily, and turn off any ad variations or ad sets that had high CPI. This would force Facebook to spend more on the other variations, which sometimes would go on to become winners.  

Audience Research

The audience investigation was similar. What audiences had the best performance metrics? Were they segmented by age, gender, or geography? Were there exclusions (users specified not to receive an ad, e.g., existing app users?) 

Though we had initial ideas on what audiences would perform well, seeing historical audience performance, gave us a running start on audience development. 

Audience targeting results on Facebook.

For early learnings we looked at Facebook Demographic reporting in the Ad Account Overview. By Looking at Mobile App Installs compared to Amount Spent, we were able to identify which demographics were likely to have the best performance. In this instance we’re looking at the ratio of mobile app installs to amount spent by age group. To note, this trend didn’t hold through the 60 day push, so it is important to continue to target all ages so opportunities for installs aren’t missed. 

Note: Audiences are selected at the Ad Set level in the Facebook Ads Manager. At times in this Facebook case study, you may hear audiences and ad sets used interchangeably. 

Generally, the Facebook campaign structure is as follows: 

Facebook ads campaign structure diagram.

In the first 30 days we tested 63 audiences, paired with a mix of creative. For our tests, we’d typically have 4-8 ad sets per campaign, and 2-6 ad variations per ad set. Over the course of the test period we would turn off underperforming ads and ad sets to push more spend to winning mixes of audiences and creative variations. 

Facebook campaign structure.

As Facebook Ads performance data came in ads and ad sets we’re turned off, signified in the chart above by “🙅‍♀️”. Only about ¼ of our ad sets survived month 1 testing, and 3 creative variations (of 12) rose as top performers. 

Days 1-30 Summary

TESTED

  • 21 Campaigns 
  • 63 Ad Sets
  • 12 Ad Variations 

RESULTS 

  • $9,821 Spend
  • 7044 Installs 
  • $1.39 CPI 
  • Three top creative variations identified 
  • 15 core audiences identified 
  • Cost-cap bid strategy identified as effective at this scale…
    …but would it last? 

Days 31-60 The Ramp Up

With top audiences, creative, and bid-strategies identified we were prepared to ramp up spend. On day 31 we had 3 campaigns live, 5 audiences, and the top three ad variations running. We spent $950 that day. From there we inched up budget at the ad set level daily, and by day 45 we hit the $2,000/day mark. 

More testing; audiences, creative, and settings

Although some audiences didn’t succeed in the 30 days, there was a chance it was due to the creative and ad settings mix. We ensured these previously tested audiences were given a chance to be paired with top creative and ad settings. 

During this period the client continued to develop new creative, and that was tested as well using the assistance of the Facebook algorithm. We also isolated some creative to guarantee Facebook spend. 

A big driving force behind this rapid Facebook Ads ad spend ramp up was a holiday important to our client’s business, and we wanted to ensure that creative specific to the holiday was served. We tested 10 holiday ad variations, and only one version took off. It would become one of our best ads for the entire 60 period, though it underperformed two non-holiday specific top ads. 

An interesting take away from the top three ads is that the event specific creative didn’t perform as well as more general app functionality ads. This may be due the holiday not being applicable to everyone who sees it. 

Facebook ad example.

Here is the top event-specific ad. It was a carousel and showcased the product offering. More on how they ad variation performed in the results and summary section. 

With top audiences and creative identified we were ready push spend way up leading up to the holiday, however, the the path to spend ramp up we encountered two speed bumps.

$5,000 Ad Account Spend Cap Hit & Workaround

Did you know Facebook has a default $5,000 ad spend cap per ad account, even on established ad accounts? That’s right! This spend cap is different from the ‘spend limit’, and can only be increased by Facebook Support. Unfortunately, support can have a several day turn around, which would be after our peak push. 

In this instance, we were able to find an immediate workaround that allowed us to keep advertising. We created new ad accounts. With each ad account having a $5,000 cap, we created 6 additional ad accounts that would take us up to the $35,000 per day in spend.

We did finally hear back from Facebook Support and get the spend limit increased, but this was a good stop gap measure to keep ads rolling. 

App Stability Issues

With this massive ramp up underway the app encountered some stability issues due to the influx of new users. This led to a temporary pause on campaigns while app capacity was addressed. 

The takeaway from this experience is that if you are undertaking a massive app install or web traffic push, have the app and website stability on your radar. How many users can your app support? Who and how will stability be addressed if there’s a crash?  

Thanks to the app’s solid team of developers, app stability issues were resolved quickly and the ramp up would continue. 

Final Push and Rising CPI

The final push up to $43,000 was made possible by attention to detail and willingness to sacrifice CPI for more spend around the important holiday.

Facebook CPI results for app installs.

As we spent more in the final days of the campaign, CPI rose as well. We followed our earlier approach of pushing budget to top ad sets and creative variations, and some of these groupings had literally hit their limit (See $5,000 account cap section above). 

The cost cap bid optimized campaigns also weren’t spending their full daily amount as Facebook struggled to find users at the cost and volume we had set forth, so most campaigns were switched to a lowest cost bid strategy, which contributed to rising CPI. Low cost bid optimization, however, increased volume and ensured campaigns would spend their set amount daily. 

Fortunately the increased CPI in this final push was acceptable because the volume of installs, and subsequent LTV supported the costs. 

Summary 

Top Three Ads:

Facebook ad results from installs.

Our top ad was a carousel. Carousels are known to do well on mobile devices, because they can be used to convey information without the bandwidth of video. This particular ad was also highly engaging and received thousands of reactions and 100s of shares over the course of the campaign. 

Facebook ad results from installs.

Our second best ad was an informal video shot on an iPhone, that shows the end product of the app (a physical card and gift). This video was paired with concise text and a headline on what the app does. The informal nature of the video may have been what made it resonate with people. 

Facebook ad results from installs.

The third best ad was event-specific, and also in the carousel format. It showcased end-products of the app, and also had the clear concise message about what the app does. Because it was event-specific, costs may have been higher, as it wasn’t relevant to everyone who saw it. All this said it was our third best ad of dozens of ad variations run over the 60 day campaign period. 

Results 

Facebook ad results for install campaigns.

Getting to $45,000/day didn’t happen right away. There was little visible activity in the first 30 days while the hard work of research, audience, and creative testing was executed. Increasing spend was only possible because of this critical foundation established early on. 

Spend peaked several days before the event this campaign was based around, after which we settled in at $1,000 – $2,000 / day spend. 

Facebook ad results for install campaigns.

Installs tracked closely with spend. This consistency was the key to our confidence as we pushed budgets up. 

Facebook ad results for install campaigns.

CPI was initially very high. To note the budgets on these learning days was very small. And CPI dropped considerably and stayed low once initial learning was complete. 

Key Takeaways to Ramp Up Spend Quickly on Facebook 

  • Test to identify top audiences, creative and settings 
  • When an audience fails, try new creative 
  • Be considerate of technical issues 
    • Is your site or app capable of the increased traffic from this kind of ramp up? 
    • Have you requested that the default $5,000/day ad spend cost cap be lifted on your Facebook ad account? 

Finally, with these principles in place, don’t be scared to push up ad spend.

Facebook has a propensity to spend what you give it especially with low cost bidding, but this spend isn’t always paired with the desired results. In this case, however, through the approach of finding audiences, creative, and ad settings that would scale, we were able to achieve a massive spend and results ramp up in a 60 day period. 

Facebook shops.

Facebook Just Shook Up Your ECommerce Strategy With Facebook Shops

How to setup Facebooks Shops and Instagram shopping.

Instagram Shopping and Facebook Shops are here, and they allow businesses to sell physical products directly through the Facebook and Instagram apps. The game-changing aspect is that there is check-out functionality so users can buy after a click on tagged product without ever leaving the apps.

In this article, I’m going to share details on how it works, how to set it up, and pros and cons of this new service. 

Here’s what’s included:  

  • What is Instagram Shopping and Facebook Shops? 
  • Purchase Flow From Post to Check-out
  • How to Set-up Instagram Shopping  
  • How to run a Facebook Ad that Includes a tagged product or catalog. 
  • Strategic Implications for ECommerce Brands 

What is Facebook Shops and Instagram Shopping? 

On May 19th Facebook announced a new service, Facebook Shops to “…make it easy for businesses to set up a single online store for customers to access on both Facebook and Instagram.” Importantly, they also said, “We’re starting to roll out Facebook Shops today [May 19th, 2020], and it will be more widely available in the coming months.” So if you’re reading this in early summer 2020, there’s a chance this feature hasn’t been enabled for your Facebook Business Manager account yet. 

For people who have been in eCommerce and managed a catalog on Facebook this announcement was a long time coming since Facebook rolled out a Buy on Instagram beta this time last year to brands like Adidas, Uniqlo, Pottery Barn and other major retailers.

Key Features of Facebook Shops 

  • Tag products and collections in posts, stories, and live feeds  
  • ‘View Shop’ button on Instagram Profile 
  • Shop tab on Facebook Profile 
  • Facebook and Instagram Check-out (Requires a Facebook Commerce Manager account) 

From Post to Check-out; Instagram Shop Purchase Flow: 

Posts with products tagged from Facebook Shops will show a small briefcase. 

Example of a post with products tagged from Facebook Shops.

A white dot and view product overlay appears on the post when opened. 

Example post with products tagged from Facebook Shops

When the image is clicked the product name and price appear. Click again and product details open. 

Example post with products tagged from Facebook Shops.

Similar to an eCommerce checkout flow, a click on “Add to Bag”, transitions the user to the shopping cart with the option to proceed to checkout. 

Example of Facebook Shops user flow.
Checkout functions as you would expect on an eCommerce website or Amazon, but here’s where it gets weird: you’ve never left Instagram.

This checkout on Facebook and Instagram approach comes with two downsides.

  • A 5% fee paid to Facebook (Be sure to confirm this amount in the Facebook Commerce Manager in case the fee has changed since this article was published). The 5% transaction fee is considerably lower than Amazon’s 14-17% fee for apparel, though it’s likely Facebook is keeping this fee low to entice sellers to join.
  • Instagram Checkout makes it so users don’t visit your website, which may cause you to lose valuable analytics audience data, and the ability to retarget to users who start, but don’t complete checkout.  

The implications for Facebook and Instagram checkout are profound. Facebook is essentially becoming its own eCommerce platform. It’s likely they have ambitions for Amazon and Shopify’s new Shop app. Layer this eCommerce ambition with Facebook’s own Libra currency, and we could see a day when people around the world are pushed to use Libra rather than their own currency to transact in this environment, but this level of functionality is likely years in the future.

For those who don’t want check-out to take place in Facebook or Instagram either because of web traffic concerns or the Facebook transaction fees, there was an option to list products in Facebook Shops, but with a redirect back to a website as seen below. 

From Dan at Facebook Support, We have updated our checkout experience in order to create a more seamless and safe end-to-end shopping experience on Facebook.

This new feature will no longer allow users to be redirected to a third-party website. The checkout method available has been established within the Facebook site, and it can be managed through your Commerce Manager.

Moreover, you can still create posts promoting your products and your website and redirect users to your website using a URL link…

… the product that has been tagged in your Instagram Shopping will have an ability to redirect to your website, as long as your account has been approved for the Instagram Shopping feature.

Also, you can still tag the products and let the user redirect to your website.

The implication of this statement is that Instagram Posts like the one below will continue to have a ‘View on Website’ option as long as they want it, thus bypassing check-out in Instagram (or Facebook). 

Instagram shopping example.

The Three Steps to Set-up Your Instagram Storefront

Official Facebook Business Instagram Storefront Guide

1. Determine Eligibility (Must answer yes to all five questions)

    • Are you in an eligible market?  
    • Do you sell physical goods? (Facebook has hinted service offering will be available at a later date)
    • Can you comply with commerce policies? You’ll want to review Facebook’s 25 prohibited product categories. 
    • Is your Instagram Account setup as a Business Account? 
      • How to check: go to your Instagram settings, if there’s a settings option that says: “Switch to a Professional Account” then your profile is still a personal account.
    • Is there a Facebook Page connected to your Instagram Account? 

2. Get a Catalog Connected 

  • Option 1: Use the catalogs feature in your Facebook Business Manager account, which includes connecting to an existing catalog.
  • Option 2: Us a partner integration. Instagram Storefront catalog partners include: 

eCommerce integrations with Facebook.

3. Signup in the Instagram App.

  • Go to your business settings and tap ‘Business’ then tap ‘Instagram Shopping. Follow the prompts to set-up your Instagram Shop. 

That’s it! After step three there is an eligibility review period which will likely take 2-7 days depending on Facebook’s review bandwidth. Once approved you may begin product tagging within posts and stories (image only at this time, but additional placements including live feeds are in the works) on Instagram and Facebook. You’ll also have a ‘Instagram Store’ button on your profile.

How to run Instagram Ads with tagged products

Currently, there is no way to tag products when creating an ad in the Facebook Ads manager. What you can do however is use an organic post for your ad. 

When creating an ad in your Facebook Ad Account, use the “Use Existing Post” option. Select an Instagram or Facebook post with a tagged product or collection. 

Steps on how to run Instagram Ads with tagged products

If your account has had shopping enabled, the post will have a ‘Checkout’ toggle. 

Steps on how to run Instagram Ads with tagged products

Turning it on, will allow you to include the tagged product and a check-out in app. 

Strategic Implications and Considerations for ECommerce Stores Determining if They Should Use Instagram Shopping 

The huge pro for eCommerce retailers moving forward with Instagram Shopping is the ability to reduce friction for shoppers. Clicking a post with a tagged product to ordering it can be done in under a minute. Facebook and Instagram store user billing and shipping info (You’ll now see this info in your own personal Instagram App settings), so there’s no need to add it on a seller’s website. In fact, there’s no need to visit a website at all, which in its current flow, will typically require users add the products to a cart, go to the cart, and check out. 

Another benefit is your listings can be on the Facebook Marketplace. Prior, the Marketplace was more like Facebook’s version of Craigslist for people to sell second hand items locally. The Facebook Marketplace is evolving to include product listings, and promoting products there both organically and in a promoted capacity could increase sales. 

For people interested in attribution, Instagram Shopping is huge. With actual transactions relayed through the Facebook Commerce Manager, there should be no question as to if a sale should be attributed to Facebook. This is huge for advertisers who grapple with website analytics not matching what’s reported by Facebook. 

There are downsides to Instagram Shopping. Facebook will be collecting a 5% transaction fee. This fee will likely rise overtime. There are lost analytics as users no longer interact with your website. This means there’s not an opportunity to build retargeting segments based on how far a user progressed with checkout. Should a company become too dependent on Instagram Shopping as a sales platform, they could face issues with changes to functionality and policies to the platform as is often seen with Amazon. Here’s one example of this (on Amazon) from a seller policy change last year.

As a brand new feature it’s also likely there will be bugs and hiccups along the way. Right now for example, it’s not clear how data from behavior in Instagram Shopping and Facebook Shops will be shared with the Facebook Ads manager data that’s often critical for Facebook Ads optimization. 

There are 120 million Instagram users in the US alone, and one billion users worldwide*. Facebook, Whatsapp, and Oculus have billions more, so leaning into this and allowing users to transact easily will make sense for many brands despite the downsides. 

I’d love to check out your account and see what’s possible for your eCommerce company. If you want to schedule a 30-minute strategy session to learn more, please do!