Facebook Ads for Niche Products: How We Got 10X ROAS for an LED Lighting Brand
Thought your product was "too niche for Facebook ads"? Well, we're here to tell you based on our experience that there's no such thing.
Back in 2018, our client Hyperlite had been attempting to run Facebook ads for several months with the goal of making sales on their Shopify site - and it wasn't working. Nonetheless, they had a lot of confidence in their target audience of US-based electricians and contractors. It was up to us to reach their audience through proper Facebook ads targeting and drive them to complete the purchase.
When we started the project, the page wasn't localized and the content being posted wasn't related to the product or brand USPs. The previous ads were being run with Page Like and Traffic objectives, which were producing limited sales results.
While the Facebook Pixel had been installed on the Shopify site, there were only a few previous sales and not much data to work with. Regardless, we decided to start testing with a small budget and optimized creatives to gauge the market demand.
Almost immediately, the conversion ads we ran started making sales - big sales:
- 7.81X ROAS in the first month!
- Peak monthly ROAS of 10.6X with an ad budget of $5,000 and $53,000+ in sales revenue
- Sustained ROAS of 4-6X for over 14 months
Because we knew there would be little competition for the product, the key to success would first and foremost lie with the right targeting.
Knowing our target audience, we utilized Facebook's demographic targeting to find people who had input "Electrician" or "Contractor" as their job title. For good measure, we narrowed the audience to people who were interested in LED lighting.
Boom - results picked up immediately. But we didn't stop there - the next step was to use Facebook's Audience Insights tool to find more related interests to target. For the uninitiated, Facebook Insights allows you to find out more information about an audience once you input their location, age/gender and, in this case, a specific interest (not all of the interests in Ads Manager are available, but many are). The "Page Likes" tab is a gold mine for Facebook Advertisers, as many of these pages can be targeted as interests in Ads Manager.
After the campaigns took off, it was time to bring in the big guns. The Facebook Pixel installed on the website had finally started to see some traffic and, more importantly, orders. Once each Facebook Pixel Event (PageView, ViewContent, AddToCart, Purchase) reached 100 fires, we launched a 1% Lookalike Audience using the event's Custom Audience. (This is a little technical - here are some resources on the Facebook Pixel and Lookalike Audiences).
With the targeting performing well, the only thing left to do was to use the custom audiences to create even better results through retargeting. We started running ads with a 5-10% off coupon to the people who had viewed a specific product on the site. The ROAS on those ad sets was insanely high and helped boost the overall ROAS to 7.81 in the first month!
As per best practice, we tried a few creatives initially, but the best-performing ones had the following features:
- Real customer reviews
- Real photos of the product in use
- Eye-catching copy with the product's value proposition clearly stated
Those creatives are still performing to this day, and we've maintained a 4-6 ROAS on the account for over a year by testing iterations upon the principles above.
As the ad gained momentum, we started getting incredible engagement thanks to the accuracy of the targeting. Those engagements provided social proof which gave another major boost to the ad's performance.
It's important to note here that the product is genuinely awesome, so customers were coming back to the post to leave comments raving about their experience and tagging their friends. There's no better marketing than real positive reviews!
With the right targeting, any brand can reach its audience and produce impressive results. In fact, niche brands have a leg up over most Facebook advertisers because their products will resonate in a big way.
The most important thing for execution is to make full use of Facebook's targeting capabilities and produce a high-converting creative that showcases the product. If your targeting hits the mark, it will show in the engagement on the ads - so be sure to include the social proof for even better results!
Want to learn more about Facebook advertising? Shoot me an email at firstname.lastname@example.org and let's talk shop.