Memo #2

Top 3 Facebook Ads Trends for eCommerce in 2020 that Every Owner/CEO Needs to Know!


Trend 1 – Artificial Intelligence Engine Is Taking Over

The first big trend for 2020 that we are already seeing is that Facebook Artificial Intelligence Engine that delivers your ads to the right customers is becoming more developed.

This mean your technical strategies side must be updated. To be honest if you don’t update your dominant strategies at least every 6 months it’s quite like you are already not extracting maximum value you could out of Facebook.

Just last year all the dominant advertising strategies for Facebook were based on very detailed targeting for Cold Audiences. People were focusing on niche interests with audiences <1 Million in size, setting up narrow placements, age windows etc. Taking everything into their hands to the smallest details. In 2019 we are finding that the best results comes then you let go of all this control and play correctly alongside the Facebook Algorithm.

This means that wide interest with 20+ Million in size audiences, automatic placements, wide age gaps, worldwide targeting’s starts to heavily outperform old approach.


If you have enough data and know how to feed it correctly to Facebook AI, sometimes even absolutely no targeting wins!

This means no interest, no ages, no countries etc.

Sounds strange?

Well, it’s not!

Imagine an Artificial Engine that knows pretty much every consumer on the internet and everything about them – what website they are browsing, what they are buying, at which hours and at what place they are most likely to buy, when are their spouses or families birthdays are, how weather is affecting your purchasing habits, what are you political view etc.

It even knows then you are having a bad or stressful day because the way and patterns you use internet changes…

When you know how to feed the data to Facebook correctly, you enable Facebook to learn about habits and profile of people who are buying from you and look for the similar people, who are most likely to buy based on millions of data-points!

And in 2020 we are going to see even bigger gap between people using old strategies and new ones adapted to levering Artificial Intelligence Engine.


Trend 2 – Segmentation - User Experience and Remarketing Personalization Based On Actions They Take.

Second big trend is providing customers with segmented and personalized experience in their remarketing journey.

Do you remember the last time then you have visited some store and for the next 2-3 weeks you were bombarded by 1-2 SAME remarketing ads on Facebook and Instagram that made you never want to look at the brand again?

A lot of businesses are guilty of it…

They simply do not look at customer as a person, but only as a number in their report.

Personalized remarketing experience helps to solve that and not only it does make customer journey more pleasurable, on average it brings 20-30% improvements in remarketing ROAS.

Usually the way we do it in AdKings Agency and what we recommend is to segment audiences into 4 big parts of the funnel:

  • Warm Upper Part of the Funnel – People who engaged with the brand on social networks but haven’t visited the website.
  • Warm Bottom Part of the Funnel – People who have visited the website but haven’t shown purchasing intent.
  • Hot Part of the Funnel – People who have expressed purchasing intent but haven’t purchased.
  • Existing Customers Part of the Funnel – People who have already purchased.
  • Each of these parts are then is sub-segmented into 5 parts of time-based segmentations:

  • 1-3 Days window
  • 4-7 Days window
  • 8-14 Days window
  • 15-30 Days window
  • 31-180 Days window
  • We do it because a person who haven’t brought from you in 1-3 days vs 15-30 days is different.

    Most likely they didn’t do that because of two completely different reasons.

    Usually at smaller time frame all you need to do is introduce the brand better, focus on product unique selling propositions and addressing the reasons why a person might have not bought the product like 30-day return policy.

    Now, with bigger time frame window reasons are usually way different, this means the marketing message also must be adjusted.

    To top that off, if you have multiple product lines, this segmentation should be multiplied for each unique product or the line.

    Numbers of segments can easily reach 4 x 5 x 3 (3 product lines) = 60+ with each of the segment having 3-4 different ads running it can easily add up to 240+ remarketing ads running with just 3 product lines!


    Trend 3 – Facebook Becomes Awareness and Acquisition Channel

    If you are like any other eCommerce owner, most likely you are aware that Facebook Ads are becoming quite tough place to succeed in.

    Increase in competition, consumers becoming pickier, overload of offers and products and finally Amazon…

    In one way – it’s a problem.

    On the other hand – everybody is facing it, even your competitors.

    But let us ask you this question - if they are spending money on it, are they NOT profitable?

    NO! They are! Nobody would be wasting money!

    It’s just that the top eCommerce businesses adjusted their strategies to match the current conditions.

    To be exact they are focusing on Facebook as an Awareness and Initial Customer Acquisition channel and monetizing through the backend funnels. It’s hard to find a eCommerce business that is making 10-20 Million a Year and not using this approach!

    What they focus on in the first place is having highly converting website or a full sales funnel. They are aiming aiming at is anywhere from 3.5% to 8% conversion rate depending on the niche and product price.

    These numbers might sound too big, but fun fact is, average eCommerce conversion rate for 2017 was just 2.1%, for 2018 it was 2.4% and for 2019 it is already at 3% according to ecomfuel.

    So not having at least 3.5% for 2019 would mean you are already below average… And that’s a bad place to be in for a business long-term success.

    Now the second thing that they focus on is building monetization backend. To be exact - having customer and leads nurturing sequences via emails, SMS, chatbots etc. which would add at least additional +20-30% of the revenue.

    Now having these two things would mean that:

    These advantages are enough to make Faceboook Ads successful and lift up the profitability for majority of the businesses that are seeing downturn in their Ads performance over the last year.

    In fact we have used this knowledge to develop an eCommerce growth framework (we call it “Everest” eCommerce Growth Framework™). You can learn more about it here:

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