Category: e-commerce

If you’re somebody with limited knowledge of Facebook advertising and a relatively small budget, then we’re a lot alike. You and I likely have the same reservations about spending our hard-earned money on advertisements, especially when getting it right might take a few hundred extra dollars.

That’s why I decided to be your guinea pig.

As part of Oberlo’s support team, I love when we showcase Oberlo success stories – merchants who have learned to gamify Facebook Ads and turn seemingly generic products into goldmines over a few months. It does happen. Every day someone reaches out to us through our social media channels to tell us about their wildly successful strategy.

It always leaves me thinking, “I really should be able to do that.”

But I think it’s fair to say that for every success story, there are many more who slip because they don’t persevere long enough through the trials of the process. Expect to struggle before you succeed.

So with that in mind, over the last month, I jumped in head-first so that you can see what $10 a day can earn you – if anything at all – when just starting.

And I’m here today to show you exactly what I did. The successes and the facepalms. All of it.

The Plan 

I planned to advertise one product that I felt had good potential, and that I could clearly define an audience for. Given my $10 per day budget, I didn’t want to spread myself too thin and dilute the audience, so my thinking was, “One product, one target audience.”

I used a storefront that I built a little while back but hadn’t done much with it. The store’s name is Walling In Love (www.wallinginlove.com). It’s a basic general store, but without much success and with zero Facebook presence. There are some home decor products and some jewelry that aligned with the brand and mission of the store.

The store was originally positioned as a philanthropic business with a portion of profits (should there be any) donated to a local homeless shelter.

The slogan was, “Give someone a home. Decorate yours.”

Here’s what I did

I chose this “Home is where the heart is” van life charm:

It’s a rather generic product, but there is a big subculture of people with wanderlust who pack up their stuff into small camper vans and travel around for months on end, especially during the summer. I live on the West Coast of Canada where adventure travel, camping, and exploration are not only huge industries, but a way of life for residents all up and down the Western seaboard.

So I knew (or at least hoped) that there’d be a market for these.

We often tell people to sell what they are interested in selling. I think that if there is an audience for it, then you should be able to sell it. So it seemed fitting to me that I should put my money where my mouth is.

Aspiring entrepreneurs often want to know what the next hot product is: “What will be trending in the summer of 20XX?”

I think it’s great if you want to chase trends and try to be ahead of the curve! It’s certainly a proven strategy. But I also think that you can carve out a space for yourself with virtually any product that has an audience if you manage to create advertisements that end up tapping into the audience you’re looking for – that’s the real challenge.

Speaking of Audiences… 

I decided I would keep a huge audience over the first few days of my Facebook ads campaign. The thinking here is that the charm could appeal to a fairly broad audience, and until I’d seen some data, I didn’t want to exclude people that have the potential to purchase.

I decided I’d run two ads for the same product to start.

Ad 1 Parameters – Camping Interests

• Men and women
• Age 25 – 35
• Interests (no method to the madness, just intuitive choices)
  • Outdoor Enthusiasts
  • Camping
  • Adventure Travel

Ad 2 Parameters – Jewelry Interests

• Men and women
• Age 25 – 55
• Interests (no method to the madness, just intuitive choices)
  • Online Shopping
  • Jewelry
  • Necklaces

Day 1 

Woke up to a sale! Booyah. Maybe, doing something right.

The ads are just barely breaking even, but in the early days, while the Facebook Pixel is learning, I’m not necessarily thinking that I’ll be above water. I’m hoping to make it up on the backend with a more focused audience that Facebook develops as time passes.

It’s only been one day of data, and while I could make some decisions based on the fast results I’ve seen, I don’t think that it’s worthwhile just yet to exclude huge swaths of people. So I will sit tight.

Day 2

Woke up to another sale. Okay, at this point I was thinking that I might know what I’m doing. (Spoiler alert: the pain train was soon to follow.)

Based on the data I saw on that day, I decided to kill the jewelry interests ad and funnel all the budget into the camping interest. I noticed that the two purchases have come from the age bracket 18-30, so I have also excluded all other age brackets. The two purchases were also from men, but for now, I’m going to leave that factor as-is.

Day 3

I decided not to make any changes for a couple of days and see what happens. Might not have been the most astute approach, but given that the first two days had started off fairly well, I thought it was clear the Facebook Pixel was sending a reasonable amount of traffic that was converting. I decided to white knuckle it.

Oh, I haven’t explained the Facebook Pixel yet. How rude of me. The Facebook Pixel is a little snippet of code that lives on your website and matches the characteristics of your customers with the characteristics of Facebook uses. That way, when someone comes to your site from Facebook and makes a purchase, Facebook can get more surgical with its ads by finding people who are similar to your customers.

Days 4-8

Only one sale occurred, and at this point, it’s time to make some decisions about this ad and think about how to test other audiences and campaign structures.

Day 9 

After taking a look at the results and speaking with some esteemed colleagues, I decide to change up the strategy. At the outset of this experiment, I began running a campaign for traffic to get cheap clicks and see how people interacted with my ad.

Generally speaking, a traffic campaign will display your ads to more people and drives more people to your site, but the quality of the visitors – meaning the likelihood of a visitor turning into a buyer – tends to be lower than running a conversion campaign. If you’re looking to drive more sales, then you might start with a conversion campaign. But, it’s important to remember, there’s no one formula that is the silver bullet. I decided I’d try both to see what happened.

After doing a little research, I determine it would be best to run a campaign focused on conversions and target a significantly smaller, more focused audience.

I lean into the “van” aspect of the product and target those who like to camp in RV’s and camp in campervans. The age range is kept broad because this activity is indiscriminate of age.

The new parameters are below.

My Zero-Dollar Sales Day 

Uh-oh. Disaster strikes! Well, not really. But there certainly was an unfortunate turn of events…

When a product is out of stock on AliExpress, the platform will sometimes set the price of the product to zero before restocking the item on their system. Just one of those AliExpress quirks.

This means that if you’ve got your price multiplier settings set to float with changes on AliExpress, then you’re at risk of your price going to $0. The price multiplier, if you’re not familiar, is a setting you control inside of Oberlo so that your store automatically charges a certain price about the cost that you’re going to pay for the product.

Is this scenario, a product that costs $3 would then cost $9 at your store (you could make that $8.99 if you want). But as I learned, and learned the hard way, is that if a product momentarily goes out of stock on AliExpress, it can make the multiplier screwy by resetting the cost to $0. After all, $0 x 3 is… 0.

This happened to me and caused an influx of completely free orders! Not ideal.

It’s kind of funny, I know my way around the Oberlo system, but I certainly did not foresee this happening. Of course, it’s all part of the learning process, but be careful not to have this happen to you. This was my biggest facepalm moment, no doubt. A stark reminder that running a business isn’t easy and the road to success is paved with lots of lessons along the way. To be honest, it was a little embarrassing, and I felt silly for letting this happen to me – I’m a customer success manager at Oberlo! We march on.

What you need to do is set your price and then select “Do Nothing” in your Auto Update settings, otherwise you might be giving products away for free.

This setting will leave the price as is, and then shoot you a note so that you can adjust if you want.

Day 11-20

Now that this new ad had been running for ten days or so, it’s clear that the results are not as good as those in my initial strategy. I managed to get more add to carts, but fewer sales, and the conversion rate was lower. I suppose you can’t know until you try, and throughout the process, you’ve got to test, test, test.

This test was a fail, fail, fail.

For me, the ongoing urge was to build out a variety of new audiences and split the daily spend four ways so that I was spending $2.50 per audience per day. It was hard to resist doing this, but to spread out an already thin budget seemed like it wouldn’t be a wise decision.

With an average of 20-30 visitors per day and my current cost per click (CPC), intuitively it makes more sense to run ads for seven, ten, even fourteen days before killing them. This way, at least 200 people click on the ad before killing it. The cost per click through can range anywhere from $0.10 to $3, $4, $5 per click or higher. Fortunately, my cost per click was around $0.30, which meant that with $10 a day, I could capture around 30 clicks.

I think the interests I’ve chosen are aligned with the product, so it’s just a matter of collecting data and watching to see what happens. The reality is that you need to white knuckle it, while simply losing money every day to collect data.

After 40 Days, Here Are the Results… Not Pretty

Over the 40 days, I ran two types of campaigns. The first campaign was for traffic. I chose to run a campaign for traffic rather than conversions at first because I intended to drive lower cost clicks to the site in order to help my pixel learn who my audience was. Here was the outcome…

• Run time: 9 days
• Amount spent: $82.76
• Cost per click: $0.37
• Impressions: 13,390
• Unique link clicks: 223
• Add to carts: 9
• Purchases: 6
• Cost per purchase: $13.79

The product I’m selling is $9.99, so clearly this ad is underwater: For each sale, I’m losing at least $3.80 just on the advertisement alone. Not to mention the additional costs like my Shopify subscription and the cost of the product.

After running this campaign for 10 days and conferring with some colleagues, I decided it might be time to transition to a campaign geared towards conversions. Clearly, the results weren’t stellar, but the campaign had certainly gained some traction and made sales and had a conversion rate of 2.69 percent. Not terrible!

Results from the Conversions campaign

• Runtime: 30 days
• Amount spent: $277.14
• Cost per click: $0.31
• Impressions: 58,000
• Unique link clicks: 950
• Add to carts: 40
• Purchases: 8
• Cost per purchase: $34.64

Unfortunately, this campaign was far less successful than the original strategy, and it just goes to show you that there’s not one right way to run Facebook ads. There are too many variables at play for there to be a single set formula that is going to work for you. The conversion rate for this campaign was 0.8 percent.

Conclusion 

Looking back on the month, I thought I’d have been able to garner better results than what transpired. But, the reality is that this business – the dropshipping business – is about trial and error. It’s about continuously testing both products and audiences. And more often than not, it takes a little bit of a bankroll to find the right products and the right audiences.

I also thought that throughout the month I would have been testing more audiences with a variety of different variables through the ad sets – different locations, different ages, different interests, and so on. But when you’re spending just $10/day, it’s important not to dilute your efforts by stretching your ad spend across a variety of ad sets. For example, if I wanted to test four different audiences concurrently, it would have meant splitting the ad spend four ways and allocating just $2.50 to each ad set, which would have meant very few clicks per audience/ad set.

Conventional wisdom also suggests that you ought to test an audience for a couple of weeks so that your pixel can optimize, so making constant changes can also inhibit your pixel’s performance. I learned that the hard way, “optimizing” my original ad and creating something… much worse.

The next time around, I’d do things a little differently. Firstly, my inclination is that it makes more sense to sell a product that costs a little bit more money. I thought that initially selecting an inexpensive product would make for quick and easy sales. However, the reality is that when you’re selling an inexpensive product, you’ve got a smaller margin for error because if you receive lots of clicks and no sales, you’re profit quickly dries up. But, if your product costs around $25-$50, then you’ve got the opportunity to capture more clicks, and if you receive a sale, you’ll make up the cost of your advertisements.

As far as audiences go, it’s a little harder to say. I think I picked a relatively niche interest product and was able to define an audience. That said, it was just a simple necklace. Maybe next time I will pick a product with a defined application that I know people will use for a specific purpose. That way, I’ll be able to get more surgical with my audiences.

I’d also test more audiences throughout the month. I’d still use the $10 a day on each audience, but I’d likely run the test for just a few days and if I don’t receive any sales, then I would make adjustments. In addition to all of that, I would use a niche storefront and have a more defined look and feel which would allow me to create stronger brand affinity.

Overall, this exercise has helped me to understand that the process is not about hitting it big with one product on the first try. It’s about taking the valuable lessons you learn and applying them to the next store, and the one after that, until you get it right. Oberlo releases a lot of content about Facebook Advertising because we understand that learning the ropes is part of the process and we’re committed to making sure that you stumble as little as possible.

I hope you learned some lessons – I clearly did – so that when you take the plunge you’ll be better prepared for what is to come.

Want to Learn More?

Mike Marino

Michael Marino is a Customer Success Manager for Oberlo. He wants to give store owners the knowledge and coaching they need to succeed in online business.

Who is your target audience? What is your target market? Why?

If you don’t have incredibly specific answers to these questions, you could be in big trouble.

What’s more, if you answered something like “we target everyone,” or “we cater to a wide range of people,” you’re in even bigger trouble, my friend…

Because if you target everyone, you’re actually targeting no one. You can’t be all things to all people.

Okay, I know what you’re thinking: “But what about Amazon, Tom? They target everyone in the entire world!”

Let me put this to rest.

For four years between 1994 and 1998, Amazon just sold books. And even then, they did it online only — which, in 1994 was an extremely niche audience.

In other words, Amazon had a well-defined and very specific target market.

Good Ol’ Jeff only began expanding after four years of hard work establishing a successful organization. Today — twenty-four years later — Amazon has earned the ability to target everyone.

You haven’t.

You’re not Amazon as it is now. You’re Amazon as it was 24 years ago, and you have to start small — just like Jedi Bezos.

How?

In this article, you’ll learn what target markets and target audiences are. Plus, I’ll show you how to identify the market segment that your business needs to focus on to thrive.

What is a Target Market?

A target market is a specific, defined segment of consumers that a company plans to serve with its products or services.

Identifying the target market is an essential step in the development of products, services, and the marketing efforts used to promote them.

Plus, a target market typically contains the end-users of a product or service.

This is why famous consultant Peter F. Drucker said, “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”

This is vital to understand.

To cut through the noise, you need to create products, services, and marketing campaigns for a specific, well-defined group of people.

Because if you don’t? At best, they’ll be bad products or services that don’t fully meet the needs and desires of your customers.

But more likely, no one will buy them.

As marketing author Philip Kotler once said, “There is only one winning strategy. It is to carefully define the target market and direct a superior offering to that target market.”

This target market can be segmented by things like geography, demographics, and psychographics.

Let’s look at an example.

Target Market Example

McDonald’s is the most valuable fast food brand in the world, and it’s a fantastic example of demographic target marketing.

Although McDonald’s has grown to target multiple markets and audiences, they’ve created dedicated products and marketing campaigns for each segment.

For example, one of their core target markets is young children. For this segment, they provide play areas, happy meals complete with toys, and marketing campaigns featuring Disney characters and Ronald McDonald.

Target marketing and aggressive pricing have helped McDonald’s consistently maintain the largest fast food market share in the United States.

But everything is continually changing.

In recent years, McDonald’s sales have been in decline, and they’ve had to react to changes in their target market.

Let’s explore what happened.

In 2016, millennials surpassed Baby Boomers to become the largest generation in the U.S., and this avocado-obsessed generation cares more about healthy foods than previous generations.

In response to this change in their target market, McDonald’s updated their products and services.

Which is why today, McDonald’s offers healthier, fresher menu options, and more upscale coffee products.

Next up:

What is a Target Audience?

The term “target audience” is narrower than “target market.” It refers specifically to the group of consumers targeted by marketing messaging.

Advertising specialist Tom Duncan explains: A target audience is “a group that has significant potential to respond positively to a brand message.”

Your target audience may or may not be the end users of your product, but they are the people you plan to direct your marketing to.

To communicate effectively with your target audience, you need to understand who they are, and what their true needs and desires are.

Why?

Because, “no matter what your product is, you are ultimately in the education business,” said Robert G. Allen. “Your customers need to be constantly educated about the many advantages of doing business with you, trained to use your products more effectively, and taught how to make never-ending improvement in their lives.”

What’s more, remember what author and marketing guru Orvel Ray Wilson said: “Customers buy for their reasons, not yours.”

Let’s revisit the McDonald’s example we looked at above.

Target Audience Example

Although one of McDonald’s key target markets is children, there’s a big problem with this target market: Children don’t have any purchasing power.

In other words, it’s not the children who buy McDonald’s products — it’s the adults in their lives.

So, McDonald’s create the Happy Meal to serve their target market of children. However, they create advertisements promoting the Happy Meal aimed at their target audience of parents.

This is clearly shown in the video advertisement below.

The ad highlights things that kids aren’t interested in, but are important to parents: Such as “no artificial colors, flavorings, or preservatives,” and charitable donations.

What do kids care most about?

The toy, of course! But this gets only a scant mention near the end of the video.

When it comes to Happy Meals, children might be McDonald’s target market, but they’re clearly not the target audience.

The Key Differences Between Target Market and Target Audience

Target market and target audience are similar, overlapping terms. However, there are key differences between them, mostly related to the practical implications each has on your business.

A target market impacts all decisions a small business makes.

Products or services are developed to meet the needs and desires of the target market. Packaging and pricing decisions are made to appeal to the target market. And sales processes are structured around the target markets’ shopping preferences.

However, a target audience only impacts decisions related to specific marketing messages.

For this reason, target markets are usually comprised of the end user of a product or service, whereas target audiences may or may not be.

Target Markets and Target Audiences Can Be The Same

Often the target audience for a marketing message is the same group identified as the target market.

For example, a yoga leggings brand may identify a target market of single women, age 24-34, who regularly frequent gyms, and have a demonstrated interest in yoga.

In this example, the target audience will be the same as this target market.

However, marketers can hone in further on the target audience. For example, marketers may decide to use Instagram advertising to reach their target market.

So now the target audience may be further defined as Instagram users, who follow accounts such as Yoga Girl and Yoga Inspiration, have recently purchased products online, live in Portland, Oregon, and value fair trade products.

Okay, now let’s talk about why targeting is so crucial to success.

The Power of Targeting

Many people believe that casting a wide net is the best way to catch more fish.

But the most successful fishermen know what type of fish they plan to catch ahead of time. They make nets with this specific size of fish in mind. And they know exactly where to find these fish, and when to strategically deploy their nets to catch them.

This is why targeted advertisements are, on average, almost twice as effective as non-targeted ads.

Identifying clearly defined target markets and target audiences works like a magnifying glass that focuses the sun’s rays.

“It’s hard to target a message to a generic 35-year-old middle-class working mother of two,” said Elizabeth Gardner. “It’s much easier to target a message to Jennifer, who has two children under four, works as a paralegal, and is always looking for quick but healthy dinners, and ways to spend more time with her kids and less time on housework.”

With a clearly defined target market, every detail of a product or service can be perfectly tailored to their needs and desires. This will result in incredibly satisfied customers and overwhelmingly positive feedback.

Plus, with a well-defined target audience, every detail of a marketing campaign can be perfectly tailored to appeal to their interests, emotions, and world views.

If you know how to create marketing messages that truly resonate with your target audience, you’ll achieve higher conversion rates, and build a more powerful brand.

Because as real-life Mad Men inspiration Howard Gossage said, “Nobody reads ads. People read what interests them. Sometimes, it’s an ad.”

But that’s not all.

Targeting also enables marketers to take “advantage of the massive torrent of data that the digital age has turned on to get better results from digital marketing,” said Ray Velez, CTO of Razorfish.

And this data is vast.

You only have to spend five minutes creating a Facebook ad to be awestruck by the targeting capabilities of today’s digital marketing tools.

So how can you tap into this power?

How to Identify Your Target Market

Now that you understand exactly what target markets and target audiences are, let’s look at how you can uncover the market segments you should be targeting.

Step 1: Identify the Key Benefit that Your Business Provides

Get this right and your ideal target market should reveal itself.

Start with the end result you want to create: satisfying customers needs and desires.

“Authentic marketing is not the art of selling what you make but knowing what to make,” said marketer Philip Kotler. “It is the art of identifying and understanding customer needs and creating solutions that deliver satisfaction to the customers, profits to the producers and benefits for the stakeholders.”

You need to be able to answer these questions very clearly:

• What problem do you solve?
• What need do you meet?
• And what desire do you fulfill?

As economist and Harvard professor Theodore Levitt famously said, “People don’t want to buy a quarter-inch drill. They want to buy a quarter-inch hole.”

Features tell. Benefits sell.

So don’t define what you do or how you do it, such as, “we sell home exercise equipment online.”

Instead, define what outcomes you provide for your customers, such as, “We help people to lose weight and get fit, which helps to improve their feelings of confidence and empowerment. Plus, we help them do it in the comfort of their own homes where they won’t feel self-conscious, using exercise equipment they can conveniently buy online.”

A great example of a company selling the benefits of a product instead of the features is the first iPod advertisement.

The main feature of the iPod was that it could store 1GB of MP3 files.

But Apple didn’t promote this feature. Instead, they highlighted the benefit that this feature provided: “1,000 songs in your pocket.”

Once you’ve clearly identified the benefits of what you do,  it should be fairly obvious who is most in need of your product or service.

In the Apple example, the target market is obviously early adopters of new technology, who have a large music collection, and who love listening to music on the move.

From here, Apple could dig deeper into their target market by testing the product with smaller groups of people who fit within these basic parameters.

Whose needs or desires are you fulfilling?

Are you helping middle-aged overweight men lose weight? Do you help older people maintain their gardens? Do you help young dad’s save time in the kitchen with cooking tools?

Step 2: Refine Your Target Market

By this point, you should have a basic understanding of who your product or service benefits. From here, you need to narrow down the market segment you plan to target.

Be as specific as possible.

First, define the demographics of your target market.

Demographics are simply a particular section of a population. You can segment your target market using demographics such as age, location, gender, marital or family status, occupation, income level, education level, etc.

Next, identify the psychographics of the people who stand to benefit the most from your product or service.

Psychographics are consumers’ psychological attributes, like attitudes, values, interests, lifestyle, and behavior, etc.

Once you’ve done this, you should have clearly defined a buyer persona.

To learn more about creating buyer personas, check out Shopify’s guide on “How To Build Buyer Personas For Better Marketing.”

Step 3: Stay Objective

This is perhaps the most difficult part of the process.

It can be extremely difficult to avoid assumptions. What’s more, many people unintentionally search for, recall, and interpret information in a way that confirms their pre-existing beliefs or hypotheses. This is called confirmation bias.

If you’re not careful, this bias can totally derail any attempt you make to clearly define your target market and target audience – which in turn, could spell disaster for your business.

And this happens all the time.

In fact, according to CB Insights, 42% of startups fail not due to a lack of funding, but due to a lack of market need.

In other words, they fail because the entrepreneurs behind them are so blindly passionate about their product or service, they forget to validate whether or not there’s a true need for it in the marketplace.

The other mistake businesses make is to conduct plenty of research, but no real testing.

Research is prospective. Testing is proof.

It doesn’t matter how many people tell you they would use your product or service. And it doesn’t even matter how many people say they would buy your product or service.

It only matters how many people actually buy your product or service.

So don’t ask people if they like your product or if they would buy it. Create an MVP (minimum viable product) and sell it to them there and then.

That’s the only way to know for sure if there’s a real market need.

Bottom line: Assume no target market cares about your business, brand, products, or services unless categorically proven otherwise.

Step 4: Evaluate Your Market Segments

Now that you have real insights into who you plan to sell to, you need to verify that this is a market worth serving.

Ask yourself these questions:

• Are there enough people in the target market to sustain our business?
• Does this market segment have the money to buy our product or service?
• Will they buy repeatedly, or will we have to constantly close new customers?
• Is there much competition for this market segment?
• If there isn’t, why is that?
• If there is, what separates us from the competition – why should customers buy from us?
• How accessible is this target market?

Once again, research can only take you so far. To conclusively answer these questions, you need to create real-life tests where you actually engage with your prospective target market.

Summary

Clearly defined target markets and target audiences are vital to the long-term success of any business.

The scattergun approach can only take you so far – and that’s if you manage to make it past the start line at all.

So, work to understand who your business serves, and why they should care. And remember that the only true way to know who you should target is by testing.

Once you’ve defined your target market, ensure that your products or services fulfill their needs or desires. Then define your target audience – the specific group that you plan to target your marketing message to.

Remember, casting a wide net is a small business’ death sentence. So get specific.

What is the one key benefit that your business provides to consumers? Leave a comment below and let us know!

The secret to success boils down to experimentation. And to succeed through experimentation, you need to try everything at least once.

I created my first Facebook Ad in 2014, which was an engagement ad, to get a feel for how the platform works. That first ad didn’t get actually get any engagement, and that failure motivated me more than ever.

I vividly remember reading every single article I could find on Facebook ads to learn every single trick I could find online and compile them all together to create a winning ad.

And I did create a winning ad. The second ad I ever created brought more engagement than I could’ve ever imagined.

That small success proved the power behind Facebook’s advertising platform.

Since then, I’ve created countless ads in various niches such as automotive, suncare, yoga, pets, home decor, and much more. I can’t share them all, but I will share a few of my biggest advertising mistakes.

10 Advertising Mistakes I Made That You Should Avoid

1. Starting With an Engagement Ad

One of the biggest advertising mistakes I’ve ever made was starting with an engagement ad.

And I don’t mean that in the sense of creating one.

If the goal of your ad is to get as many eyeballs on it as possible, then by all means create an engagement ad to increase your brand awareness.

But when I was working on my Deluxe Letter Board store for Oberlo I wanted to make my ad look more popular, so I created an engagement ad first.

The ad ended up getting 1.2k likes at two cents a click. However, when I used that same post and tried to create a conversion ad, it didn’t generate any sales as that post had been optimized for engagement first.

And to be honest, I hadn’t given the Facebook pixel enough data to let it know what type of person would buy a letter board.

Ultimately, the ad using this formula didn’t end up generating any sales, even though people liked the content.

2. Not a Broad Audience

At a Facebook event I attended recently, a Facebook employee told me that it’s better to go broad with keywords rather than specific.

I wish I knew that a few years ago while working on promoting my personal website a few years ago.

Back in 2015, I thought that the secret to creating a great Facebook ad was to hit the exact center of the “Audience Definition” metre. Every time I created an ad I would always focus on trying to get the “Your audience is defined” text on my ad.

However, the reality is my best performing ads always have a broader audience. You’ll still want to stay within the green zone but you’ll want the metre to lean a little bit more to the right to help you find ad success.

3. Sending Traffic to the Homepage

If you only sell one product, or if your homepage is a landing page, you’ll want to skip this advice.

However, if you’re selling several products on your online store, you’ll get more bang for your buck by promoting a product page instead of a home page.

The reason for this? Well, on Shopify, the add to cart button is always above the fold. However, on the homepage, even if you’ve added an add to cart button for your best-seller, potential customers will have to scroll to find and buy the product.

It’s best to make the transition from somebody clicking on your ad to adding to their cart as seamless as possible to increase conversions.

The longer it takes for a customer to find the add to cart button the less likely it is for them to make a purchase on your store.

4. Failing to Monitor My Margins

When I published my I Spent $191,480.74 on Facebook Ads. Here’s What I Learned. article a few people noticed that my margins were thin. I still made money because my product cost was low. However, I didn’t make as much as I could have on my store.

The biggest challenge when it comes to margins that people don’t take into account is how many failed ads you’ll have before you create one that succeeds. And that does eat away at your margins. A lot of new store owners will spend $1000 on ads and not generate a single sale.

With Oberlo, you’re actually better off… even if it doesn’t seem like it. When I was selling print on demand products, our product costs were four times more expensive so every sale we did get didn’t even fully cover the cost of our ads.

It’s really important to take ad costs into account when pricing your products. So many new entrepreneurs want to compete with Amazon pricing but it’s just not profitable to do that.

What you don’t see behind Amazon is their powerful affiliate marketing program which helps them reduce their ad costs. With affiliates sending Amazon traffic and generating sales, they only pay a commission for products sold. So it is easier for them to sell products at lower prices.

When pricing products, stay within market value. If you find competitors in your space charge $40 for a women’s blouse, you can also charge $40 for a women’s blouse. Don’t price compete, it’s the easiest way to lose a ton of money.

5. Using a Boring Photo

Whenever I start a new store, I always want to get that first sale quick. Unfortunately, when your online store is only a few days old, you might not have the type of photos that result in an impulse buy. Some people don’t have influencer photos on their products so instead they use a product photo with a plain white background. If you’ve ever done this, I feel you. And I wouldn’t be surprised if you were as disappointed as I was when I tried this.

When you finally find the ideal photo for an ad on Facebook, you’ll have an aha moment that makes you immediately realize what you’ve been doing wrong all along.

The best converting photos on Facebook ads, based on my personal experience, tend to include a picture of an influencer. You can reach out to influencers on Instagram via a Direct Message if there are any in your niche you’re interested in partnering with.

The picture needs to showcase the benefits of the product or show how the product can be used to help illustrate why someone would need to buy it.

You also want to include a photo that’s different from other products out there, maybe you capture the photo from a different angle. Or the product is in a different color scheme than anything else on the market which helps make it more enticing. The color red in particular tends to make a photo pop, even if there’s just a glimmer of it in the photo.

6. Not Testing Checkout Before Adding Your Pixel

One of the big mistakes I sometimes forget to do when working on a new online store is test out the checkout process. You’d be surprised at what you might find when completing the checkout process yourself. For example, if you also sell print on demand products, you want to check to see what the shipping prices are that customers will see. Doing this in advance will save you from having a ton of abandoned carts.

I recommend ordering a test sample before adding the pixel on your website so that Facebook doesn’t grab data about you and base the audience around who you are since odds are you’re not the ideal customer for your ads. After you’ve placed the test order and before you create an ad, add the Facebook Pixel or the pixel of the advertising platform you’re using to your website. This pixel will help platforms like Facebook understand what type of people visit your website, add to cart, and buy. Thus, helping to make your ads more effective at converting.

7. Boosting Posts on Pinterest

The first time I created an ad on Pinterest, I made the biggest rookie mistake – I boosted a post instead of creating an ad. The promote feature was visible on the pin and for some reason I thought that was how Pinterest’s advertising platform worked (super embarrassing, I know).

So instead of creating an ad, I boosted the post. I did get some clicks to the website. However, I forgot to add the Pinterest pixel to my website before creating the ad so the numbers of the ad didn’t match up.

The biggest reason why boosting the post was my biggest mistake was that I was using my personal Pinterest account for the post. So the only people who saw the ad were my friends and family in Canada. I kept seeing that I was getting Canadian traffic and I couldn’t figure out why no one in the United States was seeing my ad. But when I finally realized my blunder the ad budget was already spent. This ad didn’t land a single sale.

The reality is Pinterest does have an advertising platform where you can segment your audience to find your ideal customer. You still want to focus on conversion campaigns, so if you’re about to start an ad and it says traffic campaign at the top you’re in the wrong spot. And you maybe want to try avoiding using your personal Pinterest account for ads, even if it has more followers.

8. Not Bringing in Relevant Traffic 

The most important part, that almost everyone neglects, of creating a Facebook ad is to get the right traffic to your website.

I got my first sale in only two days on one of my online stores by creating yoga quote articles. These articles would be centered around an influencer. For example, “10 Inspiring [Yoga Influencer] Quotes You Need to Read.” Then, I’d add a Facebook pixel to my website and create my retargeting ad.

Immediately afterwards, I’d go on Twitter and Facebook and tell the influencer that I featured them in my article. And while not all shared, enough sent a sizeable amount of relevant traffic which helped me generate my first few sales. Those sales then helped make my ads more effective. A virtuous circle!

9. Not Considering Other Cultures

The world is filled with billions of people who share unique beliefs, values, personality traits, and quirks that set them apart from one another. As an advertiser, you need to be mindful of that when creating your ads.

When promoting clothing, you might need to be mindful of how much skin is showing  in countries where clothing is more conservative.

A friend once created an ad with a photo of a ‘punk rock grandma’ which greatly offended countless people in a European country.

So, when creating an ad, be sure to segment your audience so that you consider the culture and values of that country you’re targeting. Not all product photos will work well internationally. Taking the time to understand cultural differences can help you create more personalized international ads.

10. Failing to Try Retargeting Ads Sooner 

I built several online stores before creating my first retargeting ad. And I wish I tried it sooner. My retargeting ads usually had a better return on investment. These are the top returns on my top ten ads. The retargeting ads we created consistently creeped up on this list.

The magic of a retargeting ad is that it’s a way to win back first time visitors. Not everyone is ready to buy their first time.

I’ve spent so much money on cold traffic, never thinking of what would happen if I had spent more time trying to bring back those people to reconsider my store and make a purchase.

Had I tried a retargeting ad sooner, I would’ve saved myself a ton of advertising money long-term.

Retargeting add to carts is a more efficient way to win back abandoned carts rather than sending an email out and it proved to be our best-performing retargeting ad.

Retargeting our blog traffic, using the yoga quotes articles that I mentioned earlier, also helped elevate our sales.

Conclusion

To achieve success in advertising, you’re bound to experience failures and setbacks. With every failed ad, you’ll learn some hard lessons that’ll bring you closer to an advertising win.

Don’t be discouraged when your first few ads failed, think of them as an advertising education you’re paying for. You can learn a lot from your mistakes. Even the best marketers will create bad ads. The only difference is that they take time to reflect on what went wrong before going back to create their next ad. So keep creating and experimenting and you’ll be well on your way to success with one of your future campaigns.

Nicole Martins Ferreira

Nicole Martins Ferreira is a content marketer at Oberlo and experienced ecommerce entrepreneur. She’s been building online stores since 2013 and sharing her secrets with Oberlo users since 2016. Follow her on Twitter @nicolemarfer.

Color plays an important role in how your brand is perceived. Whether you’re a fashion brand trying to connect to a youthful audience or a medical supplies store trying to strengthen customer trust, you can study color meanings to help you better attract and connect to your ideal customer. Color psychology can be used to help build a strong, relatable brand. In this article, we’ll explain what color psychology is and educate you on the color meanings for the most popular colors used.

 

What is Color Psychology?

Color psychology is the study of colors in relation to human behavior. It aims to determine how color affects our day to day decisions such as the items we buy. Does the color of a dress compel us into purchase? Do the colors of a package make us choose one brand over another? Does the color of an icon make us more likely to click on it? The short answer is yes. But the why part is a bit more complicated. Color meanings can have an impact on why we prefer certain colors over others. The same color can also have different meanings that are dependent on our upbringing, gender, location, values, and a variety of other factors.

Image Credit: Huffington Post

Why Is Color Psychology Important in Marketing?

Color evokes feeling. It incites emotion. And it’s not any different when it comes to selecting colors for your business.

Choosing the right colors for your marketing efforts can be the difference between your brand standing out from the crowd, or blending into it. By using colors strategically for your marketing efforts, you can get your audience to see what you want them to see and help them perceive you the way you aim to be perceived. This is why understanding color psychology can be so useful for your marketing efforts. Because it can help you portray your brand the way you want to.

While choosing the right colors can enhance your brand perception, poor color selection can do damage to your brand image. For instance, if you choose the wrong colors for your content or logo, it can turn out to be less readable, and hard for your audience to understand. Or you can risk being ignored all together.

Color can be used by marketers to influence how people think and behave toward a brand, and how they interpret any information. The choice of colors can help people decide what is important. And that’s why content marketers need to understand what different colors mean.

List of Color Meanings

Red Color Psychology

Marketing colors like red can capture attention. The red color meaning is associated with excitement, passion, danger, energy, and action. You might’ve noticed that some brands use red for ‘order now’ buttons or for their packaging as a way to stand out on the shelf. In color psychology, red is the most intense color. And thus, can provoke the strongest emotions. Red can also trigger danger so you want to use the color sparingly. If you add the color red to your website, save it for the call to action or sale icons if it’ll contrast well with your store design.

Red is the iconic color used for brands like Coca Cola and YouTube. The color red tends to encourage appetite hence why brands like Coca Cola use it often in their branding. They also use words like happiness in their branding so they use the color red to build excitement. YouTube likely uses the color red due to the excitement of watching videos online. Notice how the red part of their logo is the play button which can help compel someone into action. It encourages you to want to press play on their videos.

Orange Color Psychology

In color psychology, orange represents creativity, adventure, enthusiasm, success, and balance. The color orange adds a bit of fun to any picture, website, or marketing material it’s on. Despite it’s attracting color, it’s not as commanding as the color red. Many marketers still use the color for call to actions or areas of a website that they want to draw the eye too.

Orange’s color meaning shines through in logos like Nickelodeon and The Home Depot. Nickelodeon is a children’s channel and so the logo accurately represents the creativity and enthusiasm that a children’s show would need through their playful orange color. The Home Depot sells products that you can use for your home. Many Do it Yourselfers (DIY) head to Home Depot to buy products to renovate their home or make adjustments. The orange logo here also represents creativity.

Yellow Color Psychology

In color psychology, the color meaning for yellow revolves around sunshine. It evokes feelings of happiness, positivity, optimism, and summer but also of deceit and warning. Some brands choose to use a cheerful yellow color as the background or border for their website design. You can also choose to use yellow for your ‘free shipping’ bar at the top of your website if it matches the rest of your website’s design. A little touch of yellow can help your website visitors associate your store with something positive.

The color yellow is used by brands such as Ferrari and Ikea. Many people dream of driving a Ferrari. The luxury brand is associated with this feeling of happiness, summer and a carefree lifestyle. The Ikea brand also uses the color yellowing in their branding. What does buying furniture have to do with happiness? Well, let’s look at who’s likely buying those products. Many people who’ve just bought their first home or are moving out for the first time, will head to Ikea to buy products to furnish their home. This milestone is usually filled with happiness and optimism for the new change making yellow a great color to associate with the brand.

Pink Color Psychology

Pink is a popular color for brands that primarily serve a female audience. In color psychology, pink’s color meaning revolves around femininity, playfulness, immaturity and unconditional love. Some brands have chosen to use the color pink for the product packaging especially for girl’s toys. Whereas other brands highlight the pink color in their logo, website design, or to highlight key messages.

Since the color meaning for pink includes femininity, it’s no surprise that brands like Victoria’s Secret and Barbie use the color so heavily. Victoria’s Secret even named one of their brands Pink. On their website they use a combination of pink and black to highlight key marketing details. Their logo and certain marketing messages also uses the color pink. On Barbie’s website, CTA’s are in a bright pink color. Their top navigation and drop down menu also subtly use the color. And of course, their product packaging and logo reinforce the feminine pink color in their branding.

Green Color Psychology

In color psychology, green is highly connected to nature and money. Growth, fertility, health, and generosity are some of the positive color meanings for the color. The color meaning for green also carries some negative associations such as envy. If you’re in the health or fitness niche, you might choose to add more green to your online store. For example, your homepage banner image or logo might include a green background.

The use of green is made popular by brands such as John Deere and Roots. John Deere’s entire brand revolves around nature. Their product line centers around landscaping, agriculture, lawn care equipment and more. The color green is so ingrained into their branding that even their equipment is the same shade of green as their logo. That way, when someone sees that product, they’ll immediately know it’s a John Deere. Roots is a fashion retailer. However, when browsing their banner images and marketing materials, you’ll often find their models in natural outdoor settings. The green logo blends well with their nature imagery helps them attract outdoor enthusiasts as their target market. So even if your products don’t necessarily tie to a niche, you can use color to help you attract a specific demographic.

Color Psychology Blue

In color psychology, blue’s color meaning ties closely to the sea and the sky. Stability, harmony, peace, calm and trust are just some of the feelings your customer may feel about your brand when you integrate the color blue into your branding. Conversely, blue can also carry some negative color meanings such as depression and can bring about a sense of coldness. Blue can be used in your website’s logo or on your website’s top navigation. Some retailers add their guarantee, trust certification or free shipping icons in a blue color to strengthen the trust aspect the color is known for.

Tech brands like Facebook, Twitter and Skype often use blue in their marketing. But retailers like Walmart and Oral B also use the color. The blue in the Walmart logo can help position the brand as trustworthy, reliable, and relaxing. After all, Walmart is a place where you can buy groceries and do shopping all in one convenient location. Oral B is a dental health brand that sells toothbrushes. Healthcare niches, like Oral B, typically use blue in their branding to help people associate the brand with a quality, reliable and safe product.

Purple Color Psychology

In color psychology, purple is a royal color. The color meaning for purple is connected to power, nobility, luxury, wisdom, and spirituality. But avoid using the color too much as it can cause feelings of frustration. Some perceive its overuse as arrogant. You can add hints of purple to your website’s design such as on your free shipping bar, your logo, and as an accent color in your graphics.

Purple is a color brands like Hallmark and Yahoo use. When browsing both websites, you’ll notice that purple is an accent color. On Hallmark, the logo and the top navigation are purple but the rest of the website uses a variety of other colors. On Yahoo, the logo, top navigation words, and Yahoo icons like Mail use the color purple.

White Color Psychology

In color psychology, white showcases innocence, goodness, cleanliness, and humility. Keep in mind, that this is the meaning in North American culture. In some parts of the world, white has the opposite meaning. You’ll want to keep this in mind based on the target audience you serve. The color meaning for white also has a negative side where it symbolizes sterility and cold. On an ecommerce website, white tends to be the most used color. You’ll likely use it as the background color for your product photo. Your pages will likely have a white background with a black font. This is because, black font on a white background is the best color combination for readability.

White is the color ASOS and Adidas uses in their marketing. On ASOS, the words in the header, logo, and background are white. When the background is grey or black, the font is white and when the background is white the font is black. On Adidas’ online store, the top navigation is black. The use of a white logo helps create contrast. Since their background is white, they’ve chosen to use grey as a background for product photos to add another tone to the mix. Many brands who have white as a central color tend to pair it with black or grey.

Black Color Psychology  

Black is a popular color in retail. In color psychology, black’s color meaning is symbolic of mystery, power, elegance, and sophistication. In contrast, the color meaning can also evoke emotions such as sadness and anger. Many fashion retailers have used black in their logos. Black is also a popular color for text as it’s an easy color to read. Some brands choose to use black and white photos for lifestyle banner images or icons to create a certain tone or consistency on their website.

Black is a color retailers such as Chanel and Nike use. Chanel uses black for their logo and has several black and white images on their website to maintain a consistent look. Once you start browsing their website, a thick black top navigation background appears. They use a black font on their graphics for images and for their text. Noticeably, their call to actions are also black. Many retailers in the fashion niche, especially, use black call to actions that contrast well against a white background. Nike also uses a black, white and grey color scheme for their website. Their logo and font is black throughout their website. Thus, making the website easy to read. Like Chanel, their call to actions are also black which draws visual emphasis to add to the item to your ‘bag’ (cart).

Grey Color Meaning

In color psychology, grey represents neutrality and balance. Its color meaning likely comes from being the shade between white and black. However, grey does carry some negative connotations, particularly when it comes to depression and loss. Its absence of color makes it dull. Grey can be used for font color, headers, graphics, and even products to appeal to a mass audience.

Apple is an example of a brand who uses the color grey in their branding. After all, many of their laptops are in a grey or silver-tone as its neutral color doesn’t put anyone off. On their website, they use the color grey for their header to contrast against a white logo. However, throughout their branding, you’ll see a balance between white, black and grey used which can help maintain a clean, neutral look.

Brown Color Psychology

Brown is an earthy color. After all, it’s the color of earth, wood and stone. So naturally, color psychology highlights that the color meaning for brown relates to comfort, security and a down to earth nature. In marketing, you’ll find that brown is often used for natural products and food. Brown is a color that shows up in logos, banner images, and sometimes even text due to its contrast on a white background.

UPS is an example of a brand who takes advantage of color meanings in their branding. On their website, the brown in their logo is emphasized in the navigation and drop down menus. You might also notice that complementary colors include yellow and green which all have natural elements to them. For example, yellow might represent the sun and green might represent nature. Altogether, it helps position UPS brand as a secure, reliable and down to earth company which is exactly what you’d want from a delivery service.

Misconceptions Around the Psychology of Color

Even though color psychology has been studied and analyzed for many years, there’s still much debate about the exact impact that color has on human psychology.

But the question is: why are there so many misconceptions about the psychology of color and its meaning?

One of the reasons is because when it comes to the psychology of color there are many variables in place. There’s a chance that different people perceive colors differently. How you perceive a certain color may have a lot to do with your personal preference, experiences in the past, cultural differences, gender differences, and so on.

Conclusion

Now that you’ve learned what color psychology is and what the most common color meanings are for each color, it’s time to apply them to your business. While many niches have common colors used, such as blue for health care, you don’t always have to follow the rules. Consider choosing colors that represent what you want your brand to be about or what you want your customers to feel when browsing your online store.

 

What colors do you use on your online store? Do you think color meanings matter? Let us know in the comments!

Nicole Martins Ferreira

Nicole Martins Ferreira is a content marketer at Oberlo and experienced ecommerce entrepreneur. She’s been building online stores since 2013 and sharing her secrets with Oberlo users since 2016. Follow her on Twitter @nicolemarfer.