The Truth About Ecommerce Ad Revenue and Creative Success

– Ecommerce ad agencies often claim to have generated a certain amount of revenue, but it is misleading as they only generated clicks that resulted in revenue.
– The success of an ad is determined by what happens after the click, such as good landing pages, reviews, and product descriptions.
– Creative ads do not necessarily require a lot of time and money, and smaller companies can achieve high click-through rates by knowing their audience and leveraging data.Focus on optimizing your landing pages, reviews, product descriptions, and offers to generate revenue from clicks, rather than solely relying on ad formats.I keep hearing this narrative from ecommerce ad agencies: “Last year, we drove $XXX million in attributable revenue for our clients. Here’s our ad format.” This is a false narrative. You did not generate $XXX million in attributable revenue. You generated clicks that resulted in $XXX million in revenue. The revenue driven resulted from good landing pages, good reviews, a need for the product by the audience, good photos, and good product descriptions, usually coupled with a good offer. The success of an ad is largely determined by what happens after the click, with multiple levers that can be pulled to generate revenue.

Then there’s the second narrative: creative takes a lot of time and is expensive, and you need a ton of it. Not unless you’re spending a lot of money, and even then, I’m still not super convinced. Some of the best ads of all time are a photo and a hook. Most of the ads I see are just bad. They copy all the “best practices” of today, but they just don’t deliver in the ways they should. For a lot of smaller companies, you don’t need a ton of creative. We’ve made less than 100 ads in the last 2 years for our test brand and averaged greater than a 4% click-through rate across all of them. This month, one piece of creative is at 6.1% across two different campaign audiences. Know your audience and speak to them by leveraging data. Design your ads to capture attention; the rest is all customer journey. #ecommerce #facebookads #strategy

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