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How To Increase Conversions On Shopify (Using Ads Strategy)

Are you looking to increase your online shop’s conversions? 

Ads can be a powerful tool in doing so. 

With Shopify, businesses can establish themselves as an eCommerce brand and reach out to their target audience. 

However, many don’t know how to use ads strategically to maximize their conversions on Shopify. 

This article will provide an overview of some effective strategies you can use with your Shopify store to increase ad conversions.

What is Conversion Rate?

Conversion rate is one of the most important metrics when measuring an online shop’s success. 

It measures how many visitors to a website actually complete a desired action, such as making a purchase or signing up for email updates. 

As such, by tracking your Shopify conversion rate, you can identify areas where your shop needs improvement and make adjustments to maximize conversions.

Why does conversion rate matter?

It may sound obvious why you would want to know your conversion rate.

But does it?

Littledata surveyed 3223 Shopify stores in September 2022 and found the average conversion rate for Shopify was 1.4%. 

This low percentage indicates that many businesses have yet to optimize their websites for maximum conversions. 

A high conversion rate means more sales, while a lower conversion rate means fewer sales and less profit. 

Here’s an example to give you an idea of how important CR is.

Let’s say your store receives 100,000 visitors per month and has a conversion rate of 1.4%, resulting in 1,400 conversions per month. 

The Shopify average order value is $85. 

So the store generates $119,000 in revenue per month.

If the conversion rate increases to 2%, your store will have 2,000 conversions per month. 

This represents an increase of 600 conversions per month or a 42.8% increase in the number of conversions. 

And the website would generate $170,000 in revenue per month.

As you can see, improving the conversion rate resulted in an additional $51,000 in monthly revenue; yay 🤑!

How does Shopify calculate conversion rate?

To calculate Shopify’s conversion rate, start by measuring the number of customers who visit your website over a certain period of time, such as one month. 

Then, measure the number of those customers who make a purchase during that same period. 

Divide the number of purchases made by the number of visitors and multiply it by 100 to get your conversion rate for that month. 

Conversion rate (%) = Conversions/Total visitors * 100

Step-by-step Guide to Increase Conversions on Shopify Using Ads Strategy 

Again, you can make more money by just improving your CR without increasing the traffic of reducing the prices in your store.

a. Research Your Target Audience 

You need to understand who your target audience is if you are running a Shopify store. 

Having this information helps you create effective ad campaigns and better understand how to market your products. 

Researching your target audience helps you identify the demographics that are most likely to purchase from you, such as age range, gender, location, income level and interests.

But how do you get it done effectively?

First, conducting a survey of current customers can provide valuable insights into who buys from your store. 

Additionally, researching competitors can help you determine what works for other businesses in similar markets and industries. 

To get more detailed information about potential buyers’ needs and preferences, consider using platforms like Google Analytics or Facebook Audience Insights to understand browsing behavior on different devices or locations. 

This only works if you have connected GA to your store and have a Facebook page.

Another way to better understand your audience is to look at the competition and see what they are doing.

Analyze their ad campaigns and the type of content they use to promote products or services that may be similar to yours, then tailor your own ads accordingly. 

For example, using Facebook Ads Library, you can review the ads your competitors have been running and get ideas for creating better campaigns.

b. Choose the Right Ads Platform 

Knowing who is more likely to buy from you is not enough.

Your ads platform can make all the difference when it comes to increasing conversions on Shopify. 

There are a variety of options available, so choose the one that best fits your needs and budget. 

Let’s discuss the top two.

Google Ads

Google Ads is one of the most popular ad platforms for Shopify stores. 

Inside this platform, you can create targeted campaigns that display ads to customers most likely to purchase your products. 

You can also access powerful analytics tools that track and optimize your campaigns in real-time. 

And considering Google is one of the top search engines, with more than 8.5 billion daily searches (Internet Live Stats, 2022), you have a shot at getting more traffic.

Pros 
  • Highly targeted ads – you can target your ads to very specific audiences.
  • Wide reach – Google Ads can reach millions of potential customers.
  • Flexible budget options – you can choose a budget that works for your business and adjust it as needed.
  • Ability to track results – you can track how your ads perform, so you know how successful campaigns are.
  • Fast setup and results – Google Ads campaigns can be set up quickly and show results almost immediately.
Cons 
  • Costly for competitive industries – if there is lots of competition in an industry, the cost per click can become quite expensive. 
  • Difficulty optimizing campaigns – optimizing campaigns takes time and effort to get maximum return on investment (ROI). 
  • Low-Quality Score penalty – if your ad has a low Quality Score, your costs will be much higher than they should be. 
  • Time consuming to set up – setting up a Google Ads campaign can take time and effort, especially if you are new to the platform. 
  • Can be difficult to track ROI – it can sometimes be challenging or impossible to track your return on investment (ROI) accurately. Because some conversions may occur offline, such as in-person sales.

Facebook Ads

Facebook Ads is another great platform for Shopify stores looking to use ads to increase conversions. 

It allows you to target precise demographics and interests and offers a range of features, including dynamic product ads.

A technique that automatically shows shoppers products they’ve viewed or added to their carts on Facebook before completing the purchase from your store. 

In October 2022, Facebook reported that 2.08 billion people could be reached through ads. 

This means you have a better chance of reaching your target audience, with an average cost per click of around $1.72.

Pros
  • Facebook Ads are affordable and can be tailored to fit any budget.
  • Ads can be targeted to reach specific audiences, making getting the right message to the right people easier.
  • Ads can be quickly changed or updated if needed, allowing for quick iteration and optimization of campaigns.
  • Ad reporting gives detailed insights into how ads perform and where changes may need to be made.
  • Ads can include interactive elements such as videos and polls, allowing for engaging content to engage potential customers better.
Cons 
  • Facebook Ads require a lot of time and effort to create effective campaigns to achieve desired results. 
  • Not all ad formats will work well for every business, so finding the right format for your business’s goals can require trial-and-error experimentation before finding success with an ad campaign. 
  • There is a significant learning curve when creating successful campaigns from scratch, and it can be difficult to know what works best without prior experience or research.
  • Ads must adhere to Facebook’s rules and guidelines for content, which may prevent businesses from using certain types of messages or visuals that could otherwise help them reach their goals. 
  • Ads can quickly become ineffective without proper monitoring and optimization as the audience changes over time due to seasonal trends or other factors outside of a business’s control.

Facebook ads vs. Google Ads: Which one should I choose?

The average cost per click for any Facebook ad is $1.72. 

This makes it an attractive option for those looking to get a lot of clicks for less money than other platforms. 

However, the targeting options available in Facebook Ads are limited compared to Google Ads, where you can target more specific keywords related to your business or product. 

On the other hand, the average cost per click in Google Ads is between $2-$4 on the search network, with costs going as low as under $1 on its Display Network. 

The Display Network is also where you can run remarketing campaigns to reach people who have already visited your site (more on retargeting later). 

This can be a powerful tool for bringing back previous visitors as customers.  

The platform that you choose will depend on what you are trying to achieve. 

If you want to reach a larger audience with more targeted ads, Google Ads might be the better choice. 

However, if you’re on a budget and want quick results for less money, then Facebook Ads may be your best bet.

Related: How to Drive Traffic to Your Online Store (Free Ways)

c. Set Up a Campaign 

Once you’ve chosen your platform, the next step is to start creating campaigns.

To start, you need to define the goal of your campaign and determine which type of ad will best help you reach that goal. 

For example, if you want to increase brand awareness, you might use display ads. 

Alternatively, consider using search ads or retargeting campaigns if your objective is to drive sales directly.

Once the type of ad is chosen, it’s time to create the actual ad itself. 

To do this successfully, ensure the content is pinpointed towards your target audience and speaks their language. 

Consider highlighting key features and benefits that make your product stand out from competitors to generate interest among potential buyers. 

Additionally, use visuals such as videos or images that illustrate what makes your product unique to engage potential customers further and draw them in for a purchase.

Steps to create and launch a campaign on Facebook

  • Log into your Facebook account and go to the Facebook Ads Manager or Business Manager.
  • Click on the “Create” button to start creating your ad.
  • Select your ad campaign objective, such as “Brand Awareness” or “Conversions”.
  • Choose your target audience, including demographics, interests, and behaviors.
  • Select your ad placement, such as Facebook, Instagram, or the Audience Network.
  • Create your ad by choosing the format, such as a single image or video, and adding the content and call-to-action.
  • Set your ad budget and bid, and decide on a schedule for your ad to run.
  • Review and submit your ad for approval.

Note: This is a general guide, and Facebook’s ad creation process may change over time or vary depending on the specific ad format or campaign.

Steps to create a Google ad

  • Go to the Google Ads homepage and sign in to your Google Ads account.
  • You can create one for free if you don’t have an account.
  • Click on the “+” button to create a new campaign.
  • Select the campaign type you want to create, such as “Search,” “Display,” or “Shopping.”
  • Select your campaign settings, including language, location, and budget.
  • Create your ad groups and add relevant keywords to your products or services.
  • Create your ad by adding text, images, videos, and a call-to-action.
  • Set your bid for the keywords you selected.
  • Review and launch your ad.

d. Track Your Results

As with any marketing strategy, tracking the results of your ads is essential for understanding what’s working and what needs improvement. 

To keep track of your conversions, you should first set up tracking links on each page where visitors can land after clicking an ad. 

These links will allow you to accurately measure how many people arrive on a specific page from each ad. 

Additionally, you can use software such as Google Analytics to monitor further details about the visitors coming from your ads. 

This lets you understand user behavior and identify which campaigns drive the most conversions on Shopify. 

For example, if you are using Facebook ads, install a Facebook Pixel on your website and track the results in Facebook Ads Manager. 

This will allow you to see which ads are driving sales and what type of user is most likely to purchase from your store.

Optimizing Ads for Maximum Conversions  

Up to this point, your ads are running.

The next piece is to make sure all are working optimally. 

All you have to do is let your ads run for some time to get enough data for optimization.

a. Test Different Ad Variations 

To increase conversions on Shopify using ads, A/B testing is a must.

This allows you to experiment with different types of ads, such as display ads, sponsored posts, or videos. 

You can also use this technique to compare different versions of the same ad and determine which one gets more clicks and leads. 

And then, track your conversion rate based on each variation to understand what is working and what isn’t. 

On top of this, experiment with different creative elements in your ads, including images, text, call-to-actions (CTAs), copy length, etc. 

See, by making small changes like this; you can improve the effectiveness of your ads and increase conversions to your Shopify store. 

b. Optimize Ads for Mobile 

If you want to increase conversions on Shopify, optimize your ads for mobile. 

Mobile campaigns should take up a large share of an overall ad budget, as over 79% of Shopify traffic now comes from mobile devices. 

According to Littledata.io, the average conversion rate for Shopify stores is 1.2% on mobile devices, although the top 10% and 20% of Shopify stores have a mobile conversion rate of 2.7% and 3.9%, respectively.

To maximize ROI, focus on creative optimization, creating different versions of their ads for desktop and mobile platforms. 

All images used in the ads should be optimized for mobile phones with minimal loading times. 

Additionally, all text in the ad should be short, given the limited space available on most phones. 

Also, modify the call-to-action depending on device type; consider using “tap here” or “swipe up” instead of more traditional calls-to-action such as “click here” when targeting users on mobile devices.

c. Use Retargeting 

Retargeting is another effective tool to increase conversions on Shopify using ads. 

It enables businesses to reach customers who have visited their site but left without making a purchase. 

Then re-engage them and encourage them to take action.

How does it work?

Retargeting works by placing a tracking pixel on your site. 

This pixel collects visitors’ browsing habits and remembers their activity when they leave the site. 

You can then use the information collected to create targeted ads in the customer’s newsfeed or other places online. 

The ads are tailored to appeal to each user based on their interests, activity, and behavior on your site, as well as any other criteria you specify, such as demographics or geography. 

Remember the Facebook Pixel we mentioned earlier? That’s what you use to set up retargeting on Facebook. 

This tool allows you to build custom audiences, which you can target with ads.

For example, you can target customers who have visited a certain page on your site but have not made a purchase. 

You could then create an ad that promotes the product they viewed and encourages them to take action by making the purchase. 

And it is not Facebook alone. 

Retargeting can also be done on other platforms, such as Google Ads, Twitter, and Instagram. 

d. Monitor Your Ads Performance 

You should carefully evaluate your campaigns to identify which ones are successful and which ones need improvement. 

Tracking your ads’ performance over time will help you determine if changes to the ad or target audience are creating better results. 

To get the best results from your campaigns, you should use a reliable analytics tool like Google Analytics to track impressions, click-through rates, cost per click (CPC), and other metrics that will give you an idea of how well each campaign is working. 

While at it, look at where you are getting clicks – this can help inform whether or not it would be advantageous to focus more energy on a certain area or audience demographic.

Final Thoughts 

To conclude, you can use ads to improve your Shopify conversion rates.

The process requires users to take several steps but is achievable with the right guidance. 

First, research and identify different platforms that suit your business needs. 

Secondly, create compelling ad campaigns using visuals and optimized copy to capture consumers’ attention. 

From here, track and analyze data to refine campaigns for improved results. 

And above all, consider various techniques such as retargeting and A/B testing to maximize the conversion rate. 

These tips should help Shopify gain more customers by creating smart Ads strategies that increase conversions to their stores. 

With dedication and perseverance, they can succeed while taking advantage of the powerful tools available on Shopify! 

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