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31 questions

Straight answers on Meta ads and agencies for e-commerce brands

What brands ask about Facebook and Instagram ads and the agencies that run them, answered by the team that runs Meta ad accounts for brands in Australia and New Zealand.

In-depth answers

16 questions
  1. My Facebook ads were working and suddenly stopped. What happened?Store owners
  2. Should I fire my Facebook ads agency?Store owners
  3. Our agency manages the account but does no creative work. Who is meant to make the ads?Marketers and media buyers
  4. How much does a Facebook ads agency cost?Store owners
  5. Is it worth learning Facebook ads myself or should I hire an agency?Store owners
  6. In-house media buyer, agency or freelancer at our spend?Marketers and media buyers
  7. We spend $60k a month at 1.4 ROAS and have been burnt by agencies and media buyers. How do we choose the next one?Marketers and media buyers
  8. Why does our ROAS drop every time we scale budget?Marketers and media buyers
  9. What changed with Andromeda, and what does it mean for our account structure?Marketers and media buyers
  10. What are the red flags when hiring a Facebook ads agency?Store owners
  11. What's a good ROAS for an ecommerce brand?Store owners
  12. Meta says one ROAS, Shopify says another. Do we judge the agency on platform ROAS, blended ROAS or MER?Marketers and media buyers
  13. Why is my CPM so high?Store owners
  14. Do Facebook ads still work for ecommerce in Australia and NZ, or is it too saturated?Store owners
  15. ABO, CBO or Advantage+ Shopping: how should the account be structured now?Marketers and media buyers
  16. I spent $3,000 on Facebook ads and made $200. What went wrong?New to ads

Quick answers on Meta ads and agencies

Short answers to the questions that do not need a whole page.

Is an agency worth it for a small store spending under $100 a day?

Usually not for full management. At under $100 a day the fee becomes a large share of the total, and there are too few sales each week for an agency to test much. Most stores at that spend do better running one sales campaign themselves and buying new ad creative, then bringing in management once spend and margin can carry a fee.

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What breakeven ROAS do we need, and how do we turn a blended MER goal into a ROAS target?

Breakeven ROAS is 1 divided by your contribution margin after product cost, freight, fees and GST, so a 40% margin breaks even at 2.5. To turn a blended MER goal into a Meta target, multiply it by the share of store revenue Meta usually claims: if Meta is your only paid channel and claims 60% of revenue, an MER goal of 3 becomes a platform ROAS target of 1.8.

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How do we know it's time to scale, and should we raise budgets or duplicate?

Scale when cost per purchase has held below target for a week or more and your top ads are not yet fatiguing. Raise the campaign budget in steps rather than duplicating ad sets, which chase the same people and restart learning. Add new creative before each step, because extra budget on the same few ads mostly buys frequency.

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What should our Meta agency report each month, and what should we ask them?

Spend, cost per purchase against your target, Meta's ROAS beside your store's blended figure, how many new ads launched and what they tested, and what changes next month. Ask what was learned, not only what happened. An agency that cannot explain why results moved is not steering the account.

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Who owns the ad account and the creative: me or the agency?

You should own both. The ad account, pixel and Page belong in your own Meta business portfolio, with the agency added as a partner, so you can remove its access at any time. Put ownership of finished ads and source files in the contract too, and if an agency built the account in its own portfolio, ask now how it will be transferred.

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Can my agency lock me into a 12-month contract?

It can ask for a minimum term, but in Australia unfair terms in standard form contracts with small businesses, meaning fewer than 100 employees or under $10 million turnover, have been banned, with penalties, since 9 November 2023. The ACCC's examples include one-sided rights to end a contract and penalties for leaving. In New Zealand, similar rules cover standard form small trade contracts worth up to $250,000 a year. Read the exit clause before you sign.

Which is the best Facebook ads agency in Perth / Sydney / Melbourne / Auckland?

The best agency for you is the one that understands your margin, supplies new creative every month and keeps your ad account in your name. Location matters less than it used to, because Meta accounts are run remotely, so judge agencies in Perth, Sydney, Melbourne or Auckland on those tests rather than their postcode.

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How much should I spend on Facebook ads to start?

Enough for steady purchases, because that is what Meta learns from. An ad set usually settles after about 50 results in a week, so your target cost per purchase multiplied by 50 is the weekly spend that gets there. Below that, ads still work, just less steadily: run one sales campaign at a budget you can hold for a month.

How long should ads run before I judge them?

Give a new ad about a week, or until it has spent two to three times your target cost per purchase, before deciding. Meta's learning phase usually ends after about 50 results in the week after a change, so judging daily mostly measures noise. Judge a whole campaign, or an agency, on several rounds of tests over two to three months.

My ad account was restricted or disabled. What now, and can I even reach a human at Meta?

Open Meta Business Support Home, select the restricted account and follow the steps under What you can do, which can include confirming your identity, completing verification or requesting a review. Only an admin can request a review. Meta's help pages now offer support through an AI business assistant, and reaching a person is not guaranteed. Keep payment records and the affected ads ready, and avoid opening new ad accounts while the review is open.

Does Meta charge GST on ads in Australia, and can I claim it back?

Not if you are registered for GST and have told Meta. Under the ATO's rules for imported digital services, a registered business that gives the supplier its ABN and states it is registered should not be charged GST, so add both to your ad account's business details. If you are not registered, GST is added and cannot be claimed back.

How should we split budget between testing and scaling when testing 40 creatives a month gets expensive?

Give testing a fixed share and protect the rest for proven ads: Meta's own creative test suggests spending no more than 20% of the existing budget on test ads. In high-CPA markets, test fewer, bigger ideas rather than 40 small variations, so each concept gets enough spend to judge, and move winners into the main campaign quickly.

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Is broad targeting really better now, or do interests and lookalikes still work?

Broad, or Advantage+ audience, is the sound default for most e-commerce accounts now, because the creative does most of the targeting and narrow audiences split the results Meta learns from. Interests and lookalikes still work as suggestions and can help a new account with little purchase data. Test broad against your best interest set before switching everything.

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7-day click or 7-day click plus 1-day view for ecommerce?

Optimise on 7-day click plus 1-day view for most e-commerce accounts, and use Meta's compare attribution settings to read the click-only figure beside it. View-through credit counts people who saw but did not click, so it can flatter results; judge the business on store revenue and MER. Meta's standard settings now also include a 1-day engage-through window.

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Should I keep boosting posts or run proper ads?

Run proper ads for sales. A boost offers simple goals such as engagement or website visits, while a Sales campaign in Ads Manager optimises for purchases and gives you control of placements, creative tests and tracking. Boosting still suits spreading news to your followers, but not selling.

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