We run a small workshop in Florence making handmade leather bags and wallets. Our average retail price is around 90 euros. For the past five weeks we've been running regular ads on Instagram to drive sales across Italy through our own website. btw we spent a total budget of 800 euros, but we've only received 3 orders from our site in that time.
We ran the ads directly using the "Boost Post" button in the mobile app. For our audience, we targeted women aged 25-55 across Italy interested in fashion, handmade goods, and leather accessories. Looking at the ad dashboard, the posts get thousands of likes, hundreds of saves and website clicks are sitting at around 1,200. I mean so people are clicking through and visiting the site.
But visitors leave without adding anything to their cart or moving to checkout. Spending 800 euros and only getting 270 euros in revenue in return has hit us hard. How does the ad algorithm actually work under the hood? Is it normal to get only 3 orders out of 1,200 clicks, or am I making a fundamental mistake with my targeting and setup?