Most people understand Facebook ads but very little knowledge about funnels within Facebook Ads.
To truly master the facebook ads game, you need to understand the user psychology and the pathway they took before convert in facebook ads campaign.
This is the exact process they will go through before pulling out the credit card to purchase your product in your store
Cold traffic is basically people who first come to your website through facebook ads. They have no clue and no idea about your brand story, your product or anything about your message. These people will not convert in the first place because they are unsure about what they are looking at.
It will be a disaster if your Facebook ads is just strategizing around a cold audience. It will not work because you will hardly get any sales from cold traffic.
Usually, people who scale on cold traffic will just barely make a good return or sometimes, 90% of the time this will end up wasted with your marketing budget
Warm traffic is where people are already aware of your product and brand. However, they may not necessarily buy at this stage as they are still a lot of uncertain about your product. They will look out on the internet to learn about your product and brand, hear what others have to say about doing business with you and perhaps try to research for another competitor who is offering a similar product at much better pricing and shipping terms.
Very often eCommerce marketer will know how to convert warm audience but it will not be the best ROI because conversion will be very low.
Hot traffic is where people will buy your product as soon as they see the right marketing message. They have seen, heard and read everything about your brand and product and they are willing to buy.
In terms of facebook ads funnel, you need to establish the relevancy and continuation like a funnel, where everything you promote and whatsoever retargeting sequence that you created will basically drive them down from Cold, Warm and Hot.
Remember a good Facebook strategy is all about investing your time and effort in driving them through the Facebook ads funnel. Once you master this funnel basically you can sell anything on the internet provided that you have a good facebook ads funnel and framework.