Facebook is a discovery model platform. Its primary goal is to make the audience happy. So you’ll only get ROI if you create quality content for your audience.
— Kelly Hendrickson, Facebook lead at HubSpot
There is a massive amount of data you can track on your Facebook Ads account. Once an ad goes live, it is important to measure the fruits of your labor by understanding your campaign’s goal and the numerous PPC metrics that revolve around it.
Yet, there are only a few that matter most to gather learnings from and make improvements for in the future.
To make your campaigns truly successful, you need to learn more about how they are performing and how they can easily work better for your benefit.
We have listed down a few more important metrics to consider tracking once you’ve entered the world of Facebook Advertising.
1. Click-Through Rate
Click-Through Rate (CTR) is a PPC Metric that determines how many people are actually clicking from your ad to your website. It is said that a CTR of about one percent is recommended. Anything below the given range, that’s when you can start looking into the actual offer and the ad to see if it is something that your audience can be interested in.
This helps you determine if your ad is good enough to take action and catch their attention by clicking your ad and entering your website.
2. Cost Per Lead
Technically, leads are prospects and the contact information that you retrieve from the signup sheets or email marketing forms enable you to follow up on them in the future. Every contact information that you get is actually an asset to your business.
With this, it is important to know how much it costs to acquire a lead. As time goes by, the cost for advertising increases and knowing whether your ad placement is worth the cost for acquiring a certain amount of leads is very important especially to this day.
3. Conversion Rates
Many people blame the Facebook Ad campaign for poor performance when it fails to get an audience to do something on the target website” Chances are, the Facebook Ad campaign still needs some tweaking even if you have already put everything in order by setting up targeting correctly and engaging your audience creatively.
Yet if you are getting a lot of click-throughs at a relatively low price but they’re not converting into conversions, that’s an indication that the Facebook Ads campaign is doing its job and getting people to your website. However, it may be that your website is not convincing people to convert because the content on the landing page is not wholly congruent with the content of the ad. Every conversion rate is massively different. Always make sure to check which page from your website makes the most total conversion value, may it be your Product page or Home page to test when to make adjustments to your site itself.
4. Cost Per Result
The formula for this metric that is similar to “Cost Per Action” or CPA is:
TOTAL AD SPEND / NUMBER OF RESULTS
Cost Per Result measures how much each desired cost or result you get from a click costs. These may be in the form of generated sales, new signups, form submissions, and many other conversion metrics. This is important to measure the success of your campaign and whether to continue to pursue most aspects of your current campaign in the long run or to make further improvements as you keep spending on your ads.
Frequency shows how often people within your campaign ad set have seen an ad on average. Eg. If your frequency is 2.5, this means that on average, someone within your target audience has seen your ad 2.5 times. Frequency can vary from different levels:
- Campaign level – How often on average has someone within my audience seen an ad from this campaign?
- Ad set level – What is the frequency for this ad specifically?
The reason why you should keep an eye on frequency is that as frequency climbs too high, you are likely to see a drop-off in results, particularly with cold audiences.
6. Ad Spend
Spend is the total amount your ads may cost in a certain period of time. This is important to keep a close eye on because this is technically your PPC budget.
With this, you can simply know if you are still within the budget of your advertising campaign.
Ad Spend is also required for you to monitor other PPC metrics such as Return on Ad Spend and Cost per Result.
Impressions, a PPC metric that shows the number of times your ad has shown up on your audience’s screen(s) and has been viewed. E.g. A person could have viewed your ad 6 times, which would count 6 times toward impressions.
This can also help you determine where your ad is appearing more frequently across different platforms.
8. Return on Ad Spend (ROAS)
The formula given for these metrics is as follows:
REVENUE / SPEND
ROAS is the most important PPC metric to take into consideration and to understand if your Facebook Ads campaign has been successful. It entails the amount of revenue generated for every $1 your company has invested in your ad campaign.
On a basic website campaign, you can track this metric by simply calculating the values of each result. While in an eCommerce campaign, you can use other platforms to calculate ROAS such as Facebook Pixel.
9. CPM (Cost per 1000 Impressions)
As stated in itself, CPM is the cost when achieving 1000 impressions on your Facebook Ads campaign. This is a very common metric among online advertising and it measures the cost-effectiveness of your ad campaign compared to other published ones.
Since Facebook Ads require auction, CPM is important to determine any price fluctuations in your chosen ad placement. As well as, to know if your conversion rates are decreasing over time that your target audience is becoming more competitive.
10. Privacy Targeting and Considerations
Especially during these times, Facebook users are now more aware and have more control in potentially filtering and managing their privacy settings. This means that they have grown to become more concerned about their private information and how it is shared which can change the funnel of managing relationships with your audience.
This can help you increase your focus on targeting individual Facebook users to avoid any backlash and keep your impressions running smoothly.
11. Relevance Score
Facebook measures an ad’s relevance by the quality score and engagement levels of an ad itself. Relevance Score is important to determine both your Cost per Click and your Impressions.
The higher the relevance score you achieve, the more well-targeted and simply relevant your ad campaign will be. The recommended range for this score is 5-8 and getting a maxed-out score of 10 will improve your advertising ROI.
12. Post-Engagement Metric
Facebook Post Engagements include the number of likes, reactions, clicks, comments, and shares that your ad or post has received.
This PPC metric is important to help you determine which specific ad appeals more to your target audience. With this, you can check “Post Comments” or “Post Reactions” on your ad campaign and break down all specific engagement types so you can begin to know or test your ads that speak better towards your audience and find others that need optimizing.
In a nutshell, there are plenty of new and other ways to keep tracking and boosting your Facebook Ads campaign. You can also use Facebook Analytics to easily keep track of other PPC metrics. Every campaign you send out is a learning opportunity and always remember to keep a clear objective of each one to make your benchmark in the world of online advertising.