Over the years, Facebook has transformed from being just a social networking site to one of the most effective marketing platforms for marketing leaders.
Just how big is "Facebook, the marketing platform" ?
Clearly, marketers across the globe view Facebook as a platform that can aid them in selecting the appropriate target audience from the entire user base. This way, they can concentrate their efforts on the chosen lot and achieve greater success.
Facebook Ads have been consistently providing a positive Return on Investment (ROI) to the businesses it has catered to. Also, the convenience of posting an ad on Facebook and tracing its effectiveness has been a game-changer.
But, how could a marketer assess whether the ad is rendering its part in increasing customer engagement, boosting sales, and ultimately raising the profit margin?
Here are 10 Facebook ad metrics that every marketing leader should measure when running Facebook Ad Campaigns:
Facebook boasts of providing more than 135 metrics to marketers to analyze their advertisement campaigns. But it is neither practical nor prudent to measure each. of these metrics.
So, here we are, with the list of 10 top metrics to track in a Facebook ad campaign.
This metric allows a marketer to determine how cost-effective the ad campaign was for the company. It is also a great tool to facilitate comparison between multiple ad campaigns being run by the company. Several factors can influence this metric, such as auction bid, optimization type, target audience, etc.
It can be calculated by a simple formula: Total amount spent during the selected time period/ Number of Results
The conversion rate or cost per conversion is a metric that shows how much a firm is paying for a lead or sale. It records the percentage of people who have not only clicked on the ad but also made a purchase.
If many people are clicking on a Facebook Ad, but the conversion rate is significantly lower, it signifies that the ad is attracting people but failing to boost sales.
Click-through rate or CTR displays the percentage of users viewing your ad and clicking through to reach your landing page. A low click-through rate means people are viewing your ad but are not considering taking any action.
This metric is particularly important to track, making it a KPI (key performance indicator) for many marketers. Here's why.
Suppose the Facebook algorithm observes the pattern that your ad is getting impressions but a significantly lower proportion of clicks. In that case, it logically concludes that people do not find the ad relevant. Hence, the click-through rate has a lot to offer to your overall ad campaign.
This metric provides insight into the average number of times a user has viewed a particular ad. If there is a frequency rate of 2 or more and the conversion rate is on the lower side, it implies that there are some serious flaws in designing the ad campaign and require necessary rectifications.
This metric is useful in tracking the total number of people who have viewed the Facebook Ad. To avoid any confusion going forward, Impressions also count if a particular person sees the ad more than once, rather than being a count of unique viewers. Impressions help in ascertaining how popular your ad campaign has become.
As is evident from the name, ad clicks represent the number of times someone has clicked on your ad. The more the number of ad clicks, the greater the interest in your campaign. Any action with the post is counted as a click. This includes clicking on an attached link, expanding the post to read more, and even the number of likes.
The result rate metric provides the figure demonstrating the number of times the ad has achieved a specific outcome. Every marketer sets a different objective for the ad campaign based on campaign objectives and settings. Some common types of results a marketer tends to achieve are lead generation, purchase through the website, etc.
Every Facebook Ad campaign has been planned with a set budget, and measuring the spend helps keep a check on this aspect.
This metric showcases the total amount spent on a particular ad campaign for a specified time period. A marketer can look upon the spend to manage his Pay-Per-Click (PPC) Budget.
ROAS equips the marketer with the amount of revenue the company receives for every $1 invested into the ad campaign. It’s one of the most straightforward metrics to measure the effectiveness of an ad campaign.
The formula used to compute ROAS is:
ROAS= Revenue/ Spend
The cost per mile, which is also referred to as the cost per thousand, is a metric that indicates the cost incurred by the marketer to achieve 1000 impressions.
This metric is used extensively to gauge the cost-effectiveness of the ad campaign. It can also be used to compare the performance of an ad campaign with other ad publishers.
Marketing a product or service has never been easy, but with such useful metrics for Facebook Ads, things have simplified a bit.
Tracking these 10 Facebook ad metrics effectively can optimize your marketing efforts and provide you an edge compared to the competitors. Each metric in itself brings a new perspective to your ad campaign analytics.
After getting insights about all these metrics, you will be much more equipped for an ongoing or a future ad campaign.