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You have finally gotten your Facebook ads up and running, but what next?
The continuing process of optimizing and monitoring for key Facebook ad metrics is essential to the success of your company’s advertising campaign. To measure success, you must know which ad metrics are the most crucial for Facebook, and why.
Now, before we get into ad metrics, consider learning what sales funnel is and what it represents. Your funnel is the steps a person has to take to become your customer. This is also called the customer journey. It gives you a holistic overview of how the campaigns are performing.
When it comes to funnels, you can start listing out the various touchpoints a prospect might go through to purchase from you. So, for instance, in an eCommerce store, the person may:
- Visit your website
- Visit the product page
- Add items to their cart
- Checkout, and
- Confirm purchase
For Sales Campaigns
How many sales did you make?
The “result” is basically the event you select when choosing the conversion objective, meaning if you are looking for sales, this is it.
#2: Cost per result
Are you spending a lot to achieve that result? If so, how much are you really spending?
This will be your cost per acquisition.
#3: Add to cart
#4: Cost per add-to-cart
What’s the cost of ad spend to have a customer add to their cart?
#5: Initiate checkouts
Are people initiating checkouts with you? If so, how many? This is usually the last step prior to hitting the “purchase” button.
#6: Cost per checkout
What’s the cost of having a customer initiate checkout?
#7: Click-through rate (CTR)
How many people (in percentage) saw your ad and clicked to visit your page?
Making sales on Facebook is challenging. Therefore, you must pay attention to ad metrics other than just sales/results.
If you accurately set up your ad campaign and are generating sales, awesome! Just ensure you are paying less than your customer’s lifetime value. It won’t be wise spending $100 per sale if your customer is only worth $10 to you.
For Lead Generation Campaigns
How many times was your ad shown? This is different than CTR, which is the number of people who’ve seen and clicked on your ad.
#9: Cost per thousand impressions (CPM)
How many times (on average) a person has viewed your ad? This is to ensure you aren’t oversaturating your prospects with your ads.
#11: Amount spent
How much have you spent so far running ads?
#12: Link clicks
How many people were sent to your opt-in page via your Facebook ad? This is a great metric to estimate the number of individuals who visited your opt-in page.
From your Facebook ad to your eCommerce site, how much does it cost you per click? Calculated via “#11” divided by “#12.”
How many individuals signed up on your landing page after clicking the ad?
#15: Cost per lead (CPL)
How much the sign-ups cost you so far? Calculated via “#11” divided by “#14.”
CPL is your most crucial metric. If your leads are costly, use the following numbers to identify why they are so high:
- Divide “#12” by “#14” to determine the conversion rate of your landing page. If it is below 30%, then there are plenty of things you can do to fix it.
- If the number of CTR links is below 1%, odds are your ad is not compelling enough or maybe you’re not targeting the right audience.
- If the CPM is high, consider a different audience.
For Video Ads
How many times has a user seen your video ad?
#17: Amount spent
How much have you spent running your video ads so far?
#18: Video views
How many times was your ad viewed for more than 3 seconds?
#19: Average percent of video viewed
How much of your video ad was actually seen by those who “viewed” it?
#20: Video views to 70 percent
What “%” of users who “viewed” your ad actually watched the video until the 70% mark?
#21: Link clicks
This is the number of users who saw your ad clicked through your website. You may have added a link at the end of the video or included it somewhere in the post.
What’s the average cost of each click through to your site?
How many people opted-in for free content on your website after clicking from those video ads over to your eCommerce store?
#24: Cost per lead
How much has each sign-up cost you so far?
Although we have covered many aspects of Facebook ad metrics in this article, and it may feel a bit overwhelming, don’t worry! Just follow the section that suits your current campaign requirements, monitor those key Facebook ad metrics, and optimize your ad consistently.
Feel free to share this content with your others. Also, let us know if you have any queries regarding Facebook ad metrics in the comments below.
Author’s Bio: Gary Peterson is working at MarijuanaDetox.net. He was born and raised in New York. Gary is a professional writer who specializes in SEO,social problems, email marketing and healthcare. He likes traveling and taking gorgeous photos of nature. Rock music is something that inspires him. Feel free to connect with him on Twitter.