Facebook is one of the most useful websites for running online ads. If you’re a business owner, Facebook ads can help you generate a lot of leads, but only if you know how to use them. Apart from sticking to some general rules, you will have to track and analyse your ads’ impact to optimise and improve your approach from campaign to campaign and have good Facebook metrics.
You must set specific goals and use advanced Facebook ad metrics to ensure that your ROI provides the results you expect. Facebook metrics can also tell you more about what your clients want, how they interact with your ads, and so on.
By using Facebook’s native Ads Manager tool, you can take care of all ad needs and keep an eye on their progress in real-time. So, if you’re looking to start a Facebook ad campaign, keep reading as this article will explain everything about the most important Facebook ad metrics. Once you understand how everything works, you’ll have better control of every campaign you run. Now let’s get to it.
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The cost per result or CPR metric tells you how much you have to pay for an ad on average. It’s a custom metric based on your specific business goals. One way you can set it up is to tie it to the number of conversions made. Every time someone purchases something on your website after seeing a specific ad will count as success.
You calculate your overall CPR by dividing the total amount spent by the total number of results. It’s a Facebook metric that matters, so you should always check it to see how your campaigns are doing.
When you start tracking each ad campaign’s performance, you will see what results they provide when compared to each other. That will help you identify opportunities and set up better campaigns in the future. The metrics should be tied to your business goals because you can use the data to compare it with other essential business metrics.
You can calculate your CPR yourself, and you can also find detailed data within the Account Overview in Facebook’s Ad Manager. For example, if you paid $100 to get 10 results, your CPR is $10.
Ad impressions tell you how many users viewed your ad. It’s one of the most useful Facebook page insights, especially when you want to spread the word about your brand. It gives you an excellent idea of your ad campaign’s reach.
Even though this Facebook metric won’t tell you how many people who viewed your ad made a purchase, it will give you an idea of your brand’s exposure. High numbers mean that many people saw your ad, but there’s no guarantee that they remembered your offer.
When you open your Facebook Ads Manager, take a look at your Estimated ad recall lift and Cost per estimated ad recall lift metrics. Select Columns, and then click on “Customise Columns” found in the drop-down menu. Type in the metrics in the search bar and hit apply.
The metrics will appear on the screen, and you should take a look at your ads reach and frequency metrics. Select “Columns” again and then choose “Delivery” from the drop-down menu. These metrics will tell you more about your ad campaign reach and frequency, allowing you to see how many people saw your ads. The bigger the number, the better the campaign.
If you use a video format ad, navigate to the video metrics by selecting “Column” and then “Video engagement.”
Reach tells you the total number of people who saw your content on Facebook. You can check that either through paid campaigns or organic traffic. The reach doesn’t depend on your current following; only a portion of your chosen audience will see the paid campaign depending on the budget.
Facebook made some changes to its algorithm in the past few years, which resulted in a massive drop off of organic traffic rates. However, with the right combination of ads, you can increase the chances of your audience finding your offer.
Reach can help you understand what your audience wants to see. It also tells you why some posts showed better results than others. The information you get can then be used to improve future campaigns and ensure you get a better reach.
You can find your organic Reach statistics by navigating to your Facebook Insights page.
For paid ads, you can find your paid ads Reach in Business Manager.
Ad frequency is one of the key Facebook performance metrics, and it tells you the average number of times a single user viewed your ad. For example, if your ad frequency is six, that means that an average user saw your ad six times.
Ad frequency has a big role in helping people remember your brand and offer. You want the number to be as low as possible (1 or 2) to increase your chances of making a sale. The goal is to increase the recall and make your ad viewers remember your company’s name, and preferably the type of product or service you offer.
It will also tell you when to change your existing ads with new ones. When the number goes up to three, stop running your current ad campaign and reiterate with a new one done from scratch.
You can use Facebook ad automation to set up ad management rules you want. Whenever one of your ad campaigns reaches a critical point, you will know that it’s time for changes. Ad frequency is calculated by dividing the number of impressions by the number representing your reach.
Ad clicks is another Facebook metric that matters, and it tells you the number of times an individual clicked on your ad. That includes clicking on a direct link to your website, liking the ad, and extending it to read more about the offer.
The Ad clicks number is one of Facebook’s key metrics, and it gives you a good estimation of the overall interest in your ads. You want the number to be as high as possible because that means that your content is engaging enough to promote some kind of action. If customers take the time to see more details about your offer, they are much more likely to make a purchase.
If your ad clicks are high, but your conversions are low, you probably made mistakes on your landing page. If that’s the case, you will know what to focus on to increase conversions.
There are a few different Facebook metrics that tell you more about clicks. The most important one is the click link, as they are responsible for increasing conversions. You can find it within your Facebook Ads Manager account.
CTR stands for Click-Through Rate, and it’s one of the most important Facebook metrics which shows you the percentage of people who clicked on your ad out of the total people who saw it. In other words, it tells you the number of clicks compared to the number of impressions.
If your ads have a low CTR, that means that they miss some key components that promote action. While users see your ads, they are not engaging enough to make the viewer want to know more about the offer.
That is usually due to poorly written ad copy or using the wrong images. Replace your ad copy and image and see if the CTR goes up. The key is to make your ad as relevant to your targeted audience as possible. Make sure you keep a close eye on your CTR because it's one of the most important Facebook metrics as it tells you if your ads are relevant to users or not.
When Facebook sees that you have a high number of impressions but a low CTR, it will assume that your ads are not relevant. That will increase your pay per click costs without giving you the results you expect.
A CTR of between 2 and 5 percent is considered as good. If you manage to reach a CTR of 10%, you have certainly mastered the art of ad optimisation. It takes a lot of time to understand how CTR works in practice, so don’t expect too much from your first few campaigns.
You can find your CTR within your Facebook Ads Manager. Open the ads tab and select the timeframe you want to check in the top right corner. Open “Columns” and select “Performance and Clicks” from the drop-down menu. Scroll down until you see “CTR (All).”
If you’re not happy with your ad campaign CTR, there are a few changes you can make to improve it and increase conversions. Here are a few quick tips you should try:
CPC stands for Cost Per Click, and CPM stands for Cost Per 1000 Impressions. Both are Facebook metrics that matter as they give you a good idea of how much you have to pay for an ad campaign.
Cost Per Click tells you how much you have to pay every time someone clicks on your ad. It’s calculated by dividing the total advertising cost by the total number of clicks.
CPM is another metric that tells you how much you have to pay for 1000 impressions. You can calculate it by multiplying advertising costs by 1000 and dividing the result by the total number of impressions.
CPC and CPM both have a huge impact on your overall ad campaign costs. If your ad copy is up to date, and you manage to engage your audience through ads, both metrics’ costs will go down. Facebook will see your ads as relevant and will lower the price for each click. The key is to make your users happy, and Facebook will reward you for it.
However, finding the perfect mix of ad features is easier said than done, which is why most companies test different ad versions to see which one attracts the most clicks.
You can easily calculate the CPC and CPM of your Facebook ads campaign using the formulas above (dividing the total advertising cost by the total number of clicks).
Otherwise, it's also available on your business manager.
If your CPM is too high, you have to make your ad copy more relevant. Here are a few things you can do to lower your CPM costs:
Cost per conversion is another Facebook key metric, and it tells you the cost of each lead or sale. Let’s say that you spent $200 on a Facebook ad and had ten conversions. That means that a single conversion costs $20. You have to figure out how much money you are willing to pay to make a conversion.
There’s no right or wrong cost per conversion as the amount you’re willing to pay; it is entirely up to you. With that said, you should crunch the numbers to figure out your limit. If you make enough conversions, your cost per click is worth it. On the other hand, if your cost per conversion is too high, you should improve your ad copy or try a different design that attracts more users.
Generally speaking, ads that have a high relevance score usually have a lower cost of conversion. It might take you some time and experimentation until you find the best ad placements and audience to be able to lower your cost per conversion.
When you find a strategy that works, your ROI will also increase. Use the general optimisation rules to make your ads perform better, and your cost per conversion will go down.
Once you open your Facebook Ads Manager, see how much money you spent on an ad campaign and divide it with the number of conversions to figure out your cost per conversion.
Optimising your Facebook ads campaigns takes a lot of patience and experimenting with different ad copies and designs. That’s why you should always create multiple versions of each ad and test each one to find the one that works the best.
Start by figuring out what you want to accomplish with an ad and use all available Facebook analytics tools to find the answers you need. Once you set up a clear goal to work towards, you will be able to use the analytics tools to get more out of each campaign. With a little practice, you will be able to improve conversion rates and minimise the cost of each click.
Learn as much as you can from every campaign, and new opportunities will present themselves with time. Try everything you can to see what works and what doesn’t, and you will get better results in your future campaigns.
If you’re having a hard time managing so many different Facebook metrics, feel free to reach out to our friendly and experienced Facebook marketing agency. We are also rated by many as the best social media marketing company that has proven records to delivering results. We will help you get a better understanding of how Facebook ad management works and achieve better results!
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