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What are the most important metrics to analyze in your Facebook ads?
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By:
Branch
Posted on:
mayo 8, 2020
Start
Marketing Digital
Creating Facebook ads is a relatively simple task. The truly complex part is knowing which are the most important metrics to analyze and how to know when we are having good results and when we are not.
In social marketing, KPI analysis is vital because it determines how much money you will continue to invest in your campaigns.
Below, we'll explain which metrics you need to pay more attention to in your Facebook ads and why.
Custom metric per campaign (total conversions)
The most important metrics to analyze depend on the objective of your Facebook campaigns. Within the Ads Manager, you can find them as the total number of conversions.
This metric basically tells you how many people are taking the action you wanted based on your campaign type. In most cases, if this number is high and in line with your goals, you shouldn't be worried.
For example, if your campaign is about messages with calls to action on WhatsApp, the metric you should always focus on is “number of conversations started”; that is really the result of your conversion. Another example: if your campaign is about traffic, “clicks on the link” would be your main metric.
In the case of lead generation campaigns, the result that the platform will give you is the number of people who filled out your form with their email address and/or phone number.
the KPI category according to the type of campaigns you choose and their objectives. However, there are metrics that will always be present , regardless of the campaign objectives, and they are also of utmost importance.
It is worth noting that the following metrics are important when analyzed together, contrasting the results and analyzing the reason for each piece of data:
Cost per result
The cost per result will also depend on the type of campaign you have chosen for your ads. If we take the previous example of those campaigns whose objective is “messages” and “number of conversations started”, the cost per result would be determined by the amount that that action/conversion cost as such.
This metric is calculated by dividing the total amount spent by the number of results (total conversions). The idea is that the cost per result your campaign is generating is relatively low or in line with your budget to determine whether your campaign is successful.
The number of results is almost always inversely proportional to your cost. The greater the number of results, the lower the cost per result and vice versa, the fewer the number of results, the higher the cost.
Cost per result is one of the most important metrics to analyze for your Facebook ads because it indicates how profitable your campaign was, and whether it achieved a positive ROI.
You may be interested in : What is the Facebook Pixel and what is it for?
You can also use it to compare the performance of different campaigns and identify opportunities and set the budget to place on future ad sets.
The Facebook Reach Metric
Reach is the number of people or users who were impacted by your ad in a period of time. In other words, it means the number of people who were exposed to your message. Another way of looking at it would be the impressions your website may have in a SERP, but they are not the visits to it.
Reach is simply a statistic that doesn't translate into conversions. The fact that an ad reached several people doesn't mean that the content was relevant or that they liked it. Reach translates the number of views, but beyond that, it doesn't tell you whether or not it was relevant to the audience.
But despite this, wouldn't it seem contradictory to say that it is one of the most important metrics to analyze on Facebook? Why is this metric important? Because it allows you to compare your organic reach with your paid reach and know which of the two is giving you more conversions.
Organic reach on Facebook
Facebook defines organic reach as the number of people who saw a non-paid post from your Page on their screen. Paid reach will likely be higher than organic reach depending on how far you want your post to reach, but it's an indicator of how successful your content marketing is when compared to your organic reach, which may surprise you.
On the other hand, there are two types of reach that you have to be very careful not to confuse: the reach of your post and the reach of your page.
When you make an ad based on your objective, you can expand each of these types of reach. The first one, as you saw in the previous paragraph, refers to the number of people who saw a specific post on their home page.
Page reach is the number of people who saw any type of content that was published on your page in a given time (daily, weekly, or monthly). These reach metrics can be misleading if not interpreted correctly.
You can have a high reach per post, but very low reach at the page level if telegram free number philippines you don't post consistently, so it's important to keep an eye on it, even though for many advertisers, it's not the most relevant metric to analyze.
Click-through rate (CTR)
CTR (Click Through Rate) is a percentage that indicates how many clicks on the link your ad received compared to the number of impressions.
Let's first understand that impressions refer to the number of times your ad was shown, regardless of whether it was to the same person. This is a term that should not be confused with reach, as reach refers to the number of people who saw your ad.
For example, if you have a campaign running and it reaches two people (John and Sophia), it means that you have reached two people. But if the next day the same ad appears to John, this translates to 3 impressions and the reach remains at 2 people.
In other words, you cannot count the same reached user twice, although you can count two impressions that were generated on the same user.
CTR is calculated by dividing the number of clicks an ad receives by the number of times (impressions) an ad is displayed. For example, if an ad has 3,000 impressions and has received 40 clicks, the CTR would be calculated as follows:
CTR (clicks/impressions) = (40/3000) x 100 = 1.3 %
To know if your campaign is having the success it deserves, your CTR must be greater than 1%, meaning it is generating an optimal number of clicks among the audience you are targeting.
If not, we recommend that you modify your audience settings, as your ad may not be reaching the target audience you want and, therefore, there may not be an optimal click-through rate.
In the Facebook Business Manager, this metric does not appear as such, but you must calculate it. However, platforms such as AdEspresso automatically calculate this KPI for you.
Cost per link click (CPC)
Cost per link click refers to how much it costs you, on average, for each click people make on your link. This metric is calculated by dividing the amount spent by the number of clicks on the link.
The relationship between CPC and CTR is very important. When you have a high CPC, you should check your CTR. A low CTR indicates that your ad creatives are not appealing to your target audience or that your ad targeting itself does not make sense.
The idea is that your CPC is low and your CTR exceeds 1% to know when your campaign is having good results.
Frequency
Frequency refers to the number of times, on average, a person has seen your ad. Why is this one of the most important metrics to analyze for your Facebook ads ? Simple. As frequency increases, it becomes less effective.
A high frequency creates a phenomenon that social ad specialists call ad fatigue, which is when a person feels overwhelmed by seeing the same advertisement so many times and, therefore, begins to ignore and/or report it.
According to a study by AdEspresso , when ad frequency goes up, cost per click (CPC) goes up and click-through rate (CTR) goes down. Simply put, your ad effectiveness plummets.
Branch Avatar
By:
Branch
Posted on:
mayo 8, 2020
Start
Marketing Digital
Creating Facebook ads is a relatively simple task. The truly complex part is knowing which are the most important metrics to analyze and how to know when we are having good results and when we are not.
In social marketing, KPI analysis is vital because it determines how much money you will continue to invest in your campaigns.
Below, we'll explain which metrics you need to pay more attention to in your Facebook ads and why.
Custom metric per campaign (total conversions)
The most important metrics to analyze depend on the objective of your Facebook campaigns. Within the Ads Manager, you can find them as the total number of conversions.
This metric basically tells you how many people are taking the action you wanted based on your campaign type. In most cases, if this number is high and in line with your goals, you shouldn't be worried.
For example, if your campaign is about messages with calls to action on WhatsApp, the metric you should always focus on is “number of conversations started”; that is really the result of your conversion. Another example: if your campaign is about traffic, “clicks on the link” would be your main metric.
In the case of lead generation campaigns, the result that the platform will give you is the number of people who filled out your form with their email address and/or phone number.
the KPI category according to the type of campaigns you choose and their objectives. However, there are metrics that will always be present , regardless of the campaign objectives, and they are also of utmost importance.
It is worth noting that the following metrics are important when analyzed together, contrasting the results and analyzing the reason for each piece of data:
Cost per result
The cost per result will also depend on the type of campaign you have chosen for your ads. If we take the previous example of those campaigns whose objective is “messages” and “number of conversations started”, the cost per result would be determined by the amount that that action/conversion cost as such.
This metric is calculated by dividing the total amount spent by the number of results (total conversions). The idea is that the cost per result your campaign is generating is relatively low or in line with your budget to determine whether your campaign is successful.
The number of results is almost always inversely proportional to your cost. The greater the number of results, the lower the cost per result and vice versa, the fewer the number of results, the higher the cost.
Cost per result is one of the most important metrics to analyze for your Facebook ads because it indicates how profitable your campaign was, and whether it achieved a positive ROI.
You may be interested in : What is the Facebook Pixel and what is it for?
You can also use it to compare the performance of different campaigns and identify opportunities and set the budget to place on future ad sets.
The Facebook Reach Metric
Reach is the number of people or users who were impacted by your ad in a period of time. In other words, it means the number of people who were exposed to your message. Another way of looking at it would be the impressions your website may have in a SERP, but they are not the visits to it.
Reach is simply a statistic that doesn't translate into conversions. The fact that an ad reached several people doesn't mean that the content was relevant or that they liked it. Reach translates the number of views, but beyond that, it doesn't tell you whether or not it was relevant to the audience.
But despite this, wouldn't it seem contradictory to say that it is one of the most important metrics to analyze on Facebook? Why is this metric important? Because it allows you to compare your organic reach with your paid reach and know which of the two is giving you more conversions.
Organic reach on Facebook
Facebook defines organic reach as the number of people who saw a non-paid post from your Page on their screen. Paid reach will likely be higher than organic reach depending on how far you want your post to reach, but it's an indicator of how successful your content marketing is when compared to your organic reach, which may surprise you.
On the other hand, there are two types of reach that you have to be very careful not to confuse: the reach of your post and the reach of your page.
When you make an ad based on your objective, you can expand each of these types of reach. The first one, as you saw in the previous paragraph, refers to the number of people who saw a specific post on their home page.
Page reach is the number of people who saw any type of content that was published on your page in a given time (daily, weekly, or monthly). These reach metrics can be misleading if not interpreted correctly.
You can have a high reach per post, but very low reach at the page level if telegram free number philippines you don't post consistently, so it's important to keep an eye on it, even though for many advertisers, it's not the most relevant metric to analyze.
Click-through rate (CTR)
CTR (Click Through Rate) is a percentage that indicates how many clicks on the link your ad received compared to the number of impressions.
Let's first understand that impressions refer to the number of times your ad was shown, regardless of whether it was to the same person. This is a term that should not be confused with reach, as reach refers to the number of people who saw your ad.
For example, if you have a campaign running and it reaches two people (John and Sophia), it means that you have reached two people. But if the next day the same ad appears to John, this translates to 3 impressions and the reach remains at 2 people.
In other words, you cannot count the same reached user twice, although you can count two impressions that were generated on the same user.
CTR is calculated by dividing the number of clicks an ad receives by the number of times (impressions) an ad is displayed. For example, if an ad has 3,000 impressions and has received 40 clicks, the CTR would be calculated as follows:
CTR (clicks/impressions) = (40/3000) x 100 = 1.3 %
To know if your campaign is having the success it deserves, your CTR must be greater than 1%, meaning it is generating an optimal number of clicks among the audience you are targeting.
If not, we recommend that you modify your audience settings, as your ad may not be reaching the target audience you want and, therefore, there may not be an optimal click-through rate.
In the Facebook Business Manager, this metric does not appear as such, but you must calculate it. However, platforms such as AdEspresso automatically calculate this KPI for you.
Cost per link click (CPC)
Cost per link click refers to how much it costs you, on average, for each click people make on your link. This metric is calculated by dividing the amount spent by the number of clicks on the link.
The relationship between CPC and CTR is very important. When you have a high CPC, you should check your CTR. A low CTR indicates that your ad creatives are not appealing to your target audience or that your ad targeting itself does not make sense.
The idea is that your CPC is low and your CTR exceeds 1% to know when your campaign is having good results.
Frequency
Frequency refers to the number of times, on average, a person has seen your ad. Why is this one of the most important metrics to analyze for your Facebook ads ? Simple. As frequency increases, it becomes less effective.
A high frequency creates a phenomenon that social ad specialists call ad fatigue, which is when a person feels overwhelmed by seeing the same advertisement so many times and, therefore, begins to ignore and/or report it.
According to a study by AdEspresso , when ad frequency goes up, cost per click (CPC) goes up and click-through rate (CTR) goes down. Simply put, your ad effectiveness plummets.