Your local Facebook ad campaign is up and running. YES! Now, you’re doing your “sack dance” like your favorite NFL player.
But, not so fast because the last thing you want is a 15-yard celebration penalty. As is the case with all advertising initiatives, it’s important you compile a report on how things are going to know what to improve for future campaigns. And, in order to do just that, you need to know the ad metrics that really matter.
The slew of available data within Facebook Insights, however, is enough to make your eyes glaze over.
That explains why it’s far easier for advertisers to only focus on the shiny metrics—like the number of likes or clicks an ad has generated and whether or not it relates to sales. Yet, those don’t directly relate to the profitability, or ROI, of your campaign.
Nerve-wracking to say the least, right?
I’m about to change all that for you. Yup, you read that right!
Today’s all about sharing the top 3 Facebook ad metrics you need to know to determine the success of your local ad campaign.
No more guessing games. And, certainly no more glazed-over-eyes syndrome (yes, it’s a real thing). Sound like something you’re ready for? I figured!
Before we go any further however, just be sure to let your ad run for 72 hours before you look at any stats related to how it’s performing. Reason being, Facebook’s algorithm is working its magic in the backend to determine if your ad is getting any engagement.Let your #FacebookAd run for 72 hours before you consider looking at the stats… Click To Tweet
That engagement can vary widely depending on the day and the time of day. Therefore, if you stretch your ad testing period out to 72 hours, allowing Facebook time to gather more information, you’ll get more consistent data. Sound good?
Okay, let’s dive into what you came here for…
1. Total Number of Conversions
Obviously, this one is at the top of the list. Simply put, when you’re able to accurately measure the number of conversions your ad generates, you’re able to accurately calculate the ROI of your ad campaign.
In order to track your landing page conversion rate, however, here’s a question for you: have you set up your Facebook pixel yet? If you haven’t, add that to your to-do list ASAP. You can’t monitor this important metric without it.
Why? Well, the social media platform uses it to work its conversion tracking magic to document when someone arrives at your site thanks to your ad. And, ultimately, make sure they perform your desired action. Thus, resulting in a real conversion!
So, what desired actions is the pixel able to track? Things like:
- Leads—when someone completes a signup on a landing page on your site (ex. Clicks on pricing or sign up for free trial).
- Traffic—when someone views a key page, such as a product page on your site.
- Purchase—when someone completes a purchase on your site.
If you’re using your Facebook ad to send people to your landing page (which is very common) to opt-in to receive your offer, Amy Porterfield, an online marketing expert, says your conversion rate goal is at least 20%.
Not quite there? Look at the consistency between your ad and the landing page. Are you using the same text, color scheme, and images? It’s important to keep things consistent across your communication touchpoints (ad, opt-in page, thank you page, emails) if you want to see strong results.
And, if you’re unsure of how to get started with Facebook pixels, I highly advise you to check out this blog post. It’ll walk you through each and every step to set you up to win the gold medal of ad campaign reporting.
Your client has money on the line to work with you and up their sales numbers. Right? So, this metric also needs to be one you keep on your radar and monitor verrry closely.
To start, what does frequency mean in terms of your Facebook ad? It tells you the average number of times it’s been shown to each individual.
And, why is this important? It helps build awareness and recall by showing your ad to people in your audience multiple times. But (and that’s a BIG but), do you remember when I said you need to monitor it “verrry closely?”
That’s because, if you keep showing the same ad to the same person over and over again, your frequency number increases = your click-through rate decreases and your cost per click rate increases (more on this in a bit). And, chances are, they’re going to get a little fed up with it—by fed up I mean either they get banner blindness or, worst-case, start disliking your brand.
In short, the brain will develop a self-defense mechanism against ads once it understands banner and ad positions on Facebook. The result? It’ll filter out your ad, as if it never saw it. Thus, the reason behind the term banner blindness.
Yikes.Take the necessary steps to avoid #bannerblindness with your #FacebookAd frequency… Click To Tweet
What’s more is 86% of consumers suffer from banner blindness.
You’ll be glad to know, however, there are ways to fight these things by monitoring your frequency metric! Here’s how:
- Find harmony between your budget and your campaign’s audience size. If you have a daily ad budget of $10, it’s definitely going to take some time before frequency becomes a problem—even if you’re targeting a small audience. On the other hand, if you have a hefty budget of hundreds of dollars a day, you’ll need to target a much larger audience. Thus, upping the chances of your ad being shown to too many people, too many times.
- React quickly. If you ever catch the frequency of your ad going above a 5, watch it closely. You should try to never go above a 10. Once you notice it affecting your ad’s performance, you can either give your ad a design refresh. Or, end the campaign and target an entirely new audience.
- Exclude people who’ve already converted as a result of your targeting. What’s worse than displaying an ad to an individual who is absolutely disinterested in what you have to offer? Displaying an ad to an individual who has already purchased from you. To avoid this, use Custom Audiences to remove current customers from your targeting efforts. That is, unless your goal is to upsell to them.
3. Cost Per Click (CPC)
To get right to it, in the words of Neil Patel, “CPC tells you the cost of an average click from your ad to your website.”
When you run your ad, you can choose to either be charged based on the number of clicks or impressions your ad receives. Your choice. But, we highly advise you to stick with clicks.
Why? Because you’ll only pay when users actually click on your ad—they don’t have to convert or purchase. And, those who just look at your ad in their News Feed don’t cost you a dime.
That being said, if down the road you do decide to be charged based on the number of impressions your ad receives, you’ll pay for each and every single time someone merely views your ad. That refers to the number of times it enters a viewable area of people’s screens for the first time. Yup, you can imagine how quickly you’d blow through your budget if you went that route!
So, wondering how CPC is calculated? I thought you might be. Facebook takes the total amount spent on your ad divided by the number of link clicks.Choosing #CPC for #FacebookAds = you only fork over $$$ when someone clicks your ad… Click To Tweet
Simply put, the total amount spent on your ad is the estimated total amount of money you’ve invested in it during its scheduled run. If your ad is currently up and running, this number might be an estimate as it takes time for ad results to be processed (at least 48 hours).
Link clicks, on the other hand, are the number of clicks on ad links to select destinations on or off of Facebook. This could be your website, app store, lead form, or even your business location on a map.
Okay, why is this metric important, you ask? It’s a general indicator of the appeal of your ad. If you notice a high CPC, check your ad stats for a low click-through rate (CTR) as well as a high frequency rate because those stats tend to directly correlate with one another.
To be sure you generate data on this metric, you’ll want to select the following option in the Optimization for Ad Delivery section: Link Clicks.
Once you get your ad up and running and you’re ready to view the results on your campaign’s CPC, you can visit your Ads Manager and focus on the Cost per Result column.
Cost per Result uses your optimization selection of Link Clicks, along with your auction bid, target audience selection, ad creative and messaging, and promotion schedule to determine how cost-efficiently you achieved the objectives you set out for.
Now, I’m sure you’re wondering how to lower your ad’s cost. Am I right? If so, take some time to read this article to learn how to do just that.
Okay, so once I start monitoring these metrics, how can I share results with my clients?
I’m glad you asked. When your client is investing in you and your services, continuously reminding them of your value should be a top priority. To do that, the team at AdLab recommends you get on the following reporting schedule:
- Each Friday, send your client the week’s data (critical ad stats, number of leads, etc.) compiled into a report before they head out for the weekend. And, ask them to let you know how those new leads turned out in the office.
- The last Friday of every month, send the full month’s stats to remind them of their progress thanks to your Facebook ad services.
But, you might be thinking: compiling all of this data into a visually-appealing, informative report can be downright time-consuming. We understand completely. Fortunately, we found just the tool to help speed up the process—DashThis.
It integrates with your Facebook Ads to create a dashboard for your client’s advertising campaigns. And, it provides a clean report layout to highlight all the information you both need. Check it out!
No doubt about it, when you get your client’s Facebook campaign up and running, the task of reviewing the slew of metrics that go along with it can be overwhelming. That explains why I only shared with you a list of 3 important ones today.
And, remember, these should always be analyzed as a group—never leaving a metric behind—to get a better understanding of the well-being of your ads.
If you’re craving more of what we discussed today, and want help navigating the waters of growing your Facebook ad agency, I invite you to join AdLab. It’s your unfair advantage to stay ahead of the game, while mastering ads for your current and future clients.
What metrics do you have your eyes on to help measure your ad’s success? Let us know in the comments section below. We’d love to hear from you.