When it comes to online advertising, data is gold. However, the large amount of data available can also overwhelm users. Where exactly do you start, what data should be measured, and what does it mean?
There are a number of different options and tools to measure the advertising performance on the Facebook Ads platform. Understanding which metrics are useful for revenue growth and which are just borrowed booms (such as page likes) is critical for marketers to optimize their ads effectively.
The following three metrics — Performance, Delivery, and Engagement. There is a strong correlation between each metrics, and when all the metrics are integrated, a complete picture of your growth emerges.
Performance metrics play an extremely important role in the report of the ad. The data will tell you in a broad sense what you have achieved in your campaigns. The following metrics need to be observed:
- Results: The total number of outcomes generated through purchases and leads, plus their value. Highlights are reflected in the report and find the most influential campaigns, ad sets and ads.
- Cost per results: The cost of achieving per result. The metrics will come into play when your business has consistent pricing or services and set fixed CPA goals.
- Conversion rate: Measure how well your website converts visitors into customers. You can customize their metrics from Facebook or Google Analytics.
- Return on Ad Spend (ROAS): The revenue generated per dollar spent on media advertising is well suited to identifying returns on a range of products with similar profit margins.
Delivery metrics can tell you how to adjust their ads to get more out of each AD and campaign. Focus on the following metrics:
- CPM：Cost per 1,000 impressions is a measure of how much an AD will cost to reach its target audience, depending on the industry and your specific goals.
- Frequency：The average number of times a user sees an AD. This can be very useful for measuring the audience’s visual fatigue from an AD, especially for a long-term campaign. For example, your initial target audience in Sydney and Auckland. Instead of tweaking your AD, you can target people in Melbourne and Christchurch.
- Impressions: A useful number in the online advertising industry that measures how often an AD is seen by your target audience.
- Reach: The total number of people who received the advertisement. It helps you understand how high their AD spending is and how many of your target audience you can reach.
The effect of advertising can be shown to businesses from the micro-level, to find a better way to optimize.
- CTR: Percentage of users who click on your website from Ads. This metrics is a good way to measure whether the creativity and message of an advertisement have a certain relevance to the target audience. Note, this is not the same as the CTR(All), which includes any form of engagement for your ads.
- Link clicks: The number of users who click through to your website from your Ads. Similar to click-through rates focus on “numbers” rather than percentages. Note, this is not the same as the ‘clicks (All)’, which includes any form of engagement for your ads.
- Video plays: If your ads strategy is focusing on video, this is a good metric to see why people are losing interest in your video. Although this may depend on the type and length of the video you posted. The data can provide actionable feedback to you to make better videos in the future.
Facebook ads are one of the most popular delivery channels for marketers. Regularly checking and monitoring these 3 metrics can help you optimize your Facebook ads more effectively. If you’re planning on using Facebook ads, or don’t know how to optimize your Facebook ads, you can contact Webzilla today by sending us a message! We will have our best digital marketing specialists to help you!