Want to know how to measure Facebook ad performance like a pro?
Most business leaders, social media experts, and ad managers have their own idea of how to produce, manage and measure Facebook ads correctly. There are tons of ways you can track the return on investment from each campaign, from looking at cost per click to examining brand awareness, company reach, and follower growth.
Exactly how you choose to measure your social media campaigns in Facebook Ads Manager will depend on the specific goals of your social media projects. To get you started, here are just some of the ways you can assess the value of your Facebook ads.
1. Look at Awareness
Sometimes, the first thing you need to accomplish with a Facebook ad is making customers aware of your company. While finding out how many people are viewing your content might not seem as important as measuring direct conversion rate, it still has a part to play in your social media success.
If you don’t have enough awareness for your campaigns, this could indicate you’re targeting the wrong audience, or not investing enough in your ads. To check your awareness, look at the following KPIs (Key Performance Indicators) for each campaign:
- Impressions: The number of times people saw your content
- Reach: The number of people who saw your content
Ideally, you want to be reaching the right number of people, but still getting a decent amount of engagement from each prospect you reach. This takes us to our next measurement.
2. Evaluate Engagement
One of the most important metrics to track in Facebook Ads Manager is engagement. Even if you’re not getting direct conversions straight away, engagement means you’re capturing the attention of your target audience and getting more value from your ad spend.
Engagement on your Facebook ads refers to any interaction with your post, from likes and shares to comments and clicks. The importance of each metric will vary depending on the kind of ads you’re running. However, a good amount of engagement generally means you’re connecting with your target audience and building valuable relationships on Facebook.
3. Monitor Click-Through Rate
The CTR (or click-through rate) of your social media campaigns refers to the percentage of people who actually act after viewing your Facebook ads. This is one of the best ways to measure the results of any campaign because action often translates to a sale.
The average CTR for a Facebook ad is usually around 0.9%. Of course, your average will depend on a number of different factors, including how engaged your audience is.
Monitoring click-through rates can be extremely useful for your social media campaigns. If you know your CTR is high, but your conversion rate is low, you know your Facebook ads are having the right impact, but your landing page or offer might be problematic. The best way to monitor this is to look at the ‘bounce rate’ on your website. This will show you how many people click through to your website and then immediately click away, giving you a better idea as to whether your landing pages are the problem.
4. Examine Conversion Rate (and Cost Per Conversion)
Conversion rate is often one of the most important factors in measuring the performance of your Facebook ads. The more conversions you get from your campaigns, the better your Facebook ads are. The aim should always be to increase conversion rate as much as possible.
If your conversion rate is high, you’ll need to examine the cost of that conversion. You can look at the cost-per-click (CPC) if you’re just trying to convince your customers to click on a link or download something. Alternatively, you’ll calculate cost-per-conversion by dividing the amount spent on your ads by the total number of conversions.
If your conversion rate is too low, or the cost-per-click or conversion is too high, it’s a good idea to start testing different strategies to increase your return on investment.
5. Track Return on Ad Investment
Finally, calculating the return on investment for your Facebook ad campaign tells you if you’re making enough money to justify the amount you’re spending on the total number of clicks, conversions, and interactions caused by your ads.
If you spend $100 on advertising and generate $250 as a result of the campaign, the ROI would be 150%. This measurement is generally conveyed as a percentage. If your ROI is positive, this is a good sign your social media ads are paying off.
Where things can get complicated is figuring out how much your Facebook ads actually contribute to each sale. This requires a plan for attribution, which often involves the assistance of a social media manager. After all, just because someone clicks on an ad you post on Facebook doesn’t mean it’s the ad which caused them to make their final purchase. There are multiple touchpoints in a customer’s journey from awareness to purchase, so it’s always important to keep that in mind.
Measuring Facebook Ad Performance
Measuring the performance of your Facebook ad campaigns can be tricky. There are a number of metrics to consider, and a lot of valuable measurements which can be easily overlooked (like the total number of social media referrals).
If you’re struggling with understanding the value of your Facebook campaigns, reach out to the team at The Graygency today. With over six years of experience, our specialists can help you get the most from every Facebook ad.
You can also check out our latest Midweek Media Breakdown, to stay up-to-date with the latest social media news.