You may have put up your Facebook ads and are probably wondering what the next step is. To measure whether your ads are successful, you will need to know which metrics for Facebook ad campaigns are best performing and why. 5 Ideas to Top-up and Generate Marketing Leads Funnel
Before we get there, let us talk about some of the important Facebook Ad categories
Types of Facebook ad campaigns
Boosting a post on Facebook is a great way to increase engagement which translates to likes, reactions, comments, shares etc on your content. Recently, Facebook introduced several algorithm changes making it very difficult for businesses to gain any type of organic reach or engagement. So, to reach out to your audience, you’ll need to spend some money on your posts. This is called boosting posts.
Page like ads
This is a fantastic way to increase your followers. Page like ads incentivize people to ‘like’ your Facebook page. Since Facebook is now almost a pay-to-play platform for businesses, you will need to run these pages like ads to grow your audience and reach more people. It helps increase your followers, reach and create brand awareness.
These ads are useful when you want to direct people to your website or landing page. These work the best when there’s some call to action of ‘learning more’. You can drive more people to your website or landing page to get more information on what your ad is about.
Reach awareness ads
Another way to increase engagement and overall brand awareness is reach awareness campaigns. Such a campaign goes a long way in showing your ad to the maximum number of people. This is very useful when you have an important message that you would want to share with a as many people as possible.
Such ads usually work the best if you have an ecommerce business. They help you to track the number of conversions you receive from your social media ads. For products, you can use these ads to drive people to your online store and convert them into a customer. For services, you can have people book an event or appointment on your website or direct them to a landing page that has a form to fill out.
Lead generation ads
These ads work the best for those who offer a service or want to collect email addresses but don’t have a website or landing page where people can fill out a form. Lead generation ads help by providing a form that pops out within the Facebook app or browser. This allows the user a more comfortable and convenient experience.
There are many ways to optimize Facebook ads which depends on what your objectives are. The first way to optimize your campaign is within the targeting. Facebook offers several options to define your target audience, from basic demographics such as age and location, to interests and behaviors. You may have to adjust and change your targeting several times to generate results. Once your targeting is at its optimal, you can try out a few more optimizations to improve your advertising results.
Here’s a list of some of the most important metrics for Facebook ad campaigns:
1. Cost per action (CPA)
As an entrepreneur, you want your target audience to take action. The action could be anything ranging from sharing, liking or commenting to subscribing to your blog, watching a video, downloading your research paper or purchasing a product. It will help if you pay for that action and break even, then you have a solid metric for gauging the success of your campaign.
2. Click-through rate (CTR)
CTR is a great way to gauge how well your audience is responding to your ad. While many marketers censure this age-old technique in comparison to the recent more important Facebook ad metrics like cost per purchase and cost per lead, this is still a useful way.
3. Cost per thousand impressions (CPM)
CPM is a perfect metric to provide a bird’s eye view of an ad’s performance. It especially works if you have spent money in the past and have some data to play with. It’s the perfect benchmark when comparing different campaigns and ad sets against each other and even compare any future campaigns.
This is the average number of times your ad was served to each person.
Every business owner wants his target audience and customers to see his ads. But there should not be too much or too little to annoy them. In short, there has to be a proper balance. Also, your frequency has a huge influence on how much money you hand over to Facebook.
Every business owner is advertising on Facebook to make money. The aim could be to generate direct sales, capture leads, converting people, getting them to your store, or breaking even. If the conversion tracking is arranged properly, it is possible to have the revenue numbers to calculate ROI imported directly into the Facebook ads manager. Once you have that calculation, you can link revenue back to specific ad campaigns and then create future campaigns accordingly.
6. Cost per acquisition (CPA)
Many experts say that this is one metric that drives everything. Even if all the other metrics are not faring well, this one metric can be of great use. While multi-channel attribution is challenging considering consumers keep using multiple devices during the day, CPA proves to be a very useful metric. Tools like Google Campaign URL Builder go a long way in helping prove CPA from campaigns.
While engagement is important for both organic and paid ads, it is a very essential part of measurement to ensure that your ads are drawing attention in general. If your ads are not making viewers curious enough to engage, they will never take the efforts to click on the content consistently.
While there are so many metrics to focus upon, which metric you choose depends on the goals of your ad campaign. So, before deciding metrics for Facebook ad campaigns, you have to define your goals, then start working on copy and creative, and then measure the results.
Atul is Founder & CEO at Xenia Consulting. He has over 22 years of experience in marketing, across corporates as well as SME,start-ups. Over the last 5 years, he has gained significant expertise and has helped several companies drive growth leveraging digital marketing