It’s common for newcomers to the Facebook Advertising world to post their campaign and be stumped as to what’s next. They find themselves turning to Google to find out how to track the success of their Facebook Ads, only to be inundated with new terms and plenty of math.
This can often lead to new advertisers not wanting to track the progress of their Facebook ads. This isn’t good, as it can lead to lost revenue and marketing campaigns that just don’t perform as well as they could do.
Here is how to analyse your Facebook ad results for successful digital advertising from a leading agency in Adelaide:
Return on Ad Spend:
Commonly known as ROAS, this metric is pretty much identifying how much you’re get- ting back from what you put in. Your return on ad spend is your revenue divided by ad spend, and is an important metric for seeing if your ads are giving you the returns you need.
You want to make sure that your ad is profitable, and ROAS is the way to do this. Always aim for a ROAS of at least 1. At the very least, you should be getting back what you put in. However, the higher the ROAS, the more profitable your campaign is.
We recommend including your other expenses into your ROAS calculation to ensure your ads are truly profitable. To do this, combine your ad expenditure and other expenses to- gether. Divide your revenue by this amount to get your ROAS. If it’s not above 1, your ad campaign is not working.
Cost per purchase:
This metric allows you to see how profitable a particular product or service is. If you have Facebook Pixel installed, Facebook will automatically calculate the cost per purchase. This metric allows you to see if your advertising is selling products at a profit or loss.
Cost per purchase shows how much you are spending to ensure a sale. If your ad spend is higher than your returns, you are selling the product at a loss.
Earnings per click:
You need to ensure that your adverts are converting, and the earnings per click is the metric that will tell you this. This figure highlights how much each customer who enters your sales funnel is worth to your business.
Number of leads:
Advertisements should help generate and qualify leads. You need to ensure that your ad- vertisement is gaining you new leads or clicks, otherwise it’s falling short.
Click-through rates:
Click-through rates (CTR) indicate how engaging your digital advertisement is. Facebook tracks two CTR metrics. Link CTR highlights how many leads clicked the link in the ad- vertisement, and CTR All shows you how many leads interacted with your ad (including likes, shares, swipes etc).
CTRs tell you how persuasive your advertisement is. It’s good to aim for a click-through rate of over 1.5, because this ensures that your Facebook Ad is compelling for consumers.
If your CTR is lower than this, chances are your ad copy needs some work. Rewrite it or invest in a copywriter and see how your CTR changes.
Where do you find these metrics?
Facebook Ads manager offers all of these metrics in-app. You can view the reporting views for your Facebook Ad in the performance bar on the top-right of the Facebook Ad Manager dashboard.
If you go in the ‘Customize Columns’ section of Facebook Ads Manager, you can select which metrics you want to track in the performance section. Make sure to select all the metrics that are important to your business. Save it, and then you can see all your metrics straight from your dashboard.
Final Thoughts:
Analysing the success of your Facebook Advertising is important to ensure you’re maximising your returns on ad expenditure. It can be overwhelming to try and assess the success of your digital advertising. Use the metrics explained above to assess how your ad is performing. In doing so, you will ensure that you’re running successful Facebook Ad campaigns that don’t eat at your marketing expenditure. To learn new methods of social media advertising, you may hire a digital marketing coach in Australia here.
