By advertising on Facebook, you will be spending more or less money. Whether this budget is a few hundred or tens of thousands of euros, you will certainly want to assess the return on your advertising investment …
And you’re in luck, because by advertising on Facebook, you will have all the tools available to easily analyze the effectiveness of your campaigns. This is not necessarily the case when you use more traditional media (TV, press, radio, posters, etc.).
When you log in to your ad manager to analyze your campaigns, you’ll quickly realize that Facebook offers you a very comprehensive set of metrics to track. But you can also get lost with these dozens of indicators.
The objective of this article is to give you a clearer vision of the indicators not to miss; those you will need to analyze first.
For example, if your goal is to generate more traffic to your website, you will need to prioritize your cost per click. While if your goal is to increase the number of sales in your eshop, you will have to analyze your cost per purchase first. In order to be able to effectively analyze your ads, you must first be clear about the goal you want to achieve. If not, you can refer to this article: which Facebook Ads goal should you choose?
However, in this article we will try to have a general vision so that you can generate a complete reporting allowing you to make real decisions. For this, the indicators are divided into 3 parts:
- Indicators related to the dissemination of your advertising;
- Indicators related to interactions and clicks on your advertisement;
- The indicators linked to the results generated by your advertising.
Indicators related to the dissemination of your advertising
1. The reach) is the number of people who saw your ad. This is a very important indicator because it allows you to assess the size of the audience reached by your campaign.
2. The impressions are the number of times your ad has been viewed. Your total impressions will always be greater than your reach. Because if someone sees your ad 3 times, your reach will be 1 and your impressions will be 3.
3. The repetition lets you control how many times the same person has seen your ad. It’s the relationship between impressions and reach. A repeat of 3 means that on average the audience you have reached has seen your ad 3 times. This is a very important indicator to follow. Particularly when you are addressing a small audience, such as in a retargeting campaign. By monitoring this indicator, you will avoid “tiring” your audience with the same advertisement.
4. The cost per thousand impressions (CPM) is an indicator that you cannot completely control but it is an indicator often used in advertising. This is the amount you need to spend for your ad to be displayed a thousand times. Even if there are other factors to consider, a high CPM can be explained by the fact that your audience is targeted by many advertisers. The auction competition is high and therefore the CPM increases. In addition to the CPM, you can also watch the cost per 1000 people affected, which, as the name suggests, allows you to assess how much you need to spend to advertise to 1000 different people.
Indicators related to interactions and clicks on your advertisement
These indicators will allow you to assess whether your advertising is attracting enough attention from your audience. Indeed, a user who clicks on your advertisement is indicative of an interest in it.
5. Cost per click on a link (CPC on a link) corresponds to the ratio between the advertising budget spent and the number of clicks on your advertising which redirects to your website, a landing page, a blog, etc.
6. In addition to the CPC on a link, you can consult the cost per landing page view. This flag only counts those who saw the landing page (and didn’t close it before it loaded, for example). This is an even more accurate indicator than the CPC on a link. Too large a gap between these two indicators can be explained by a too long loading time of your website. You can also analyze the cost per click (CPC) which takes into account all clicks on your advertisement (clicks on a link, likes, shares, comments, etc.).
7. The click through rate (CTR) is the ratio between the number of times your ad was clicked and the number of times it was viewed. It is an essential indicator that allows you to assess the quality of your advertising in relation to the people you target. The more qualitative your content and match the target audience, the higher your CTR. The CTR is a very useful indicator when you want to compare the performance between two advertisements.
8. In addition to these indicators, you can analyze 3 new indicators proposed by Facebook (which replace the old relevance score). It’s about quality level, interaction rate and conversion rate of your advertising. You will then have three levels of analysis: below the average, in the average and above the average. This can allow you to identify a point of failure on your ad if it does not perform as expected.
9. These 3 indicators depend in part on the engagement rate generated by your advertising. An advertisement that generates positive interaction will be considered “quality” advertising by Facebook and will be more easily displayed. It is therefore essential to pay particular attention to the engagement generated by your advertising: likes and reactions, comments, registration, sharing …
The indicators linked to the results generated by your advertising
These indicators are the ones that will certainly interest you the most because they allow you to have a “ROIste” vision of your actions.
10. You can start by analyzing the results of your campaign. By result, we mean the number of times the objective of your advertisement has been reached, for example: the views of a landing page, the number of purchases made in your eshop, the number of quote requests entered on your website…
If you have installed your pixel correctly, you will be able to quantify these results and attribute them to your advertisements.
11. You can then analyze the cost per outcome. This is the ultimate indicator that allows you to have a real opinion on the return on your advertising investment. For example, you can assess how much you need to spend on advertising budget to generate a sale on your e-commerce site or to get a lead. Depending on what you offer and the actions that can be carried out on your website, you can assess the cost per purchase, cost per prospect, contact, completed registrations…
Once you know this number, it is up to you to assess whether this cost is relevant to your business model and what you want to spend as a budget to have new customers and / or prospects.
12. To help you in this process, you can also analyze the Return On Ad Spend (ROAS). This indicator, very often used in digital marketing, makes the ratio between your advertising expenditure and the turnover generated. For example if you spent € 100 on Facebook advertising and that allowed you to generate € 300 in sales, your ROAS is 3. If your ROAS is less than 1, this means that your campaign is not profitable .
Here are the most relevant indicators to look for when you advertise on Facebook. They will give you the perspective you need to make decisions. You’ll find many more in the ad manager. It is advisable to look first at those that allow you to make real assessments and make real decisions.
These indicators are also very useful in test & learn and A / B testing. They will let you know which winning combinations allow you to reach your objectives at the minimum cost.