In a world full of social networks, Facebook is still ranked as the network with the highest monthly active users. Facebook is also making it easier for businesses to grow their online presence with Facebook shops, and Ads making marketing easy.
Running a Facebook campaign is very simple and with tools like Facebook Ad manager, you can even schedule your Ads and receive your Ad campaign analysis.
However, if you are new to Facebook Ads and trying to track your campaign results, you are getting terms like ‘CTR’ and ‘CPC’ ‘PCR’ and ‘Impression and reach’ thrown at you, which can be very confusing. There is also a bit of math involved, which can be discouraging for some people. This article simplifies a few metrics concepts so even if you are not a professional marketer, you can easily and effectively analyze your Facebook results.
What are Metrics and why are they important?
Metrics are a quantifiable way to track Ad campaign performance. They provide an exact number and in-depth analysis of the performance of your Ad campaign. These are the benefits of using metrics to calculate your campaign performance
- To measure the success of your Ads
Every marketing campaign has an objective, it may be, you want to increase your followers, generate leads, get exposure, etc. You can measure the performance of your ad campaign by using metrics. Metrics help you in tracking your ads performance which informs you whether your ad campaign flopped, or it was successful.
- To help you learn what to improve on
Running Ad after Ad is worthless if you don’t evaluate your Ads performance. However, comparing two campaigns and seeing what works and what doesn’t is important for successful future campaigns. Thus, if you do not achieve your expected result on one campaign, you can use metrics to learn what to improve on. For example, we run a campaign in august and got a 1,977 reach. We analyzed the AD and discovered that we had not provided detailed information on our target audience. When we ran our next campaign, we provided more details on our target audiences such as their interests, and behaviors which enabled us to increase our reach to 11,000. Thus, from metrics, we were able to learn that providing detailed information on our target audience gave us a higher reach.
- To learn about your buyers
Do you ever wonder what your audience looks like? Metrics provide you a snippet of your buyers’ persona such as their background, gender, location, etc. This can help you to create products and services that specifically meet their requirements or needs.
Metrics to use to calculate your Facebook ad performance
Without even getting to the mathematical bit of calculating the metrics, there are a few ways to measure the success of your Facebook Ad campaign. These are:
Measures the number of times new users see your content. Used to track how many people are viewing your content. Facebook Ad manager shows you the number of users expected to view your Ad and after the campaign, you can see the total number of people who viewed your AD. A high reach value means that more people got the chance to engage with your Ad.
Impressions are the number of times your Ad is displayed, no matter if it was clicked or not. For example, if you post your ad and it reflects on 700 people’s news feeds, then your impression will be 700. Impressions are used to measure the virality of your content. Impressions are different from reach as they can include multiple views from the same people.
How many people interacted with your content? This can be in form of likes, comments, and shares your ad received. A high engagement result shows that more people found your Ad interesting as people are more likely to engage with a post they like.
So now let’s get a little mathematical. The following metrics may require you to get a little handsy with your calculator but will give you great insight into your Ad performance.
Engagement rates are metrics that help you measure how many users interact with your Ad. It is calculated by dividing the total sum of your Ad interactions and dividing it with the Ad impressions.
For example, if 3 people like your Ad after it has had 100 Ad impressions, that would be a 3% engagement rate.
Most social media marketing experts agree that a good engagement rate is 1% to 5%.
Cost per click (CPC)
This metric shows how much you are paying when someone clicks your ad. It is calculated by:
The total amount of money spent ÷ total number of ad clicks received
For example, if you have spent 10$ on an Ad and received 10 ad clicks, to get your CPC, you will divide 10$ by 10 ad clicks which will be 1$.
That means for every click your Ad received, you spent a dollar. With this example let’s say you have an eCommerce website, and a user clicks your Ad link and ends up buying a product worth $20 and you spent a dollar to acquire this customer. That is equally fair as don’t you think it’s better to spend a dollar to get a click/customer than no customer or click at all?
Click through rate (CTR)
The click-through rate is the metric that tests the engagement your ad is receiving. Let’s say you have a blog, and you put up an Ad to get people to click the link that directs them to your website. To measure the effectiveness of your Ad to your users, you can use the CTR metric. It is calculated by:
Number of clicks ÷ number of times the ad was shown/Impressions
For example, if your ad received 2 clicks and you had 100 impressions, then your CTR would be 2%.
A high CTR shows that your users find your ad attractive and relevant, while a low CTR may mean that you are targeting the wrong audience, or your users are not relating to your Ad.
Cost per lead (CPL)
The Cost per lead measures how cost-effective our campaigns are when it comes to generating new leads. A lead is a user who has an interest in what your business has to offer. If you sell cars, your lead is someone who has an interest in purchasing a car. CPL will enable you to calculate the amount it cost you for every lead generated. Look at it this way, you are paying Facebook to generate more leads for your business. Facebook will make the Ad live and display it to a wider audience. If a user decides to take action (purchase, call, or signup) to become a potential lead, this means that the Ad was helpful. Thus, the higher the number of leads your Ad can generate, the more valuable the Ad is to your business.
It is calculated by;
Total Ad Spend ÷ number of leads
Explained practically, if you spent $100 on an ad and received 10 new leads, it means that your cost per lead was, $10 dollars. That means getting a new lead costs you $10 dollars.
Calculating and measuring your Facebook campaign results is easy. You only need a few numbers and basic mathematics skills, and you are set to start. Metrics will help you understand the performance of your Ads and how to improve the performance of your Future Ad campaigns.