Advertising on Facebook is one of the best ways to promote your product or service. The social media platform has a global audience of about 2.85 billion, and its users click on an average of 12 ads per month.
However, running a successful campaign on Facebook is not as simple as hitting the “Publish” button and waiting for the sales to roll in. If you want to be sure your ad generates a positive return on investment, it is vital for you to monitor its performance carefully.
The FZA Digital team recommends keeping a particularly close eye on the following metrics:
Click-Through Rate (CTR)
Your click-through rate (CTR) is the percentage of people who decided to click on your ad when it appeared on their screen. Facebook calculates this metric using the following formula:
CTR = (Number of Clicks / Number of Impressions) x 100
The average CTR for Facebook ads is roughly 0.90 percent. However, this figure can vary significantly between industries.
If your CTR is a little low for your industry, it might be a sign your ad is not appealing to your audience. Consider making the following changes to the ad to give your CTR a boost:
- Add a compelling call to action
- Use a different image or video
- Target a narrower audience
- Edit your Facebook ad copy
Do not be surprised if you need to go through two or three rounds of edits before the CTR rises above the industry average. Facebook ad campaigns are an art, not a science.
Conversion Rate
Your conversion rate is the percentage of users who took a desired action on your website after clicking on your Facebook ad. Depending on the aim of your campaign, this action could be any of the following:
- Purchasing your product
- Scheduling a service appointment
- Contacting your sales team
- Signing up for your newsletter
- Downloading a document
You can calculate your conversion rate using the following formula:
Conversion Rate = (Number of Conversions / Number of Clicks) x 100
The average conversion rate for Facebook ads is 9.21 percent. However, as with CTR, this figure varies across industries.
A lower than average conversion rate most likely means there is an issue with your landing page. You can usually resolve the problem by making a few simple changes, such as:
- Removing unnecessary fields from forms
- Adding testimonials and reviews to your landing page
- Providing users with clear directions on what action to take next
- Addressing common customer objections on the landing page
Don’t be afraid to test multiple landing pages until you find one that gives you the results you need.
Return on Ad Spend (ROAS)
Your return on ad spend (ROAS) is a measure of the revenue generated by your Facebook ad campaign as a percentage of its cost. To calculate your ROAS, you can use the following formula:
ROAS = (Revenue / Ad Spending) x 100
The ROAS you should aim for will depend on the primary objective of your Facebook ad campaign. If your goal is to increase sales, you may want to shoot for a ROAS of at least 200 percent. However, if you’re more focused on building brand awareness, a ROAS of 50 percent might be acceptable.
At FZA Digital, we recommend waiting until your Facebook ad has at least 50 clicks before calculating your ROAS. Smaller sample sizes can lead to inaccurate performance evaluations.
Frequency
Frequency is a measure of the number of times an average Facebook user has seen your ad. You can calculate it in the following way:
Frequency = Impressions / Reach
Tracking this metric is essential because you do not want to keep putting your company’s ad in front of the same users again and again. Doing so is likely to annoy them. It might even cause them to tell Facebook your ad is “spam” or “not interesting.”
In general, you should try to show your ad to users no more than three or four times. This frequency will give them ample opportunity to consider your product or service without irritating them.
If you think users are seeing your ad too often, you can tell Facebook you would like to optimize for “Daily Unique Reach.” Taking this step will make sure people only see your ad once a day at most.
Need Help Tracking or Managing Your Facebook Ad Campaigns? Contact the Experts at FZA Digital Today
Don’t have the time to manage or monitor your Facebook ad campaigns? Then please don’t hesitate to get in touch with the knowledgeable team at FZA Digital. We have been helping companies like yours to succeed in the world of online marketing for years.
To speak to one of our friendly representatives, all you need to do is give us a call at (424) 232-0810 or fill in our online contact form. We can’t wait to hear from you!