How to analyze how your Facebook ad are performing
Facebook ads show a lot of data, but knowing what to look for and how to assess performance can be confusing.
Performance does depend on your business goals, the type of ads you run and your target marketing. However, there are a few key factors to look for that will tell you how well your ads are performing. Here is how to health check your Facebook ads for lead generation.
Here are some key statistics to check inside Facebook’s ad manager. Looking at these will help you assess how well your ads are performing.
Link clicks, CPC and CTR
Link clicks are the number of times a link has been clicked on. It is useful to see how many people have clicked. CPC is cost per click which tells you how much it costs you to get a click. CPC should be below $2 or under $5-6 for competitive markets. CTR is click through rate and is the percentage of people who see your ad and actually click through to read more or to go to a landing page. The higher this is, the better. The average CTR is 1% and a good CTR is 2-3%. Retargeting ads should be getting a 3% CTR.
This is the amount of times each person has seen your ad. For an awareness ad, this can range from between 1-3 and work well. For a retargeting ad, you want the frequency to be higher. This can be as high as 14 or more, as long as the audience is receptive to it and the ad doesn’t get too much negative feedback.
Impressions and Reach
These are two different, but related statistics. Impressions are the amount of times your ad has been shown on Facebook. Reach is the amount of people it has reached. When people have seen your ad several times, the reach will be lower than your impressions as they are seeing it several times. Assess the reach for how much of your audience you are reaching. You will need to know your audience size.
This stands for cost per thousand and means how much it costs to be shown 1000 times, known as impressions. Ideally, you want this to be $10 or below. In competitive markets, this may be higher. Usually, under $40 will still make it worthwhile to run these ads for high ticket sales. If this goes too high, lead generation will be too expensive to make this work out. You can optimize the ad to bring CPM down.
Landing page conversion rate
This you will need to calculate on your own as Facebook does not provide it. Look for your number of leads and how many people click through to your landing page. If 200 people click through to your landing page, and you get 10 leads as a result, your landing page conversion rate is 5%. Landing page conversion rates can range from 3-20% and be as high as 60% or more for some types of offers.
Those are some of the key statistics to look at when assessing how your ads are performing. Depending on whether they are doing well or not, you can scale up the budget, or make optimizations to improve performance.
Need help optimizing Facebook ads and landing pages? Contact Danielle on 760-440-5494 or firstname.lastname@example.org
Tip of the Week: Health check your Facebook ads by analyzing key performance statistics.