EeIf you’re running Facebook Ads, you probably want to know EXACTLY how they’re doing.
The good news is that Ads Manager has ALL the data you could ever need to analyze the performance of your campaigns.
- And the bad news?
- Making proper sense of all these metrics is confusing… 😱
- How do you know what to look for?
- Which ads are doing well and which ones are struggling?
- And perhaps most importantly, how to use these metrics to diagnose specific problems all throughout your funnel?
These questions have a bigger impact than you probably think – and not understanding the true meaning behind your metrics can easily make or break the profitability of your campaigns, and even warp the reality of what’s truly going on with your ads…
On the other hand, properly analyzing Facebook Ads data within Ads Manager can definitely empower you to confidently make data-driven decisions and grow your business to new levels! 💪💪💪
So to make things easier, I like to group various metrics based on the RELATIVE importance they each play at every step of the sales funnel.
This way, it’s easier to know exactly what to focus on primarily for each campaign.
And thus, we have:
-cost per video view (3-sec, 10-sec video views, thru-plays)
-cost per messenger sign-ups
-relevance score (1-2 bad / 3-6 okay / 6+ great) → the higher this is, the lower the CPC & higher the click-through rate
❗️IF problem –> Improve ad copy, creative, or audiences
👉 MIDDLE-OF-FUNNEL METRICS: these are all about driving site visitors
-cost per click (spend/unique link clicks – Avg $1-4.
In 2018, this was $1.72)
-click through rate (unique link clicks/impressions – Avg 1-2%)
-cost per lead (spend/leads – Can range from $5-75 PER lead)
-lead form conversion rates (leads/lead form visitors – depends on the landing page)
❗️IF problem –> Improve audiences, re-think your niche, optimize your landing pages or website
👉 Bottom of funnel metrics: how well my ads are generating customers
…cost per acquisition (spend/customers created – aim for less than 80% of your AOV)
…revenue per visitor (revenue/unique link clicks)
…immediate return on investment (revenue-spend/spend)
…sales funnel performance (conversion rates at each step of the funnel)
❗️IF problem –> Re-think your offer, improve your upsells, cross-sells, conversion optimize your entire funnel
👉 Retention & monetization metrics: focused on long-term strategic growth
…return on investment (7 days, 30 days) (revenue-spend/spend)
…lead & customer value over time (average revenue by the first action)
❗️IF problem –> Increase Average Order Value, add more back-end revenue, focus on customer retention
IMPORTANT NOTE: You don’t NEED to obsess over each & every one of these metrics (although you certainly can). Instead, choose specific performance metrics based on the purpose of a given campaign.
Example: CPL for lead signups, CPA for acquiring new customers, AOV for profit maximizing.
And there you have it – a nice & compact list with the most important metrics to watch out for when running Fb Ads.
Hope this helps 😉