Facebook ads matter.
Over 1.9 billion people use Facebook every day. Think about how successful your business could be if you reached a tiny portion of this group with your ads.
To see the best results from your Facebook ad campaigns, you must know what metrics to track and monitor consistently.
Not sure which metrics you should be watching? Below, you’ll learn about ten of the most important ones that can help you improve your campaigns.
1. Ad Impressions
The ad impressions metric tells you how many times people viewed your ad in their news feed.
This metric is especially important for advertisers looking to build brand awareness. It helps you understand how many people are exposed to your business’s name, logo, etc.
If you notice that a specific type of ad receives more impressions than others, that’s a sign that you’re on the right track. Your ad copy and design are helping you get noticed and are creating more opportunities for people to learn about your brand.
2. Ad Frequency
When you measure ad frequency, you learn the average number of times someone has seen your ad. For example, if you have an ad frequency metric of ten, that means that, on average, your ad has been viewed ten times per person.
It’s easy to assume that the higher the ad frequency metric, the better. That’s not always the case, though. It depends on your goals and the type of campaign you’re running.
For branding campaigns, a higher ad frequency metric is a good thing. It means that more people are seeing your ads, increasing the likelihood that they’ll recognize your brand.
Conversely, lower frequency metrics are better if you’re running an e-commerce or lead generation campaign. If someone has seen your ad multiple times and still hasn’t clicked on it, that’s a sign they’re not interested (and it’s time to stop targeting them).
3. Ad Clicks
Speaking of clicking on ads, that’s another critical metric to monitor. How many times is a user clicking on your ad?
Ideally, higher numbers of clicks are better because they show people are interested in your ads and your brand.
Remember that any action that takes the user within the ad is considered a click. That includes liking the ad, clicking the link to visit your website, or expanding the ad to read more about the offer.
4. Click-Through Rate (CTR)
The click-through rate or CTR metric is a ratio. It tells you the ratio between the number of people clicking on the ad and the number of times your ad has been viewed on Facebook.
On Facebook, you can also monitor two different CTR metrics:
- CTR (All): All the clicks within an ad
- CTR (Links): The links clicked within an ad
A high click-through rate tells you you’re doing an excellent job with your ad quality and targeting.
The cost-per-click metric tells you the amount spent every time someone clicks on your ad. It’s calculated by dividing ad cost by the total number of clicks the ad receives.
The cost-per-impression metric tells you what you spend for every 1,000 views your landing page receives. It’s calculated by multiplying advertising cost by 1,000 and then dividing that number by the number of impressions on the landing page.
If your Facebook ads get a lot of interest, the platform will reward you with lower costs per click or impression. As you can see, it pays off (literally, in this case) to produce quality ads.
6. Conversion Rate
Your conversion rate tells you the number of people who click on your ad, make a purchase, and become paying customers.
Ideally, you’ll want a high conversion rate — after all, that means you’re attracting more customers and making more sales. If you have a low conversion rate, that’s a sign that you need to make some changes to your ads.
7. Facebook Ads Cost per Conversion
In addition to tracking your Facebook ad conversion rate, monitoring your cost per conversion is essential. This metric tells you how much you spend on every sale made or lead generated.
Imagine you paid $300 for Facebook ads and converted ten people. That means your cost per conversion is $30.
For some brands, that’s a great number (especially if you’re selling a high-value product and are still making a profit after spending $30 on a conversion. However, if your product costs less than $30, you’re losing money and need to optimize your ad campaigns to lower the cost per conversion.
8. Facebook Ads Relevance Score
Your relevance score tells you how, you guessed it, relevant your ad is to your target audience. Your relevance score ranges from one to ten and is based on these elements:
- Quality ranking: Quality of ads you display to the same audience
- Engagement rate ranking: Expected engagement rate of ads you show to the same audience
- Conversion rate ranking: Anticipated conversion rate of ads you show to the same audience
A lower relevance score doesn’t necessarily mean your ad campaigns aren’t effective. However, it’s still nice to know how they measure up against other brands.
9. Facebook Ads Audience Demographics
Here are some examples of audience demographics you might want to measure:
- Ethnic background
- Income range
The more you know about your audience, the easier it is to improve your ad targeting and tailor your ad creative to them.
10. Return on Ad Spend (ROAS)
Return on ad spend (or ROAS) tells you how much revenue your business receives for every $1 you invest in ads. Along with the cost per conversion, it’s one of the most important metrics to help you understand the success of your ad campaigns.
To calculate this metric, simply divide your revenue by your ad spend.
If you run an e-commerce business, retail business, restaurant, or event business (sports, concerts, etc.), it’s especially helpful to know your return on ad spend. Anyone who wants to increase conversions while still seeing a return on their investment should keep this metric in mind.
DashboardFox and Facebook Ads Metrics
Business intelligence (BI) tools are essential for businesses that need to monitor their metrics, particularly in the realm of Facebook ads. With Facebook ads, numbers are everything; understanding how your campaigns and ads are performing is key to success.
A great BI tool can help you keep track of all your KPIs (key performance indicators) and analyze them in real time. It can also provide valuable insights into customer behaviors and trends, allowing you to make data-driven decisions about your campaigns.
BI tools can even help you identify new opportunities for growth by uncovering hidden correlations between different metrics. With the right BI tool, you can be sure that your business is making the most of its Facebook ad campaigns and driving results.
DashboardFox is here to make all your worries disappear.
With DashboardFox, monitoring these metrics is as easy as ABC, thanks to our new API querying method can connect to the Facebook Ads API.
With its affordable pricing structure (no subscriptions to maintain), codeless build reporting, and excellent VIP customer service for everyone, trusting DashboardFox is a great way to see your numbers soar to greater heights.
Our sales pitch ends here and the journey begins. Book a meeting with us to discuss how DashboardFox can change your business in a snap, or take advantage of the free live demo sessions we offer to our prospective clients.
Either way, we will be waiting!