Facebook’s reporting platform tracks just about any metric you can imagine for marketers to analyze and dissect. But, which metrics do you take the time to look at in the plethora of options? And why do you even need to see how the ad performed?
Let’s start with the why. Ad performance is the tell-all of what happens when you run an ad. Did people see it? Interact with it? How much did it cost overall? How much did it cost per person? Did the user reach the desired destination and perform the wanted action? All this information will tell you if your ad was successful or not, which is subjective to your business’s goals and objectives. Whether or not your ad campaign was successful will tell you a lot about what your next campaign should look like. Does it need to change directions? Stay similar to the original ad? Either way, tracking your ad’s performance is essential to any marketing strategy.
To understand the performance of your campaign, the metrics you should actually track consist of 5 measurements: cost per click, click-through rate, reach, frequency, and results/results rates.
1.Cost Per Click aka CPC
Cost Per Click (can also be called Cost Per Action or CPA) is how much you are spending on each action that you want your users to take. The action can be clicking to a website, downloading a pamphlet, calling a phone number, or more. To find your CPC, divide the cost of a paid advertising campaign by the number of clicks or actions taken. CPC is important because it tells you if you are paying what the action is worth.
2. Click-Through Rate aka CTR
The Click-through rate tells you how many users clicked on your ad. CTR is important because it shows you there is some type of intent present in your audience. However, if your CTR is high but purchase intent is low, it could be because of a couple of reasons including your target audience isn’t right. Maybe the price is too expensive for the audience — now you know to tweak your target audience some. Another reason could be your landing page isn’t strong enough. To fix this, align your ad with your landing page’s content to ensure your audience is receiving relevant information.
Reach is the amount of unique individuals your ad has reached in a set period of time. It is different from impressions because impressions are how many times your ad loads on a page regardless of whether someone actually sees it or not. Reach is key since it not only proves your ad is being delivered, but it also tells you if your audience is wide enough to avoid frequency problems which we are about to talk about.
Frequency reports how often a single user sees an individual ad. As AdEspresso says, “…if users see the same ad ten times, it’s not nearly as effective as ten different users seeing your campaign.” Ads reach a point where conversion likelihood decreases drastically when it shows to an individual user more than three times. The importance of frequency lies in that you don’t want to waste time and money showing the same ad to the same people who grow tired of seeing said ad.
5. Results/Results Rates
Results are the action you optimized your campaign for such as download, call, get directions, contact, and more.. Results rates are how often someone who sees your ad (or your reach) performs the desired action leading to a conversion. Results are essential to knowing if your ad performance was successful or not. It is the reason for your ad!
Overall, tracking ads serves as a vital part of your ad campaign strategy. You have to be able to see how the ad performed to either do continue or pivot directions next time. Without the guidance of ad reporting metrics, you will repeat mistakes and waste time and money. Here at Momentum Consulting, we understand tracking results can be tricky and confusing. So, we would love to partner with you and your business to create ads and track their progress for you! Call Momentum Consulting’s Hilary at (662) 416-8674 to get started today!