5 Key Metrics of Facebook Advertising KPIs
When you are getting started with Facebook advertising, it's easy to focus on one key performance indicator (KPI) because your first campaign probably has a simple objective.
If your campaign is set up to drive mobile app installs or purchases from an e-commerce site, you probably have one KPI in mind: the one associated with your objective. But there are many other KPIs that affect the efficiency of your campaigns, and they're essential for scaling them.
1. Click Through Rate (CTR)
Click-through rate (CTR) is one of the most commonly used metrics for measuring the effectiveness of a Facebook ad. It represents the rate at which people who saw your ad clicked on the ad. While not the only KPI you should track, it's a great place to start.
Since the cost of a click is so much higher than that of an impression, you want to make sure that your click-through rate is high. If someone saw your ad but didn't click it, you basically wasted ad spend and didn't deliver on your objective.
2. Cost Per Purchase (CPP)
Cost per purchase can be a great way to evaluate the efficiency of your campaigns. It takes CPA (cost per acquisition) and removes getting an ad before the user (ad spend). This will give you a better idea of the actual cost of a purchase.
Cost per purchase will always be higher than CPA because, as we mentioned above, it isn't accounting for the cost of getting the ad in front of the user.
3. Cost Per Click (CPC)
Cost per click is the most obvious KPI to track because it's the cost of a single click. It gives you an idea of how much you're paying for each click on your ad.
You can also determine if your ad receives clicks from interested users based on the cost per click. If your CPC is high, it means that Facebook is serving your ads to users who are lower in the buying funnel. These users are less likely to convert because they aren't ready to buy your product yet.
4. Return on Ad Spend (ROAS)
Facebook advertising allows you to bid on specific types of users, such as people in a certain age range, with a particular job title, or who live in a specific city. To bid on these audiences, you need to set a bid that's high enough to win the auction but still low enough that you get value out of the audience. The idea is that this balance will help you attract users who are more likely to convert.
If your return on ad spend (ROAS) is high, you know that your ad attracts the right kind of viewers to make your campaign a success. If it's low, you need to optimize your ad's audience targeting.
5. Ad Relevance Diagnostics
Ad relevance diagnostics can help you understand your ad based on what people share or comment on. If you have a high relevance score, it means that people are engaging with your ad as they see it. If it's low, you might want to make some changes to your ad.
Relevance scores should be tracked against performance and can be used to determine the best targeting for your ads.
Conclusion
Facebook advertising is a great way to advertise your products, but it's essential to track performance so that you know what's working and what isn't. These five Facebook KPIs will help you understand how your ads are doing and where you might need to adjust your strategy.
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