Facebook is the world's third most-visited website, with over 3.07 billion monthly active users across the globe. It has evolved as a hub for socializing and spending time with a massive user base, hence becoming the top choice for influencers to market their business. Seeing that, the platform provides a safe space for running the ads while allowing us to analyze their performance.
However, investing in the advertisements alone isn't enough. Tracking the Facebook ads KPIs to make valuable adjustments in your ad campaigns is fundamental to successful marketing. So, if you are interested in learning more about optimizing your Facebook ad strategies, we have got you covered.
Below are the top Facebook Ads KPIs you need to learn for a perfect marketing campaign. Let's get straight into them!
The key performance indicators, also called KPIs, are the milestones or targets to measure the progress in achieving specific goals and objectives over time.
Facebook ads KPIs track the ad performance by generating valuable data points and providing insight into the overall reach and engagement metrics. Through a sharp data analysis with KPIs, you can identify the loopholes in your ad campaigns and adjust the marketing strategies accordingly for a better outcome.
Let's walk through the top Facebook Ads KPIs that can help you take your advertising game to the next level!
Click-through rates for Facebook refer to the number of times people click on your ads relative to the number of times they view them. It is one of the most common metrics used in digital marketing to analyze traffic on targeted websites. Here's how you can find it!
Divide the number of clicks received on your ad by the total number of impressions (how many times people viewed the ad). For instance, if 1000 people saw your post and 70 people clicked on it, the average CTR for your website would be 0.7%.
The CTRs vary across all platforms based on the campaigns the companies opt for. However, the average rate falls between 0.9 to 1.32%. Monitoring this CTR as a Facebook ads KPI can help you optimize the ads and come up with better marketing strategies for boosted engagement.
If you invest x amount of money into a specific marketing channel, how much will you get back in the name of profit? The return of ad spend clears this fundamental marketing goal. It measures the total revenue you obtain for every dollar spent on the advertisements. You only need to divide the Facebook ads revenue by the ad spend to calculate the ROAS value.
For example, if you earned $10 for every $1 spent on advertising, your ROAS for that campaign will be 10:1. However, a good ROAS is generally considered to be between 200% to 400% (2:1 – 4:1), according to the Metrics Watch survey. The higher ROAS allows you to assess the profitability of the Facebook Ads and see whether they generate a positive return on investment.
Simply set a desired return percentage and specify the time limit to reach that goal. For example, a 150% ROAS by the end of each month. This hardcore strategy will help you allocate a suitable budget based on the profit or loss value and optimize your bids accordingly.
Acquiring a wide array of audiences through organic reach should be the number one long-term priority of every marketing campaign. It measures the number of unique users who saw your content on the Facebook page. At its core, this Facebook ads KPI aims to provide you with the most impressions at the lowest cost.
Through this, you can target everyone in your selected demographics, even those with no previous history of engaging with similar content. You can set a specific timeline to meet your goals, such as elevating your customer base or increasing brand awareness. This strategy will help you analyze the performance of your Facebook ads within your target audience.
Following are some ways to keep track of this KPI:
Link clicks are the total number of clicks on the links within your ad to land on specified destinations on and off Facebook. For example, if someone clicks the Shop Now option from your ad link, we will categorize it as a link click. It is an effective Facebook ads KPI to sift through the market value of your ads or the number of times they've resonated well with your audience.
You can use software such as Catchr to follow the link clicks activities or destination breakdowns of the ads for better optimization of future strategies.
Unique link click is another term closely associated with link clicks, representing the total number of clicks your ad received (excluding the multiple clicks by the same person). It's more exemplary that you analyze both these metrics to accumulate more data and determine the effectiveness of your Facebook ads.
Facebook ad frequency is an efficient KPI for digital marketing reporting to gauge the overall engagement metrics on your ad. It measures the average amount of times a user has seen your ad and indicates the potential for ad saturation among your target audience. That means a higher ad frequency will lead to a decrease in engagement.
To get the frequency value, divide the total number of impressions by the total number of unique users who saw the ad. For instance, If your ad reaches 700 users with 1000 recorded impressions, the ad frequency value will be 1.4. According to Social Media Today, the optimum frequency range falls between 1.8 – 4 for achieving the desired outcome in moderate budgets.
It is important to note that Facebook Ad frequency is just an estimated metric, helping you sketch out a blueprint to determine the average reach. Monitoring this range can help you optimize ad exposure by adjusting the creative rotation strategies and displaying your ads to a broader audience.
Cost per click (CPC) is the average amount you are charged every time a user clicks on one of your ads. You can calculate it by dividing the total revenue spent on your ad by the total number of clicks it received. As of 2023, the average CPC value for Facebook ads is $0.44 and varies up to 164% based on the different ad objectives, ranging between $0.18 to $1.85.
Monitoring CPC value helps you examine the efficacy of your ad campaign and the revenue needed to generate traffic on your website. The optimized cost per click is determined through the return on investment. It helps you set a reasonable budget and adjust the bidding strategies for better ad performance within moderate finances.
The cost-per-click advertising also allows you to run the ads for as long as you want and stop if they no longer align with your budget. Following are a few ways of lowering the CPC values:
· Experiment with different keywords and select the ones with lower costs.
· Start with the target audience in your city before expanding to a new state or country.
· Track the effectiveness of your keywords by identifying the search engine ranking.
Conversion rate is one of the most robust Facebook ads metrics to evaluate the effectiveness of your advertising campaigns. It measures the percentage of users who complete a desired action, such as filling out a form or making a purchase, after clicking the ad link.
The primary goal of over 25% of Facebook ad campaigns is converting the maximum number of web visitors into regular customers. Based on the latest survey, the average conversion rate for Facebook across all industries is 9.21%, with the highest one crossing the threshold of 10%.
However, you can calculate the CR by dividing the total conversions by the number of clicks and multiplying the value by 100. It will help you diagnose the factors aligning with the likes and dislikes of your audience so you can make necessary adjustments to improve the overall conversion rates.
Share of voice is the top KPI for comparing the level of your brand awareness against the competitors. Put simply, it means how much people are talking about your brand on social media (Facebook or other platforms), mapping a clear picture of the returns on ad investments.
You can calculate the share of voice by dividing the brand measures by the market measures, which include the social media mentions, clicks, or traffic figures. The estimated figure will help you determine the ad space you are taking and adjust your marketing strategies accordingly. You can identify the gaps and make amends to stay ahead of your business competitors.
To use the SOV KPI most effectively, compare the intensity of positive and negative public sentiment around several ad strategies and invest in the ones most popular.
Monitoring the KPIs for Facebook ads is crucial to maximize the efficacy of marketing campaigns and gain valuable insights into engagement or revenue metrics. However, collecting real-time data from the ads and processing it is essential to meet your business needs for optimal reach. Sounds overwhelming, right?
Well! That's where you can leverage the power of Catchr, a dynamic tool for generating interactive cross-channel reports by bringing data from all across social media platforms.
No longer a data extraction challenge and no constant switching between the tabs when Catchr can seamlessly assemble intricate data and mold it into visually appealing templates, highlighting all the facts and figures from your ad campaigns. Also, you can collaborate with your clients or teammates to share insights and optimize future marketing strategies.
So, why wait? Book a demo right now and make the most of your marketing data with simple and easy visualization!