What metrics to look at to optimise your facebook ads performance? There are two forms of optimisation that every facebook ad marketer should do: optimise your campaign for clicks and understand your conversions numbers. These leads us to necessary having to look at 9 crucial metrics along the way. Let’s dissect them.
Optimise for Clicks and Landing Page Conversion
The initial stage of any facebook ad campaign is the optimisation for clicks. You need to find a winning ad at this stage. And this basically means that you need to look at 3 main metrics:
CTR. Click through rate is the number of clicks divided by the impressions. Through CTR you can understand how well your ad is being received by your audience. If your CTR is below 1% then you need to revise what you are doing.
CPC. Cost per click is, obviously, how much it costs you every time someone clicks on your ad. A CPC above 3USD is normally a bad sign, and as with CTR, if you are seeing these numbers then you need to revise what you are doing.
Relevance Score. This is a metric that can be used to understand how strong your landing page is. Relevance score is basically the adequacy your ad has with the landing page. If your ad is relevant than it should be 7 or above. Below 7 you really need to review your ad or your landing page.
The Hard Metrics
Squeeze Page Conversion Rate. Your landing page should convert at 20%. This basically requires you to look at the clicks you had to the landing page and from those how many actually converted. Example, if 10 people click on your landing page you should have at least 2 leads.
Cost per Lead. Cost per lead is basically the number of leads you had divided by the total amount of revenue you spent on your ad.
Sales Page Conversion Rate. This should be at 2% at least. So for every 100 clicks you sent to the sales page you should close at least 2 deals.
Cost per Add to Cart. For e-commerce/coaching projects and funnels, the cost per add to cart is also an important metric to keep an eye on
Cost per Customer. The cost per customer is the number of customers you had divided by the total revenue spent on the ad campaign.
Revenue. How much do you actually make on a sale? Is the cost per customer justifying your investment? If it is then it is time to start scaling the campaign.
To assess the performance of any facebook ad campaign one needs to look at CTR, CPC, relevance score and all the hard metrics identified above. The longer the funnel the longer it will take for someone to become a client.