I was recently working with a client and he asked me a question that I wonder everyone should know the answer of.
He asked, “Ammar, What are the most important matrics we should look for while analyzing our ads. As there are more than 100 of them.”
Well, I think the question was really interested, so I decided to share in-depth knowledge of it.
Important metrics for Facebook ads
Sine, there are many Facebook matrics to analyze our ads from.
But, some of them are really important and if your ad is optimized according to them, you can generate good number of sales/leads or whatever you are optimizing your ad for.
Before we get into matrics, lets discuss about managing your matrics in your Facebook ads manager.
Login to your Facebook Ads manager and Look for “Columns” drop down menu at the right.
Select “Customize Column” from the drop down.
Now, from the Menu you can customize your matrics according to your needs.
So, now you can easily customize any matrics according to your needs.
Now, lets have a look at some of the most important matrics of Facebook.
1. CPC (Cost Per Click)
CPC refers to the amount you pay per link click. Whenever, you are preparing an ad Facebook provide you with the option to pay per click, pay by impressions or pay by unique reach.
The less the CPC would be the more better your ad would perform.
The higher the CPC would be, it means your targeted audience isn’t interested in your product or service. Optimizing your ads for Lower CPC would be a great way to reach your potential customers.
2. CTR (Click Through Rate)
Click Through Rate refers to the number of link clicks or actions you are getting. The higher the CTR would be the better your ad would be.
Try to optimize your ad for higher CTR. The more CTR or the more link clicks you’ll get, the better your audience would tend to convert. A lot of people ignore it while scaling their ads based on the data they have.
3. CPM (Cost Per Mille/1000 Impressions)
As we discussed earlier that, Facebook gives you different options to optimize your ads for.
Either you want to optimize your ad for Link Clicks or the Impression.
So, CPM stands for the amount you are paying per 1000 impressions.
It doesn’t matter, if you are getting any link clicks or not. Facebook will charge you when your ad will be seen by 1000 people.
Sticking with CPC would be a great way to ensure that you ads are generating good number of clicks.
4. CPA (Cost Per Action)
Before you optimize your ad for anything, it’s really important to have your Facebook pixel installed.
It’s a great way to optimize your ad for whatever goal you want.
You can either optimize your ad for paying per app install, purchase or whatever your goal is.
Instead of paying Facebook for clicks or impression, you can pay Facebook for your desire action.
5. Relevance Score
Your ad relevance score refers to the relevancy of your ad based on the targeted audience you have selected.
The higher the relevance score would be the more relevant your ad would be to your targeted audience.
Relevance score is a good option to have on your ads manager, in order to see how your ads are performing.
6. Ad Frequency
Ad frequency refers to the number of time people have watched your ad. The higher the Ad frequency would be the less people will interact with your ad and your CTR will go down.
You can split test different ads campaign in order to maintain your ad frequency. You can re-target people with different ad set.
Split testing different ads variation will increase the chance of people to actually buy from your ad.
Wrapping It Up!
Well, every advertiser has his/her own approach when it comes to analyzing data with different matrics, but we have discuss some of the important matrics we look into while optimizing ads for our-self or for our clients.
If you have any sort of question regarding any ad, you can contact us directly and we’ll be happy to help you. 🙂