As a digital advertiser, it can be tempting to focus solely on the KPI relating to the goal of your campaign. While this is important, paying attention to the other key performance indicators that may affect your overall success is also essential. Keeping track of your audience engagement metrics, such as click-through rates, can also help you optimise your campaigns for better performance.

Here are five key Facebook metrics to focus on:

• Cost Per Click (CPC)

The cost per click (CPC) measures how much it costs to get someone to click on your ad. It is calculated by taking the total amount you spent on your campaign and dividing it by the total number of clicks it received. This metric is important because it tells you how effective your campaign is and how much it costs to get someone to your website or download your app.

• Return On Ad Spend

Return on ad spend measures how successful your ad campaigns have generated revenue. It’s calculated by dividing the total revenue created by purchases attributed to your campaigns by the total amount of money spent on them. It’s crucial to view advertising as an investment; this figure tells you what kind of return you’re getting. If you’re not making more from sales than the cost of the ads, your business won’t be profitable and sustainable long term.

• Click-Through-Rate (CTR)

Click-through rate is a metric that measures how successful an ad is at capturing people’s attention and getting them to click on it. It is calculated by taking the number of people who click on the ad and dividing it by the number of people who see it. A higher click-through rate means more people are interested in and clicking on the ad. It is important to have a CTR of at least one per cent, as this indicates that the ad is effective and resonates with viewers.

• Cost Per Purchase (CPP)

Cost Per Purchase or CPP, is an important metric in determining the effectiveness of an advertising campaign. This measurement is calculated by dividing the total amount spent on the campaign by the total number of purchases made. Comparing CPP to the average order value (AOV) is important, as having a CPP lower than the AOV ensures a healthy profit margin.

• Ad Relevance Diagnostics

Facebook has replaced the relevance score with three new metrics, quality ranking, engagement rate ranking, and conversion rate ranking. These metrics measure how successful an ad is in terms of how users interact with it, how relevant it is to a particular audience, and how likely it is to convert into a desired action. This is important because the more relevant an ad is to a viewer, the more likely they will click through and take the desired action.

Conclusion

Facebook advertising is an incredibly powerful tool for businesses of all sizes. By tracking and analysing the five key metrics of Facebook, businesses can gain valuable insight into their ad performance and make data-driven decisions to optimise their campaigns. With this knowledge, businesses can maximise their return on investment, increasing profits and driving growth. With the power of Facebook advertising, businesses can take their marketing efforts to the next level!

Flip Marketing is a growth-focused marketing agency with one mission: to dramatically grow your sales. We offer direct-response digital marketing. Skip the guesswork, trial-and-error and never-ending shit show of trying to figure everything out yourself. And instead, grow your business with proven client-getting-funnels, frameworks and scientific customer acquisition (not hopes and prayers). If you want to improve your digital marketing strategy by running Facebook ads on the Sunshine Coast, get in touch with us today!