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5 Metrics For Facebook Beginner’s To Follow
Facebook can be an incredibly powerful tool, no marketer will argue with that. But while many businesses see Facebook as a way to reach potential customers, the truth is Facebook serves as an perfect platform to generate brand awareness, not necessarily focus on conversion and revenue generation. We use Facebook as a megaphone to our audience and to establish credibility in the eCommerce fulfillment world.
When you take a peek into the Facebook Adverts Manager there’s more metrics and stats than you can shake a stick at. The novice marketer will often run a campaign and ignore everything asides from the amounts of likes, shares and comments it brings their business.
Looking at specific metrics lets you know how your ads are performing, whether you should scale and invest or pull the plug. Not sure which metrics to look at?
Here’s 5 stats to follow closely to ensure you don’t end up with a hole in your pocket.
- Objective actions
What is the objective for your campaign? Facebook offers a number ad objectives such as:
- Sending traffic to your website
- Register to your event
- Get video views
- Collect leads
- Conversions (sign up, purchase)
- Shares, likes and engagement
- App installs
- Page likes
If you have no idea what you wish your campaign to achieve, it will be very difficult to measure its success. Before you can even start making sense of ad metrics, you’ll need to define your goal, here’s what Facebook currently offers using the Adverts Manager:
For example, if you want to collect email addresses then you can use metrics such as cost per action (discussed below) to learn how much each lead costs you. Knowing your objective also ensures you select the correct ad-type to optimize your budget and bidding model.
- Cost per action
An action on Facebook is any type of engagement with your advert (like, share, comment, hide post. etc). The cost per action metric ignores all actions except for the one you want.
For example, if you’re promoting an event you can tell Facebook to only charge you when someone has signed up or put themselves down as interested:
When the objective is to generate more page likes, you can tell Facebook to only charge you for likes and nothing else, this ensures you only pay for what you want.
Cost per action reveals much needed data on how well your adverts are doing and whether they will be profitable. If it’s costing you $2 to drive each prospect to your website and the product you’re selling is only worth $10, unless you have a 20% conversion rate (highly unlikely with Facebook ads) you won’t see a positive ROI from that ad.
CPA will quickly provide metrics on whether you ads should be scaled or dropped.
Many business owners overlook the frequency their ads are shown. Showing ads too many times to the same person can increase ad fatigue and costs.
After a user has seen your advert for the 5th or 6th time their mind has been made up, showing them another 10-20 times is just setting your money on fire. Personally I aim to keep my ad frequency to under 2< impressions per day to ensure I don’t burn my audience out too fast:
Ultimately the aim of the game is to generate revenue and it’s a critical metric to follow when your campaign’s goal is to drive sales.
Depending on how you’ve setup your sales funnel, revenue can be tracked using Facebook conversion pixels, Google Analytics or other third-party software. If you’re sending traffic to a low-ticket item with the plan to upsell them on your core offer later, having a breakeven or slightly negative ad spend can be fine, as you’ll be making that up with your high-ticket offer.
If your high-ticket offer is running at a negative cost after ad spend, then you know it’s time to restructure your ad campaign before you leak even more money.
- Relevance Score
I think relevance score is a great metric to use for beginner Facebook marketers. Relevance Score provides each advert a score rating from 1-10 based on how much engagement it will receive from your audience.
A low score (5 or less) indicates there’s a problem with your advert copy or audience targeting. Most novice marketers will have no idea where they are going wrong so I always advise them to look at relevance score to see whether they are on the right track or not.
I’ll hear people say that click through rate, clicks and reach are the most important metrics to follow on Facebook. While they do play an important role to provide context to other statistics, they should not be your core focus. Knowing that your advert reached 50,000 users doesn’t provide any context without knowing how much revenue you generated from the users, or how many of the 50,000 converted into leads with the average cost per action at $xx.xx.
To avoid overspending or running money burning ads on Facebook, measure these 5 metrics I’ve mentioned to ensure you don’t stray too far away from your goals.
Jake Rheude is the Director of Business Development for Red Stag Fulfillment, a US-based e-commerce fulfillment provider focused primarily on serving ecommerce businesses shipping heavy, large, or valuable products to customers all around the world. Red Stag is so confident in its fulfillment software combined with our warehouse operations, that for any error, inaccuracy, or late shipment, not only will we reimburse you for that order, but they’ll write you a check for $50.