3 Key Metrics to Manage Facebook Ads..why you should know about them.
We all heard hundreds of times how important a good Click-Through rate is.
But are you sure that’s a relevant metric?
We already said it other times [our previous post about Facebook Advertising Strategy]: it’s hard to manage facebook ads. Designing the ad is just the beginning.
So what do you need to know and measure to ensure your campaigns are actually generating money?
In this post, I’ll share with you what are the 3 key metrics to watch to be in control of your campaign without feeling overwhelmed.
Let’s take, for instance, a lead generation campaign.
This means we’re running ads to bring people to a landing page. And then convert them into leads by obtaining their email address.
Here are my favorite metrics!
Watch these when you manage Facebook ads, and you’ll never run a campaign at a loss again
It cannot be said that Facebook doesn’t provide an enormous quantity of data to their users. In fact, at times it’s way too much!
But not all metrics are created equal.
Before checking out my top 3 KPIs make sure you have the Facebook Pixel installed. This is a tiny string of code to be placed on your website to allow Facebook to track how people behave on your site (and much more!).
Ok now open your Ads manager or Power Editor (whichever you use to manage Facebook ads), we’re ready to go!
CPM: This is the cost per thousand impressions. Yes, it matters even if you are running a pay-per-click campaign.
Because this is telling you how expensive a specific audience, at a specific time, really is. Play with different audiences and times to find the lowest CPM, and your campaign costs will immediately drop.
CPL: A.k.a. Cost per Lead. Thanks to the Pixel, Facebook can track how many people who have been sent to your landing page, actually converted. Dividing the total amount spent by the number of leads will give you the cost per lead. This is, ultimately, what matters.
Imagine the value of a lead for you is $10 and you are paying $15 to get one. Well, that’s a problem!
Total reach, amount of comments, relevance score, all become just vanity metrics if we can’t keep our CPL low enough.
And last but not least, the CTR.
Wait! I know what you are thinking: “you just said it’s an irrelevant KPI!”.
The truth is that there are 2 types of CTR. A generic CTR, and what Facebook calls Link CTR.
The difference is that the first one counts every single click on the ads. The second only counts the people that decided to get to your landing page.
The first CTR is always higher. It’s great for the ego. The Link CTR is actually telling us how effective our ad is.
Make sure you are monitoring the right one!
Could there be a better way?
The 3 metrics listed are just some of the many important things to watch. This is exactly why you should consider using the support of dedicated software to manage Facebook ads.
A software that always shows you what matters in a simple, actionable way.
Wouldn’t that feel great?
Find out now for FREE! Sign up for a trial of The Campaign Maker, our tried and tested platform to help you have even more success on with Facebook Ads.