Your ads are running! Yay! Now what?
Are they performing? What do all the stats mean? Should I keep them running? Should I increase the budget?
It can be difficult to understand the metrics in Ads Manager, so I’m here today to help you make sense of your results!
Hold onto your hats, we’re going to talk metrics. . .
Here are 4 key metrics to begin tracking to get to know how your ads are doing.
1. Main Goal Results
This is where you track the main goal of your ads – for example, leads, sales, or booked calls. How many results have you had so far? And don’t forget to track this off Facebook (Facebook can’t accurately track events off Facebook these days).
What to do if your main goal results are low?
- Check the metrics below and optimize those if needed
- Check the stats of your funnel – is there a bottleneck in your post-ad funnel that is affecting the number of results?
- Test a new audience
- Test a new hook
2. Cost per main goal result (Cost per acquisition ‘CPA’)
How much is it costing you to acquire those results? You can work this out using a simple formula:
Amount spent ÷ number of results = CPA
$100 ad spend ÷ 25 results = CPA of $4.00
How does the CPA compare with your target? If you don’t have a target CPA, think about what you are happy to spend for each lead or sale. If you are struggling, think about what your ‘customer lifetime value’ is? (These numbers are something I help my clients with using my personalized ad budget calculators. Reach out for more info.)
What to do if your CPA is higher than you want?
- Work on increasing your results (see point 1 above)
3. Link Clickthrough Rate (CTR Link)
This is a great metric to look at to see how your ads are doing on the platforms. Clicks don’t always mean quality leads and clients. But they do show how well people are responding to your ad. If your CTR is at a good rate, it suggests that your ad is doing its job of attracting people and enticing them to click for more info.
A good benchmark to work on for CTR is 1%+
What to do if your CTR is too low?
4. Frequency Rate
This shows how often people are seeing your ad. If the frequency rate is around 1, then people are only seeing your ad once. If your frequency is 8 or more, then they are seeing it a lot and may get tired of it.
The ideal frequency rate depends on the type of ad you are running – sometimes, a high frequency is what you want. But as a benchmark, I would say under 3 is great.
What to do if your frequency rate is too high?
- Try a bigger audience size
- Add in more ads so that your audience sees different variations.
There are MANY more metrics that can help to inform the performance of your ads and help you to determine how and where to optimize for increased results. But to begin with, I recommend focusing on these four key stats.
All of my packages offer help with tracking, monitoring metrics, and optimizing. Find out more about how I can help you to reach and serve more people with Facebook & Instagram Ads – BOOK A CALL.
Hi, I'm Corin
I help business owners like you to use effective digital ads to scale your business and serve more of your ideal clients and customers. Without needing a huge ad budget, and even if ads haven’t worked for you in the past.