Marketers love advertising on Facebook because of its massive monthly active users.
The social media giant also provides a plethora of advanced tools to help businesses around the world, create advertisements and measure their performance through a good deal of metrics.
Say you need to reach an audience to generate awareness about your new product. You can do this by displaying relevant advertisements to them using Facebook.
But the best thing is you can measure the performance of your Ads to gain critical insights.
This Is incredibly helpful because the metrics tell you what’s working and what’s not.
Imagine putting your efforts and budget into executing advertising actions that produce little to no results.
This would not only push your brand to fall behind the competitors but also waste resources and time which you can use differently to generate results.
While most brands understand the importance of analytics, they do little to capitalize from the insights.
Facebook Ad analytics form the foundation of your brand’s advertising journey.
It helps you test your strategies, budgets, audiences, and creatives to understand the actions you must take to achieve the goal of your campaigns.
Hence, it’s critical to know how Facebook Ad analytics track the effectiveness of advertisements.
In this article, we’ll discuss all about Facebook Ad analytics and learn a good deal of metrics you can use to draw useful insights for your brand advertising goals.
Let’s get started…
What is Facebook ad analytics?
Facebook Ad analytics give the performance measurement of a good deal of metrics that define a campaign’s effectiveness.
For instance, if you want to reach a wider audience through your Ads, you can measure the reach of your Ads to know how many people have seen your ad.
Facebook offers specific metrics designed for unique campaign objectives. In simple words, you get a set of metrics that tell you the performance of your Ads based on your desired goals.
By understanding the Ad analytics, you can learn what’s working, where you need to improve and what to avoid, to drive maximum results from your resources and budget.
How to set up custom reporting views?
You can analyze many Facebook Ad analytics by going through all the settings and filters. This usually takes time. But there’s an easy way.
You can set up custom reporting views for the analytics that define your campaign objective.
- Go to your Facebook Ads Business Manager and navigate to an option labeled as “columns.”
- Click on “customize columns.”
- You’ll see a full list of the metrics available in Ads Manager.
- Choose the metrics you need and save them as a preset in the bottom-left corner.
Pro tip: Double-check to make sure your Facebook pixel is working fine. This’ll help you get correct information about your business.
Critical metrics to gain insights on advertisements
Metrics at unique advertising levels provide you information about the overall performance of your campaigns and advertisements. Let’s understand them.
Results give you the total number of times your campaign achieved its desired goal.
This means results depend on the type of campaign you start, and the goal associated with them.
For instance, if your campaign objective is to convert people to customers, then the result will vary with conversion metrics like online store purchases or leads.
But if your campaign objective is engagement with new audiences, then the result will vary with a metric like impressions.
Cost per result: CPR
Cost per result gives you the amount you spend to get a single result. This’s one of the most critical metrics because it helps you understand the worth of your spend.
Say you find out you are overspending for a result, you can now address this issue by adjusting your budget, or changing your strategy.
CPR depends on the result you wish to achieve. For instance, the CPR will be of a different value if you want people to just sign up for your newsletter than if you want the audience to make a purchase on your website.
You can calculate the CPR by dividing the total Ad spent by the number of results.
Reach gives you the number of people who have seen your advertisements.
Now, most people confuse this metric by considering that it also provides information about the number of people who have interacted with the Ads.
But this isn’t true because reach only gives the number of unique views on an advertisement.
You can analyze this metric to understand whether you are reaching the desired number of unique people.
Impressions give the number of times your audience saw the advertisements on a screen.
Well, this metric might sound confusing with the reach metric. But there’s a difference you need to understand.
For instance, if a person views your ad 10 times, then the impression on that advertisement is 10, but the reach is 1. This is because reach considers unique individuals, regardless of the number of times one sees your ads. Hence, a reach of 2 can have an impression of 20.
Pro Tip: More impressions means more brand awareness. Hence, measure the impressions’ data across unique platforms to understand where your ads are appearing most frequently.
CPM: Cost Per 1000 Impressions
Impressions play a critical part in increasing the quality of your advertisements. More impressions on an advertisement means more people are interacting with it.
Hence, you must always focus to maximize the impressions. Cost per 1000 impressions aka CPM is a metric that tells you the money spent to achieve 1000 impressions.
Click-through Rate: CTR
Click-through rate aka CTR compares the number of link clicks to the total number of people who saw your ad.
This means you must focus on increasing the CTR of your advertisements. While this depends on many factors like the keywords in your Ads, the creatives, CTA’s and more, you can keep analyzing the current CTR to make changes for the better.
Facebook gives you two CTR columns values.
The first column tells the CTR for all ad clicks, and the second column displays the CTR of links clicked within advertisements.
Cost per Click: CPC
Cost per click is the amount you pay to the advertising platform aka Facebook for every click you receive on an advertisement.
This is a critical metric because it provides you solid information on how you are spending your budget.
The goal is to increase the number of clicks on your advertisements while decreasing the money spent per click.
Conversion rate gives the percentage of a targeted action compared to the total number of impressions.
If a user completes your desired action, then it counts as a conversion. For instance, if the goal is to attract people to click on a link or make a purchase, then the number of conversions will be the number of people that successfully complete the goal.
It’s a great metric that tells you how frequently you need to display ads to urge a user to complete the targeted action.
Return on Ad Spend: ROAS
Return on Ad Spend is the ultimate metric that tells you the total profits you have made from your Facebook Ads compared to the total amount you’ve spent on them.
Measuring the ROAS will give you the entire picture of the effectiveness of your Ads. If you aren’t generating the desired revenue from your campaigns, then you might consider changing your strategies.
The frequency metric tells you the average number of times a person has seen your ad. This helps you understand the saturation of your audience.
In simple words, if your audience has seen your ad over 10 times, then you must consider expanding the target audience.
But if the conversion rate is high with the frequency, then chance is you probably aren’t over-saturating your audience yet.
There you have it. Now you know the importance of Facebook Ad analytics. You also know how different metrics help you at unique advertisement levels to learn useful insights. You can use these insights to introduce changes to your current strategies, budgets, and goals. I hope this article helps.