3 Facebook Ad Metrics To FIX If Your Ads Are Failing!

0:00hi guys it's ben heath from lead guru and in this video i'm going to talk about three metrics that you need to fix if your facebook ad campaigns are failing to show you in this video how to diagnose where the issue may be in your facebook ad campaigns and how to go about fixing that issue once you've found it before i get into the next one i really quickly ask you to smash a like on this video click that like button that'd be much appreciated and really help me out and of course subscribe to my youtube channel if you're new and haven't done so already okay

0:28so let's assume you're running a facebook instagram ad campaign and either it's not performing at all or it's not performing as well as you think it can okay at some point all facebook advertisers are going to run into that problem and you're going to want to know how to fix it it's very easy to sort of just look at the data and think what on earth do i do here there's so many different options do i try changing my audience do i try and changing my ad do i try changing my campaign objective my product my offer all those sorts of things so there's three things that i will always take a

0:58look at if a facebook ad campaign is not working to try and diagnose where in that process where in the sales funnel are things falling down and then once you work that out of course you go about fixing it in a much more laser targeted way than if you just have a scatter gun approach of trying to change everything you can often change a whole load the results don't get any better or they're different but you've no idea why and and that doesn't really benefit anyone so what i've done is i'm in one of our facebook accounts and i put some filters on so you can only see

1:26a couple of campaigns i wanted to really highlight these two because i think they're they're great examples so these are both campaigns that were run a little while ago now um in order to generate um leads so opt-ins for a couple different lead magnets one was a case study and the other one was it was a facebook ad template that we ran so so similar campaigns but different offers and that's uh that's really key so facebook campaign isn't working one of the first things i'll take a look at is cpm uh where are we here we go okay cpm cost per thousand oh by the way if you want to be able to

1:55see the exact same data i've got here up up up on this section here you've got various options where you can um select like basically presets of data so facebook will default you want to performance you can also look at delivery check out things like your frequency metric and all that sort of stuff i've just got my performance and clicks i have a load of like you know custom ones and i'd recommend you do that but i wanted to put something here that you could use as well so we've got performance and and uh and clicks here which shows you all this data which we're going to show you here

2:24so the first thing i'm going to take a look at is cpm cost per thousand impressions how expensive is that so basically how much are you paying to reach well not reach a thousand people that's quite a clear distinction here that would be you know your reach is your thousand people this is a thousand impressions so if on average someone sees your ad twice within those thousand impressions well then you've actually reached 500 people hopefully that makes sense anyway cpms for this top one are 16 pound 53 and cpms for this bottom one at 12 pound 71. different markets will have massively varying cpms if you run a

3:01campaign in you know a country like india you are going to pay far far less in terms of cpms than if you run a campaign somewhere like california which is probably about as expensive as it gets in terms of cpms okay you know if you're um and then within that so not just the locations but also the groups of people you're targeting some are much more expensive so typically you'll see lower costs if you're in much broader more generalized industries like health and fitness and things like that if you're in anything sort of b2b anything financing insurance related marketing related um you're going to see higher

3:38cpm so you need to work out before i go on here you need to work out within your industry what's a good benchmark of a cpm what should you expect what's reasonable um and you you will get to know that as you run campaigns in that industry you'll get to see an average of you know what a 30 cpm is about average it seems to be for my campaigns across the board or you know an 8 cpm is about average for our campaigns across the board it really does vary massively so i can't give you a benchmark here but against your benchmark are you seeing particularly high cpms

4:10because that could obviously be one of the reasons why your campaign is not working if you're used to seeing cpm's of 20 and you come in here on one of your campaigns and you've got cpms of 45 and your campaign's not performing very well well absolutely that could be the reason why so that's one of the reasons why we'll come in and check out so the cost of your cpms is determined by a number of facts but one of the biggest one is who you're targeting okay perhaps you're just targeting a more expensive audience to reach in that campaign obviously you could do this at the ad set level as well

4:40than in other campaigns or other ad sets and perhaps focusing on some of those less expensive audiences will produce better results now obviously you have to corroborate that with a better cost per conversion so if you're seeing really high cpms in one of your campaigns and on your ad sets but your cost per conversion with that group is great well then that's absolutely fine pay the highest cpms it'll be worth it this is a scenario where your campaign is not working is it it's not producing the sort of cost per purchase or cost per lead that you want to want to produce that's when we come and

5:09look at this stuff it's really clear about that okay so let's say your cpm's are significantly higher you know 50 higher than it usually is or maybe that audience is too expensive for you to reach okay perhaps you need to focus on less expensive audiences i said perhaps because you have to cooperate that with your conversion data one great way of lowering cpms is to increase the size of your audience are you targeting too small an audience is it too specific are facebook charging a premium because you're saying look i only want to reach those people and you're competing against a lot of other advertisers so perhaps um you know going outside

5:42that group you can still include them but adding in other age ranges broadening out using larger interest groups adding in other countries other geographical locations perhaps you go with both genders as opposed to just one and all that sort of stuff can have a big impact on on your audience size and in general larger audience sizes are going to reduce your cpm so that's one of the first things we will take a look at is cpms okay who could we target differently could we target some less expensive audiences could we um open up the audiences are there things that may be making certain locations more expensive like

6:17for example the us election which something that we're experiencing right now that's definitely making facebook advertising more expensive in in in the us so perhaps if you're an international business you could focus more on abroad where you're going to see lower cpms for the time being okay so that's the first one hopefully that um that makes a lot of sense as i'm talking about the first one is your cpms the next one we're going to look at is your cost per click and we can look at cost per click with the third one in sort of tandem with that now in general if your facebook ad campaign is

6:48producing a low cost per click in my mind your facebook ads are doing their job okay they are getting someone to click on your ad come through to your website your landing page wherever they're going and that is basically the job of the facebook ad isn't it i mean yes of course you can it's going to help with the conversion person all that stuff but the main job is to get them to take the next step if you're seeing for example lots of clicks and a low cost per click but your cost per conversion is still too high they're not converting very well well perhaps it's the landing page or

7:23the website that's the issue the ad is doing its job but perhaps there's not enough congruency between the ad of the landing page or perhaps the landing page just needs to be redesigned and needs to be made more clear i was trying to buy something from a website the other day it was so slow that um i literally gave up and bought bought a load of stuff from their competitor um and that people will do that it was just so i was so frustrated it failed once to check i went right i can buy this somewhere else and go somewhere else these sorts of things happen

7:47so if you're getting a low cost per click and lots of clicks then in my mind the facebook ad campaign is doing the job and you need to focus on the next stage in the sales process vice versa if you're getting a high cost per click perhaps there's something about the facebook ad campaign that you need to um change improve and focus on so if we take this example we've got these two campaigns right so we've got one that's got a cost per click of four pounds 63 which is really very high that's very expensive um we're advertising this predominantly in the uk that's much more expensive

8:19than i'd like to be for a lead magnet campaign like this we're bearing in mind we're advertising something for free you know if you're seeing a cost per click of four pound 63 which by the way is almost six dollars um but you're advertising that in the you know in the most expensive industries possible like insurance or finance something like that well maybe that'll work for you but when we're advertising a free lead magnet we're not even asking for money here we would want a much lower cost per click and that's what we've seen in the second campaign here you know just under a pound 98p that's absolutely perfectly

8:49reasonable that's uh that's a pretty good cost per click for our industry again you have to work this out similar to cpms for your industry if you're in health and fitness you might an average cost per click might be something like 50 cents i said in insurance your average cost per click might be five dollars so it is gonna gonna vary and the the the ranges are probably going to be more standard in cost per click than they are in cpms so i know for example that this being under a pound is fantastic i for me advertising this sort of free thing one pound 50 would probably be a

9:20benchmark that i would look at for my business personally so this is way above it at four pound 63 and that's nicely below at 98 p now yes there's a difference in cpm costs so you think that's how much we're paying to get the thousand impressions so that will attribute some of the difference in terms of the difference in cost that comes out cost per click because if you think about it if your your click-through rate was equal but one audience more expensive to reach than the other you're going to pay more in terms of cost per click for the more expensive audience because it's going to

9:49translate but that's what 30 20 to 30 percent difference there we're seeing a much much larger difference in cost per click which is backed up by this ctr um link click metric here so that's a click-through rate the potential people that click on an ad versus click on a link on an ad versus people to see it here you can see 0.36 percent which is really quite low i always want above 1 for that ad and then a 1.3 percent which is really quite nice and not amazing but very very strong for for this campaign i think these are two great examples to show you because

10:19of the the difference between the two so we can see that far fewer people a much lower percentage of people that see ads in this campaign are actually clicking okay what can that be well that could obviously be the ad itself perhaps we need to rewrite the headline perhaps we need to make the offer more clear in the primary text perhaps we need a whole new creative maybe we need a new ad format the images are boring it's not grabbing people's attention we need something a bit more punchy and perhaps we need to go with video or try a slideshow or a carousel instead of just a single image

10:48that could be the ad and that's a big area focus if we see this sort of data in my mind a 16 pound cpm is fairly reasonable but that's way higher than i wanted to be so if i was going through the process of fixing this top campaign we're going to leave cpms for now audience is pretty good but we're definitely going to address the ad itself because that clearly needs some work at a 4 pound 63 cost per link click the other thing to think about when you have a high cost per link click is what's your offer are people as interested to offer and we know that

11:20people weren't as interested in this case study as they were in the facebook ad template so part the reason for the difference between these two campaigns is um that it's going to be the offer itself people are more interested in the second one another reason why this one's much lower as you can see it says that it's got buddy on the end that's my dog actually used my little springer he was a puppy at the time it was sprung a spaniel puppy to uh to record the video what a great video for grabbing people's attention that would have helped produce a lower cost per click so that

11:46cost per click in my mind for my benchmarks in my industry is really quite good and that tells me that this ad has done a great job which doesn't surprise me because we put a lot of effort into it recorded a video with the dog in there it took like a thousand takes to get it right as you can imagine and you may have seen it uh seen that video because i've talked about it and used it in the past but um but yeah so that performed really quite well um two things with high possibility click just to reiterate is your ad created good enough can you

12:15improve that ad itself and then of course there's the offer is the offer really resonating could you improve it are people that interested et cetera et cetera this one looks absolutely fine to me no worries with that but this one definitely needs some work okay and that's backed up by the ctr one thing i'll quickly mention by the way guys is when you look at this data you need to look at cost per link click you need to look at ctr and link clicks don't look at all clicks so you can see here link clicks is 746 but all clicks

12:39is over 8 000. this is such a misleading metric that includes any sort of click on your ad whether people click the see more button anything on those lines and look if you actually look at all clicks for ctr that one does 3.87 which is more than the 3.44 even though ctr there is not 0.36 and 1.3 so don't look at clicks ctr all cpc look at the cpc there telling me all cpc is 43p where there's actually a link click to get somebody clicked on the website was four pound 63 so they're very very different metrics don't get sort of lured into this stuff make sure you're looking at the cost per

13:12link click that's very very important so those are the first two metrics look at cpm's looking cost per link click so with this one here we've worked out with both of these the cpms are fine with this one here we've worked out that um it's probably the ad and or the offer that's the issue here with a cost per link click of 4.63 and then that therefore that's what we can address this one we're very happy with the ad and the offer clearly doing very well at a cost per link click of 98 pence then we will look at the next stage in the sales funnel so

13:43those are kind of on facebook things we've got cpms for the targeting we've got cost per link click for the ad but you have to remember and this obviously applies if you're sending people to a website which the vast majority of people are doing or a landing page is that how good that website how good that landing page is has a massive impact on the performance of your facebook ad campaigns it has to be set up well it has to be high quality has to look right has to have the things on it that convince people to buy so we need to look at the conversion

14:10rate between link clicks and then whatever it is you're optimizing for so you can see this one here down here has 2178 clicks if i scroll over to the left we can see that it has generated 1081 leads okay so what's that that's almost exactly a 50 conversion rate from link clicks to leads which on a a lead magnet page you would normally so this is a lead magnet where someone's coming through to the website they're just giving their name email address in exchange for a free thing that's what a lead magnet landing page is like an opt-in page a 50 conversion rate is absolutely fantastic i would say average is

14:50probably somewhere in the 20 to 30 range for that sort of thing so 50 conversion rate is amazing depending on what you're offering the conversion rate there is going to be very very different so if you're trying to get an e-commerce product sold average is probably in the two to five percent range you know if you take a look let's say you've got a low cost per click you know like with this one we've got a low cost per click of um you know let's say 98 p but then [Music] we're getting a five percent conversion rate on a lead magnet opt-in well that's gonna massively affect

15:24the cost per lead or let's say it's an e-commerce business and you're getting a 0.5 conversion rate the difference between that and a 2.5 conversion rate is obviously five times as many purchases with the exact same cost on facebook the exact same um expense for just one fifth of the purchase so the difference is absolutely enormous and this is where we take a look at this so you have to bench market against what you're selling ecommerce businesses you're usually looking at two to five percent where do you sit in that calculate how many clicks you generated versus how many purchases you generated and work out the percentage there for a

15:57service based business it depends what the service is the range is going to massive variety if you're trying to get people to inquire you could have conversion rates above 10 if it's something that people can quite easily sign up for like a free consultation if you are going straight in with like you know custom designed luxury yachts well you're gonna have a much much lower conversion rate and but i would i would want to see with people inquiring yeah 10 would usually be very good in a service-based business but i would want to be above 3-4 ideally above 5 but it's not always possible not always necessary to have a

16:33profitable campaign but that would be rough guidelines that i would give you for a service business if you're sending people to your website for them to inquire to get a free consultation free quote something along those lines and start along that that sales process um so hopefully those three metrics are how we sort of think about the three biggest components of a facebook ad campaign generating great results you've got your targeting you've got your um ad and then you've got your landing page and where we work that out that we diagnose which one's the issue is the cpms as a targeting issue the cost per link click is the ad or

17:08offer issue and then the conversion rate between link clicks and conversions is our landing page or sales page or website issue if that's particularly low and um yeah even you know you don't have to just do this by the way guys if your campaign's not performing at all if your campaign's performing kind of well but you think you can improve it go in and go through the metrics i just described and take a look and see oh okay we've got an issue here um you know our ad is clearly doing amazingly well we're getting really low cost per link click our cpms are fantastic so we clearly got the right

17:39target audience oh but our conversion rate could be better still profitable conversion rate could be better why don't we go about see if we can can improve that so if that's been video's been useful before you go a couple of things i want to quickly mention the first is a free webinar i've created called three killer facebook ad strategies to double or more your revenue and this webinar breaks down three different sales funnels that we use all the time including advertising lead magnets and it shows you which one you should be using depending on your business type so i think it's very very important you need the right strategy

18:05there's no debating that you will not see success if you don't have the right strategy when it comes to running facebook ad campaigns so check it out completely free links in the description other thing i want to mention is my facebook ads mastermind groups is a facebook group that has 53 000 plus members amazing community one of the biggest communities of facebook advertisers in the world full of people just like you that want to get better results of facebook ads that are um they're posting in the group all the time they're answering questions getting them answered fantastic place to be together connect with other people that can help you out

18:35and you can help them out and all that sort of stuff i do free live trainings in there every week so if that sounds like something you want to be part of make sure you go ahead and join completely free links in the video description and then finally as a company my company lead guru is a facebook advertising agency and we create manage and optimize facebook ad campaigns for clients i get a lot of questions about this like do you run campaigns for clients and the answer is yes it's actually the main part of our business is what we do so we're only able to work with

19:01companies that have a budget of at least three thousand dollars per month but if you meet that criteria or you're about to meet that criteria um why don't you book a call with me book a call with me or one of my team members just click on the link in the video description there's been one right at the bottom you go through to our website and you'll be able to book a slot directly into our calendar and basically they're very informal we can just find out a bit about your business you can find out about our services we can see if we're a good fit and then and then you know look to go

19:25from there we've got tremendous amount of experience in every industry you can imagine we've got dozens of client campaigns live maybe even hundreds of client campaigns live at any one time um spending millions of million dollars on the platform and that's where a lot of my content comes from is from the stuff we do for our clients and i've been able to to learn from the tests and things we're running and the results been able to achieve and share that with you guys on my on my youtube channel so um so yeah so if you're interested you want better results you're wanting to scale we're very used to helping with that and can

19:55always certainly help you out go ahead and book that free call if this video is useful please give it a thumbs up give it a like uh comment below to let me know comment below if you've got any questions i'll do my best to uh to answer as many questions as i can and of course subscribe to my youtube channel if you are new and haven't done so already thanks a lot guys best of luck with your facebook ad campaigns guys go ahead and do some diagnosis and i will talk to you soon thanks bye