5 Facebook Advertising Metrics You Need To Track

0:00Hi guys, it's Ben Heath from Lead Guru and in this video I'm going to tell you about five Facebook advertising metrics that I think you should really be tracking. And if you keep on top of them and make adjustments based on the data you see, it can really help you get better results from your Facebook ads. Now, before I get into the steps, into those five tips I mentioned, there's something I want to quickly mention now and that's at the end of the video I'm going to talk about a couple of free Facebook advertising resources I think you'll be really interested in. So make

0:26sure you stick around until the end. Okay, so what are the uh the the five metrics? Well, before we get into that, just quickly, I'm assuming already that you're tracking cost per conversion and the number of conversions that you're getting. That's obviously the primary metric you should be tracking with your Facebook advertising. That's what you're going to base the vast majority of your decisions around. If you're not tracking that data, then

0:49that's an that's an added bonus for you. Keep an eye on that. That's what you should be basing the majority of decisions around because of course conversions, whatever that means to your business, is what you want at the end of the day and what you need to optimize for, whether that's purchases, etc. etc.

1:02Okay. So with that said, what are five other Facebook advertising metrics that I think you should track and that should should form the basis of your analysis and what you use to then improve your campaigns, etc. etc. So the first one that I mention is frequency. Frequency shows you how often people within your campaign ad set, etc. You can look at frequency at the three different levels, campaign level, ad set level, or ad level. How many times someone within your audience has seen an

1:32ad on average? So let's say for example, your frequency is 2.5. That means that on average, someone within your audience, within your target audience, has seen your ad 2.5 times. Now I said that could be at the campaign level. So it could be, you know, how many what's the frequency across this entire campaign? So how often on average has someone within my audience seen an ad from this campaign? It could be at the ad set level and it could be at the ad level as well. You know, how many people have seen how What's the

2:00frequency for this ad specifically? Now, the reason why you want to keep an eye on frequency is that as frequency climbs too high, you are likely to see a drop-off in results, particularly with cold audiences. So, with cold audiences, people that don't know you, haven't interacted with your business before, once frequency reaches two to 2.5, we usually start to see a drop-off in results. And if you think about it, that makes a lot of sense because at that point, on average, everyone within your audience will have seen your

2:29ad twice, maybe slightly more than that. And if someone's already seen it twice, there's a good chance that they're either going to have taken the action you want them to take, whether that's you know, click through to your website or fill out a lead form or whatever it happens to be, or they are simply not interested in what you have to offer,

2:47and uh they're just not going to do it. Now, of course, there are you will still get conversions after that point. You're not going to get no conversions because there will be people that, you know, didn't take a good look at it the first two times who are interested, etc. etc. But, as the percentage of people that have already taken action increases or the percentage of people that are just not interested, who have already been exposed to your ads, increases, you're going to see the number of conversions drop off and the cost per conversion um

3:12start to increase. Now, usually the best and most effective way to combat that with frequency is to change up your ad creative. Now, there's a bunch of different methods, but if you change up your ad creative, it will look like a new and different ad. People won't sort of have ad blindness where they don't see your ad, don't process it, and you can get a lot more juice out of that audience um if you change up your ad creative. I've got another video on how to combat Facebook ad fatigue um and things like that. So,

3:38make sure um you check that out. There'll be a link in the video description below. Uh but I just wanted to quickly mention that, frequency being a primary one. There's a lots of people that have had the experience with Facebook advertising whereby the costs of um their conversions or whatever it is that they're trying to get, all of a sudden just starts creeping up and going up and up and up and up, and it's basically people have become bored with your ad and you need to change

4:00something up. First one is frequency. Second one is your conversion rate from link clicks to whatever it is that your conversion actually is. A lot of people blame the Facebook ad campaign for poor performance when they're running Facebook ads to an audience to get them to do something on your website. And of course it can be the Facebook ad campaign. You need to have everything in order. You need to have targeting set up correctly, engaging creative, all that sort of stuff. But if you're getting a lot of link clicks for a relatively low price, but they're not converting into conversions, that's an indication to me that the

4:37Facebook ad campaign is doing its job. It's getting people to your website. But your website, at some point in that sales funnel, is letting the side down. It's not convincing people to convert. Now, you probably have watching this video saying, "Okay, well what should my conversion rate be?" I can't really give you one because depending on what you're going for, it will be massively different. So if you're trying to generate opt-ins for a lead magnet, you would want a conversion rate from link clicks to conversions of 40% plus, something like that would normally be a good one. Whereas an e-commerce business is never going to see those sorts of conversion rates. You

5:09you know, if you see I don't know. 5% conversion rate with most e-commerce businesses, you're doing very, very well. So what what I would say is I can't really give you a an example because it was so dependent on your business, but what I would do is I would monitor um, how that changes um, over time with percentages, the percentage of link clicks to conversions. And if you make any sort of website adjustments, you try and test things, change things, I would also keep an eye on that metric closely because you're going, "Aha, with when we send people to the product page instead of the home page, we see this conversion

5:41rate. When we change, you know, our big offer on that sales page to this, we see this conversion rate. That's what I'm talking about with that. And then coming into that, uh Facebook advertising metric number three, going a little bit deeper into that, is to go through the various stages. So, you might just have link clicks to conversion all the way through, but you might want to chop that up. So, for example, instead of just looking at well, alongside just looking at link clicks, um and conversions and and sort of how that works, uh and sort of what that conversion ratio is, I would also take for example the difference between

6:13your add to carts and purchase. If you're an e-commerce business and you're seeing lots and lots of add to carts, but only say 10% of those people are going on to purchase, that's that's quite low. You would like a higher percentage. And sometimes, by the way, when we run campaigns, we see sort of 20, 30 add to carts for every one purchase. Whenever we see that, there's something wrong with the checkout process. Perhaps you're trying to charge a really high delivery fee that only comes in in that checkout process, and that's putting people off. Perhaps it's just not easy to use, or you know, you may not realize it, but your website

6:43just doesn't look quite right on a um on a mobile device, something along those lines. So, not only take, you know, Facebook advertising metric number number two is to take the full link clicks to conversions and and calculate what that conversion percentage is. Facebook advertising metric number three to track is to break that down into its component

7:04parts, um and take a look at the stages. So, if you have add to cart versus purchase, for example, that'd be a great one. Okay, so those are three. Facebook advertising metric number four that I would track, and I think it's important to track, is CPM. So, CPM is cost per thousand impressions, okay? And that's an important metric, cuz that's basically how Facebook thinks about the cost of

7:28Facebook advertising. So, Facebook, you know, you might be looking at cost per conversion, maybe cost per link click, but Facebook is trying to get as much money out of advertisers possible per thousand impressions that they provide. Because, of course that's what Facebook has to sell. That's what they're effectively selling to advertisers is we can put your ads in front of people. Okay? That's what they are they're going for. So, the reason why you would track cost per thousand impressions is it can vary massively between different audiences and particularly between different ad creative. So, Facebook wants advertisers to use engaging interesting creative that doesn't annoy their users because

8:08if it did annoy their users, people would stop using the platform and you'd run into all sorts of Facebook would run into all sorts of issues. So, they effectively reward advertisers for creating engaging creative things that doesn't annoy their users by providing a lower CPM, a lower cost per thousand impressions. Okay? If your ad likewise is the opposite, if it's not very engaging to users they're not interested in it, perhaps it's even annoying them even worse, your CPMs are likely to be very high. Now, your CPM will massively depend on your industry and the you're advertising in. It will depend on where you're advertising geographically,

8:46so what countries you're advertising in. So, again I can't give you an average, you know, in the UK a CPM of anything less than five pounds is pretty good. In places like California, if you can get CPMs under sort of $15 you're usually using quite doing very well, whereas in countries like India you're going to have CPMs that are much much less

9:02expensive. So, it's difficult for me to give averages on what your should be. But again, it's something to track and something to keep an eye on and you might find that okay, before you start to see a lot of conversion data coming through, let's take a look at our CPM and see that you know what, when we advertise to this audience our CPM is much much higher. Maybe they're just not

9:20that interested in our stuff. This ad is producing a much higher CPM. Again, maybe this ad just isn't sort of resonating with the audience etc. etc. Again, all these Facebook advertising metrics need to be caveated with if you're seeing a great cost per conversion, this other stuff basically doesn't matter Um than frequency, you need to keep eye on that because that's something that's going to um increase over time and potentially

9:43affect performance over time. But um but yeah, but if if if if you're seeing, you know, you're wanting to optimize beyond just the cost per conversion um data, then that CPM is something to um to really keep an eye on. Okay, and then finally, we've got cost per link click. So, these are all metrics These are all Facebook advertising metrics that are very centered around the sort of action people are taking on Facebook and they're very sort of Facebook-centric metrics. And it And that's because of

10:12the way the platform is set up. As I've already mentioned, Facebook incentivizes advertisers to basically produce great ads by reducing CPMs and things like that. CPC, cost per link click, is a little bit different. One of the things that we will often find is that we're getting, let's say, a nice low CPM. So, the ad is engaging, we're getting perhaps a lot of engagement, a lot of social proof, a lot of comments, likes, shares, things like that. But

10:43perhaps clicks are costing quite a lot. And again, what a click costs you will depend on your industry, where you're located. Sometimes a you know, a $2 cost per click is great. Sometimes that's really expensive. So, I can't give you examples of what your should be depending on where you are in the world, what you're advertising. But again, just monitor in terms of across the board, which audiences produce lower um or higher CPCs, and most importantly,

11:07which ads. So, when we see If I go back to the example where we've got, you know, an ad campaign that uh is producing a low CPM, lots of engagement, it looks like everything's going well, but the the cost per click is low, that's usually because the offer isn't strong enough or the call to action isn't strong enough. So, a lot of people think that you can't tell people what to do in a reasonably aggressive manner with Facebook

11:30advertising, but that's not true. If you've got a great offer, you can tell people in your ad copy, "Go and get it now. It's a limited time offer. Go and get it now." Likewise, if your ads aren't driving people to your website, let's say people love the product you're advertising. You've got a like product demonstration video. People like, "Oh, this looks fantastic." But they're not

11:47really clicking through to your website. Your cost per click is quite high. Um then try putting in a more aggressive offer. So, instead of just saying, you know, "Come buy it. It'll be here tomorrow. It'll be here next month. Whatever." Talk about the fact that there's limited stocks available. Offer a 20% discount, but for the next 3 weeks only. Do those sorts of things to really help um drive down the cost per link click. Get more people to your website that can then obviously buy, can be retargeted, etc. etc. Okay, so those five Those are the five Facebook advertising metrics. Hopefully, that's really useful when you're looking at

12:19your data. You can use those to optimize your campaigns. Now, at the beginning of the video, I mentioned a couple of free um Facebook advertising resources that I want to quickly mention now. The first is my Facebook Ads Mastermind group. It's a fantastic community. It's a free Facebook group. Anyone can join. There will be a link in the video description below. Um it's currently got just over 18,000 members. Tons of people all looking to get better results from their Facebook ads. And if you've got questions, you can join the group. You can post them there. People are more than happy to sort of answer questions and give you advice and and feedback

12:50based on what they've done and their experiences, me included. Um there's loads of Facebook ads agency owners in there. So, if you're looking for better results with Facebook advertising, I'd strongly recommend you get involved. Go ahead and join us. Uh we'd love to have you. Second free thing is my five-part Facebook ad template, which is something you can download for free. Again, link in the video

13:08description. Now, this Facebook ad template contains some of the best performing ads we've created as an agency for our clients. Um this They're from lots of different industries, lots of different ad formats. We sort of broken each ad down into its component parts, explained what we've included and why. So, if you want to model from some great high-performing ad, go ahead and make sure you grab that. And then finally, I'm going to talk about our Facebook advertising services. We're a Facebook advertising agency. We create, manage, and optimize Facebook ad campaigns. And you know, if you're spending more than $3,000 a month or looking to spend more

13:39than $3,000 a month, we may be able to do that for you. So, go ahead and click on the link in the video description. Go ahead and book a call with me if you meet that criteria. I'd love to talk to you about what it is that we do, find out a bit more about your business, explain how we can help, etc., etc. No obligation, of course, really casual, but that would be That would be great. And yeah, if you like this video, please subscribe, give it a thumbs up, comment below to let me know,

14:03comment below if you have any questions. And yeah, I'll talk to you soon. Thanks, guys. Bye-bye.