# How To ANALYZE Facebook Ad Results The RIGHT Way!

Channel: Ben Heath
Video: https://www.youtube.com/watch?v=ceMt2-YSz4c
Duration: 20 min
Language: English
Words: 4499
Transcript page: https://viewrankai.com/tools/youtube-transcript/ceMt2-YSz4c

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[0:00] hi guys it's ben heath from lead guru and in this video i'm going to show you how to analyze your facebook ad results i'm going to show you which metrics you need to track you need to keep an eye on and what data you should base your adjustments and the optimization of your campaigns around to help you get better performance now before i get into that just want to very quickly ask you to smash a like on this video click that like button and of course subscribe to my youtube channel if you are new and you haven't done so already that would be very much appreciated

[0:27] okay so facebook ads analysis how do you analyze your results how do you improve performance let's uh let's get into it so i'm in an example facebook ad account right now and what i'm going to do is i'm going to quickly create an example facebook ad campaign and i'm going to bring up the various metrics and data points that you need to pay attention to when you should pay attention to them when you should make uh adjustments and decisions based on what you see and cover all that sort of stuff now i want to quickly say that um you know facebook ad campaign analysis is not that

[0:55] difficult it's not as difficult as most people make it out to be facebook ads manager looks very overwhelming looks very complicated and it can be but if you know what to focus on and know what you can ignore it becomes a lot more straightforward so hopefully that's what i'm going to do for you guys in this video so i'm just going to call this example ad campaign i'm going to change the campaign objective to conversions now the campaign objective you select is going to dictate which metrics you should track the data that's displayed and all that sort of stuff um and that's why i want to go with conversions

[1:27] because then you're going to see the data that is far more representative of what it is that we're going to be going through okay so there's our example conversions campaign i'm going to minimize this i'm going to keep looking at the campaign level so now of course facebook's default is things like results etc etc so the first metric and the single most important metric that you need to keep an eye on particularly when you're running a conversions campaign is your cost per result your cost per conversion if you're generating leads what is your cost per lead if you're trying to generate purchases what is your cost per purchase and

[2:05] one the first thing i will say about that metric is that it's so important that if that is a good number for you let's say your business can afford to pay fifty dollars a lead and you're currently generating leads for twenty dollars twenty two dollars none of the other metrics none of the other points that you can analyze need to take place you don't need to what bother with any of that if your core metric your cost per result uh your cost per conversion i shouldn't say cost per result because if you've got a different campaign objective your cost per result could be something else if your cost per conversion

[2:38] is nicely profitable for your business you know if you can if you can afford to pay up to 15 times the cost per purchase and you're generating purchase for six dollars that's fantastic and and if that's the case base all your decisions around cost per result so when you're assessing different targeting options which one produces the best cost per conversion when you're assessing different ads which one produces the best cost per conversion pause the underperformers go with the best performing ones and just base everything around cosplay conversion just ignore all the rest of it you don't need to worry about that at least not initially okay i'll explain

[3:12] that a bit more about that in a second why that little caveat comes into place it's when you're not really generating conversions or you're well above your acceptable cost per conversion either generating leads purchases app installs whatever happens to be that's when you need to really focus on these other metrics and these other data points and make adjustments accordingly okay so i'm going to get into that in in a second so that's the first one cost by conversion the second one and this is why i caveated the you don't need to worry about anything else is frequency so i'm just going to quickly go ahead and change

[3:44] the columns to delivery and you'll see this number in here frequency frequency refers to the number of times on average that a person within your target audience has seen an ad at this stage within the campaign you'll also see that you can look at frequency at the ad set level you can also look at frequency at the ad level let's jump back to campaign why is this important this is probably one of the only other metrics you need to track if your campaign's performing well if your campaign is delivering a great cost per conversion this is probably one of the only things you need to keep an eye on

[4:16] otherwise as i said just base all your optimization decisions around cost per conversion but of course it sort of makes sense that once your frequency gets above a certain number campaign performance is going to drop you know if everyone in your target audience has already seen your ad a couple of times well they're not gonna be bothered they're gonna take a look at it they're just sort of gonna mentally ignore it because they're gonna go i've seen that carry on scrolling move on something else okay so frequency is an important number what do we tend to see we tend to see that with cold audiences so with people

[4:45] that have not interacted with your business before when your frequency reaches a 2 maybe even a 2.5 in that sort of range that's when we start to see results drop off now there are a bunch of things you can do to combat frequency like creating new ads targeting new audiences and i'll include a link in the video description below to another video that talks all about how to combat add frequency and high frequency numbers and how you can do what you can do to combat ad fatigue and really get over those issues so there are solutions but keep an eye on frequency if it's with cold audiences you start to

[5:16] get see like it's a 2.4 or something like that think okay i'm now going to need to make some changes otherwise base everything around your cost per conversion as i've mentioned with warm audiences so people on your email list people have visited your website stuff like that you can usually get away with much higher frequency numbers what that is for you really depends on your business and actually how warm that audience is so for example someone in my facebook group very much follows the content that i produce on average i can probably get away with frequency numbers above 10. other businesses might struggle with warm audience frequency numbers above a

[5:49] six i've seen some campaigns can have warm audience frequency numbers go above 20 and the still campaign still does very well so what i recommend with your warm audiences is just keep a real close eye on what that frequency is in relation to your results so when you start to see your results drop off from your warm audience and they usually drop off quite quickly when they do it then go aha my frequency is an eight my results in my warm audience are really starting to tear off i've got ad fatigue i've got a frequency issue i need to do something about it okay so that's one of the most important

[6:21] metrics to track is is frequency okay let's go back into i don't want to go breakdown no let's get back into performance which is the default the next thing i'm going to talk about and this again now we're getting into the realms if your campaign is not delivering and this is the stuff you want to track because otherwise as we've already talked about you want to be basing on cost per conversion exclusively but let's say your cost per conversion is way too high you're thinking right well i need to get into this now i need to analyze the various elements and work out what's going wrong

[6:54] so what i want you to do is break down effectively your sales funnel so we've got here default is performance one thing i want to do is i want to go to performance and clicks and then you'll see here that at the end you're going to get a bunch of data in here one of the which is going to be link clicks and cost per link click specifically why is that important i don't want you to optimize for the lowest cost per link click that's what a traffic campaign is and as we know traffic campaigns do not deliver as good results as conversion campaigns the vast majority of time so we don't

[7:27] want you to go in here and think oh let's pause these ads with um lower link click uh more expensive link clicks let's pause these audiences with more expensive links etc etc that's not how i want to do about it what i want you to do is take a look at the ratio between your link clicks and your conversion rate so let's assume you're sending people through to a sales page and you're generating tons and tons of link clicks but very very few conversions what does that tell me that tells me there's probably something wrong with your sales page the ad campaign was doing its job it was

[8:01] getting people it's getting people interested in the ad it was sending people through to the website people who are likely to purchase but they're not purchasing because the sales page is not doing the work that you want it to do what would be a low conversion rate from link clicks to purchases or link clicks to leads well that very much depends on what it is that you're offering if you're trying to advertise a lead magnet and get people to opt in for an email list you probably want a conversion rate from link clicks to email opt-ins that's at least 20 ideally something in the 40 range

[8:30] something really really high if you're an e-commerce business and you are start and you are sending people through to your website to make a direct purchase if your conversion rate from link clicks to purchase is less than let's say two percent you've probably got an issue you want to be in that sort of two to five percent range ideally so it really depends on what you're advertising and you're gonna have to work that out for your business specifically the way i do that is i look across all your various campaigns things you've done on facebook perhaps look at other sources you know what's the conversion rate from

[8:56] other sources and try and find work out what it should be potentially even contact people in your industry ask you've got friends that offer similar things ask them what their conversion rates are on their sales pages on their landing pages because as i said if you're an e-commerce business and you're converting at half a percent so you need to send 200 people to your website to get a purchase you're in trouble that's not going to work that sales page probably needs some work doing to it perhaps you need some testimonials perhaps you need some more benefits about the product perhaps you need to explain a video

[9:25] all sorts of things you can do but just analyze the various elements okay so that's one thing i wanted to um to highlight if your campaign isn't delivering and something that we definitely track is your link click to conversion ratio on your facebook ad campaigns now something's kind of related to that but i'm going to have to customize my columns to bring this up is specifically to do with e-commerce i'm going to go through add these in and explain what they are so i'm going to add in my add carts add to cart event let's go with total and let's go with cost and they've you see that when you add by

[9:59] the way if you're not familiar with customizing columns you can do exactly what i just did come in you can add in all sorts of different data and metrics points so i'm going to get rid of these extra ones i just want to have a look at my total address card my cost per add to cart i'm also going to do the same with purchases now if you're if you're running a conversions campaign and you're optimizing for purchases this purchase data will be in your um displayed in your columns anyway so you won't need to specifically do what i'm doing but it doesn't hurt to show you how to

[10:25] do this right so i'm going to apply this now at the end we've got here add to cart cost per ad card purchases and cost per purchase this happens quite a lot with e-commerce businesses where we will see very high add to carts but not many purchases and this is a really important piece of analysis to do on your facebook campaigns an important data point to track is that if you are seeing tons of ad to carts but not many purchases so let's say you're seeing 10 out of cards for every purchase that's too many you're always going to have more ad to carts than you are

[10:55] purchased but it shouldn't be a 10 to 1 ratio or anything close to that if you see that sort of data you need to make an adjustment to something usually your checkout page potentially delivery fee you know if you're getting lots to add to carts and you're whacking on a big old delivery fee or telling people it's going to take them two or three weeks for them to have their thing delivered that's really going to get in the way of people converting and that's why your purchase might be very low so as i said if you're running your campaign you're let's scroll all the way over

[11:22] you're happily going about things you're saying that your cost per purchase is just way off where it needs to be this is where you need to get more detailed more granular into what it is you're doing if you see that actually your campaign's generating lots of ads to carts that's good to know generating lots of ad to carts that means the campaign is doing its job to a certain point right people are interested they're clicking they're they're initiating checkout they're adding to cart they're going through your sales process but something's falling down perhaps it's your checkout page okay and i said it could be delivery it could be

[11:51] the design of it could be that something's not working even properly or it's loading very slowly all sorts of issues that really get in the way these are things to to very much focus on and break down in a quite granular way another metric that you can see right here that i think is important to keep an eye on again if your campaigns just aren't doing well and you can't base things really around cost per conversion is your cpm cpm as you can see refers to cost per thousand impressions cpm is how facebook thinks of the cost of facebook advertising so when people say like will it be more expensive for me to

[12:24] advertise in the us versus for me to advertise in india in cpms absolutely the us is going to be a much more expensive market to advertise in but if you're selling an expensive product in results in cost per conversion it might be less expensive to advertise in the us because of course a much higher percentage of people may be able to afford your product or service because the average person in the us earns a much larger salary than the average person in india for example okay so your actual cost per conversion may be maybe much better but when we talk about cost we're talking about cpm

[13:00] and when i'm sort of evaluating the cost of something when it comes to facebook advertising i'm talking about cpm separate from conversions okay so just want to make that clear to start with right what affects your cpm because that's how facebook thinks in terms of cost one of the big big big things is basically how people are reacting to your ads what used to be termed as the relevant score but is now broken down into three different metrics quality ranking engagement ranking et cetera et cetera and and if your ads are not resonating very well with your target audience perhaps it's annoying them they're hiding your ad they're not engaging with

[13:37] it's not grabbing their attention they're not looking at it they're not clicking on the links they're not doing all that sort of stuff that's going to affect your what used to be called relevant score your quality ranking and things like that and that is going to read okay that is going to increase your cpm because facebook rewards advertisers that put ads on their platform that people are interested in that are engaging that aren't annoying and all that sort of stuff if they didn't facebook may get into trouble in terms of their ads are annoying their users so much that their users stopped using the platform so facebook is highly

[14:10] incentivized to reward advertisers that produce ads that get lots of engagement that people enjoy and all that sort of stuff and one of the ways to express that i mean yes you could we could jump over to the ad level and here we go you'll see we could have a look at our quality ranking our engagement rank and conversion rate ranking and that is important i'll get into that in a second but where was i one of the great ways of seeing that in in a specific number is your cpm so what does this mean because certain places are much more expensive to advertise to certain industries are much

[14:39] more expensive to advertise in you know if you're advertising like premium insurance or high-end financial advisory services and you're going after people with really high net worth yeah they're really expensive to advertise to because so is everyone else right so it's not really useful to take a look at your cpms and be like well they're expensive in that case what you want to look at in terms of cpms is the difference between various elements in your campaign so which ad set which targeting option is delivering a much higher cpm if one's let's say at 40 cpm another one's at 15 cpm well perhaps you should ignore the

[15:15] more expensive one again with the caveat that your cost per conversion is the first thing you optimize around perhaps you've got a bunch of different ads and some have much higher cpms on than others and and you're trying to work out why they want to do those ads aren't resonating they're not landing they're not delivering um the sort of results that that facebook wants from an engagement standpoint um and therefore your will try to perhaps pause those and look to create more ads that are similar to the best performers so that's how we would use cpm we'd use it as a relative tracking metric um to

[15:49] assess how much facebook is liking the various components within our campaign and pause the other forms and optimize accordingly i said if i jump to the ad level you can see that you've got these three that used to be the ad relevance score that's sort of broken down quality rank engagement ranking conversion rate ranking this is something people pay a lot of attention to i don't too much they don't really give you the i just found it much easier with a relevant score a number out of 10. now they give you above average below average average et cetera et cetera we've got all sorts of campaigns we've

[16:17] got campaigns that haven't worked that had above average we've got campaigns that are working incredibly well that are below average so i don't really pay attention to this too much okay and there are just a million other metrics that you could be tracking and things you could be basing your your data around but honestly those are basically the things that we look at and that we pay attention to sounds very simplistic but to be honest with facebook advertising with digital marketing even with online business in general simple usually works much better than overly complex it really does and so just a quick recap you want to

[16:52] start with your cost per conversion that's by far the most important thing if that's good you base all your decisions around that nothing else always keeping an eye on frequency very important facebook ad fatigue is a real thing and something you need to avoid and mitigate when it comes about and look at your conversion rate between your link clicks and your cost and your your number of conversions where is that what should that be does that tell you that your landing page or sales page is not good enough take a look at the difference between add to cart and purchases is there an issue with your checkout process you get

[17:20] lots of ad cards for not purchase there's something wrong there maybe it's not the facebook ad campaign's fault or maybe it is maybe you need to provide more proof in your facebook ad it may be the form of a testimonial or review and perhaps you need to get some more demonstration into a video something along those lines and then finally your cpms right so your cost per thousand impressions how much does facebook like various components of your ad campaign and how does that impact how much you're paying to reach people and how does that impact how you should optimize your campaign so hopefully that's been useful before you go

[17:50] a couple of three things i want to very very quickly mention the first is a webinar i've created called three killer facebook advertising strategies to double or more your revenue fantastic uh resource that's literally i've had um i was gonna say thousands but i think it might even be tens of thousands of people go through this webinar right now uh feedback's been amazing people find it very very useful go ahead check that out it's free link is in the description it's all about facebook advertising strategy so a very very very important topic other free thing is my facebook ads mastermind group it's a free group one

[18:19] of the biggest facebook groups in the world to do with facebook advertising got more than 40 000 members all asking questions getting them answered connecting with my like-minded people i provide free training in there every single week if that sounds like something you want to be part of make sure you go ahead and join and then finally i just want to quickly mention our facebook advertising services so my company lead guru the primary thing that we do is we offer done for you facebook and instagram advertising services so we can create campaigns manage them optimize them if you're currently running campaigns yourself we can almost certainly get

[18:50] better results than what you've been able to achieve and that's you know i don't want to sort of criticize anything you're doing i'm sure you're doing a great job but it's just due with the fact that we're managing millions and millions of dollars in facebook ad spend we're uh constantly working on dozens of different client accounts and um and you know we have the experience to know how to get the best results out of this fantastic advertising platform so if you are spending more than three thousand dollars a month or one spend more than three thousand dollars a month that's the starting point to work with us go ahead and book a

[19:18] free 30-minute stretch session with me a link will be in the video description below right at the bottom and you just have to fill out a little bit of data i should warn you there's a lot of demand for our services right now so it's about a three week or so wait time to speak with me that might change of course by the time you uh you watch this video but i just wanted to make you aware of that but yeah go ahead and get that that session booked in if you're interested in our services um and we'll just you know informal chat i'll let you know how we work you can

[19:44] let me know what it is you're looking to achieve i can see if we're we're a good fit and we can uh we can go from there basically right if you enjoyed this video if you found it useful please give it a like smash that like button that'd be much appreciated comment below to let me know that's always really helpful comment below if you've got any questions um i i'm not able to get to all the questions in terms of a response but i do see all the questions i respond to as many as i can and of course subscribe to my youtube channel if you are new

[20:08] and you haven't done so already i release facebook advertising related content uh multiple times per week so if that's something you're interested in make sure you subscribe okay best of luck with your facebook ad campaigns guys now you need to analyze your facebook ad campaigns and improve results um just as we do make the adjustments you need to get better results and yeah i'll talk to you soon bye for now bye

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