Likes, shares and comments do not tell you much about the performance of your ads. To determine the impact and true cost of an advertisement, you need to look for other metrics in Facebook Analytics.
It is the number of times your as was shown. A higher number of impressions is an indication of higher brand awareness. Brand awareness should be your top priority if you are reaching new customers or launching a new product or service. you can also Buy Real Facebook Likes to reach potential customers. Besides number of impressions, another important consideration is the placement of your ads. News feed ads have a greater impact and are more expensive. The cost of impressions is determined as cost per thousand impressions (CPM). If the placement for two ads is the same, you should spend more on the ad that has a lower CPM to reach more people at a cheaper price.
Also Read: 5 Ways to Lower The Cost Of Facebook Ads
It is the number of times people click on your ad and helps determine customer engagement and level of interest. Another metric derived from clicks and impressions is the click through rate (CTR), which is calculated by dividing the number of clicks by number of impressions. Higher CTR means a larger number of users are interested in your content. In addition to this, cost per click (CPC) of an ad is the ad cost divided by the number of clicks. Ads with lower CPC can be used to drive interest at a low cost. However, the crucial factor that impacts both, CTR and CPC, is the ad placement. Ads that are shown in the newsfeed usually have higher CTR and CPC as compared to the ones shown in the right-hand column. News feed ads are larger in size and appear with user’s organic content.
Facebook Conversion Rate
Conversions are the actions taken on your website, such as adding a product to a cart, entering an email address, or checking out. It can be calculated by measuring the number of conversions divided by number of page visits. The conversion rate indicates how likely is a user to perform the desired action. Choose products for advertisement that have a higher conversion rate. Another similar metric is the cost per action (CPA), which is the fraction of ad cost and number of conversions. A lower CPA means you are paying less for more conversions.
Return on Ad Spend (ROAS)
This is calculated as revenue divided by the cost of advertising. ROAS is an important metric for advertisers who want to drive sales immediately. A good advertising strategy means higher return on ad spend. When you are evaluating the ROAS results, make sure you consider your click volume and advertising budget. It is recommended that you receive at least a hundred clicks on the ad before you assess its ROAS performance. For advertisers whose objective is to build brand awareness or drive engagement, your primary metrics should not include ROAS. This is because new customers will just be starting to learn about your business and it will take some time to nurture their interest before they begin making purchases.
This refers to the total expected revenue that a customer will generate in their lifetime. Often marketing teams aim to generate more profit margin from those customers than the cost of acquiring new customers. You can incorporate life time value into ROAS. For instance, if you spend a hundred dollars on Facebook advertising and about ten users join your email newsletter. In the first month, a user purchases your product for $25; in the second month, two customers make a total purchase of $50 and in the third month, five customers buy items for a total of $125. Within three months, you have generated two hundred dollars, although you only spent $100 in ads. This shows how you received a 100% ROAS