Facebook advertising metrics

The 7 Key Metrics You Need To Track To Run A Successful Ad Campaign

If you’re new to running Facebook ads you might feel a bit like a rookie pilot in the cockpit, with all the dials and switches. In fact, there are only 7 key metrics you need to track to run a successful Facebook Ad Campaign.

Let’s look at each of them, and why they’re so important:

CPC – Cost per Click – what it costs you for each click from your ad

CTR – Click Through Rate – what percentage of people who see your ad are clicking through to your landing page?

CPL – Cost per lead – what does it cost you to find a new lead?

Landing Page conversion rate   what percentage of people who click through to your landing page, take the required action?

Sales page conversion ratehow many visitors to your sales page are buying?

CPA – Cost per acquisitionhow much does it cost you to acquire a new client?

AOV – Average order valuehow much is each client worth to you?

Let’s take an example of where you’d track each metric:

Here’s a Basic Facebook Ad Funnel

facebook ad funnel

Cost per Click  $                                                               Cost Per Lead $                                      Sales Page Conversion Rate %

Click Through Rate   %                                                  Landing Page Conversion Rate %

Calculating the overall profitability of your Ad Campaigns: 

Cost Per acquisition is calculated by dividing the number of sales with the amount spent on ads

Average Order Value is calculated by averaging out the sales from each client (if you have upsells you can include these)

If CPA < AOV – then you’re running a profitable campaign and can scale up.

Let’s look at a live example: 

Assume you want a 4:1 ROI (return on investment) – so every $1 you spend brings in at least $4 of sales

Then if AOV = $300

CPA = $75 (you can’t spend more than $75 to acquire each new customer)

~~ For example to make $30,000 in sales ~~

Sales from 100 customers x $300 = $30,000

If the Sales page conversion is 3% you need 3,000 leads to generate 100 customers

If your landing page conversion is 20% you need 15,000 clicks to generate 3,000 leads

If Cost Per Click is $0.89 you need to spend $13,350 to generate 15,000 clicks

CPL is $4.45

AOV = $300 and CPA = $133.50

So, in this scenario the campaign is profitable but the profit ratio is 2:1 rather than the goal of 4:1

To improve this we would look at DECREASING Cost Per Click and Cost Per Lead and INCREASING the Click Through Rate and conversions.

Need help with your Facebook Campaigns? We can help in TWO ways:

#1 Training – Self-guided Training with the Facebook Ads Bootcamp – create a high-performing Facebook ad campaign in 5 steps

#2 Ad Management – Schedule a call to see how we can help you manage and improve your campaigns.

 

 

About The Author

Cassie Hicks

Modern Marketing Spark is your Digital Marketing Partner. We provide a holistic approach to Social Media and Digital Marketing ensuring your achieve your business goals using modern marketing strategies. We also offer training and support through our Facebook group, The Modern Marketing Club (http://facebook.com/groups/modernmarketingclub)

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