How to Analyze Your Facebook Ad Performance
Do you ever feel like you’re throwing spaghetti at the wall with your ad campaigns?
Well, in this article, I’m going to tell you the three-key metrics that will change everything and give you complete control over the success of your ads.
So, the three metrics we’re going to cover are your CTR, link click-through rate, your CPM, and your landing page conversion rate. Don’t worry, we’re going to go into each of these metrics in depth. Let’s dive in.
- The first metric is your CTR, link click-through rate. Now, what does this mean? It means of 1,000 people that are seeing your ad, you want 1% or more to click over to your offer, your landing page, your website, etc. The reason why this is so important is that if your CTR, link click-through rate, is under 1%, you’re probably leaving money on the table.
I’m going to tell you at the end what to do to address this if you see that your CTR, link click-through rate, is under 1%. But let me tell you where to find this inside of Ads Manager. You’re simply going to look at your dashboard. Right there you’re going to see a column that says CTR, Link Click-Through rate, and you want to see that above 1%. Now, if you don’t see it, click on Columns, Performance and Clicks, and you’ll be able to pull that up.
Now, a word of caution, I want you to look at your CTR, Link Click-Through rate, not your CTR, All. CTR All indicates anybody who clicked on any part of your ad over to your Facebook page. They could have clicked anywhere. You just want to track the people who clicked to your offer.
- The second key metric that I want you to track is your CPM. This is your cost per 1,000 impressions. And this is a stat that’s a little bit more controversial, but I stand by this. If your CPM is tracking above $42, Facebook does not like something in your ads or on your landing page. Now the caveat would be if your CPM is above $42 and you’re working with retargeting audiences or really small audiences, it might be a little bit more expensive than $42. But if you’re in cold audiences and that CPM is higher, you need to look at your ad copy, your imagery, and your landing page very closely.
- The third key metric that I want you to be tracking closely is your landing page conversion rate. Now, this varies across all sorts of industries. So, I want you to look at your industry-specific average and see what is normal. If I’m collecting, for example, email addresses to a free online training or a guide or a checklist or something like that, I want my landing page converting at above 30%. If I am sending traffic to an e-commerce store and to a specific sales page, I want to see a minimum of 1 to 3% conversion rate on that sales page. And honestly, you can actually get that up even higher.
Now, to find how well your landing page is doing for you, the easiest way to do it is simply go to your landing page software, your e-commerce store, your website software, and just look at the backend. Most of them have the percentages calculated right there for you. So that’s the easiest place to go and grab it.
Now, to calculate this for yourself, simply grab your conversion numbers, divide them by your landing page views, times it by 100, and that will give you your landing page conversion percentage.
Let me do it here for you We’ll use my top example here, and I’ve got 845 leads. I’ll divide that by three 1,355 landing page views times that by 100, and that gives me 62%. Now the numbers that I just showed you are on the higher range, and they are there because I tested those ads and I made them that way. But if your ads are a little a bit newer to the platform or you haven’t gone through rigorous testing, they might not be there yet.
And so, let me tell you as promised what to do if these numbers are a little bit lower than they should be. So, if your CTR, link click-through rate, is lower than that 1% benchmark that I told you about, you want to go back to testing. And if you haven’t tested, it’s a huge opportunity to make your ads more effective. Improve your visuals so that more people are likely to see your ad and click over to your offer.
Now, if your landing page is not converting at the minimum benchmarks for your particular industry, I want you to go in and do landing page testing. So, work on improving your landing page. Both the messaging and sometimes the offer needs improvement as well. When you conduct your landing page experiments, just do them one at a time. You don’t want to throw too much at it cause then you won’t know what is moving the needle forward.
So just conduct one experiment at a time and you’ll be able to tell what’s actually improving your landing page and what’s not. And your last metric is your CPM, your cost per 1,000 impressions. And on cold audiences, you want to see that under $42. But if it’s too high on cold audiences, then I really want you to take a look at your ad copy and your landing page and find the culprit. Something in your copy, your imagery, or your landing page is causing Facebook to not love your ads, and you need to correct that so that your ads don’t cost more than they should.