Lacking crystal-clear metrics to analyze your ad performance will probably lead your business to pay too much money, without meeting your benchmark performance rates.
So, here’s CC Plus Guide to explore 3 key metrics to analyze Facebook ad costs and discover benchmarks to assess these performance stats.
#1: CTR (Link Click-Through Rate)
The CTR (link click-through rate) metric is the percentage of people who saw your Facebook ad and clicked over to your offer, landing page, website, and so on. You need this number to be at least 1%, or you need to go back to testing your Facebook ads; to work on their effectiveness. One suggested adjustment is working on more eye-catching visuals that can encourage viewers to stop scrolling and check your offer.
#2: CPM (Cost per 1,000 Impressions)
The second key Facebook ad metric to track is CPM (cost per 1,000 impressions).
If your purpose is bringing in more revenue, attracting better leads, or increase exposure for your company or clients, then, the Social Media Marketing Society is the ultimate resource for marketers— it is your destination if you are looking for new marketing ideas, improve your results, and become indispensable.
Approaching cold audiences, on the other hand, will require different techniques. For instance, we suggest working on your ad copy and landing page to find the culprit. In other words, if Facebook is not loving your ad, check your copy, imagery, or landing page, so that they do not cost you more than they should.
#3: Landing Page Conversion Percentage
Last but not least, the last metric is track is your landing page conversion rate. Make sure you are aware that the percentage varies from one industry to another industry, so you need to do some research to find out what’s considered normal in your industry.
Failing to hit the minimum benchmark means that your landing page needs some testing and improvements, so work on conducting landing page experiments, and how your offer is being presented through it. For optimum experimental stage outcomes, make sure you test each improvement one at a time so that you can tell what’s making the difference for your landing page.
Unlike traditional marketing channels, Facebook ads don’t have to cost an arm and leg, so if you use them efficiently, you can grow your business immensely with a minimum budget. Just remember to be smart when scaling up.
Written by: Mayar Mosaad