The 4 Core Metrics You Need To Pay Attention To When It Comes To Facebook Ad Performance
Facebook does a really good job of auto-optimizing your ad campaigns. But that doesn’t mean that you create your ads and forget about them. You still need to go back and review your ads to see that everything is running smoothly.
Which brings us to the question, do you know which metrics to pay attention to in the Facebook ads manager?
These metrics will help you to better understand your campaign performance so you can see what’s working and what’s not.
The best way to review your campaign performance is to use the Facebook Ads Manager.
In here, you’ll get to filter your campaigns by dates or objectives or whatever the case is. You’ll also get to measure the performance in each level of the hierarchy, starting with the campaign level, the ad set level and finally the ad level.
At each level, you’ll also be presented with many different metrics, some of which include: reach, impressions, cost per click, budget, delivery etc. There are hundreds of different metrics but there are only 4 that you need to pay the most attention to, which is what we’ll look at next.
The 4 core metrics to pay attention to
This doesn’t mean you ignore all the other metrics. That’s not the case.
Depending on your objectives and goals, the metrics you pay attention to to gauge your campaign performance will vary. But the following 4 are the ones that show up consistently across the board, regardless of your goals.
These are the 4 metrics are:
1. Cost per result
This metric is at the campaign level and it shows the cost-effectiveness of your campaigns. It measures the average cost of every outcome your ad achieved, based on your objectives and settings.
If you have a daily budget and you see your cost per result decreasing, it means your campaign is cost effective because you’re spending less on each result you achieve.
Let’s say you’re running a conversion campaign that’s optimized for “Add to cart” actions and is targeted to your website traffic.
If your cost per “Add to cart” is decreasing but your number of “Add to cart” actions are increasing, you’re driving more clicks and sales from your website. That means you’re getting more results for your budget. The opposite will be true if your cost per result is increasing.
This metric is affected by a number of factors, including your bid, your target audience, your optimization type, your ad creative and messaging and schedule.
2. Relevance score
This metric can only be viewed at the ad level.
It’s a 1-10 rating that Facebook gives each of your ads. It shows how well your audience is responding to your ads.
The score is only showed after your ads have received 500 impressions. But this score is subject to change. When your relevance score increases, that means your cost per result is decreasing, making your campaign performance rise. The reverse is also true.
This is the average amount of times that your ad was viewed. Your frequency will always start at 1. Over time as you spend more of your campaign budget and reach more of your audience, this number will increase.
You’ll notice that as your frequency increases, it will impact your cost per result and relevance score.
As more people view your ad, your frequency will get higher and higher, reaching a point known as ad fatigue. Ad fatigue is when your audience has seen your ad too many times thereby reducing its effectiveness. This results in your relevance score going lower and your cost per result going higher.
CPM stands for Cost Per Mille, which means cost per 1000 impressions. As you reach more of your target audience and your frequency increases, your CPM will start to increase as well. This means that it’s now costing you more per 1000 impressions than it previously did, thus affecting your relevance score, cost per result, and frequency.
You’ll also notice that your CPM increases when campaigns are decreasing in performance due to ad fatigue. But with a campaign that’s improving, your frequency will increase at a slower rate rate thereby raising your relevance score. This in turn stabilizes your CPM, lowering your cost per result and thereby increasing your result rate.
Understanding the 4 metrics above will help you get clear on your campaign performance. So pay attention to them. In the next post, we’ll go deeper into how to create customized reports.
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