Do a quick Google search for how to measure Facebook ad performance, and you’ll find plenty of ad metrics and their definitions. Just track some numbers and you’ll see how your Facebook ads are performing.
But there are 2 pretty gaping holes being told to just “measure these metrics.”
What numbers are good for the different ad metrics, like click through rate, cost per click, and others? “Good” metrics for one business may be bad for another, so contextualizing the numbers you find is vital. In this article, we discuss some routes you can take to answer that question for yourself.
Even if your ads show good click through rates and cost metrics, how do you know if the clicks and ads are sending the right traffic? How do you know if those visitors are high quality, ready-to-buy customers for your business? In the second half of this article, we talk about how Leadfeeder can show you which companies are visiting your website, and help you answer this question.
Note: If you want to give Leadfeeder a try and see which companies have visited your website in the past month, you can sign up and test it free for 14 days here.
Key Facebook Ads Metrics
For the sake of clarity, let’s make sure we’re all on the same page when we talk about some of the key metrics Facebook Ads and Insights measure:
Engagement:
Engagement metrics measure how your audience interacts with a Facebook ad. Did they click on the link? React or comment on the post? Share it?
Reach:
Reach measures how many people see your ads across Facebook.
Impressions:
Similar to reach, impressions tell you how many times an ad was seen. The key difference is that multiple views by the same person count toward impressions but not toward reach.
Clicks:
Clicks are just what they sound like—are people clicking on your CTA, your Facebook page, or other links on the ad?
Click-Through Rate (CTR):
Of those who see your ads, what percentage click through to the landing page or other linked pages? CTR is clicks divided by total reach, and many use it to gauge the quality of an ad.
Cost Per Action (CPA) and Cost Per Click (CPC):
How much does each click or other action cost you in ad spend? CPA and CPC are represented by total spend divided by total clicks or actions.
How to Set Goal Metrics That Actually Mean Something for Your Business
Most serious marketers set monthly or quarterly goals for their Facebook Ads effort (like a CPA of $50, a CTR of 7%, or improving CTR by 40%). But where do those goals come from? For a lot of marketers, they come mostly from thin air—an arbitrary number of percentage points better than last month.
Here’s the thing: if your Facebook ad goals aren’t based on something, they’re meaningless for the business. How do you know what’s considered a good click-through rate? How can you improve Facebook ad performance if your goals and benchmarks aren’t based on actual business goals?
The key is to take these 3 things into account when you set goals:
Industry benchmarks
The economics of your business
Historical growth
A great CTR for an eCommerce business might be completely unreachable for a B2B SaaS provider. A reasonable CPC for direct-to-consumer brands might be wildly more than a healthcare startup can afford to pay.
If your engagement has been historically flat, you might need several months to get it up to industry standards.
For all those reasons and more, your Facebook ad performance hinges on setting intelligent, achievable benchmarks. That way, whether you hit your goals or fall a little short, you can be sure that that performance is meaningful, and you can take action to improve it.
Metrics like engagement and CTR should be informed by averages across your industry and your historical performance. Setting those goals starts by taking a look at how your Facebook ads have performed over the life of your ad campaigns. Then, do some research to find out how competitors and analogous businesses perform on Facebook. Wordstream has a handy guide to get you started here.
Now you have a realistic picture of how well the best of the best do, where you fit into that spectrum today, and how you can set strategic goals to bring you closer to the high end.
Cost metrics (like CPA and CPC) hinge on the economic realities of your business, too—if you want newly acquired customers to pay for themselves in the first year, and your goal profit margin is a set percentage, it’s easy to see where your maximum CPA and CPC goals should be.
For example: if a paying customer is worth $50/month and your ideal payback period is one year, that comes to $600. If your goal profit margin is 50%, then you can afford to pay (at max) $300 for that customer—so your maximum CPC and CPA goals should fall under $300.
Those Metrics are Important, But They Don’t Tell the Whole Story
Setting goals for your Facebook ad metrics that actually mean something is a really good place to start.
But—those metrics don’t tell the whole story of your ad performance.
After all, the whole point of running Facebook ads (or any ads, for that matter) is to get new leads into your funnel, move existing leads through the journey, and ultimately convert more sales.
Based on the ad metrics Facebook measures, you’re missing out on key details that add context to those numbers. B2B marketers, for example, want to know which companies Facebook ads send to their website.
They might visit 10 different pages. They might log off and come back in 3 weeks. They might share your website with coworkers. These are the kinds of details that can get lost if a lead doesn’t ultimately convert (or convert right away), enabling potentially promising leads to slip through the cracks.
If you haven’t installed the Facebook Pixel or another visitor tracking solution, you lose out on many of those details.
Unless (and until) a lead converts, that makes it hard to map click-throughs on your Facebook ads to the actual companies they send to your website and the behavior they spur. And that data can be invaluable to understanding the true performance of your ad campaigns and where there are bottlenecks or speed bumps that can improve that performance.
Measure Facebook Ad Performance After the Click-Through
Facebook Ad data can tell you how many people click-through to your landing page or website and how much those clicks cost you, but it doesn’t give you the full context of those clicks.
One invaluable piece of information for B2B companies, for example, is knowing the companies that click on ads and browse your website. That company information helps B2B companies gauge the lead quality of their Facebook ads—is this campaign getting us the right companies and leads?
To truly measure your Facebook ad performance, you need more information, like:
What do those people do once they get to your website?
Which product or solution pages are they most interested in?
How do companies move through your funnel before converting?
When companies don’t end up converting, where did they fall off?
That’s vital information for every business—and your Facebook Ad dashboard isn’t giving it to you. That’s where Leadfeeder can help make the connection between Facebook ads and the companies they send to your website.
Leadfeeder shows you exactly which companies visit your website, even if they never fill out a form or sign up for anything. That gives B2B companies vital data needed to contextualize and measure the quality of traffic coming from Facebook Ads.
The key is that our tool gives you data on the companies your Facebook ads are reaching—not just the individuals. That means you get a deeper understanding of B2B and account-based marketing (ABM) efforts and how your Facebook ads contribute to them.
Which companies are moving deep into the funnel and which are barely engaging at all? How long does the process from click-through to conversion take? How does that differ from other lead generation channels?
How to Use Leadfeeder to Track Leads from Facebook Ads
Step 1: Build a unique UTM code for your Facebook Ads—to identify traffic that comes from each campaign or ad. With UTM codes, you can get as granular and specific as you want, tracking traffic by Facebook ad sets, audiences, or types of ads.
Step 2: Create a Custom Feed in Leadfeeder to track who’s visiting the landing page with each of those UTM codes. Under Filters, select Page URL and enter the full URL with UTM code.
Step 3: Set your email and notification preferences, so the right people are always up to date about what’s happening with leads who originated from Facebook Ads.
Once you’ve set up the custom feed, you’ll see it under Custom on your Leadfeeder dashboard—view the feed anytime to see which companies are clicking through to each landing page.
Click to open the Custom Feed and view companies who’ve visited your landing page.
Meaningful Facebook Ad Performance Tracking
Too many marketers spend countless hours and effort working toward meaningless Facebook ad metrics that don’t carry measurable weight for the business itself.
Set ad performance benchmarks that make sense for your business—and use a visitor identification tool like Leadfeeder to get invaluable insights and context into what happens after the click-through.
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