When you are running your Facebook and Instagram Ads a question that I get asked all of the time is how do I know what to do when I am running my ads?
How do I make them work especially since I have tried ads before and I have had little to no success?
Well below I am going to share a few key metrics that you should be paying attention to in order to take your ads from optimization to scale.
Click Thru Rates - this metric will tell you if your messaging is resonating with your audience. If you have a click thru rate of above 1% then that is usually considered pretty good on Facebook and Instagram ads.
Obviously the higher the click thru rate the better. If your click thru rate is really low then the next thing you should test is your ad creative (picture or video) and your advertising copy.
It is possible that you may be targeting the right audience but the message that you are putting in front of them is not resonating.
If that is the case you will want to turn off any ads that have low click thru rates and try another round of ads to find what will work.
A rule of thumb that I recommend is you try 3-5 ads to see which one of them performs the best.
Cost Per Clicks - this metric usually (not always) is correlated to how good your click thru rate is. The higher the click thru rate the cheaper the cost per click typically will be.
A lot of this will have to do with the auction (how many people are bidding towards the same audience) and the time of the year that you are running your ads.
If you are seeing a good click thru rate and your cost per clicks are under a dollar (the lower the better usually) then that is usually an ad you will want to keep because it is bringing in good volume.
The lower the cost per click the higher your chance of being more profitable because if it costs too much for people to get to your website and your conversion rate is an average conversion rate typically it is hard to be ROI (return on investment) positive.
Ad Rankings- these metrics as of right now show on the ad level with Facebook and Instagram ads.
You will usually get a ranking based on your competitors that are bidding towards the same audience and this ranking will tell you how well your ad is doing compared to your competition.
The scores are below average, average, and above average.
The categories are quality ranking, engagement rate ranking, and conversion rate ranking.
What I have found is if you are able to get an above average ranking on all three of those categories your ads are typically primed for scaling more aggressively and have the potential to really be profitable.
So consistently work on trying to rank above average on your quality scores to give yourself the best chance of scale!
Engagement- this metric will tell you if people are finding the ad interesting enough to like, comment, and/or share.
This is a good indicator if you are getting really low engagement and your click thru rates are low and not much is happening on the back end of your campaigns then you probably need to switch your ad.
If people are not engaging with the ad typically Facebook and Instagram will start to raise your CPM (cost per thousand impressions) price which will make it more expensive for you and and show your ads less.
This is not good so if you are seeing this trend keep testing different creatives until you hit your sweet spot.
Funnel Metrics - these metrics are you buyer intent metrics such as view content, add to cart, initiate checkout, lead, and purchase.
These are the higher level metrics that show you how close you are to actually getting more sales and conversions and what you need to focus more on.
What you are looking for are lower cost per actions here to see if it is possible to scale up your ads.
Typically if your funnel metrics are low then that is also a good sign that your ad is primed to scale up and that people are interested in what you have to offer.
Pay very very close attention to these metrics as they will give you a lot of valuable and ACTIONABLE information.
So I shared with you some tips that you can use to make better decisions. Always remember if you are getting bad information then you cannot make great decisions so take the time to analyze all of these metrics.