231 are the number of metrics Facebook gives to measure our ads.
So large is 231 that finding the 1 or 2 critical metric is like finding the needle in a hay stack. You know it is there, just not sure where look to find it.
Let us filter down the 231 fluffy metric to a sensible number.
Here are my lucky 11 to track … and the 212 to ignore.
Numbers without context are still needles in the hay stack. A short case study, for service providers, illuminates the context for the metrics.
The case study funnel starts with a cold brand unaware audience and finishing with cash in hand buyers. Sound good? We will ignore upsells, downsells and crosssells.
The sticky honey of this funnel is the helpful articles, videos and audio files.
But wait! Why advertise on Facebook in the first place? Is social media not free?
Why Run Facebook Ads in the First Instance?
Anyone? Anyone? Yea, social is free, but, putting your post/read magnet/offer in front of the right people at the right time is not free. Why so why run Facebook Ads?
- Organic post reach is dead and buried (for most page owners) with 2% – 16% of page fans seeing a post,
- Facebook Ads let you to cut the queue and get in front people who matter most to your business,
- Ads are the cheapest and fastest way to grow a business, and
- To attract and capture leads before the competition
- Facebook ads platform is the most powerful in the world
My clients see the business opportunities and are why they let me run their ads and why you should also run ads (or let me run ads for you).
‘A’ Funnel for Coaches, Consultants and Service Providers
A marketing funnel represents the journey people take from completely problem unaware to buying from you learning at each stage. Yes I did gloss over about 9 steps for simplicity.
In a perfect world prospects only interact with your brand, gain knowledge and learn from you. In this perfect world you become the ‘trusted adviser’ and authority.
You can slice and dice marketing funnels in more ways than there are straws of hay in a hay pile. At every step people get informed and then they asks more questions. (Anticipating and answering these questions is content marketing).
At each step of the 4 or 5 steps people have questions.
The positioning for this blog post is aimed at people at the top of my funnel for Facebook Ads – the problem unaware/aware stage.
Note – retaining a customer is 5 time more cost effective than acquiring new customers. Yes, this blog article is about metrics when acquiring new customers your business needs a robust strategy to retain customer.
How Does One Educate the Unawares and Convert the Awares?
With content and compelling offers.
Yep, simple as…. (well, no not simple because action is the hard part).
Follow for a sticky honey second and see why Facebook loves content and frowns upon direct response ‘buy now offers’.
(Pulling the idea string along) what if our news-feeds were full of super ‘special’ special offers. Would there be a difference between the late night TV infomercials and Facebook? No, probably not and people would ignore, get tired and abandon Facebook. That would be a bad day for Mark Zuckerburgs wallet (not being cynical, only stating business truths).
The challenge then for Facebook is allowing advertising and yet not alienating people. So, how does Facebook circle the square of selling ads and not becoming an infomercial and alienating people? Carefully!
Further, we know businesses are making ‘cake’ with Facebook Ads. So what gives? Does Facebook favor advertisers with massive budgets and ignore the small guys and gals?
No. and NO! Smart Facebook marketers do it indirectly.
Be Indirect like the Inbound Marketing Crowd.
…see add – buy product’ does not happen, ever!
People have to ‘know you, like you, and trust you’ before they buy from you’. This moniker which holds true if you sell €9.99 widgets or a €9,995 coaching programs.
A quick and dirty simple funnel for indirect selling on Facebook:
- offer a read magnet (blog post),
- visitor arrives on your website and get Pixeled,
- retarget these visitors with a lead magnet, or different blog post,
- if person opted in to the lead magnet then warm up with autoresponder email sequence, if not then
- retarget again with different lead magnet or offer your core product.
Red (or read) magnets are the sticky honey blog posts that give, give, and gives oodles of useful and valuable information.
Why a blog post / article? Facebook favours and encourages advertisers who send people to a blog post. Not straight to a sales or product page (yes, exception to every rule exists).
This is what Happens when you ‘Red Magnet’ People (or read magnet)
Many many people in your target audience see your ad. Some people will click the link, visit your website, and read the article.
When people land on your website, they get pixeled. Then retarget visitors with different offers, or e.g. a lead magnet. (Yes, I again oversimplified and glossed over about 20 key steps).
If no one takes your lead magnet then offer a different blog post. Maybe ‘a solution aware’ or ‘product aware’ blog post.
(You have installed the Facebook Pixel right? Right! Good, very good.
Is Sales the Most Important Business Metric?
Cash is Oxygen for a Business.
Yep, revenue and profits is the most important metrics. And you did not need a rocket scientist to tell you that either. Moreover, you understand the simple ‘see add – buy product’ does not happen, either.
This smart Facebook strategy warms up a cold unaware audience before you offer the product. This magically lowers your total acquisition costs, ups revenue, profits, and increases customer loyalty.
11 Facebook Ad Metrics Used At Every Stage of The Funnel
1) Reach – Absolute number of people that saw an ad, e.g. 3658
2) Impressions – defined as ‘an ad seen by people’. Unit of measure is CPM (cost per mille). CPM is measured in money per thousand views. E.g. CPM of €5.23 means the advertiser paid €5.23 to get 1000 views of an ad.
Note: each person can and often does see an ad more than once – this is expressed as the ads frequency is is my numbers #7. Think of impressions as Facebook’s RPP.
3) CPL – cost per lead. The amount of money spent to acquire a lead.
4) CPC – cost per click – cost paid to get a person to click a link.
5) Amount Spent – the total monies spend – either on a campaign, or lifetime.
Minimalist Metrics: Advertising to a COLD Audience – The Read Magnet
(This is step 1 in the funnel).
Use the Clicks-to-Website, Website Conversion, or Video View and put a blog post in front a cold audience.
Click to Website or Website Conversion
Definition – both clicks to website and Website Conversions send people to a website. A ‘Clicks to Website’ campaign tells Facebook to find people in your target audience who are more likely to click ads taking them to a website.
Choose a ‘Website Conversions’ tell Facebook to find people in your target audience who will convert. Complete a form – signup, shopping carts etc.
Note: advertising to a cold audience will cost the most amount of money of any group in your funnel.
Why suggest website conversions when you want people to click to the website? Great question. To test and see which is better. Some audience respond better to one objective then the other. The only way to answer the question is with testing.
The Read Magnet Metrics – Ads Relevancy, CPC, CPM, and Ad Frequency.
6) Relevancy score is akin to the check engine light on your dashboard – on it signals something is not ok, just does not tell you exactly where the problem exist.
Relevancy score is a 0-10 number on how relevant an ad is to an audience.
Stop all ads less than 8. Ads with low relevancy score will have lower delivery, CPM, and higher costs. Higher numbers >7-8 will not. However, like your check engine light alighting, does not mean stop driving, same with your campaigns, if the number are low, check CPM, impressions, CTR and sales.
CPM – (see no 2 above)
CPC – (see no 4 above). Cost per click – total campaign cost divided by number of clicks. E.g. €15.23/66=€0.23 per link click.
7) Frequency – is impressions divided by reach – displayed as an average. Frequency relates to how often a person sees your ad. Some people see the ads more than once. I limit my news-feed ad frequency to 4 to fans and 2 to non fans (numbers are limits from Facebook). The RHS, right hand side ads frequency is uncapped.
Relevancy score is correlated with frequency. Higher frequency equals lower relevancy.
Video View Campaign (Objectives)
Facebook get video views.
Video is hot. Hot, hot and more hot. So hot Facebook lets everyone broadcast live with video! Image that! Ever better, (well no not better) video get more engagement then static image ads.
What metrics to watch?
Relevancy score – (see no 6 above).
8) Video views, video views to 10 sec, 30 second, and you can track views to 25%, 50%, 75%, and 100% of the video. If people abandon after 10 seconds then your video is not resonating. Consider stopping and revising your video.
What Do I do with this Data?
Think about what happens. Put aside for a second the ‘I spent money and go zero sales’ point, ok? Stay with me and follow the idea flow. If your audience was 100,000 people, and you have a budget of €100, your CPM is €10. Therefore, from the 100K audience, 500 people clicked on your ad.
€100 got 500 people to click your ad.
The CPC, is €0.20. €0.20 gets a person reading the blog post and pixeled. I’ll take €0.20 – all day and all night long.
Celebrate!! 500 people, 500 (!) landed on your blog post. 500 people raised their hand (or finger on the mouse) and said ‘I’m interested’ enough to click on your ad taking me to your website. These 500 people are now warm and interested prospects.
What is a good CPC number, then? For cold traffic, I do not pay more than €0.40 CPC and often my numbers are in the €0.2-0.3 range, but your millage may vary, as the car adverts state!!
Minimalist Metrics: Advertising to a WARM Audience- Lead Generation Campaigns
(Step 2 in the funnel)
Retarget and offer a lead magnet. Offer to join your private Facebook group; or offer a core product, or a coaching call.
Suggest using the website conversion objective, a lead ad, or video combined with website conversion ad.
Further, the 500 are ‘solution aware, or product aware’. Match the advert messaging with the awareness and expectation level of these 500.
Lead Generation Campaign, CPL, and Time Horizons
Cost per lead is the top line metric for lead generation campaigns.
CPL – see no 3 above. Cost per lead. Is the money spent to acquire a lead. How much you spent to get an email address, phone number, or sale. Calculated using the amount spent (per campaign) divided by the number of leads generated.
Amount spent — (see no 5 above).
9) CTR — click through rate. Calculated by dividing link clicks by impressions (Facebook uses impression, not reach).
10) Link Clicks — number of people who clicked on the link in your ad. Be warned as not all link click result in people arriving on your sales page / landing page.
The numbers Facebook reports is often different from Google Analytics reports. (Yes, an important discussion for a different blog post!)
Impression — (see no 2 above)
Frequency — (see no 7 above)
What Do I do with this Data?
Check to see if you are on target to get leads at the right price.
Minimalist Metrics Advertising to a Hot Audience
Top line metrics
11) Conversions – the number of people who converted into a lead or sale from your ad. Accurate numbers need conversion tracking installed on the “thank you” page. The “thank you” page is the page people see after completing their purchase.
Cost per lead – (see no 4 above) how much each sale cost. Also, this number gets displayed in the reporting. See below image
Yet, this is for the single Website Conversion retargeting campaign, and is not ‘fully burdened’. As does not include the costs of getting the initial people to your website from step 1
Take the ‘Amount Spent’ from your clicks to website ads e.g. the €15.23 (CPC) divide by 66 (number of clicks) and add this to the Cost per Checkout.
Second line Metrics to Monitor
Relevancy score — (see no 6 above).
Click-through Rate (CTR) — (see no 9 above).
Impression — (see no 2 above).
Frequency — (see no 7 above). Frequency is important, as the pool of people is smaller as we target deeper into the funnel.
What Do I do with this data? Or how to Convert data into Action
View the number of checkouts and the cost per each. When these ads are set up and monitored, you will not get a shock. As in the ‘Amount Spent’ from steps 1 – 3, is less than the profit margin on your product.
What to do when it goes sideways?
Then do this:
If the ad relevancy score is < 8, then stop the ad and a) change the image, b) change the text.
Frequency – if above 3.5, 4 then your offer is not resonating with your retargeting audience.
Ask these two questions: 1) is your lead magnet the natural extension of your blog post? If not then reassess and change. 2) Offer a different blog post.
Remember your audience may not be ready to hand over their email address – no matter how compelling your eBook. Often an offer is not persuading people to take action.
The 11 to track…and the 212 to ignore.
And the 212 to ignore is for another blog post.
Which metrics do you track? Let me know in the comments section.