Checking your Facebook Ads analytics is easy – you see some conversion numbers, some stats and you move on to the next campaign. But finding the right numbers and using them to inform your strategy is where most people get stuck. How do these numbers improve your ads results?
First of all, you need clear objectives for your advertisements. Are you trying to increase brand awareness, capture leads, or increase sales?
After stating your objectives, you need to determine the right metrics to judge your ads’ performance. And have a system in place to obtain these metrics.
With these, you can reduce the wastage of your Facebook ad spend and increase ROI.
In this blog post, discover 5 ways to leverage analytics to improve your Facebook ads results no matter what your goals are.
1. Create a funnel
To improve your results, one vital way is to understand user behaviour on your Facebook pages. How do users move from your pages to your website and become customers?
What are the most effective conversion paths for your users? Facebook analytics can provide these details when you create a funnel.
On your Business Manager dashboard, click “Analytics.”
After this, you have to select the event source group which are:
- Facebook pixel
After doing this, select an app, Facebook pixel, or a Facebook page.
This will be the source of your metrics. Once you’re done with that, you can go on your Facebook analytics dashboard and click “Funnels” on the left menu. On the next page, click on the “Create Funnel” button to create your funnel.
You can add different funnel steps to see the number of people who progress through those steps. These are steps vital to your conversions. For instance, here is a funnel example:
In this example, 36.9% of people who dropped comments visited the website. Out of the visitors, 10.5% made a purchase. Overall, 3.86% of people who dropped comments ended up making a purchase.
2. Use cohorts to understand retention and customer lifetime value (LTV)
During a Facebook ads campaign, visitors to your website through these ads may have different user behaviour. With cohort analysis, you can see how different users on your website behave at different times.
To use cohort analysis on Facebook analytics, click on “Cohorts” on the left side of your dashboard. Once you do this, you’ll indicate the first event you want to use and the second event you want to track for the cohort.
A cohort on Facebook shows users who take an initial action and then take a subsequent action. Here’s an example of cohort analysis for mobile app installs and launches:
Obviously, users who installed the app on September 28 launched the app more than users who installed on other days. What’s different about the users on this day? Was there a campaign? An offer? This can provide insights that can be useful in future campaigns.
Plus, after cohort analysis, you can investigate further to learn more about a set of users.
You can do this by finding the customer lifetime value (CLV).
To get this information, click “Lifetime value” on the left side of your dashboard. Here,
you’ll see the customer lifetime value of your users at different periods.
Such statistics are vital because it can be misleading to judge ROI based on a customer’s first purchase as it can be lower than the acquisition cost.
In practical terms, the ROI is positive if the lifetime value is higher than the acquisition cost.
By leveraging this metric, you can focus more on users with high customer lifetime value.
3. See revenue from ads
One of the most important metrics to obtain from Facebook analytics is revenue. Because no matter what your goals are, ultimately, you want your ads to contribute to your business bottom line.
Attaching a monetary value to your ads is the fastest way to prove ROI, whether positive or negative. To obtain revenue figures, click on “Revenue” at the left side of your Facebook analytics dashboard. On the revenue page, you’ll see details such as:
- Total revenue
- Average revenue per paying user
- Total purchase
- Average revenue per purchase
- Unique purchasers
- Average purchases per user
Furthermore, you’ll see the age and gender breakdown of people who made purchases on your website. You can select a date range for your Facebook Ads campaigns to see how effective it was in acquiring revenue.
Another tool you can use to track revenue from your ads is the Agorapulse ads report.
Apart from managing your social media activities with this tool, you can also track vital metrics about your ads’ performance in a very straightforward, easy-to-understand, format.
Some useful metrics available are:
- Conversions (revenue)
- Ad spend
- Click-through rates (CTR)
- Cost-per-click (CPC)
4. Create custom reports according to goals
Once you know the most important metrics to your goals, you can create custom reports where these metrics are displayed. After adding these metrics, you can schedule these reports to be delivered at your chosen interval to your email.
To create a report, go to your Facebook Ads Manager dashboard and click on the “Reports” drop-down. You’ll see all the options to create a report.
After creating your report, you can save it and set a delivery time.
Creating these reports is even easier with a tool like AdEspresso. This tool provides the usual Facebook reports and also allows you to track results for your A/B tests. While running Facebook ads experiments, AdEspresso will provide information about the best-performing variation. This can save time and also improve your overall ad performance.
5. Obtain important website metrics by tracking goals
Before Facebook Analytics came on the scene, Google Analytics has been the most popular option for marketers. Today, it’s still probably the most popular because of all the useful metrics you can acquire.
For social media campaigns where you refer users to your website, you can track the number of visitors through your campaign and also track goals. There are many possible goals on Google Analytics and you can define them and even assign a monetary value.
These goals are:
After setting up your goals, you can build a dashboard of reports showing vital metrics based on your goals. Furthermore, the acquisition dashboard will display the referral sources of your website traffic. You can click on social media and then Facebook to see more details.
To ensure accuracy, add UTM parameters to your website URL. Navigate to the Ads Manager and edit the “URL parameters” field according to your campaign details.
There’s a provision to edit details such as:
- Campaign name
- Ad set name
- Ad name
When you run Facebook ads, analytics provides a clear picture of the success or failure of your ads. Of course, you have to specify the metrics that indicate the achievement of your goals.
However, with analytics, no solution works for everyone. You need to look at your goals, specify the right metrics, and determine how to measure these metrics.
From this guide, you can see some tools that make it easy to leverage analytics to determine your Facebook ad performance. Getting the right information from analytics will help improve your strategy and results.
Author Bio –
Highly regarded on the world speaker circuit, Lilach has graced Forbes and Number 10 Downing Street. She’s a hugely connected and highly influential entrepreneur.
She is listed in Forbes as one of the top 20 women social media power influencers, named one of 10 top digital marketers by Brand24 and was crowned the Social Influencer of Europe by Oracle. She is listed as the number one Influencer in the UK by Career Experts and is a recipient for a Global Women Champions Award for her outstanding contribution and leadership in business.