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Brands allocate between 16.6 and 24.7 percent of their marketing budgets to social networks.
You know the number of assisted conversions of your campaigns?
Lee: How is the campaign budget spent on Facebook platforms?
According to information shared by Hootsuite, brands, both in the B2B and B2C segments, allocate between 16.6 and 24.7 percent of their marketing budgets to social networks. This percentage tells us how relevant these channels have become for brands, but is that budget being used well? The best way to know is to evaluate the performance of the campaigns and announcements, therefore, this time, focusing on the ads on Facebook, which is the main social network of today, we will see some ways to know how the campaigns progress.
According to Social Media Examiner, there are at least 9 ways in which a brand or company can evaluate the performance of its ads on Facebook, these are:
This first way to assess the performance of ads on Facebook has to do with identifying how many people are watching the content. To measure this, 2 key KPIs, scope and impressions can be considered.
As you may already know, the scope refers to the number of people who saw the content of the campaign, while impressions refers to the number of times people saw the content, even if only one person saw an ad more than one go.
The importance of this metric varies depending on the type and objectives of the campaign, for example a campaign optimized for clicks on the link does not necessarily have to consider awareness.
It is important to evaluate the proportion of impressions with respect to the scope, if there are too many it means that the advertisement is appearing many times before people and this can cause fatigue or annoy the audience.
The engagement of ads on Facebook refers to any metric that reveals that people interacted with the post. Within this section, reactions, shares, comments and clicks are considered.
Again, the importance of these metrics depends on the type of campaign. For one that is optimized in monetary metrics, conversions are important, but for one that focuses on scope, these KPIs certainly cannot be lost sight of as interactions increase the reach of an ad.
High levels of engagement are a sign that the content is attractive so the platform has a good reason to show it to the audience.
By monitoring the click-through rate of your ads on Facebook, you can understand the percentage of people who are clicking on the ad after viewing it. The percentage you get can be varied, however, for reference, Social Media Examiner points out that the average CTR on Facebook is 0.9 percent, while on networks like Twitter and LinkedIn it is 1.51 percent and 0.26 percent, respectively.
This indicator is important because it talks about the quality of the ad, the more people see your ad and click on the link, the more relevant and attractive is that ad.
On the other hand, in wave campaigns you pay for impressions (CPM), having a high CTR is a sign that you are saving budget. If you want to have a better click rate, it is advisable to perform A / B tests with the campaigns.
- By number of references of social networks
When it comes to ads on Facebook or campaigns, it is necessary to verify the analytical data of the site, so another way to evaluate is with references from social networks.
Sometimes the number of clicks of an ad on social networks varies from the number of people who actually visited the site, for example if you are promoting a post on Facebook, and someone clicks on the link of your ad but leaves the tab of navigation as crowned as you click. This is considered a click by Facebook. However, in the analytical data of the site there is no registration as the page does not charge. This type of discrepancy can mean that the ad platform is showing more traffic than it is actually getting and this can generate an erroneous perception.
Therefore, it is important to verify the traffic coming from social channels from other platforms, such as Google Analytics, this is particularly relevant if UTM parameters are being used.
Within analytics, the bounce rate is another key indicator to evaluate ads on Facebook. A high rate means that a large percentage of visitors enter from social networks see only one page and leave immediately, which nobody wants to experience.
Registering this aspect will allow you to get an idea of the type of content that you should be sharing on social networks. You may find materials whose bounce rate is barely 10 percent while there will be others with a 90 percent rate. In this case it is obvious that the best way forward is to work with what has the least rebound.
The bounce rate can even impact SEO because when seeing a little time spent by users, Google interprets it as if it were a little relevant site.
With ads on Facebook, the conversion rate is considered the most important metric for marketing professionals. This is the percentage of visitors who become customers.
The conversion rate is crucial for one reason, and regardless of the type of campaign, the goal is to always get more conversions. To keep track of it there are several tools, such as the platform itself and the analytical data of the site.
According to the source, Facebook's average conversion rate is 4.7 percent, a figure that exceeds any of the other social networks. And to improve it, it is again advisable to perform A / B tests to define what a higher percentage can contribute.
The cost per conversion is another metric that can not be missing, because it helps to play if it is sustainable to continue with the campaign in this social network and if it is possible to obtain a good return on investment.
To calculate the cost per conversion you can divide the total amount invested by the number of conversions. However, things can be taken to the next level by calculating the average revenue per user. This data can be of great help because if the cost of conversion is higher than the income throughout the life that can be obtained from customers, it makes no sense to continue with that campaign.
- By number of assisted conversions
One of the challenges that Facebook ads and campaigns have is how difficult it can be to track the results. This is because it does not always generate conversions directly but rather assists in some way in obtaining it, for example, a person clicks on the ad, goes to the site and then leaves, does another research and finally generates the conversion .
Social networks use the attribution of a first touch, that is, considering that the visitor first came to the site from social networks and therefore the conversion is credited. However, other platforms, such as Google Analytics use the last touch attribution, highlighting that the visitors actually clicked on the ad first, but then they went to the site to make the purchase, and thereby attribute the conversion to SEO .
To determine where the ads were attended for the generation of a conversion, it is worth using the Google Analytics investment assistance report.
Finally, to evaluate the performance of the ads on Facebook it is important to determine the ROI or ROAS (Return on advertising investment). As you know, the return on investment refers to whether something is being earned in exchange for what is being invested.
The good news is that this is not a calculation that must be done manually, most of the social media advertising platforms have a column that shows the ROI of the campaigns throughout their duration.
As can be understood, a positive return on investment means bad news, while a negative one means that things must be changed. This can range from editing the ad in visual and copy terms, changing the orientation or changing the purpose of the campaign.