Story: Key Performance Indicator (KPI)
A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs to evaluate their success at reaching targets.
When you run a Facebook ad, you need to set up KPI. Otherwise, you don’t know your Facebook ad succeed/failed or not. You don’t succeed in the beginning, that’s okay. You can learn from failure and improve your Facebook ad each time, at least you don’t waste your money.
How to Analyze Your Facebook Ad Results: 7 Metrics to Track
©Social Media Examiner
– ROAS (Return on Ad Spend)
– ROAS = Total revenue / Total ad spend
– Make sure that Facebook ad is profitable (ROAS > 1)
– ROAS = Total revenue / Total ad spend + other expense
– Purchase conversion value (total revenue generated from Facebook ads)
– Install pixel to figure out a purchase conversion value
– Purchase conversion value = Number of items you sold x cost of items
– Cost per purchase
– Ads cost / unit = Ads cost per unit
– Product price – Ads cost = profit
– Earning per leads (Newsletter subscription)
– Earning = Purchase conversion value / number of leads
– Earning per click (E-commerce)
– Earning = Purchase conversion value / number of clicks
– Cost per lead
– = Total ads spend / number of lead or click
– CTR (link/click through rate)
– CTR indicates how persuasive of your ads
– CTR all = engagement / impression
– Get used to Column: performance
How to Analyze Your Facebook Ad Performance
©Social Media Examiner
– CTR (Link click-through rate)
– Under 1% is a problem
– Column > performance and click
– CPM (cost per 1,000 impression)
– Should be under $42
– Landing page conversion rate = conversion numbers / landing page view x 100
– PCR (Landing page conversion rate)
– Improve copy, image or sales funnel of landing page
How To ANALYZE Facebook Ad Results The RIGHT Way!
©Ben Heath
– Cost per result
– Frequency
– Conversion / Cost per link click
– Cost per purchase (E-commerce)
– CPM (cost per 1,000 impression)
Facebook Ads & Marketing Funnel Performance Revealed – How To Know Your Key Performance Indicators
©Miles Beckler
– Opt-in > offer > checkout > upsell > deliver
– Understand average order value
– Understand subscriber per customer
– Max cost per opt-in
Conclusion: Business of Design
We, as freelance web/graphic designers, need to good at designing. It’s fundamental. Once you reach a certain point, you have to think about it next. I define the design as an interface here.
We have to think about how to give value to a client. It’s usually to reach a target audience and increase new leads/inquiries for a client. An interface design does not increase new leads. We have to know SEO/digital marketing.
Therefore, we have to know how to evaluate the result of digital advertising. Every dollar we spend shows the result by number. There are many clues to it. I am still learning it.
Please utilize a Facebook Blueprint.
