3 Most Important Metrics Inside Facebook Ads

There are many different metrics within Facebook Ads that you can use to track and monitor the performance of your ad campaign, but which are the most important ones that you must keep your eyes on? We’re talking about the metrics in your Ads Manager dashboard that can make or break your marketing campaign.

1. Cost Per Result

Cost per Result measures how much each desired result (or action) costs. This shows metric will let you know how much you have spent to acquire the result. This is commonly known as CPA (Cost per Acquisition) on other platforms such as Google Ads. This metric tells you if you have overpaid for the results.

The formula for this metric is total ad spend / number of results.

For example, you may spend $1,000 to gain 10 leads. The Cost per Result of each lead will be $100. Now if you are a car dealership getting users to sign up for a test drive, this may make sense. But if you are a gardening company and your average service value is $80, then you are losing money on the initial sale.

2. ROAS (Return on Ad Spend)

ROAS (Return on Ad Spend) is the revenue the company receives for every $1 invested in ads. Say you invested $1,000 in Facebook Ads which brought you $3,500 in sales, and now you have a 3.5 ROAS. This also means that for every $1 invested, you got $3.50 in revenue.

The formula to calculate ROAS is Revenue / Ad Spend.

ROAS is one of the most telling metrics to understand, if you have a successful Facebook Ads campaign. This is useful for eCommerce businesses, where many products have different margins, looking at the ROAS metric will be more relevant than a CPA metric, such as Cost per Result.

3. Clickthrough Rate

The click-through rate is a Facebook Ads metric that measures the ratio of clicks (how often someone clicked on your ad) to impressions (how many times your ad was viewed on the platform) for individual ads.

The formula to calculate CTR is total number of clicks / total number of impressions

CTR can tell a lot about the quality of your ad campaigns. The metric is simple and often shows improvement with the right changes in your advertising approach. It could help you determine whether your ad appeals to your target audience and whether you are potentially targeting the right people in the first place.

Monitoring the performance of each of your Facebook Ad campaigns can be time-consuming if you do not know what you are looking at. However, by focusing on these 3 metrics, you can slowly build up your Facebook Ads repertoire in no time.