Facebook Adverts – Anatomy of a Performance

People often ask me about their Facebook advert performance. It’s a little like asking how a retail shop should perform, but, of course, we know what they mean.

Facebook adverts
Facebook

What people generally mean when they pose this question is this. How many clicks should I expect to get for my Euro 50 / 100 / 500 investment – whatever their spend figure might be. We’ll get to whether or not that’s the right question to be asking in a minute. But for now, let’s just take it on board. A browse of the internet will find blogger experts generally stating that a ‘successful’ Facebook advert can hope to generate around 0.1% CTR (click-through-rate). That equates to 1 click for every 1,000 times the advert was displayed (so-called ‘impressions’). More commonly, I would suggest, that figure is lower – often towards 0.02 – 0.05%.

CTR depends on many factors, but what is nice about Facebook advertising is that it allows you to provide good information on who you are targetting with your ad. So it’s there you should begin. Inform FB about age, gender, geography, etc. By doing so, you’re increasing your chances of a more ‘successful’ campaign, as only ‘relevant’ people will even see the advert.

However, CTR is not an end in itself. Counting CTR is like counting the number of people who cross the threshold into your shop. Clearly, it’s good that they’re there, but it doesn’t mean they make a purchase. The real rate that matters is the number of enquiries and the number of conversions – actual real-world, paid-for sales !

Here’s an example of a recent, well-targetted Facebook Adverts campaign I’m aware of. The investment was modest, at Euro 50 over 14 days.

Impressions – 445,000

Clicks – 225

CTR – 0.05% (i.e. 5 clicks for every 10,000 times the advert was shown)

Verdict ? Pretty good on CTR. A decent number of folks went ahead and “visited the shop”, so to speak.

Enquiries – 8 (i.e. number of those 225 people who clicked through the advert that went on to pick up the phone, or send an email)

Sales – 0 (So, of the 225 people who walked into the shop, just 8 asked a question of the sales assistant. Of those, none made a purchase)

Verdict ? Not great.

So be sure to ask yourself the right question. Remember that FB is only the vehicle for placing your advert in front of the correct audience. Just because it’s online and more ‘hip’ than your traditional ad in the local paper, does not mean the question is any different. The metric that matters remains the same. How many sales did you make ?

[Clearly, this assumes you’re trying to sell something through your Facebook adverts]

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