You should also know that CTR should never be your main measure of the success of an advertisement or an audience when you launch customer acquisition or prospecting campaigns. For example, if I analyze the audiences for this campaign, I see that some have a lower CTR than others, yet their cost per purchase is lower … This is why we must avoid making optimizations solely based on the click-through rate. The CTR is an indicator allowing you to assess the interest in an advertisement. As this interest in your advertising changes over time, your acquisition costs will also change. This is why you must analyze, among other things, the evolution of CTR over time to identify the advertising or audience that you should deactivate and replace. Also, I advise you to analyze the CTR of the advertisements present in a set of advertisements.

Rather, it will look at the number of clicks generated and the number of purchases. On the other hand, an advertiser has every interest in measuring the evolution of these 2 indicators for a campaign with an objective of “coverage” or “brand awareness”. Anyway, we will see that these 2 indicators remain important in the event that you want to measure the Barbados Email List interest in your advertisements or the advertising fatigue . We will come back to this later in this article. Are your Facebook advertising campaigns perfectly optimized ? Let’s talk 30 minutes on the phone Our team analyzes the status of your campaigns based on 7 criteria You receive strategic recommendations with the 5 most urgent areas for improvement to optimize your spending BOOK A CALL 2) Evaluate engagement on your Facebook ads..

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This interest in your advertising changes

The volume of conversions : number of conversions generated by your campaigns. The more the number of conversions increases, the more the revenue generated by your campaigns increases. Cost per conversion (also called acquisition cost): How much does a conversion cost you (like a purchase or a lead)? The lower this cost, the higher your margins. Facebook calculates this number by dividing the number of conversions by the amount spent. For example, if you made 10 purchases for a spent budget of $ 100, your cost per conversion is $ 10. There is no ideal acquisition cost. It all depends on your industry, the audiences you target, your advertising, the offer and many other factors … Rather than trying to guess your acquisition cost, I suggest instead that you think about the maximum cost that you can afford to pay for a conversion.

As seen previously, the cost per conversion is calculated by dividing the number of conversions by the amount spent. If you generated 10 conversions for an invested budget of $ 200, your cost per conversion is $ 20 ($ 200 ÷ 10). Revenue is calculated by the number of conversions multiplied by the value of those conversions. If you generated 10 purchases for a product sold at a price of 60 €, the turnover generated by these 10 purchases is therefore 600 € (10 x 60 €). Facebook can provide you with this information only if you have installed the Facebook pixel settings (including content_ids , value and currency settings ). Your developer knows what I’m talking about … Let’s come back to the turnover generated. Once you’ve calculated the latter, you have all the information to calculate the return on investment of your Facebook ads (ROAS).

Facebook calculates this number

This ad is said to have a good click through rate (CTR). CTR is calculated by dividing the number of clicks on the ad by the number of impressions. For example, if your ad got 10 clicks per 1000 impressions, the ad’s CTR is 1% (10 ÷ 1000). Again, the ideal CTR varies by industry, audience, ad content, and offering. For example, the CTR will naturally be higher in a sector like beauty and lower in a sector like insurance… I’ll let you guess why. In general, a good CTR on Facebook and Instagram is at least over 1%. But, in itself, this estimate remains irrelevant, in my opinion. For some advertising accounts that I manage, my campaigns perform very well compared to other accounts… for a lower average CTR.

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