Advertising on Meta comes with a unique perspective. It is defined as a platform allowing businesses and advertisers to create targeted ads by choosing the right objective for their business goals.
You can view the main ad objectives Meta Ads offers by clicking the "Create" button in the Ads Manager. Let's talk about them in detail so that we have a better understanding of how they can impact our overall ad performance.
For the sake of this post, we will be using Facebook as our leading reference site from within the Meta ecosystem.
Facebook Ad Objectives
Before choosing which ad to create within the Meta Ads Manager, deciding your business goals helps with how you approach your marketing. As your business grows, your objectives will evolve with it as well.
In general, your business would start with raising awareness and eventually moving on to maximizing sales conversions.
Here are the main ad objective choices.
The sales objective is designed to attract people to take a specific action, primarily to make a purchase. This objective is for businesses that are looking to generate sales.
Once selected, it usually allows you to select a 'Tailored sales campaign' or build it from scratch by choosing the 'Manual sales campaign' option. You can then set up your sales campaign by creating ad sets and the ads that go in them.
The lead objective is for businesses looking to generate new leads or grow their email list.
When you select this option, Facebook will ask you to create a lead form requesting user contact information. You can then set demographic, interests, and behavior parameters to target your leads better.
Let's say you want people to engage with your brand and increase overall social interaction around your image.
In this instance, the engagement objective is perfect, as it helps you design ads to get people to interact. Actions could be liking, commenting, and sharing your posts. Facebook shows these ads to people inclined towards those actions based on their profile activity.
You can use this advertising objective when the main aim is to increase your app's number of installs. It's perfect for developers, their marketing teams, and businesses with an app they want more people to install and use.
If you want more visitors to your website or have a new landing page designed to showcase a product or new service, this objective will fit your goals.
As with the other objectives, Facebook targets users who are most likely to visit your web page and perform any related function you are aiming for from them.
This objective fits the bill if you want to reach a wider audience, change brand perception, or build more awareness. This objective will help you target people who are most likely to remember your ad.
Now that we have gained an overview of the various objectives in Facebook Ads, let's explore some general ways you can measure performance across all of them.
Measuring Your Objectives Performance
There are a few key areas that you should obsess over when running and optimizing campaigns on Facebook Ads. We'll discuss them below and how you can implement some best practices around them.
The frequency is the number of times your ad gets shown to an average user. It is an essential measurement of your campaign's overall performance. If your ad is displayed repeatedly to the same person, the first reaction is usually banner blindness. The subsequent reaction could be more adverse as the user may get annoyed, hide your ad, and even report it.
Observing your frequency score is critical, as it can impact your cost per click (CPC); the result even echoes in the click-through rate (CTR), which usually starts to decline.
Some methods around this are designing new ads, altering the ad text, or broadening your targeting.
Cost Per Click (CPC), Cost Per Action (CPA), and Click Through Rate (CTR)
- Your CPC, CPA, and CTR are essential metrics to measure campaign effectiveness.
- Your CPC will tell you how much you spend for each click a user initiates.
- Your CPA will tell you how much you spend for each action you want a user to do—for instance, playing a video, filling out a survey, or clicking a button.
- Your CTR, directly related to your CPC, will tell you if your ads are not attracting user clicks. A low CTR could indicate that you need to work on your creativity and call to action.
Measuring Casual Impact
Let's say you have an ad campaign that targets a particular group of people with specific requirements who fit the criteria. As the campaign runs, you gather data. In the end, it gives you the required metric that you can use to measure the impact your campaign has had.
Next, compare that metric with data from people not exposed to that ad campaign. The difference in performance between these two groups is the lift in brand awareness, sales, traffic, or any other relevant metric you have been tracking.
Brand lift measurement is essential because it can help you understand the effectiveness of your ad campaigns. By measuring lift, you can see how your ad campaigns impact your target audience, allowing you to make necessary adjustments.
Return on Ad Spend (ROAS)
Measuring how much revenue you are generating is only one aspect of understanding the impact your campaign is having. However, relying on one metric alone will not provide a conclusive performance indicator. If you know which ad campaigns are effective and which aren't, you can allocate your budget based on this metric.
The formula to calculate your actual return on ad spend is to divide the return attributed to your ad campaign by the cost of that campaign.
For example, if you spend $100 on ads, and your revenue is $200, you calculate ROAS by dividing your revenue ($200) by the ad spend ($100) and multiplying by 100 to get the percentages; in this case, your ROAS would be 200%.
This figure is essential because you don't want to run a campaign that gives you less revenue than you spend on the traffic to acquire it.
Relevance score is a metric used by Facebook to measure how relevant your ad is to your target audience. The score is calculated on a scale of 1 to 10 based on several factors, including the ad's creativity, targeting, and performance.
A high relevance score means your ad is more likely to be seen and engaged by your target audience; this can lead to better results for your ad campaign, such as more clicks, conversions, and sales.
To best analyze the results of your relevance score, you can use Facebook's analytics tools to track the following metrics:
- Impressions: This metric shows how many times your ad was shown.
- Clicks: This metric shows how many times people clicked on your ad.
- Conversion rate: This metric shows the percentage of people who clicked on your ad and took a desired action, such as visiting your website or making a purchase.
In the dynamic landscape of online advertising, aligning your objectives with tailored strategies and meticulously tracking key metrics, you can refine your approach, optimize performance, and drive meaningful results for your business within the Meta ecosystem.
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