What's up guys?
I want to apologize ahead of this post for my horrible English in this video, it's harder for me to speak than to type :)
If you're just staring out with Facebook ads and ran a few ads, than you should start getting all this data on the ads manager in your ad account. I know how confusing it may be. Even if you understand all the data points, you don't know how to connect them and get some useful information out of it.
If you'll watch the video you'll see how I set up the columns in a way that makes sense for eCommerce and shows you some kind funnel and let's you know exactly what you need to improve in order to get better results.
Let's go over the columns and see how they can help you improve: (I've highlighted the impotent ones)
Delivery
Let's you know if the ad id running or not
Budget
The budget of the add, can be daily or fixed amount.
Amount Spent
How much you spent on the add in the selected time frame
Bid
Can be Automatic or manual (recommended to start with automatic)
(IMPORTANT) Website Purchase ROAS (Return on Ad Spend)
For every dollar you spent on ads, how money dollars did you sell.
The Website Purchases Conversion Value divided by the Amount spent.
The reason this is important is that if your store margins are pretty constant you'll know exactly what is the number that makes you profitable.
For example:
If I'm buying a product for $10 and selling for $20 I'll need and ROAS of more than 2.00 to be profitable.
For every $1 I spend I'll have to sell more than $2 to cover both ad spend and COGS(Cost Of Good Sold - the cost of the product to me).
Website Purchases Conversion Value
How much revenue did I get from the ads.
Reach
The number of people who saw my ad at least once
(IMPORTANT) CPM (Cost per 1,000 Impressions)
Facebook only charges us for impressions so we'll want to keep this number as low as possible, the lowest it'll be the more likely the ad will perform well.
If your CPM is $20 it'll cost you $10 to show the add for for 500 people
If your CPM is $10 it'll cost you $10 to show the add for for 1,000 people (that is twice as effective!)
If your CPM is $5 it'll cost you $10 to show the add for for 2,000 people (that is 4 times as effective, 4 times as much sales)
Unique Outbound Clicks
How Many people clicked your add and went to your website.
CPC (Cost per Link Click)
How much it cost you to get someone to your website.
(IMPORTANT) Unique Outbound CTR (Click-Through Rate)
The percentage of people who saw your ad, clicked on it and got to your website.
The Impressions Divided by Unique outbound clicks.
The higher the CTR the better, as a general rule of thumb, lower than 1% isn't good (but again the ROAS is the most important factor).
Low CTR may indicate on either untargeted audience or a bad ad (unattractive or untrustworthy)
(IMPORTANT) Website Adds to Cart
How many people added a product to their cart after seeing your ad.
You want to keep an eye on the ratio between the Unique Outbound Clicks to the Website Adds to Carts
I try to keep it around %20-%40 but it can change from one product to another as well as from one niche to another.
Low Unique Outbound Clicks to Website Adds to Carts Ratio indicates on either untargeted audience or a problem on the landing page (if it's a product it can be the price, lack of trust, product description/images/title and reviews)
(IMPORTANT) Website Checkouts Initiated
How many people initiated checkout after seeing your ad.
You want to keep an eye on the ratio between the Website Adds to Carts to the Website Checkout Initiated.
I try to keep it above 50% but it can change from one product to another as well as from one niche to another.
Low Website Adds to Carts to Website Checkouts Initiated Ratio indicates on a problem on the cart page.
(IMPORTANT XD) Website Purchases
How many people made a purchase on your website after seeing your ad.
You want to keep an eye on the ratio between the Website Checkout Initiated to the Website purchases.
I try to keep it at around 30%-50% but it can change from one product to another as well as from one niche to another.
Low Website Checkout Initiated to Website Purchases Ratio indicates on a problem at the checkout process (could be the shipping time, trust, design or payment options)
(IMPORTANT) Cost per Website Purchase
How much you need to spend on ads in order to get a sale.
You want to keep an eye on the ratio between the Cost per Website Purchase to the ROAS.
If the ROAS is low but the Cost per Website Purchase is also low, you may want to check your options to to increase the average order size by adding upsells, recommended products or raise the product price.
That is it for today!
Let me know what you guys thins :)