HomeAdvertisingMonday, December 18, 2017, 08:15:38

Wednesday, October 4, 17, 16:12:09, 3 Months Ago Via webprofitmaximizer In Advertising

Are Your Facebook Advertising Efforts Paying Off? 6 Ways to Measure the ROI
Rated 0 out of 5 stars based on 0 reviews.
Hits: 1

To understand the impact your Facebook ads drive, you need to know about the essential metrics that help you measure the ROI of your Facebook advertising efforts.

Over the years, Facebook has remained a powerful advertising tool. Though you can track the social ROI of your Facebook advertising efforts by determining the clicks, likes, shares, etc., it's time to go beyond this: how many Facebook users visited your website and made a purchase? How many new customers signed up? Is there any increase in the checkout conversions?

To understand the impact your Facebook ads drive, you need to know about the essential metrics that help you measure the ROI of your Facebook advertising efforts.

Here are six ways to measure your ROI on your Facebook ads:

1. Cost Per Thousand Impressions (CPM)

'Impressions' refers to how many times your Facebook ad was shown to your target audience. If you aim to increase brand awareness among your potential customers through your Facebook ads, you should ensure that your ad have higher impressions. However, there is a cost associated with placing your ad with higher number of impressions. That's when you need to know about Cost Per Thousand Impressions (CPM) of your Facebook ads.

How to calculate CPM: CPM = cost of Facebook advertising x 1000 / number of ad impressions

How it helps measure Facebook Advertising ROI: If your CPM is low, you can expect a higher ROI.

2.Click-Through Rate (CTR)

The higher number of times your Facebook ad is clicked on, the higher is the probability that your potential customers will visit your website because they clicked on your Facebook ad. This is when you need to know the Click-Through Rate (CTR) of your ads.

How to calculate CTR: CTR = Number of clicks on ads / number of impressions

How it helps measure Facebook Advertising ROI: A higher CTR indicates that more people are interested in your ad and will likely make a purchase by visiting your website. If the CTR is high, you can expect a higher ROI.

3. Cost Per Click (CPC)

It's used to measure the cost of each click. If you want to drive higher interest without spending a lot on your ads, then you need to ensure that you spend on Facebook ads that have lower CPCs.

How to calculate CPC: CPC = Total ad cost / Number of Clicks

How it helps measure Facebook Advertising ROI: If the CPC of your Facebook ad campaign is low, it will yield a higher ROI.

4. Conversion Rate

Conversions reveal the actions your potential customers take while they're on your website. This may include adding your product to the cart, entering an email address, or even making the final purchase. Once you have calculated the conversion rate, you'll be able to know the probability that your website's visitors will take the action.

How to calculate conversion rate: Conversion rate = Number of conversions / Number of clicks

How it helps measure Facebook Advertising ROI: Before advertising, if you choose one of your products that has the highest conversion rate, there are higher chances that your ROI will be high.

5. Cost Per Action (CPA)

Many businesses use this metric to evaluate their Facebook advertising efforts as it enables them to know the cost associated with their potential customers' actions on their website.

How to calculate CPA: CPA = Advertising cost / Number of conversions

How it helps measure Facebook Advertising ROI: If the CPA is low, this indicates that the ROI is high. Also, it shows that you're getting a higher number of conversions without increasing your ad spend.

6. Return on Ad Spend (ROAS)

If you plan to drive immediate sales from Facebook advertising, then this is an ideal metric to measure your ROI.

How to calculate ROAS: ROAS = Revenue / Advertising Cost

How it helps measure Facebook Advertising ROI: If the Return on Ad Spend is higher, this indicates that your ROI is also high.

Source: webprofitmaximizer.com/blog/


Comments

Sign In

About Author
Adam Arnold
Date Registered: Tue, Sep 26, 2017
Last Time Online: Wed, Oct 4, 2017
So far has created 1 entries.
webprofitmaximizer
Dr. Adam Arnold is a digital marketer who specializes in helping health services grow their presence locally with SEO, PPC, Facebook Advertising. He has helped many businesses double and triple in size as a result of using his services.
Home Page

Related Articles

Are you looking for septic tanks cleaners to get your septic tank clean? Septic tank cleaners are knowledgeable and experienced in septic tank cleaning, Septic tank pumping is necessary every two or three years to keeps the septic tank working smoothly. It will cost just about a few hundred dollars. If it is not done regularly then you may have to replace the septic tank paying $5000 -$10,000.In urban areas the sewer system takesthe water to a central drainage system while in suburban areas each...

Sep 28, 17, 3 Months Ago Via SmartBusiness In Business

Videographer & Cornwall Wedding Videography Film in Devon & London   Videographer Cornwall   An expert wedding videographer costs a great deal of cash. Before you sign any agreements and focus on paying an individual or organization a huge segment of your wedding stores, ensure they are the ideal fit for your huge day. Try not to be hesitant to ask the wedding videographer inquiries and also investigate the agreement. Before you snatch a pen and sign your name, ask ...

Sep 28, 17, 3 Months Ago Via mohammadsher1000 In Business

Learning this going on can help us to get actions as persons and as the greater modern society. There genuinely really are a pair ways in which we're in a position to take advantage of the diffusion of responsibility in our own life to try and do it, stimulate favorable outcomes, and in addition understand issues.Explaining Social In-actionWhen you'll find it local weather modify, money inequality, or possibly discrimination, or the diffusion of responsibility in general has engage in. We can ea...

Sep 29, 17, 3 Months Ago Via Whibther In Health and Fitness

Urinary tract infection: what precautions can women take? A urinary tract infection ( UTI ) is an infection that can occur in any part of the urinary system, namely, the kidneys, ureters, bladder and the urethra. A UTI can occur in both men and women; however women are...

Oct 27, 17, 2 Months Ago Via MasumaLinjavi In Health and Fitness

There are lots of ways in which a person can adopt a new look. Traditionally one would simply change their wardrobe or get a new haircut or make, but today cosmetic lenses provide a more dramatic change for many people.There are many types of lenses that can be bought for cosmetic use; normal lenses, colored lenses and circle lenses. The main difference between normal lenses and GEO circle lenses is in their effect when worn. There are of course also a subtle difference in comfort, price, availa...

Oct 27, 17, 2 Months Ago Via businesswork In Fashion

Are you currently considering acquiring a small business bank loan to the firm? Centered on which you make full use of the cash to have an organization bank loan may possibly be an excellent way to purchase further performing funds which you're able to invest inside your business. Whether or not or not you would like to enlarge wherever you might be, your advertising budget in addition to your very own stock; putting money straight back in your business may possibly be amid the better small busi...

Oct 26, 17, 2 Months Ago Via Whibther In Finance

Smooth flow of cash is the lifeblood of every business big or small. The smoother the flow the better is the business. A scenario like this exists in clubs with thousands of members. There are regular expenses with invoicing and collection of dues which takes a long time and needs a lot of manpower. In order to shorten the time consuming billing process clubs can route fees through Blubilling. Blubilling automates the billing and fee collection process. This system is built to track customers w...

Oct 3, 17, 3 Months Ago Via Blusynergy In Business

The financial jobs sector is one of the most intriguing and rewarding industries to work in. From IT occupations to investment banking and brokerage jobs, there's something in this area for just about any possible worker. And for those searching out a real challenge that contributes to tangible rewards, wealth management jobs or private banking tasks present the next obvious career measure. However, just like the vast majority of financial jobs, wealth management can appear complicated and inti...

Oct 3, 17, 3 Months Ago Via ralfreinhardt4 In Health and Fitness

Tag Cloud