Facebook advertising data analysis, reduce CPM/increase CTR

Facebook advertising has many data indicators. For new users who are just starting to use Facebook advertising, they need to understand a lot of advertising terms and concepts. For advertisers who are trying to optimize, the focus is on how to mine useful indicators from massive data.

01 Facebook advertising data indicators

There are corresponding data indicators for user behaviors at each level of the marketing funnel. Facebook advertisers can focus on statistics and analysis of corresponding data indicators based on their marketing goals.

Among all Facebook advertising data indicators, we generally focus on indicators such as CPM, CTR, CPC, and CVR.
CPM (Cost Per 1000 Impressions) The total cost of the advertising campaign divided by the number of impressions, multiplied by 1,000. That is, the advertising fee that the advertiser needs to pay for every 1,000 people who see the ad.
CTR (Click Through Rate) The ratio of users seeing the ad and clicking on the ad, calculated as the number of times the ad is clicked/the number of times the ad is displayed.
CPC (Cost Per Click) The average cost of each link click, that is, the fee that the advertiser needs to pay to the platform every time a user clicks on the ad content.
CVR (Conversion Rate) The number of conversions generated after a user clicks on the ad, calculated as the number of purchases/number of link clicks.
CPA (Cost Per Action) The cost of Facebook advertising to attract audiences to take a specific action.

02 How to view Facebook advertising metrics

You can view Facebook advertising data on the Ads Management Tool page. You can customize the data indicators you want to view, and click “Report” on the right to export specific data reports.

03 Normal range of Facebook advertising indicators

In the US market, generally speaking, if Facebook advertising data meets CPM<30, CPC<1, and CTR>2%, the product performance is qualified.
If it is in other markets or more special categories, you can consult Facebook advertising optimizers for the normal values ​​of data indicators.

04 Factors affecting CPM and optimization suggestions

The main factors affecting Facebook advertising CPM are market competition, advertising goals, advertising quality and experience, and audience size. If the CPM is high, you can start with the following points to optimize:

1. Target the right audience Segment the audience at the ad group level, and display ads to different audiences based on age, gender, interest, location, etc.
2. Optimize the goal with lower cost Facebook advertising conversion goals will have higher CPM because the audience is small. If you want to reduce the effect of CPM, you can try goals such as link clicks (Traffic) and add to cart, which have more audiences and are easy to generate purchases.
3. Limit ad bids If your Facebook ad relevance score is appropriate, the ad coverage exceeds expectations, but the CPM is high, you can limit Facebook ad bids to reduce costs.
4. Ad placement selection It is recommended that in the initial stage of Facebook advertising, you can use automatic placement (AP) to let the system automatically select the placement that is most conducive to ad performance, rather than a fixed placement.
5. Improve ad quality and user experience When newbies first run ads, they can run more interactive ads (PPE), use multiple material tests, and filter out ad groups with better data before running conversion ads.
6. Optimize ad creatives. It is recommended to split different Facebook ad groups to test multiple ad creatives, so as to screen out ad creatives with high click-through rate and low CPM.

05 Factors affecting CPC and optimization suggestions

The main factors that affect the CPC of Facebook ads are the creative content and the audience of the ad. If the CPC is high, you can start with the following points to optimize:

1. Use custom/similar audiences. In addition to segmenting the audience to reach a more precise target audience, you can also create custom audiences and similar audiences, which are more likely to interact with or click on your ads, thereby increasing click-through rate and reducing CPC.
2. Improve click-through rate. Increasing CTR will increase your ad relevance score, thereby reducing Facebook advertising costs.
3. Test different materials. Create different versions of the same campaign using different images, videos, and copywriting for testing. Continue to run Facebook campaigns with higher click-through rates and pause those that perform poorly.

06 Factors affecting CTR and optimization suggestions

The main factors that affect Facebook ad CTR are the mismatch between ad audience, ad creative, and ad information and landing page. You need to ensure that the content presented by Facebook ads is consistent with the landing page.
Pay attention to the ad copy, highlight the features and advantages of the product, and use some provocative statements and call-to-action buttons appropriately.