Facebook Advertising Marketing – The Core

1.Facebook Advertising Data Metrics

CPM Thousand times display cost

CPM is the abbreviation of [Cost Per Mille], where mille=thousand thousand times, in FB it is [Cost Per 1000 Impression], i.e. thousand times display cost.

The advertising cost charged by the advertising platform for every 1,000 times an advert is displayed. That is, for every 1000 people who see the advert, the advertiser needs to pay the advertising cost.

CTR Click Through Rate

CTR is an abbreviation for [Click Through Rate], which refers to the percentage of users who see an advert and click on it.

CPC Cost Per Click

CPC stands for Cost Per Click and refers to the average cost per click for a user. It can also be said to be the cost that advertisers need to pay to the platform every time a user clicks on the advertised content.

CVR Advertising Conversion Rate

CVR is the abbreviation of Conversion Rate, which refers to the conversion rate of users who click on adverts and get converted. The “conversion” is based on the type of advert and the specific business, such as registration conversion, enquiry conversion, paid conversion, etc.

The most common in the independent station is the paid conversion, that is, the amount of conversion is the number of customers who buy the product. For example, if 100 people clicked on the link to enter the web page, and 2 of them paid successfully, then the conversion rate = 2/100 = 2%; there are many factors affecting the conversion rate, such as the visual effect of the web page, whether the content is sufficient to impress the customer, whether customer service is a timely response, whether the shopping and payment is smooth and so on.

CPA Cost Per Action

CPA stands for Cost Per Action / Cost Per Acquisition and refers to the cost of a specific action taken by a user audience. The “action” is similar to the “conversion” we just talked about, depending on what our conversion goal is, it could be subscribing to an email list or leaving a phone number, or purchasing a product, and so on.

As per the example just given, let’s say 100 people clicked on the link and went to the page, and 2 of them managed to pay, and we spent $1500 on the advert, then CPA= $1500/2= $750.

2.How to view advertising metrics

View Facebook Ads Metrics
You can view Facebook ads placement data on the Ads Management Tools page, click [Campaigns] “Ad Campaigns” on the left to view ads data, or click [Ads Reporting] “Ads Reporting ” to customise the report.

View Google Ads Metrics
Similar to the way of viewing FB ads, you can view the data of ads by clicking “Campaigns” on the left side;

How to choose ad metrics
When customising the ad metrics you can see that there are a lot of metrics and we have to just pick the important ones. Also, the same metrics have subdivisions, such as CTR:

3.Data indicator impact factors

Different advertising metrics do not have exactly the same influences, and there are very many influences on the same metric.

On the one hand, it can be clearly understood that each sales stage is different, what the customer is exposed to, and the actions taken are different, and the factors affecting the metrics are naturally different.
On the other hand, we can understand the factors influencing the metrics based on the formula for calculating the metrics above.

For example, in Facebook adverts, CPC cost per click = Cost advert cost / Clicks advert clicks, then the main factors affecting CPC are advert cost and clicks.
If the goal is the same number of clicks 10000, then the higher the clicks, the lower the CPC.
If the same advert costs $100, then the higher the number of clicks, the lower the CPC.
What are the factors that influence the CTR of a click-through rate?
What are the factors that affect the number of clicks on an advert?
The main ones are the content of the advert material and the audience of the advert.

So, if the CPC is high, we can optimise from these aspects:

1) Optimising the content of advertisements
Optimise the content of the ads, e.g. placing in the languages of small countries, clear core focus of the images, copy highlighting the features and benefits of the product, and appropriate call-to-action copy;

Test the content of different materials. For example, testing with different images, videos and copy in the same advert campaign, continuous screening

2) Optimising the advertising audience
When placing adverts, you need to segment the audience so that the adverts can reach the target audience more accurately;

Create custom audiences and similar audiences to manage the detailed labelling and classification of customers for different types of advertisements, so as to increase the click rate and reduce CPC.