How to Analyze your Facebook Ads data in 5 minutes
Your friendly analyst, Peter, here!
You want to achieve higher campaign ROI, lower your advertising costs and increase the number of conversions.
There are tons of articles about Facebook ad optimization.
However, most of them are full of basic advice like “Install a Facebook Pixel” or “Create a Facebook audience.”
That’s not very helpful, isn't it?
Let me introduce you to this framework, which you can use to analyze your Facebook Ads performance in mere minutes!
1. Facebook Channel Performance
Let's start with the most obvious ones first, and zoom into the details later.
Ad spend and revenue generated by these ads are the 2 most important KPIs here.
You can find how much you've spent on Facebook Ads in the Ads Manager. (https://business.facebook.com/)
Just go to Ads Manager / Manage / Campaigns and look at advertisement spent
You can't normally find the revenue part in Facebook Ads Manager, so you need to gather it from somewhere else.
Note: You could use Facebook pixels for collecting revenue information, but it won't be so accurate, and requires some extra effort on your part.
In Google Analytics you could go to: Acquisition / Social / Conversions
In Conversific just select Facebook Report:
Here, you could see how much you have spent, your revenue and even your ROAS (Return On Advertisement Spent).
Your profit is Advertising Spend subtracted from Revenue.
Now, you know if you have generated profit on your ads or not. If yes than how much. Even get a basic understanding of how effective are your ads.
2. Analyze Campaign CTR
Revenue is generated by people clicking on your Facebook Ads and buying your products afterwards.
In order to earn more, you need to optimize the performance of your campaigns.
First, you need to calculate the average Click Through Ratio for your ads.
You can find your campaigns' CTRs here in Facebook Ads.
In Conversific go to Facebook Report / Campaign Performance. You just need to open the dropdown menu of a campaign.
The CTR in the first line is the average and the rest are individual Ad CTRs.
Congrats! You have just identified your worst performing Facebook Ads.
Cut back the budget on the ones performing below average and increase the budget on your better performing Ads with the same amount. This way you are spending the same amount as before, but you are going to see more income.
Note: If you have lots of Ads you should definitely get rid of these. If you only have a few, improve them by A/B testing.
3. Landing Pages
If you want to increase the return on your Facebook spending you should definitely check the pages you drive traffic to via Facebook.
You can find them in the Top Facebook Landing Pages part of the Facebook Report:
The first landing page is okay. Around 2% of the visitors convert.
This is okay, since there is lots of traffic, but not so great.
I would like to see higher conversion rates when I'm paying for traffic.
I can do this by improving my value proposition in the ad and choosing my audience better. At least most of them find the store interesting and willing to check out other products.
The 2nd one generates 0 income and close to 70% of the people leave immediately.
This is obviously means cash thrown out the window. Let's sound the alarm and stop wasting money on driving traffic to this page. I think you get my flow.
It's real easy to start pouring money into Facebook Ads and never see any return from them.
As long as you see return it's even easier to forget about checking the details and leaving considerable money on the table.
You can use this simple framework for optimizing your Facebook Ads and increasing your income.
It's much more simple than you've originally thought!