You probably know that Facebook Ads can produce some pretty impressive results, but if you don't have the right metrics to measure ROI, how do you know what's working and what's not? In this blog post, we'll go over exactly how to measure your ROI from Facebook Ads.

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Relevance Score

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The relevance score tells you how relevant your ads are to the audience, and a high relevance score means that people are more likely to click on those ads.

There are several factors that contribute to the relevance score: interest, demographics and location. If any of these don't match up with your targeting criteria, then your ad may not be as appealing as it could be. For example, if someone has an interest in "dogs" but is seeing an ad targeted to "cats," they might feel like they're being shown something irrelevant (even though they're both pets). To improve this situation for yourself and others who want dog-related content, add "dogs" as an interest category so that ads can reach those who share their interests!

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Ad Impressions

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Ad impressions are the number of times your ad was shown to people on Facebook. To get this metric, take your total daily reach and divide it by the number of days you ran your campaign. This will give you an average impression count per day, which is a great way of determining how many impressions are needed to achieve your goals.

For example: if you have a $10 budget, have 100k fans, and run a campaign for 10 days while targeting only 30% of them (30k people), then your average ad cost per day would be $0.50 ($10/.3).

Now if we want to increase our average click-through rate from 1% (1 out of every 100 clicks) to 5% (5 out of every 100 clicks), then we need at least 5x as many clicks! Or in other words 25x more impressions! So instead of running 10 days with our current budget, we need to now run 50 days since that's how long it will take us to get enough additional impressions based on our current CTR.

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Click Through Rate

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Click-through rate (CTR) is the ratio of clicks to impressions, or clicks divided by the number of times your ad was shown. It's a good way to measure how effective your ads are and can help you determine if you're getting enough clickthroughs to make your advertising worthwhile.

The average CTR across all industries is 1%, with some companies seeing as high as 2%-4%. If your company's ads have an average CTR below 1% or it isn't increasing over time, that means there may be something wrong with them: either they aren't very compelling or people aren't clicking on them because they don't find what they see interesting enough. In either case, try adjusting your budget and targeting options until you get better results!

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Conversion Rate

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The conversion rate is the percentage of people who click on your ad and then convert. For example, if you receive 10,000 impressions and 100 clicks from those ads, but only 1 person buys something from you as a result of seeing that ad, then your conversion rate would be 1%. The higher the better! You can use this metric to measure how effective your audience targeting is at converting customers.

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Cost Per Result

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Cost Per Result is the cost per conversion. It’s the total cost of your campaign divided by the number of conversions.

It’s a good metric to compare different campaigns, because it doesn’t take into account things like traffic sources (e.g., how many people you drove to your site).

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While there are many metrics to be aware of when it comes to Facebook Ads, these four metrics should be at the top of your list. They’re important for measuring ROI and making sure that you’re getting a return on investment. If you want an even deeper dive into how Facebook ads could could increase revenue for your company, get us touch with our team!

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