Advertising on Facebook

October 30th 2012       Sally Ormond       facebook marketing, facebook roi, social media marketing

The whole world is going Facebook crazy.

Now with 1.01 billion active users its’ amazing anything gets done any more, especially when you read that 50% of active users log in every day. When do we find the time to fit in work?

Although that might not be comforting reading for employers, it is for business owners because you know where your market is hanging out.  That’s why more and more companies are looking to advertise and engage with their customers on Facebook. But there is one question at the forefront of their minds – how do they measure their return on investment?

Facebook ROI

Never an easy one to calculate, but before you even start to consider number-crunching, you have to think about the goal of your campaign and what you need to measure.

Hubspot offer some great advice here in their post: 20 Facebook Ad Metrics Marketers Should Know.

You can read the full article by following the link above, but to summarise, here are the all important 20:

1. Impressions

Impressions tell you how many times your ad has been shown to a Facebook user. Watch this number closely. If it stops increasing, your bid may have fallen out of the suggested range.

2. Social Impressions

Social impressions tell you how many times your ad has been shown to a Facebook user with social context (i.e. with information about a user’s friend(s) who connected with your page, event, or application). This is applicable only for advertising within Facebook, such as for fan pages, events, or apps.

3. Social %

This metric shows what percentage of the total impressions were social impressions.

4. Clicks

The actual number of clicks on the ad. A click is also counted if someone ‘Liked’ your fan page right from the ad itself.

5. Social Clicks

This shows how many clicks you received from an ad with social context (i.e. with information about a user’s friend(s) who connected with your page, event, or application). Again, this is only applicable when you advertise within Facebook for fan pages, groups, or events.

6. CTR (Click-Through Rate)

How many times your ad was clicked, divided by the number of times your ad was shown (impressions).

7. Social CTR

The number of social clicks divided by the number of social impressions. Theoretically, this number should be higher than the general CTR, because the ad was targeted at a personal friend who’d already ‘Liked’ the page, thus demonstrating social proof.

8. Actions

The number of people who took the action desired from the ad itself, such as ‘Liking’ your fan page or responding to your event.

9. Action Rate

The number of actions divided by the number of impressions.

10. Conversions

Measurement of how many people responded to your call-to-action. This counts actions from the ad itself and includes when someone visits your fan page and then clicks ‘Like.’

11. Cost-Per-Conversion

Calculates your cost per conversion, so you can see how much you pay for a new fan, an event RSVP, or a new group member.

12. CPC (Cost-Per-Click)

How much each click you received cost you. This number is calculated even if you didn’t bid on the cost-per-click model. It considers how many clicks you received (even if you’re paying by impression) and calculates how much it cost you for each click.

13. CPM (Cost Per Thousand Impressions)

Even if you did not bid using the CPM model when you placed your ad, Facebook Reports will calculate it for your reference. This is helpful if you decide to switch to the CPM bidding model so you can compare how your ads are performing between the different bidding models.

14. Spent

The amount you spent for that time summary you chose in the report: daily, weekly, or monthly.

15. Unique Impressions

How many times your ad was shown to a unique person. Compare this against the number of impressions to see how many times your ad was shown to the same person.

17. Unique Clicks

How many unique clicks you received. This data is helpful to know if the same person happened to be shown your ad twice and clicked it both times, because the second click wouldn’t be a unique click.

18. Unique CTR

Unique clicks divided by unique impressions. Again, in relation to the unique clicks and the unique impressions, you want to know whether new people are clicking through to your ad or if it is one person clicking on your ad over and over. It’s best to have your Unique CTR come close to your CTR.

In order to determine if Facebook advertising brings you real business results, you’ll need to use a marketing system that measures:

19. New Leads

If your goal is lead generation, then you need to make sure that your ads are helping you convert visitors into leads. How many people converted on your offer and opted in to continue their relationship with your company?

20. New Customers

Were you able to drive new customers from all that Facebook advertising? If so, what was the conversion rate from visitor to customer compared to the same conversion rate on a different social network. You should have the data to make such strategic decisions.

Read more: http://blog.hubspot.com/blog/tabid/6307/bid/30895/20-Facebook-Ad-Metrics-Marketers-Should-Know.aspx#ixzz2AEDh7RFB
Tags: facebook marketing, facebook roi, social media marketing
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Comments (1)


Murathan 5 years ago.

If you are talking about pay per click aisretivdng (Google Adwords, Yahoo Search Marketing), you don't want hits. You want clicks that resolve in sales conversions.In my experience, Google far outperforms Yahoo in terms of volume of clicks and conversions. We blow through our Google budget 3-4x faster than Yahoo and the leads are slightly higher quality.Don't even bother with MSN or Ask. They don't have their acts together yet.Good luck!