Facebook ads are an effective way to reach potential buyers and sellers while building brand equity. Facebook metrics give insights into how well your ads are performing but, as Greg McCutcheon from Real Estate Bookings explains, quantity isn’t always better than quality.
Important metrics are those that provide you with deeper insights into how your social media marketing is performing. For example, many agencies measure the success of Facebook ads by looking at metrics such as impressions and likes. Often these metrics don’t give a real indication of how well your ads are performing and what your return on investment really is.
It’s important to note that the quality of these metrics is just as important as quantity, if not more. For example, if you’re promoting a $2 million property and you achieve 10,000 impressions with 20 to 25-year-old low-income earners, would you say it’s a successful campaign? We would prefer 1,000 impressions from genuine prospects than 10,000 impressions from irrelevant audiences.
Below are some important metrics that we follow closely in digital campaigns we manage for clients.
Click Through Rate (CTR)
A click-through rate (CTR) is a ratio which shows how often people who see your ad end up clicking on it. It’s calculated by dividing the number of clicks your ad receives by the number of impressions (how many times your ad is viewed or displayed on a page).
CTR can be used to determine which ads are successful and which need to be improved. A high CTR indicates that your ads are helpful and relevant to the people who see them. However, a good CTR is relative to factors such as what you’re advertising, where and when.
Cost Per Click (CPC)
Cost per click (CPC) refers to the average price you are paying for each click your ad receives. A variety of different factors influence your ad’s CPC result, such as how much budget you assign, who you’re targeting, the timing of your ad and the quality of your ad.
Facebook ads operate like a bidding process, where advertisers compete for a restricted amount of space in users’ news feeds. Generally speaking, the more specifically you target, the less competition you’ll face and the more value you will get out of your ad.
Facebook provides a relevance score for each ad you run, which is a number between one and ten. This score often changes as more users interact with your ad. Positive reactions (such as interacting with it or clicking it) will increase the score, while negative reactions (telling Facebook they don’t want to see it) will decrease the score.
Google Analytics Data
Google analytics data provides insights into the traffic your ad is receiving and what prospects do on your site after clicking the ad. This includes demographics about prospects such as age, gender and location.
It also includes user behaviour data, such as comparisons of new and returning visitors, how long visitors spend on your site and how often a visitor becomes a lead.
These key metrics can assist you in your social media campaigns. It’s important to learn from each campaign. A post-campaign review will identify what worked and what didn’t. You can then recalibrate your next campaign to exceed your own benchmarks and focus on improving the results based on statistics that really matter.