often people will start a facebook or
instagram ad campaign they won't get the
results they want
but then they're not sure exactly what
went wrong and what they need to do
to actually fix it that's what i'm going
to cover in this video i'm going to show
you how to analyze and understand the
data inside the facebook ad manager
and how to use that data to diagnose
find out what's wrong
and determine exactly what you need to
be working on in order to fix your ad
campaigns
this video is going to save you a ton of
time a ton of stress
and hopefully a few grey hairs as well
so yes it seems super nerdy and boring
but trust me
this is worth your time if you're going
to learn one thing about facebook ads
it's how to actually understand and
utilize
the data that you get from them so first
we're going to talk about the most
important metrics what they are what
they mean
and why they're actually important and
then we're going to talk about
how to actually use each of those
metrics and how to use them in a way
that tells you what to do
next so you're not guessing but before
we dive into the first metric please if
you enjoyed this video give it a thumbs
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all right we got that out of the way now
let's jump in and talk about the first
metric which is an impression so
whenever anybody sees
one of your ads on facebook or on
instagram that's called
an impression and the most common way
that facebook
charges advertisers is per impression
so there's a metric called cpm and cpm
stands for cost per mill now that sounds
weird i know
mil actually is latin for thousand so
cpm
is cost per thousand impressions
so your cpm is telling you how much
facebook is charging you
for every thousand impressions or for
every thousand
times your ad is shown inside the
facebook news feed instagram feed
or in any other placement that's the
first thing you need to understand is
cpm
because the basis of how you're going to
be charged
for your facebook ads so for every 1000
impressions we get
on the platform a certain percentage of
people are actually going to click on
our ads
somewhere not necessarily the links but
they could click the like button
they could click the see more button in
order to see more of your text
they could be clicking to add a comment
they could be clicking to hide the ad
who knows
but a certain percentage of people are
going to be clicking somewhere on our
ads
the metric that this is tracked through
is called clicks
all and this metric tracks all clicks on
our ads no matter what the click is
so that's the clicks all metric so just
to reiterate that
the clicks all metric is tracking all
clicks on
ads not just clicks on links clicks on
links are included
as part of that metric but they're not
the only thing inside our clicks or
metric it's any click
anywhere on the ad so a certain
percentage are going to click somewhere
on our ad and that's known as the click
through rate so the click-through rate
is a really easy calculation
all you need to do is take the total
clicks
divided by the number of impressions
that's going to give you
your click-through rate all so to give
an example if you have
10 000 impressions and 500 clicks you
would do 500
divided by 10 000 which is 0.05 or five
percent so that would give you a five
percent click through rate
now from that a certain percentage of
those clicks
are going to be clicks on your links and
those are what we really want
so the clicks and our links are measured
using a different metric
and that's our link click through rate
so you've got your clicks all which
measures
all clicks anywhere on the ad and then
you've got your link clicks which
just counts people who've clicked on a
link
inside your ad now the metric that we
use to track the rate at which people
are clicking on our links
is the link click-through rate so to
calculate our link click-through rate
it's almost the same as our regular
click-through rate but we take the
number of link clicks and we divide it
by the number of impressions
and that gives us our link click through
rate so to give an example let's say we
have 10 000 impressions and 250 link
clicks
so we do 250 divided by 10
000 that gives us 0.02
or a 2 click-through rate all right hey
going not confused yet sticking with me
here's what happens next if everybody
who clicks on your ad
that's going to send them to a landing
page and for this example for this video
we're going to assume that we're running
to a landing page that collects a name
and an email so we're gathering leads
from our facebook ads so a certain
percentage are clicking on our links
they're going to our landing page now
unfortunately not everybody who hits
that page are going to enter their name
and email address and click the submit
button that's just not the way it works
i wish it was our ads and our campaigns
would be so much more effective
if it was but that's just not how it
happens so people are going to click the
links in their ads
they're going to go to our landing page
and a certain percentage of those people
that hit that page
are going to enter their name and email
click the submit button
and go to our thank you page that
percentage
the people who enter their name and
email and click the submit button
that is our landing page conversions so
every time somebody does that it's a
landing page conversion
and the way we measure that is our
landing page conversion rate
so the easiest way to calculate our
landing page conversion rate is to take
the number of conversions or leads that
we get from our ads and divide it by the
number of link clicks
let's say you get 100 conversions but
you had 200 link clicks so you do 100
divided by 200 which gives us 0.5 which
is a 50 percent
conversion rate on our landing page all
right so let's look at this
step by step as a whole let's say you
spend a hundred dollars on ads
you have a cpm of 20 meaning you're
paying twenty dollars
per thousand impressions so for that
hundred dollars you're going to get
five thousand impressions on the
facebook and instagram ad platforms
now if you've got a link click through
rate of two and a half percent
then that's going to get you 250 link
clicks
from your 100 budget then if your
landing page converts at 40
you're going to end up with 50 leads
from your total spend
of 100 that's going to give you a cost
per lead of
two dollars so you can probably already
see the impact that changing any of
these metrics is going to have on our
lead cost if our cpm goes up
then our lead cost is going to go up as
well if our link click through rate goes
up meaning more people are clicking on
our ads
then that's going to push our lead costs
down because we're getting more people
hitting the landing page
more people converting so changing any
of these metrics is going to have an
impact one way or the other
on your overall lead cost now finally
some of these leads are hopefully going
to convert into customers
now these are tractors purchases inside
the facebook ad manager and the metric
that i like to track here
is our lead to sale conversion rate so
that simply means the number of our
leads
that are converting into sales and the
way that i calculate that
is simply the number of purchases
divided by
the number of leads for example if we
bring in 1000 leads
and you get 50 sales from those thousand
leads then you simply do 50 divided by
1000
which gives you 0.05 or a 5
lead to sale conversion rate and so from
that
you probably want to calculate how much
money you're actually making with your
facebook ads that's known as return on
ad spend
or row as and you simply calculate your
row as
the amount of money you brought in so
the total sales value
divided by the amount spent for example
if you spend a thousand dollars and you
bring in two thousand two hundred and
fifty dollars in sales
you simply do two thousand two hundred
and fifty divided by one thousand which
gives you a rise of two hundred and
twenty five percent
still with me okay good now we're going
to talk about how to actually
use these to diagnose what's wrong with
your ads
and how to use that to make decisions
about where to best spend your time and
what to work on fixing
as a priority so the first thing we're
going to look at is the link
click-through rate and the question
we're asking
is are people actually clicking the
links on our ads
and to do that we need to head over to
the facebook ad manager
once you're in the facebook ad manager
go down to the ad level
and then in the columns tab we want to
choose performance and clicks
and then in the breakdown tab you want
to go to delivery
and break it down by placement now this
is very important most people won't tell
you this they'll give you benchmarks
to stick to but they don't actually tell
you that those benchmarks actually
differ based on the placement and
most people recommend now that when you
set up a facebook ad campaign
you choose the all placements option
when you choose all placements you give
facebook the freedom
to show your ads on whatever placement
it thinks is best so that means that for
some campaigns
it might show your ads more on the
instagram
stories feed or for others it might show
your ads more on the facebook newsfeed
for others it might choose right column
so depending on where facebook is
distributing your ads it's going to
change these benchmarks and these
metrics
so what we're doing is we're looking at
the breakdown by placement and all of
the benchmarks that i'm going to give
you are for the facebook news feed
placement both desktop and the mobile
app
so every benchmark that i give you you
want to be down here looking at the
breakdown
and just looking at facebook news feed
mobile and desktop
so that you can accurately use these
benchmarks in a meaningful way
all right as i said the first metric
we're looking at is the link
click-through rate for the facebook news
feed placements both desktop and the
mobile app
now you want to actually look at that
click-through rate and see if it's above
one percent
if your link click-through rate is under
one percent
then that's quite low and we know
straight away that that's something you
need to work on because you're not
getting enough
people clicking on the links in your ads
after they see them
so you really want to be above one
percent at a minimum if it's below that
then that's something that's a priority
for you to fix if you're at one point
five percent link click through rate
that is good
two percent is very good anything above
three percent is excellent
so let's say your link click-through
rate is below one percent
it means very few people are clicking
the links on your ads and you need to
improve it
you're probably wondering what do i
actually need to change before we know
that we need to dig just a little bit
deeper and what we're going to look at
next
is our click-through rate all so
we look at our click-through rate all
and the question we're asking now is
are people actually stopping and looking
at my ads and interacting with them at
all
or are they just ignoring them and
continuing to scroll through the feed
without even acknowledging our ads exist
so have a look at your click through
rate all and what we're looking for here
is a click-through rate of four percent
or higher remember
for the facebook news feed placements on
desktop and in the mobile app
so if that's the case if you've got a
click-through rate all of below four
percent
you need to work on your creative we
know that the problem is your image or
your video because it's not doing its
job of getting people to stop scrolling
pay attention to your ad and take action
so next step test new images test new
videos
leave everything else the same so you've
got nice clean
tests but create new ads using same copy
same placements same targeting just with
new images and video and your goal
is to see if you can get better images
and video
that will get people to stop scrolling
and get people to pay attention to your
ad
okay so let's say you do have a
click-through rate all of above four
percent
but your link click-through rate is
below one percent what that tells us is
people are actually stopping
they're looking at your ad they're
clicking on it they're probably clicking
the see more button to read the rest of
your copy
but the copy isn't doing a good job
of convincing them to click on the link
you can see that in this example on the
screen now
now in this example you can see the
click-through rate all is almost
exactly the same for both ads but these
ads run different
copy and you can see if we look at the
link click-through rate
one is actually much higher than the
other
now what that means is that one piece of
copy is doing a great job of getting
people to click on the link it's
convincing them
to take that next step but the other ad
the copy isn't as effective it's not
doing as good a job
at convincing people to click those
links and so one copy is better than the
other we know that we'll keep that piece
of copy and we'll try to iterate on that
and we'll scrap
the one that's not winning so if you
have a good click-through rate all
and a low link click-through rate then
the answer is simple the diagnosis is
your copy
is not working you need to go and work
on new copy start new tests where you're
keeping the same
images and videos but you're testing new
copy and trying to improve that
if you want to learn more about ad copy
i've got a separate video on that that's
a whole new topic i'll put a link at the
top of this video now it should pop up
for you
and then go check that out after this
video if you want as well
so what if your link click-through rate
is good let's say it's 1.5
hopefully higher people are clicking on
the ad they're going to the landing page
but your lead costs are still too high
well the next thing to look at is your
landing page conversion rate and you'll
remember
that's the percentage of people who are
actually converting into elite after
they hit that landing page
so look at your landing page conversion
rate remember 40
is good 50 is incredible if you're at 30
or below then that's an indicator that
your landing page is not doing a great
job
of getting people to convert into leads
and you know you need to work on your
landing page
now i do have a video on improving your
landing page conversion rates i'll put a
link it should pop up now
um at the top of this video so you can
check that out after you finish watching
this video
if that's something you need to work on
now what if
you're doing all this right what if your
lead costs are good
but for some reason you're still not
generating the return on ad spend that
you want in other words you're not
making as much money from your ads
as you'd like to well that's where you
move on to that next metric
which is your lead to sale conversion
rate
now this varies wildly across
sales funnels and industries and all
different types of things
but for this example let's say you're
using a webinar funnel
and you're selling an online course
somewhere between three hundred dollars
and a thousand dollars generally a
good lead to sale conversion rate that i
like to shoot for there
is two percent if your lead to sale
conversion rate is below two percent and
you're running a webinar
and you've got a course between three
hundred dollars and a thousand dollars
then that really is something that you
need to be focused on because not enough
of your leads are actually converting
into sales
now naturally if you've got a more
expensive course if you're more towards
the thousand dollar price point then you
lead to sales conversion rate is going
to be lower
if you've got a lower priced product
then naturally your lead to sale
conversion rate is going to be a bit on
the higher end so 2
is what we're shooting for but there is
wiggle room around there like it's going
to vary depending on the price point
but regardless if you're below 2 make it
a point
to improve your lead to sell conversion
rate now the way to do that
is by improving your sales funnel so
whether it's the webinar whether it's
your sales pages your checkout page all
those different things
it's beyond the scope of this video
because that's another huge video
in itself but definitely work on
improving that lead to sale conversion
rate
i actually recommend no matter what you
should always
be working to improve that lead to sale
conversion rate
in parallel with improving the
performance of your ads and reducing
your lead cost
and the reason for that is because if
you're shooting for a particular return
on ad spend
you're going to get to that goal much
quicker if you're improving your
lead to sale conversion rate and
lowering your lead cost at the same time
than if you're just trying to focus on
facebook ads alone
so if you're enjoying this video all i
ask is that you hit that like button
it means a ton it helps me grow the
channel and if you're getting value it's
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thanks again for watching let me know
what you thought of this video in the
comments below or if you've got any
questions i'll be back here answering
them for you
and again i always appreciate your time
thanks for watching i'll talk to you
soon bye
so make sure you stick with me right to
the end in order
so first we're going to jump in and talk
about the most important metrics
what they are how to understan how to
use each of those metrics and how to
actually
uh what am i trying to say here
first we're going to talk about the link