Everything you need to know to understand if your Facebook ads creative is performing
Facebook ads creative is a key element that determines whether or not your ad campaign will be successful.
Your campaign may in fact be set up in the best way technically, but if the creative is bad then you will definitely have some problems.
(If you already know that your creatives need improvement, I recommend checking out this guide where you can find helpful tips on how to create winning creatives)
Better creatives, in addition to landing more people on your E-commerce, also help lower the costs of our campaigns.
Good creative lowers the CPM (the cost that is paid to reach 1,000 impressions), gets better results in terms of purchases because it allows you to reach people more on target, and allows you to win more auctions with competitors.
Now, I think you’ve realized that it’s critical to understand which creatives perform best in your campaign, so let’s look in detail at how and why to do this.
How Facebook Ads work
Before we talk about Facebook Creativity, let’s understand how Facebook Ads work.
Facebook ads are advertising spaces that are purchased through an auction mechanism. Whenever content has the opportunity to appear on a device, an auction is dynamically and automatically triggered, which will have the content shown on that device as the winner.
Q: “But how does Facebook determine the winner?“
A: It will simply let the advertisement that offers the highest total value win.
Q: “And how do I increase the total value of my listing and win auctions?”
A: As Facebook itself tells us, the winner of the auction will be the listing with the highest total value.
The total value of the insertion is determined by three factors:
- advertiser’s offer: budget available and cost you are willing to pay to get a single conversion;
- estimated share rate: Facebook estimates the number of people who will interact with your ad based on your history and elements you include in the ad such as CTAs, images and text.
- relevance and quality of the advertisement: is a measure of the quality of an advertisement determined by several sources.
Content is considered valuable if it qualifies as engaging the user. The more relevant you are with your target audience, the greater this value will be.
So your goal is to work on relevance and quality of the ad, that is, the value brought to the user.
Better creativities especially help you to:
- Decrease campaign costs: by lowering CPC (cost per click) and CPM (cost per thousand), for the same budget, you can reach many more people.
- Increase C TR (click through rate): the more your CTR grows the more relevant you have been to the user and the more the value to the user and therefore the total value will go up. Facebook will pay you back by lowering your costs indirectly, that is, by making you win more auctions and thus spend less to achieve the usual results.
- Give better signals to the algorithm: the more data Facebook has, the better it will be at showing your ads to your target audience.
Difference between metrics and KPIs
Now that you understand how the platform works, let’s go on to determine what KPIs (Key Performance Indicators) tomonitor to evaluate the performance of your creatives.
It behooves us to make a distinction between metrics and KPIs before we delve into the topic, because not everyone knows the difference between the two, and we don’t want you to make that mistake.
It is said that all KPIs are metrics, but the reverse is not true.
In fact, a metric is anything that can be measured while a KPI is a key performance indicator, a metric that helps you understand whether things are on the right track, or whether you will need to intervene and make a change in order to achieve your goal.
After you understand the difference between metrics and KPIs, you should be clear that there are 3 key aspects to take into accountwhen evaluating creatives .
The data you go to analyze must have certain characteristics, they will have to be:
- specific: for each creative you have to have a clear goal which can be: interactions, purchases, leads etc.
- Measurable: KPIs must be quantifiable numerically
Well, having made these necessary introductions now we can start with the fun part!
KPIs needed to evaluate your creative for E-commerce ads
The key metrics to monitor in your Facebook Ads are cost per purchase and purchases. For cost per purchase we always take into account the amount spent and at least 8000/10000 impressions per creative.
Cost per Purchase and actual purchases, however, are not the only metrics to monitor. There are many others that I will explain below:
Coverage: is the number of people who have viewed one of your ads. This data is very important for contextualizing the data you analyze
CPM(Cost per thousand impressions): is the price the advertiser pays to acquire 1000 ad views. As we said, better creative helps you lower campaign costs, but it may be that your creative has a higher CPM than the average account. This means that potentially creativity could be improved and could reach people more on target.
CPC (Cost per Click): indicates the average cost to acquire one click on the ad. This figure tells you how effective your creativity is in attracting attention and curiosity, so much so that it leads users to visit your site.
Lowering the cost per click on the link allows you to reach more people with the same budget.
- Unique CTR: The Click Through Rate indicates how many people clicked on our ad. It is a sign of how creativity has succeeded in blocking the scroll.
CTR for unique outbound clicks: tells us how many people clicked on the link that leads out of Facebook, in this case, to our site. It is a sign that our creativity not only caught the attention of users by stopping the scroll but also made them want to go further by going to our site
It goes without saying that if the unique CTR is high but the CTR for unique outbound clicks is low then the creative was compelling enough to stop the scroll, but not so much that it would make people leave Facebook and visit the website.
- Last but not least, Conversion Rate: this is a custom metric that relates purchases to link clicks. As a custom metric you have to create it.
You should now be able to figure out which KPIs to monitor to understand which creatives perform best.
So optimize your Facebook Ads as much as possible and you will see that your campaigns will rock!
If you have any questions or need some more guidance, please do not hesitate to contact us by filling out the form on this page.
Together we can conduct a strategy session and find out what results we can help you achieve.