Facebook ads give you a way to reach a wide audience and boost traffic to your website. To get the results you’re looking for, you need to continually optimize your ads. If you’re relying solely on Facebook’s reported data, you shouldn’t be because it’s not completely accurate and some of it is delayed. If this data isn’t correct, it’s undependable to optimize.
Using marketing efficiency ratio (MER)/blended ROAS is imperative to succeed in today’s world of paid social. Blended ROAS is calculated as Total Revenue divided by Total Money Spent on advertising. Ideally, it should be 2-4x. If you haven’t already switched to using MER/Blended ROAS, it’s time to make it your north star.
However, this doesn’t mean it’s the only metric to look at.
Soft Metrics On-Platform
We can’t make informed optimization decisions if opt-out data shows up as much as 72 hours after conversion or shows up on the day of the data transfer rather than the date of the conversion. It can be hard to determine which metrics matter. In digital marketing, there are many hard metrics to consider such as page views, downloads, clicks, and conversions.
Soft metrics are more subjective and often reflect the strength of relationships. There are soft metrics to look at that are on-platform. These metrics provide data that Facebook isn’t using and this data isn’t delayed. From the reporting dashboard, start with a standard set-up that includes information such as:
- Campaign name
- Bid strategy
- Purchase Conversion Value
- Purchase Return on Ad spend
There are a variety of soft metrics that can be added, such as click quality, post engagement, engagement rate, and revenue per click. For videos, metrics include video average playtime, video plays at 50% and video plays at 95%. Both hard and soft metrics provide important information for determining ROI.
Looking at Multiple Metrics
There’s no single metric that will give you all the information you are looking for. You’ll need to gather data not only from Facebook Ads Manager but also from Shopify and Google Analytics and other data sources. Looking at a variety of metrics from multiple sources can help you see a clearer picture of what’s working and what’s happening in Facebook Ads.
Looking at only in-platform data only shows a small part of the full advertising story. When you used blended ROAS, you’re not looking at just Facebook revenue or Google revenue. You’re looking at the big picture of how much money you made and how much you spent. Using multiple metrics can help you develop clarity and a successful marketing strategy.
Strategic Planning for Better Results
The best way to grow your business online is by developing a marketing strategy that considers your goals and the channels you’ll use to make them happen. Is your marketing strategy as comprehensive as it could be? You may find that the learning curve for developing a strategy that works so you can get the results you want is pretty steep. Rather than struggling on your own, reach out to the experts at Softline Solutions. We can help you to realize your online potential.