Facebook Ads are one of the most popular forms of PPC marketing, and to many of us this is no surprise.
Facebook offers fairly unmatchable targeting abilities for their ads covering user’s demographics, interests and even online behaviours!
Running Facebook Ads is all well and good, but if you’re unsure how to determine your ROI or didn’t even know you could determine ROI from Facebook Ads, then we may have a slight problem.
ROI, or Return on Investment, is a crucial measurement factor when determining the success of a campaign.
Measuring the ROI of a campaign is simple, as long as you have the right tracking and tools in place your job will be easy!
What to Measure
Determining ROI is all about measuring the correct actions on your landing page and on your ads, it all depends on what you want to get out of your ads.
If you just simply want to raise brand awareness and get people through to a landing page set up to help raise this awareness then you may want to just track the clicks through to this landing page.
If you want to generate sales, you will need to set up E-Commerce tracking in Google Analytics and track the sales that are generated directly from your ads.
The most common action that businesses want from their Facebook Ads is for the users to get in touch with them or give the business their information to be contacted. If this is the case you need to track every action a user can take on your landing page to get in touch with you, this will include:
- Contact Form Submissions
- Phone Calls
- Email Link Clicks
In addition to these conversions, you may also want to track things like application form downloads or pdf downloads. These would all count as conversions for a campaign.
Once you have determined what you want to get out of your campaign, you will have determined what you need to be measuring.
So, how do you measure these conversions?
A Facebook Pixel is a separate piece of tracking that works alongside your Facebook Ads to provide information about what action users take on your website from your Facebook Ads.
The pixel will report on website actions directly into your Facebook ad account so that all of the data corresponds with the correct ads and ad groups.
These will also help to optimise your campaign by providing Facebook (and you) with more information about which one of the ads is converting the most people.
This is the alternative to using a Facebook Pixel or, if you want to cover all of your bases, as well as a pixel.
Creating a campaign URL provides you with a separate URL for your Facebook Ads which will separate your data in your Google Analytics account. The data from one of these URLs will appear in the ‘Campaign’ section of your Analytics account.
This means you can track every action a Facebook user takes, the page they visit or how they convert on your website.
You can create Campaign URLs using this tool or a similar tool.
This will allow you to accurately determine the ROI of a campaign, considering your sales will all have a monetary value. Sales can be tracked in Google Analytics within the E-Commerce section of your account, and/or you can set up the Facebook Pixel to track final sale amounts for sales conversions.
Once you have tracked your sales, you will be able to work out how much profit you’re making directly from the sales resulted from your ads.
An action on a page could include sending a contact form, clicking on an email link or even downloading a PDF, whatever the action is that you want your visitors to take, they can all be tracked.
These actions can be tracked using Google Analytics goals or Facebook Pixels and are set up either with event tracking, e.g. a button click or via a destination page, e.g. a thank you page.
Once you have tracked all of these actions on your website, you will be able to determine your average cost per conversion and from here determine how many of these conversions resulted as a sale.
This is the information you will use to determine your ROI.
You may never have thought about this or even knew it was a possibility for your campaign. But, call tracking could be the last step in determining an accurate ROI for your campaigns.
There is many call tracking software available for businesses to use, for our clients we tend to use Ruler Analytics. This software will track all of the phone calls that your business receives and will give you the relevant source for each call, e.g. Google Organic or Facebook Paid.
Not only does it track the source of your calls, but it will also record the calls, so you can really easily tell who each conversion is and whether they turned into a sale.
This is the only way to ensure that your ROI is accurate.
This is the basic information you need to know about when you’re running a Facebook Ads campaign, without the ability to determine your ROI you could be spending hundreds on ads that aren’t bringing in a penny.
It’s crucial to be able to measure the success of your Facebook Ads, so if you want more information on how to set up and measure Facebook Ads or want to know how these ads would benefit your business; get in touch with our team of marketing experts today!