Facebook ad metrics

Success Metrics for Online Advertising

Facebook Ads: Reach over 800 million people

Anna Jo (E-mail: [email protected], Tel:+82-10 -8938-3926)

mailto:[email protected]

I. Facebook metrics for Fan pages and Ads

ImpressionsSocial

ImpressionsSocial

%

ClicksSocial Clicks

CTR (click through rate)

Social CTR

Actions

Action Rate

ConversionsCost per

conversion

CPC(Cost-per-click)

CPM(Cost per thousand impressions)

Spent

Unique impressions

Unique clicks

Unique CTR

New leads

New Customers

Interactions

20 Facebook Ad Metrics Marketer should know

1. Impressions: How many times an ad has been shown to a Facebook user. * Watch this number => If it stops increasing, the bid may have fallen out of the suggested range.


2. Social Impressions: How many times an ad has been shown to a Facebook user with social context (i.e. with information about a user's friend(s) who connected with your page, event, or application). * This is applicable only for advertising within Facebook, such as for fan pages, events, or apps.


3. Social %: what percentage of the total impressions were social impressions.


4. Clicks:The actual number of clicks on the ad. *A click is also counted if someone ‘Liked' your fan page right from the ad itself.


5. Social Clicks:How many clicks you received from an ad with social context (i.e. with information about a user's friend(s) who connected with your page, event, or application). *Only applicable when you advertise within Facebook for fan pages, groups, or events.


6. CTR (Click-Through Rate):How many times your ad was clicked, divided by the number of times your ad was shown (impressions).


7. Social CTR:The number of social clicks divided by the number of social impressions. Theoretically, this number should be higher than the general CTR, because the ad was targeted at a personal friend who'd already 'Liked' the page, thus demonstrating social proof.


8. Actions:The number of people who took the action desired from the ad itself, such as 'Liking' your fan page or responding to your event.

9. Action Rate:The number of actions divided by the number of impressions.


10. Conversions:Measurement of how many people responded to your call-to-action. This counts actions from the ad itself and includes when someone visits your fan page and then clicks 'Like.'


11. Cost-Per-Conversion:Calculates your cost per conversion, so you can see how much you pay for a new fan, an event RSVP, or a new group member.


12. CPC (Cost-Per-Click):How much each click you received cost you. This number is calculated even if you didn’t bid on the cost-per-click model. It considers how many clicks you received (even if you’re paying by impression) and calculates how much it cost you for each click.


13. CPM (Cost Per Thousand Impressions):Even if you did not bid using the CPM model when you placed your ad, Facebook Reports will calculate it for your reference. This is helpful if you decide to switch to the CPM bidding model so you can compare how your ads are performing between the different bidding models.


14. Spent:The amount you spent for that time summary you chose in the report: daily, weekly, or monthly.


15. Unique Impressions: How many times your ad was shown to a unique person. Compare this against the number of impressions to see how many times your ad was shown to the same person.


16. Unique Clicks:How many unique clicks you received. This data is helpful to know if the same person happened to be shown your ad twice and clicked it both times, because the second click wouldn’t be a unique click.


17. Unique CTR :Unique clicks divided by unique impressions. Again, in relation to the unique clicks and the unique impressions, you want to know whether new people are clicking through to your ad or if it is one person clicking on your ad over and over. It’s best to have your Unique CTR come close to your CTR.


18. New Leads:If your goal is lead generation, then you need to make sure that your ads are helping you convert visitors into leads. How many people converted on your offer and opted in to continue their relationship with your company?


19. New CustomersWere you able to drive new customers from all that Facebook advertising? If so, what was the conversion rate from visitor to customer compared to the same conversion rate on a different social network. You should have the data to make such strategic decisions.


20. Interactions:Total number of comments, Wall posts, and likes a page had. The more interactions a page has the more naturally viral it is in Facebook due to the feeds.

- Interactions Per Post- Post Quality Score- Reviews

II. Online Advertising framework

From the perspective of ROI metrics

Step 1: Choose

measurements

Step 2: Create metrics

Select one or two activities that are good early proxies for future sales. Leads and interactions are obvious choices for B2B marketers.

Create two to four metrics for each activity identified. Always use the top two boxes, which provide a cost-efficiency and a quality metric which directly drive results for a campaign.

Step 3: Measure

and Optimize

Step 4: Learnand Apply

Use the quality and the cost efficiency metrics together. It helps avoid the mistake of chasing volume from lower quality sources.

Learn from what is working, and from what isn’t. Although they may not be primary success metrics, they give context to the performance.

Cost Efficiency

Quality

Campaign Response

s

Publisher

Audience

Example.

Preferred:- Cost per ActivityAlternate:- Cost per Click- Cost per Visit

Preferred:- Activities/ClicksAlternate:- Page Views/Clicks

Preferred:- Cost per ActivityAlternate:- Cost per Page View- Cost per Visit

Preferred:- Activities/ImpressionsAlternate:- Page Views/Impressions- Visits/Impressions

What is ROI?

1.ROI= (Gains-Costs)/Costs X 100

2. Savings- Call Deflection(Direct/Indirect)- Average Handling Time- 1st Contact Resolution

Call Deflection

Average Handling

Time

1st Contact Resolution

4 elements to calculate direct deflections

1. Cost of a call

2. # of Questions asked per month on Facebook

3. % of Questions answered by Super Users

4.% of Questions deflected Call Deflection

Average Handling

Time


How to calculate savings

1. (# of Questions asked) (% of Answers)= # of conversations by super users

2. (% of Answers)(% of deflections)=# of deflected calls

3. (# of deflected calls) ($/call)=$ saved per month

4. ($ saved per month) (12)=$ saved per year

Call Deflection

Average Handling

Time


Gains

Call Center savings- Direct deflection- Indirect deflection- Avg. Handling Time- First call Resolution

ROI= (Gains – Costs)/ Costs X 100Gains

Call Center savings- Direct deflection- Indirect deflection- Avg. Handling Time- First call Resolution

Summary of Gains Versus Costs

Costs People costs(Manager, Analyst, Agents)- Employee- Third party consultants

Technology costs- Solutions and Services- Process(including Implementation) : Contact Center, Community Platform, Social Monitoring

How to calculate ROI

Call Deflection

Average Handling

Time


Social Business ROI Metrics

1. Fan growth:When a Facebook user “likes” your Fan Page they become your fan. This increases the exposure of your message not only to that fan, but to their friends as well. Fan growth creates a portal that allows your brand to enter the “friend zone” (a good thing in social media marketing!). This will increase engagement as well as “people talking about this”.


2. Like:As you post content to your Fan Page your fan community is given several options as to how they can relay to you that they were exposed to your message. * Enhance the experience: Thank them for liking the post. Pick a fan of the week from the fans that frequently liked content posted on your Fan Page wall.


3. Comment:When a fan comments it opens up the communication channel inviting you to respond which can deepen the relationship between brand and fan. * Enhance the experience: Add value to the conversation by asking open ended questions allowing the fan and other fans to expand the discussion.


4. Share:The golden ticket! If a fan shares content from your page they are taking the role of a brand ambassador. This seemingly small act should not be taking lightly since they are essentially broadcasting your message to a new audience that you may have not tapped into without their help.


5. Tag:Once a fan has liked your page they are able to create hyperlinked tags that link directly to your fan page. Their friends are able to click the link giving them the opportunity to like your page and create posts using your brand’s name. When a page is tagged in a post by a fan others are able to see the story through the “Friend Activity” tab.


6. Check-ins:Fans are able to use geo-location based apps on smartphones and other wireless devices that tell their friends their real-time location. Check-ins offer social proof with the opportunity of recommendations encouraging others to visit your brand offline.

Referenceshttp://www.slideshare.net/HelenTodd/facebook-metrics-fan-pages-and-ads

http://blog.hubspot.com/blog/tabid/6307/bid/30895/20-Facebook-Ad-Metrics-Marketers-Should-Know.aspx

http://socialyt.wordpress.com/2012/01/31/social-media-roi-mighty-metrics-pt-1-facebook-organic/

http://b2bdigital.net/2011/03/01/online-advertising-metrics-a-simple-framework/

http://www.rimmkaufman.com/blog/facebook-advertising-metrics/05052011/

http://www.thefacebookera.com/home.php