It’s Michelle here again!
Today I want to talk about “KPI’s and Metrics”. Yes, those big scary words that haunt everyone.
what do all of these KPI’s (Key performance indicators) and metrics actually mean?
Depending on the objective of your social media campaigns, your KPI’s and metrics can change.
For now, lets breakdown some of the most commonly seen metrics:
Reach: The number of people who saw your ad at least once. If your ad’s reach was 45,000, this means 45,000 different people saw your ad.
Frequency: The average number of times that each person saw your ad. Say your reach was 45,000 people and your frequency is 2.5, this means that 45,000 people saw that ad an average of 2.5 times.
Impressions: The number of times your ad has been displayed on a screen. Using the previous example if your reach sits at 45,000 people at a frequency of 2.5 times the number of impressions is 112,500.
Unfortunately just because it’s called an impression, it doesn’t actually mean people have taken the information in, it just means it’s been shown on the screen.
Cost per result: The average cost per result for your ad. On Facebook (by default) this measured as “per 1,000 people reached”. If your cost per result is $3, this means it costs you $3 per 1,000 people reached.
As a general rule of thumb, anything over $5 per 1,000 means you might want to rethink your ad to see how you can make it cheaper. That being said the more narrow your targeting is such as ‘retargeting ads’ the more expensive your ads will be as they’re more effective.
Clicks: The number of times someone has clicked on your ad. This can further be broken down e.g. Link clinks or CPC (cost per link click)
Engagement: The number of people taking action on your post. This can be likes or reactions, link click, comments or shares.
Video views: The total number of times your page’s videos were viewed for at least three seconds.
Conversion rates (one of our favourites): The conversion rate metric tells you what percentage of people who click your ad goes on to make a purchase and become a customer.
Cost per conversion: The cost per conversion metric tells you how much you’re paying for each lead or sale. For example, if you spent $100 on Facebook ads and had five people convert, your cost per conversion would be $20. It’s up to you to know whether this cost per conversion is acceptable or not.
ROAS: Return On Ad Spend. If you put $1 in how much return will you receive?
Like mentioned, which metrics are most appropriate for you depends on what the aim of your ad is. If you are looking to make more money you want to keep an eye on Conversions, CPC (cost per conversion, and ROAS.
If you’re looking to see a lot of people focus on Reach, Engagement or video views!
The more ads you run, the more you’ll get used to breaking down your results, and start to recognise what ads are working well and which ones aren’t.