How to Make Sense of Facebook Ad Metrics (Key Performance Indicators)

To get the most out of your Facebook ads, it’s important to know what to look for once the data on the performance of your ads starts rolling in. The only way to do this is to understand Facebook ad metrics and what to look for when determining whether an ad campaign is working or […]

facebook indicators

To get the most out of your Facebook ads, it’s important to know what to look for once the data on the performance of your ads starts rolling in. The only way to do this is to understand Facebook ad metrics and what to look for when determining whether an ad campaign is working or not. The more you successfully track how each ad campaign is doing, the more you can learn from its performance.

Without proper tracking and analytics, you’ll never be able to see the real impact your ads have. Plus, playing the guessing game in marketing is very dangerous. If you followed our instructions, the ads you started running in The Marketing Box 2 should have gathered a decent amount of data to review. In this task, we want to make sure you understand these metrics and make informed decisions as we continue your DIY marketing journey.

The video section of this task will show exactly how to view each ad metric and how to interpret it in real-time. The written section of this task acts like a dictionary for Facebook ad metrics and also provides tips from our experts for how to improve the performance of your ad if the metrics show it is underperforming.

What Are Facebook Ad metrics?

Facebook ad metrics are the measurement you use to determine the success of a Facebook advertisement. These metrics are used to answer every question you have about your ad campaign. Tracking these metrics is necessary for the success of your ad campaign and eliminates the marketing guessing game. From helping you build a better-targeted audience to calculating your return on investment, Facebook ad metrics have you covered.  

The Most Important Facebook Ad Metrics

This list of Facebook metrics should be used as a “user manual” when you are monitoring your Facebook ads. We encourage you to use these explanations in real-time or until you are 100% sure you understand each one. This will help you improve your understanding of Facebook ad metrics and how to make the best strategic decisions for your practice. The video for this task further explains these metrics in real-time.

1.) Click-Through Rates (CTR)

This metric is the most important. You want this percentage to be as high as possible. The Click-Through-Rate shows how many clicks you’ve received on your ad compared to how many impressions your ad received. Impressions represent how many times your ad has been viewed in total. In other words, this metric presents the percentage of individuals who click on the ad out of all individuals who have seen the ad. This is calculated by dividing the number of link clicks by the number of impressions.

High CTR means your ad quality and targeting is achieving what it should. A low CTR means they are not exactly on point, so people aren’t interested in your ad. Pain-Free Dental Marketing has an average click-through rate of 2%. The industry average is 0.8 – 1%. A medium to high CTR is where the money is, so you should try and keep your click-through rate between 1 – 2%.

How to improve your click-through rate

  • Stick with News Feed ads on desktop. When deciding where an ad should show, you should select “News Feed” on “Desktop”. This ad type allows for a large image and a long description, helping it stand out more to Facebook users. We have found that potential patients are more likely to click on these types of advertisements.
  • Speak directly to your target audience. Have you ever realized the difference between an ad that speaks about someTHING vs. an ad that speaks directly to you? Here’s an example: “Dental Implants can be life-changing” vs. “Dental Implants can change your life”. Now if you were thinking of getting dental implants, which of these would you choose? We would go with the one speaking directly to the target audience. The most effective ads, whether on Facebook or any other platform, speak directly to their target audience.
  • Make your image pop out from the News Feed. One of the best ways to improve your click-through rate is by using images that look natural. People have gotten used to generic stock photography which is less likely to grab their attention. In task number 6 of this marketing box, we are going to show you how to hire a photographer and organize a photoshoot for your dental practice. This will help improve the quality of content you produce and also provide you with professional pictures of your staff and dental practice. By using appealing content for your advertisements, you will have a better click-through rate.
  • Use the appropriate “Call to Action” button. In most cases, you should use the “Learn More” action button on your ads to not scare potential patients off. Think of it this way, a salesperson will usually ask if you would like to see a product before you buy it. If they simply walked to you and said, “Buy this now!”, you would be more likely to run away.

2.) Ad Clicks

Ad clicks show you the number of times a user has clicked on your ad. The higher this number, the better. More clicks mean more people have shown interest in your dental advertisement. Ad clicks represent every action taken by a user on your ad. This includes actions such as liking your ad, saving the ad, expanding the ad to learn more, or most importantly, clicking on the link you provide which, in most cases, will be redirected to your website. The more interest users show in an ad, the more likely they are to look for your brand when they need dental services.

What to do if ad clicks are low

If ads are getting low click rates, it could mean that the ad is not very appealing or it is failing to capture the attention of the audience you have selected. To solve this problem you can do the following. We are going to show you how to apply these strategies in the next task.

  • Change the title of the ad and description. You can do this by going to your Ad Manager account, then hover your mouse over the ad you would like to change and select “edit”. Once you have made the necessary changes, click publish.
  • Recreate the graphic/video. It could be that the graphic you created on Canva, or the graphic you used, just didn’t capture the attention you had hoped for. This is nothing to feel discouraged about. It happens all the time when it comes to targeted marketing as you can never know exactly how users will engage with your ad. 
  • Reconfigure your target audience. The Facebook Target Ad categories we provided you with in Box 2 were just guidelines to help you get started. Although those targeted options have worked for us, things could be different for the areas that you are advertising in. That is why we encourage a trial and error approach when it comes to targeted marketing. You’re not always going to get it right, so making adjustments is necessary to find the right formula.

3.) Cost Per Click (CPC)

The Cost-Per-Click metric shows how much, on average, each link click costs you. This means that when somebody clicks on your ad and is redirected to your website, you pay this amount. This metric is used to benchmark ad efficiency and performance. You want this metric to be as low as possible.

How to Reduce Cost Per Click

  • Set up Facebook Pixel. In Box 2, we showed you how to set up Facebook Pixel. If you have not done this, be sure to go back and get ‘er done to reduce your cost per click in the long term. Facebook Pixel will provide a more targeted marketing approach as it allows you to measure the actions people take on your website. This also helps Facebook’s algorithm show your ads to the right people ensuring a higher click rate.
  • Target a more specific audience. By using data from tools such as BatchGeo, Facebook Pixel, Google Analytics, and Facebook ad metrics, you can continuously refine your target audience to be more and more specific. By doing this, you will better serve your audience resulting in a reduction of the cost per click.
  • Run video ads. Video is, on average, 10% the cost of carousel or single image ads. The Facebook algorithm favors video content which is why it provides a cheaper cost per click.
  • Increase the click-through rate. By following our advice on “How to improve your click-through rate,” you will also lower your cost per click. The more people who click on your ad, the higher your relevance score will be, which means Facebook “likes” your ad. As a result, Facebook will help you to advertise your services by lowering the cost as your ad resonates with your target audience.

4.) Results and Cost Per Result

The Results metric refers to the number of times your ad achieved an outcome, based on the objective and settings you have selected for your campaign. If the objective of your campaign is to generate “traffic” to your website, this metric will show how many times this was achieved. This metric can be used to judge how well your ad campaign performed based on the business objectives and settings you chose. By comparing the results performance among similar campaigns, you can identify which ad campaigns are successful and which ad campaigns are areas of opportunity to make changes and get better results.

The Cost Per Result metric shows you the average cost of your ad based on the number of times your ad achieved an outcome. Cost per result enables you to gauge how cost-efficiently you reached your objective(s) for a campaign. It can then be used to compare the performance of different campaigns that share the same objective. Cost per result is calculated by dividing the total amount spent by the number of results (e.g., reach, clicks, conversions, video views). 

5.) Impressions

The Impressions metric shows you how many times your Facebook ad has been viewed. When a user is scrolling through their Facebook or Instagram feed and your ad shows up and is viewed, that counts as an impression. This metric is important for when you are running a brand awareness campaign. Remember that brand awareness is one of the ad campaign objectives you can select when creating a new ad campaign. For brand awareness, the impressions matter, as it reveals the exposure level of your brand name. 

That being said, people usually scroll right past an ad without really spending much time on it. That’s why we do not focus on ad impressions as much as ad clicks. Although your ad has been seen, it doesn’t necessarily mean they will remember you. Impressions can also be a bit deceiving. One person could have multiple impressions for a single piece of content which makes it look like more people have seen the ad when, in reality, this is not the case. It’s important to keep this in mind when judging how well an ad is doing.

6.) Ad Frequency

The Ad Frequency metric builds on the impression metric as it shows how many times, on average, an individual user has seen your dental advertisement. If, for instance, this number is 4, that the specific ad has been seen 4 times per person, on average. 

This metric is a great way to track how well a “brand awareness” campaign is doing. The more times a person has seen your ad, the more likely they are to recall the types of services you offer. This will also help them remember your practice the next time they have a dental emergency. This metric should be as high as possible when running a brand awareness campaign as it helps build familiarity with your brand. The frequency number for a branding campaign should not be lower than 10. 

If, however, you are running a “traffic” campaign, the frequency metric should be as low as possible. You don’t want a high-frequency number. Instead, you want a high click-through rate. If somebody sees your ad 9 times and they have still not clicked on it, this means they are not interested and you are likely wasting money. This is because the cost per click increases when ad frequency increases.

Therefore, you need to constantly monitor your campaigns to understand how frequency is impacting them! At Pain-Free Dental Marketing, we begin to make adjustments to our traffic campaigns when the frequency gets to 4. This will make sure you do not overspend on cost per click. 

How to keep your ad frequency low

As a dental practice, we know that most of your ads will be targeted towards getting potential patients to your website. The objective is to have a low ad frequency and more ad clicks. Here is how you can lower ad frequency:

  • Find the right balance between your budget and your audience size.  If you have a $10 daily budget and a small audience size, it should take some time before the frequency becomes a problem. If, however, you have a large ad budget, but your target audience is too small, it will begin to show the same people your ad again and again which can become irritating to potential patients. So, with a big budget, you can increase the audience size if you see a high frequency.
  • Monitor and Act.  If you see the frequency count gets to about 5, you should begin to keep a closer eye on that ad and make sure the click rate increases along with the frequency. If you see the frequency is increasing, but the click rate remains low, it means you are not achieving your intended goal and should make changes. You then have two options: either you make changes to the design of your ad (title, description, picture) or completely stop the campaign and recreate one where you target a new audience.

7.) Reach

This metric refers to the number of users who have seen your dental ad at least once. It is important to remember that “reach” is not the same as impressions. As mentioned, impressions may include views of your ads by the same people, whereas reach gives you a measure of how many individual people were exposed to your ad in total during an ad campaign. Your reach is affected by your bid, budget, and audience targeting.

And that’s it! When running Facebook Ads in the future, keep an eye on all of these metrics. The Pain-Free Dental Marketing experts are constantly keeping an eye on our clients’ Facebook Ads metrics which helps us make the best decisions on which ads to keep running and which to either remove or adjust for better results. In the next task, we are going to teach you how to review these metrics in real-time as we would. This will help you gain some practical experience with the Facebook metrics we just discussed.