Who loves looking at the numbers…be honest!
If you’re one of those people who really don’t enjoy digging into the numbers then you have to start looking at marketing a different way, as successful marketing is not based on emotion.
Emotions are subjective and have a huge variation relating to what you like or what I like. If you spend a lot of time, money and effort on an ad, you are emotionally invested into it, and have a different filter when determining how ‘good’ an ad is and what your expectations are.
The reality is we need to eliminate emotions as much as possible and evaluate the effectiveness of any advertising and marketing based on the numbers.
Not All Metrics Are Created Equal
To understand if something is successful or not largely depends on your objective.
There are many different objectives you can use, for example, if you wanted to increase your brand awareness, you might run a brand awareness objective or the reach objective.
If you want to get more people to your website, then you could use the traffic, conversions or catalogue sales objective.
If you have a video that you want your audience to see then you could use traffic, engagement (and choose Post Engagement, Page Likes or Event Responses) or video views.
If you chose the video views objective, when setting up your adset you need to decide how you want to be charged, which adds another level of complexity.
How Do You Know Exactly What Objective Is Right For You?
You have to test and use the data to connect more dots, giving you insights to make further decisions and implement your strategy..
Marketing is all about testing, data and arbitrage, where you want to pay as little as possible to generate traffic and make sales.
It’s no easy task to create winning campaigns as there are a lot of variables that come into play. Marketing is not a linear process, and there’s no ‘one size fits all’ or a cookie cutter approach.
This is the game of business, and you need to decide on the most realistic and effective way to create a marketing system that brings in new business.
We connect with professional, business owners and entrepreneurs every day and understand how stretched you can be trying to do every important task.
Most people are busy being busy and don’t have a clear plan or strategy, which only adds even more overwhelm and stress to your life.
Let’s take a step back for a second.
When we onboard clients we go through our K5 Process and one of those components is to get clear on what resources and abilities you have so we can recommend the right strategies.
Here’s a few things to consider:
♦ Do you like looking at the numbers?
♦ Are you systemised?
♦ Do you have a good eye for choosing images?
♦ Do you have the temperament to be patient and test knowing that need to follow a plan and have a timeframe to do this right?
♦ Do you have any digital marketing expertise?
♦ Are you willing to continually study ONE advertising platform to make it work for your business?
♦ Do you want to take the time to work this out yourself?
♦ Do you need things to happen quickly and want a broad understanding so you can pay for others to help?
♦ Do you enjoy writing?
♦ Have you studied copywriting before?
There are so many different skill sets required but you can do it, when you know where to focus.
So, back to the metrics…
Within Facebook alone there many different breakdowns for your data.
Simple changes can have a dramatic impact on your return on investment (ROI).
The biggest impact on an ads performance is the image, and this is what stops people scrolling through their newsfeeds.
You can create ad using something called Dynamic Creative (DC) which is leveraging the Facebook AI to perform testing on all different combinations of your ads, matching different images, headlines, main text, calls to action and buttons.
But you have to know what to feed the Facebook machine (in terms of data and money) and how to interpret the results.
The data allows us to focus in on the 80/20 rule, for example, initially you might target an age range or 20 – 65+, then if you data starts showing you that your best audience is 40 – 50 year old women, then that is who you will start targeting in your new campaigns.
Basically, you start out a broad as you can to cast the biggest net, then analyse, then test again to keep refining until you have a winning campaign.
If you have in depth knowledge of who your target customers are, then you can start narrowing, by defining a tighter audience, rather than going broad.
When you buy data, this is feeding information to you pixel (if your pixels are placed correctly).
If your pixels are not placed correctly, you need to stop advertising and get this sorted out immediately as you are wasting money and flying blind.
Rule: Don’t fly blind!
When it comes to testing, you should only test ONE variable at a time (unless using Dynamic Creatives) so you actually know what is working and what’s not working.
Test Ad 1 Headline vs Ad 2 Headline
Test Ad 1 Image vs Ad 2 Image
When you have a good amount of pixel data you can then start creating some marketing assets within Facebook, like Custom Audiences and Lookalike Audiences.
Custom Audiences are really powerful as they are used to create retargeting campaigns and exclusions.
Lookalike Audiences are built off your custom audiences (data source) and buyers lists (you can upload your buyers list to create a custom audience call Buyers for example).
You can create a Lookalike audience between the range of 1% – 10% of the total population of your chosen target country, with 1% being those most closely to match your source and 10% being the least matched to your data source.
You can then test a 1% audience against a 5% for example, and see what works best. 1% does not work best every time.
You can use the pixels very strategically. One example is if you were running some Google Adwords campaigns.
You can capture the data of those people that clicked on your Google Ad and did not purchase.
ith your pixel you can capture the data of these people that did not convert, and retarget them using Facebook ads.
What Metrics Should You Be Looking At?
I know it can seem a bit overwhelming by having access to so much data and metrics, but the good news is that there are only a few things you should be looking at.
Don’t get lost trying to draw connections and conclusions from too many metrics as that will only confuse you and you’ll end up wasting so much time and money on the wrong things.
In the initial stages of running your campaign, all that matters is….
1. Purchases: Did the campaign make any sales and how much total revenue did you make?
2. Cost per result: How much did it cost you on average to make a sale?
3. Amount Spent: What was your total advertising cost?
Once you find some winning campaigns then you can start looking at other metrics so further improve and try to beat your ‘control’.
When you get used to looking at your dashboard, you can interpret data very quickly.
There is a strong connection between all the metrics and nothing works in isolation.
The Click Through Rate (CTR) shows you if your message resonates with your target market, if the CTR is low, you will pay a lot more for your ads to be shown, and Facebook will send your lower and lower quality traffic while giving the premium traffic to ads that have a much higher CTR.
You want to continually try to improve the CTR rate and aim to get this to 1% at the very least. It is possible to get this to 5%, 10%, or even +15%.
As you dig down further, you can target device types, time of day, days of the week and so much more.
Once you know your numbers you can then test out using different bidding options, like using cost cap, bid cap or target cost (You have to click on the ‘Show Additional Bid Strategies’ link to reveal these other options).
Take an honest look at your situation and resources and decide how you want to implement (done by you, done with you or done for you options) an advertising strategy so you can win!
1. Make sure your pixels are installed correctly.
2. Don’t get overwhelmed by the metrics and look at the most important data for CPA’s, money spent and money made.
3. Understand what you are trying to achieve and use the right objective.
4. Have the mindset that you are buying data and going broad with new campaigns to get as much data as you can then continue to narrow down with new campaigns and further refine your advertising.
If you need help to get clarity and direction with creating your marketing strategy and campaigns, book in a free 20 minute call.
We can talk about what you want to achieve, then give you some advice about the best approach to take. If we can help further – great – if not – we can point you in the right direction.