Facebook advertising: so, you decided to start a social media marketing campaign on Facebook. Congratulations! However, are you well versed into the actual formulation of the Ad, your target market and overall cost? Do you know what a CAC is? Well, not all is lost. Here’s a quick run down on how to measure your Facebook Advertising effectiveness, particularly your cost per customer acquisition and conversion rate as these indicators are critical to know.
Facebook does have a sales tracking system in place that you can use to assist you make better decision on your Ad spent. Let’s start from the basics: in order to get more targeted traffic, you will be creating and advertising on Facebook your particular product or service. Assuming that for every click will pay $2. Is this expensive? Well, it depends. If you are getting 25 visitors and all are purchasing your product that is priced at $50, you will create $1,250 in sales with only spending $50 on your Facebook Ad. This is known as a 100% conversion rate. The basic definition of a conversation rate is: percentage of your site visitors who buy something on your site. For example, if you had 1,000 visitors on your site and 50 converted to buyers, your conversation rate is 5% (50/1,000=5%). Knowing that your Facebook Ad is converting visitors into buyers, your actual price per Ad/click should not matter in this example, as long as your conversion rate makes sense. But what if no one converts into a buyer? If no one converts, you are essentially running a social media campaign that has no real value except for brand awareness or opt-in email contact information. If you have one conversation (CAC will be $50 in this case), you are breaking even, considering that other costs are covered such as shipping for example.
So how can you measure all this? Facebook offers “Facebook Pixel”, a code that you can implement on any page on your website. The page of interest is usually the last page, after the transaction. This is typically the “Thank you for your purchase” page. This is done in the Facebook Ads Manager. You should also allocated a price per click that you are paying, usually know as the conversion value ($2 in our example).
We’re more than happy to listen and provide an action plan regarding your Facebook Adverting strategy and overall social media marketing needs. Do get in touch with us today so we can help you get more out of your social media marketing!