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Facebook Ads ROI Guide: What To Expect, How To Measure ROI, And How To Improve It


Facebook advertising is notoriously expensive. However, the costs are worth it so long as you achieve a solid return on your investment (ROI). Success is never guaranteed on such a competitive platform, but it’s much easier with the right approach and expertise from Facebook marketing experts. 

How to Measure Your Facebook Advertising ROI?

Measuring your return on investment (ROI) on Facebook can be difficult if you don’t have the right tools or knowledge. This is because people often leave the platform to make a purchase. It’s also difficult to assign values to actions, including likes, shares, comments, follows, etc. At the same time, it’s important to measure this metric to ensure that you’re spending your advertising budget in the right places.

So, how do you measure your Facebook advertising ROI? Here are some tips to help you:

  • To properly measure your Facebook advertising ROI, you need to utilize a Facebook pixel on your business website. Using a Facebook pixel allows you to link and track users on the platform with users on your website.
  • From there, you can set up a feature known as conversion tracking. You can set different values, including event actions and values.
  • After that, you need to create a custom reporting column within Facebook Ads Manager so that you can easily see this relevant information directly within the Facebook platform.
  • Finally, you have all the information you need to determine your ROI. The two most important factors here are your purchase amounts and your paid advertisement amounts.

Other Facebook Advertising Metrics You Should Care About

While knowing your ROI is key to a successful Facebook advertising campaign, there are other key performance indicators, or KPIs, that you also need to understand:

Click-Through Rate (CTR)

This calculates the rate at which users who see your advertising content click on it to reach the specified landing page. To get your CTR, simply take the total number of clicks on the advertisement and divide it by the number of overall impressions. You should strive for a CTR above 1% as an indicator of a successful Facebook advertising campaign.

Cost Per Click (CPC)

This calculates the average amount you pay every time someone clicks on your advertisement to reach your landing page. To get your CPC, simply take the total amount spent on your campaign and divide it by the total number of clicks. Facebook CPCs tend to vary depending on the industry, with an average of $1.86 across all industries.

Return on Ad Spend

Return on Ad Spend calculates how much revenue you’ve earned from your Facebook advertising campaigns compared to how much you’ve spent on them. To get your ROAS, simply take your total revenue generated by purchases attributed to your advertising campaigns and divide it by the total amount spent on advertising. You should strive for a positive ROAS as an indicator of a successful Facebook advertising campaign.

How Does ROAS Differ From ROI?

Now that you know more about ROI and ROAS, it makes sense that you’d be confused by the differences between these two metrics since they pretty much sound the same. And while they both generally calculate your return on advertising, ROI takes a broader approach. ROI calculates the rate of return based on your total investment in advertising rather than just the direct costs of placing advertisements.

For instance, ROI may take into account things like creative development and content testing. On the other hand, ROAS calculates the rate of return based only on what you spent on the placement of the actual advertisements. One isn’t necessarily better than the other, and they are both key components to understanding your Facebook advertising efforts.

How Do You Improve Your Facebook Advertising ROI?

If you want to get the most bang for your buck in your Facebook advertising, you need to focus on improving your ROI. Here are some of the tactics that you can do to improve your advertising efforts and get a better rate of return:

1. Know Your Audience

It’s nearly impossible to market to an audience you don’t know much about. Instead, you need to take the time to get to know your audience to give them what they want. The best way to do this is to develop a buyer persona. A buyer persona goes beyond basic demographic information to cover more in-depth details, including hobbies, wants, and even fears. Essentially, a buyer persona should look like a real person rather than just a general group of people.

2. Test Your Content

In an ideal world, your content would be spot on 100% of the time. In reality, however, this just doesn’t happen. If you aren’t putting the right content on Facebook, your campaigns won’t be successful, and you will lose money. So, to avoid this, you need to test your content before launching it. The best way to do this is through A/B or split testing that focuses on a single changed variable within your advertisement. That way, it’s easy to isolate and determine why Version A is performing better than Version B.

3. Get Creative With Your Targeting

Many businesses focus on basic targeting mechanisms that are simply based on demographics or even geographical locations. However, Facebook offers a whole host of different targeting mechanisms that you can use to improve your ROI. For instance, you can try retargeting people who have previously interacted with your business. These individuals come with a better chance of a conversion since you have already established brand awareness.

Another thing you can try is lookalike audiences. This feature allows you to utilize your existing client data to develop mechanisms to target similar individuals. You can also use your Facebook pixel to establish a lookalike audience, or you can simply use your email list.

4. Work With Experts

The next step you can take to improve your Facebook advertising ROI is to work with certified and experienced Facebook marketing experts. Understandably, many businesses are hesitant to hire experts due to the perceived costs. However, in terms of ROI, your costs will be largely offset by your profits.

This is because Facebook marketing experts will be able to exponentially increase your ROI based on their knowledge and expertise. They take a targeted and strategic approach to get you the best results. MuteSix, for example, has been able to increase its clients’ ROAS on Facebook by an average of 26%. This is in addition to a 209% increase in overall revenue, a 380% increase in incremental Facebook advertising revenue, and a 13% decrease in customer acquisition costs.

What to Look for in a Facebook Marketing Expert

Facebook marketing experts seem to be a dime a dozen. So how can you find the right one for your unique business needs? The first thing you need to look for is experience and recognition. Your agency should be reputable with a whole host of prestigious awards and glowing testimonials.

MuteSix is the number one most awarded Facebook advertising agency. We also boast five-star reviews and testimonials from our amazing clients.

The next thing you need to look for is certification. Facebook has a certification process for the best and brightest Facebook marketing experts. Termed “Facebook Marketing Partners” or “Facebook Business Partners,” these third-party agencies have been vetted to ensure that they offer their clients the best services and results. MuteSix is a certified Facebook Marketing Partner based on these rigorous requirements.

Finally, you need to take a look at the process offered by your prospective Facebook marketing agency. To get the best results, you should go with a full-service approach so that everything is handled from start to finish. MuteSix does this through a five-step process that is highly detailed and tailored to each client.

We start with a comprehensive audit and analysis of your current Facebook advertising efforts to see which areas need to be improved. From there, we move on to robust creative development using our revolutionary in-house creative studio, StudioSix. Once we have created the most engaging content for your brand, we focus on targeting testing so that the perfect content reaches the right people. Finally, we optimize your campaign after launch and scale to achieve consistent success on the platform.

Final Thoughts on Facebook Advertising ROI

If you’re looking to take your Facebook advertising game to the next level and immediately boost your ROI, then you need to work with the best. Reach out to the experts at MuteSix today for a complimentary marketing consultation to discuss how we can make this happen for you.


About Facebook Pixel | Facebook

Buyer Personas: What They Are, Why They Matter and How to Best Build One | Entrepreneur

A/B Testing: The Benefits and How to Use It Efficiently | Forbes

Special thanks to our friends at MuteSix for their insights on this topic.
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