How To Analyze Facebook Ad Data
How should you optimize your ads over time? What KPIs should you even be looking at? One of the main things to consider when analyzing your Facebook ad data is your business goals.
In this video, we dive into how to analyze your Facebook ad data so you can see which Facebook ads you should optimize and which ads you should stop running.
I start by showing a high-level view of the Facebook ad account's health via Google Data Studio.
What Are Your Business Goals?
One of the main things to consider when analyzing your Facebook ad data is your business goals.
If your focus is on sales, the main KPIs (key performance indicators) you may want to look at are CPA (cost per acquisition) and ROAS (return on ad spend). If you are sequencing ads in a funnel, your top-of-funnel KPIs might be CPM (cost per 1,000 people viewing your ads), or impressions. Your middle-of-funnel ads you probably want to look at numbers like CPC (cost per click), or CTR (click-through rate).
When you know what your business goals are, you can make business decisions based on if your ads in your campaigns are working or if they should be killed (turned off).
Test & Optimize Your Best Performing Facebook Ads
I recommend looking at the ads that are doing the best and working to optimize them by testing more.
Try different copy, headlines, creative and even targeting to see if you can get better results over time.
You’ll also want to keep an eye on frequency rates of your ads. I recommend updating your ads every month or so to ensure they are fresh for your targeted audience.
You don’t want people getting tired of seeing the exact same ad every time.
The Facebook Ads Learning Phase
One thing to note…you won’t want to really look at your metrics and make changes to your ads during the learning phase.
When you start your ads running, Facebook tries showing them to different segments of your targeted audience to see who responds best to your ads based on your objectives.
This means, metrics and KPIs will fluctuate quite a bit until the learning phase has completed and been optimized. Wait for this phase to be done until you make any decisions on your ads and judge the KPIs.
How To Adjust Ads Over Time?
So how does one even optimize and adjust ads over time?
It’s really not that complicated…Most of the time it involves shifting the budgets around in the funnel (moving spend up higher from bottom-of-funnel/middle-of-funnel to top-of-funnel to grow your audiences).
Facebook is changing to Campaign Budget Optimization, so most of this work will end up going away (hopefully if CBO works well).
You also want to look at your ads and see if they are hitting your business goals. If they are struggling kill the ads. If they are performing well, test and optimize those puppies!
Questions?
Let me know below!