Reiterate Marketing & Digital Media

CPA, CPM, CPC, ROAS, ROI, KPI… Do you ever feel overwhelmed by the amount of data & metrics present in Facebook Adverts Manager? Does it all seem like a bit of a mess and you can’t work out what’s going on?

This is completely normal for anyone that hasn’t worked for a digital media agency or as a digital marketing manager for a large brand. And that’s ok… Here, we’re going to take you through some of the key result metrics you need to know to analyse and optimise your Facebook/Instagram advertising campaigns.

THE CORE METRICS TO TRACK: 

 

CPA = Cost Per Aquisition.

This is how much media dollars it costs per conversion (aquisition). Ideally, you want this to be as low as possible. CPA is sometimes also referred to as “cost per conversion” or “cost per sale”. Depending on what your campaign goal is, your ‘aquisition’ may be different. For example, if your goal is to recruit new “leads”, then your CPA would be your cost per lead.

CPM = Cost Per Mille. 

This metric is better understood as “cost per thousand impressions”. This is a common media buying metric to understand exactly how much the advertising is costing you to distribute. This is a metric that is most helpful for comparing the cost of advertising across a number of channels. It’s also useful for comparing the cost of digital channels to offline channels.

A high CPM means expensive media distribution, low CPM means inexpensive media distribution. So, if you look at the CPM of your Facebook campaign, and compare that to what the CPM of some radio advertising is, you can start to see how expensive (or inexpensive) it is in comparison.

The CPM for your Facebook campaigns can also sometimes be a measure of how relevant/engaging your advertising content is, as Facebook will distribute these adverts cheaper (to more people) if they deem it to be relevant to your audience.

CPC = Cost Per Click. 

This is an easy one everyone understands… How much dollars it costs you per link click on your advert. But, this is also one commonly misunderstood on a deeper level.

A low cost per click is good, but don’t be fooled that this is the most important metric to follow. If you only sell products in Australia, a million cheap clicks from India is close to worthless. Cost per click needs to be used a metric to aid your analysis of all your Facebook data as a whole.

ROAS = Return On Advertising Spend. 

This is a common term used in Facebook marketing to evaluate the ROI achieved compared to the media spend. You want your ROAS to be as high as possible!

ROI = Return On Investment. 

Return on investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested.

KPI = Key Performance Indicators. 

These are the data-sets most relevant to the performance of your campaign. They’ll likely be the metrics we’ve discussed in this blog post!

To Conclude: 

When it comes to effective digital marketing, you want to evaluate all of these metrics holistically. A great campaign is one that takes into account all of the key performance indicators and is optimised accordingly.

If you haven’t already, I recommend watching my free Facebook advertising tutorial on how to make your digital marketing convert every time. It’s available here.

I’ve got a heap of bonus information to send you too, so after you watch that, check your email! I’ll send you through a free additional video that covers how to create the ultimate Facebook analytics dashboard to make sure you’re tracking everything you need to evaluate and max out your Facebook campaign performance.

Got questions? Head here and request your free 30-minute strategy session.

Keep winning.
Justin