You’ve made the fantastic decision to advertise on Facebook! So, how do you measure whether your ads are working, and how do you decide which metrics to look at?
There are 3 main metrics that will help you measure and improve the performance of your ads. We tend to measure the performance of your ads on a weekly and monthly basis using these all-important metrics.
- Approval %
If the marketing agency handling your ads report on likes, followers and engagement you will just be wasting your money.
Whereas with us we are industry-leading experts as we understand what metrics are most important to you and your business. We look at many different metrics when running your ads. However, these are the most important, so let us explain them to you.
Cost Per Lead
The Cost Per Lead is a metric we use to understand how much each lead/ finance application is costing you.
When creating a campaign, we will initially set up a daily budget which is what best suits you. We can advise you what CPL is usually industry standard for your business but this may vary depending on certain factors, such as the application form on your website.
We tend to see an average of £3 – £5 CPL, this average is something to consider when setting your daily budget.
In some cases, we have seen leads as low as £1. But quantity doesn’t mean quality and with audiences we target, we try to get higher intent audiences over 100’s of pointless applicants.
The Cost Per Approval metric is how we measure the quality of leads generated for our clients. We look at how many applicants have passed the finance check and how much an approval is costing our client. The industry average for approval ranges from 35%-48% and we tend to take the approval percentage into consideration when making adjustments to campaign audiences.
If a client is getting a low approval percentage we will look at targeting audiences that have a higher chance of getting approved, for example, people with a secure income and in a particular industry. To find out how to increase your approval percentage metrics, check out our last blog.
Cost per sale
The final metric, Cost Per Sale, it doesn’t take a genius to work out what this is however it is an important figure that we take into consideration when looking at a campaign performance. This number is ultimately what matters most to you, it’s what it’s costing you to sell a car. The industry average ranges from £150-£250 again this does vary though and in some cases, we have seen a CPS at £70.
If your FB ads company doesn’t discuss this metric with you I’d advise you to a run a mile and get us on speed dial!
Hope you enjoyed.
If you want 🔥🔥🔥 Facebook Ads, then you know who to contact!
Written By Georgia Tizley