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How a Facebook Ad Management Company Brings You Value Beyond Vanity Metrics

How a Facebook Ad Management Company Brings You Value Beyond Vanity Metrics

There’s no denying that likes, shares, and 5-star reviews can make you feel good about the efforts you’re putting into your business’s online presence. The currency of social media, these so-called “vanity metrics” can be critical indicators of whether your hard work’s paying off.

That said, you can’t rely on vanity metrics alone, especially when you want useful insight into how to shape future marketing and business decisions. Smart WSI Marketing is a Facebook ad management company that can show you how looking beyond vanity metrics ensures your marketing efforts are as successful as you need them to be. Call us today to learn more!

What Are Vanity Metrics?

Vanity metrics typically appear great on paper and therefore imply growth and success. Common vanity metric characteristics include:

  1. They look good but lack actionable data. Vanity metrics can make your business appear successful, but in reality, they lack actionable insights or details about your return on investment.
  2. They appear valuable but lack analysis. It’s easy for business owners to fall into the numbers trap, but if you don’t convert vanity metrics into actionable ones, you can’t measure your progress.
  3. They suggest growth but lack the data to back it up. Tracking only the number of downloads or followers is mostly meaningless if you fail to see the end result. For example, if you merely track Facebook follows or likes, you could be fooled into thinking that as those numbers increase, so too does your success.

None of this is to imply vanity metrics are pointless, but it does show that how you use them is what makes the difference in your digital campaigns. If you want your Facebook Ads to produce better audience engagement and increased sales, a Facebook ad management company can help you leverage and understand more meaningful metrics.

Non-Vanity Metrics to Track

Actionable metrics relate to specific business actions with observable results. They enable digital marketers and Facebook ad management companies to align marketing efforts around the metrics that help brands meet their unique business objectives.

As relying on vanity metrics alone can lead to short-sighted decision-making and diminished returns, you need to look for other ways to gauge Facebook Ad performance. Tracking these five metrics is a good start to getting the most out of your digital campaigns.

  • Total Number of Conversion

The Facebook Ads conversion rate is the percentage of click-throughs to your website that result in a conversion, including a purchase, download, or other forms of lead generation. Calculated by dividing conversions by the total number of link clicks and multiplying by 100%, it’s often measured together with other key performance indicators (KPIs) like cost-per-click (CPC) and impressions. It also shows your Facebook ad management company how well your ad is connecting with your target audience and the conversion rate achieved within the demographics you’re reaching.

  • Frequency Conversion Rate

The frequency metric indicates how many times an ad was viewed, on the average, by an individual. For instance, a frequency of five means that, on average, each person who’s viewed your ad has seen it five times. Experts consider the best Facebook Ad frequency to be three to eight times.

  • Return on Ad Spend (ROAS)

ROAS is the amount of earned revenue for every ad dollar spent. It measures the effectiveness of your Facebook Ad campaigns and is computed by dividing the revenue earned by the total amount spent on a campaign. So, if you spend $3,000 and earn $15,000, you’ve made $5 for every $1 you spent and achieved a five-to-one ratio. A good ROAS for Facebook Ads is between two and four times, but the figure can vary greatly depending on industry, ad placement, and other factors.

  • Cost-per-Click & Click-through Rates

Cost-per-click (CPC) helps determine how much each click in a pay-per-click campaign costs your business. Many factors affect the CPC rate, including the ad platform, type of keyword, industry, and more. If a CPC rate is high but your returns are low, it’s possible your Facebook ad management company is targeting the wrong keywords. It could also be a matter of irrelevant ad copy messaging. Either way, it signals something’s not working.

A click-through rate (CTR) is the ratio between the number of people who click on your ads and the amount of time the ad was shown. It measures an ad’s efficiency and effectiveness, keyword relevancy, and traffic drivers. Optimization can directly impact CTR, while impressions and clicks depend primarily on a searcher’s behavior and your ad budget. 

  • Cost Per Action

Also referred to as cost-per-conversion, the cost-per-action (CPA) represents the price you pay for each action users take on your website because of your Facebook Ad. Typical actions include purchases, app downloads, sign-ups, and other conversion tactics. By tracking user interactions, your Facebook ad management company can optimize your ads so they get as many conversions as possible within your budget.

How a Facebook Ad Management Company Brings Additional Value

Of course, these five metrics aren’t the only ones that matter, but they’re a good place to start when you want to gain greater value from your Facebook Ad campaigns.

While many SMBs choose to manage their Facebook advertising internally, a Facebook Ad management company like Smart WSI Marketing has the expertise and experience needed to create campaigns that deliver significant financial results. They can also save you money over the long term and free you to concentrate on what you do best: running and growing your business.

Schedule a consultation with us today to learn more about how we can add substantial value to your Facebook Ads campaign strategies.

Lynne team member
Lynne Motkoski, Digital Marketing Strategist
Specialty: Digital Marketing Strategies
Education: MA Communications & Technology, BComm [U Alberta]
Author: The Online Marketing Handbook for Busy Entrepreneurs (coming soon)

Lynne is known for her strategic approach to marketing communications, technologies, and lead generation. She has a passion for education, keeping up with current marketing trends and practices, and helping clients keep ahead of their competition.

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