How To Track ROI Of Your Facebook Ad Campaigns
Facebook is the largest social media network, with over 2.6 billion monthly active users. Therefore, using Facebook ads to market your business provides an excellent opportunity to fine-tune your targeting, improve brand awareness, and find new qualified leads.
However, no matter how much you believe you've established a great Facebook ad campaign, tracking your ROI (Return On Investment) is vital.
Why track Facebook ads ROI? When investing in something, we all want to get good returns, and social media advertising is no exception.
Tracking Facebook ad ROI helps to determine how successful and beneficial your campaign was. If one of your several campaigns was successful, you can choose to run it again and get rid of others. But if all your ad campaigns do not bring a desirable ROI, you can know where to adjust or eliminate them altogether.
What Determines Your Facebook ROI?
Just because you're in the same business with someone, and you're both advertising on Facebook, doesn't necessarily mean your ROI will be the same. One of you may have a much higher ROI depending on various factors. For instance, the quality of the ads created. High-quality ads can work wonders to boost your marketing efforts and bring in more business. Your targeted audience also plays a crucial role in the success of your ad campaign - therefore, you should take time to ensure your audience is relevant.
Tracking the ROI of Facebook Ad Campaigns
Using Facebook Insights
If your goal was to increase engagement and maybe reach more people, Facebook Insights is one tool you can use to track the results. It offers a wealth of information concerning your page, with metrics such as likes, reach, page actions, page views, and the performance of other things such as posts, events, and videos. With this information, you can compare engagement that came in organically and engagement that came in through paid ads, and determine whether your ad campaign is worth it.
Facebook Insights lets you evaluate each post for clicks, likes, shares, and comments and assess how well your post reached the intended audience. You can also determine how well you achieved all these through paid ads or organically. For instance, if you spent $10 and achieved 300 likes, how does that compare to what you achieve organically. If the amount of engagement you're getting is almost the same as the one you're getting organically, then your ads are not giving you the best ROI.
Depending on the worthiness of your ads, you can choose to eliminate your campaign or tweak it so that it delivers better results. That way, you can avoid spending money on ads that don't bring a desirable outcome.
Using Google Analytics
While Facebook Insights comes in handy to help you understand how your ad campaign is doing on the platform, you should strive to know its performance outside the platform. This is where Google Analytics comes in to help. With Google Analytics, you can track your overall web traffic and conversions from your paid Facebook ads. This route involves several steps, and we're going to look at them here to help you understand better.
Step 1: Choosing a tool for URL parameters creation
There are various tools to help you with this task, but Google's own tool called Campaign URL Builder can work. The purpose of these parameters is to create a unique URL that you can track using Google analytics.
Step 2: Define your parameters
The Campaign URL Builder has various fields that you need to fill. There is the website URL, campaign source, campaign medium, campaign name, campaign term, and campaign content. While it's not mandatory to fill the campaign term and campaign content fields, it's recommended that you fill them. Why? You may be running several ad campaigns and Facebook and may want to track each of them individually. How and what should you fill in those fields? Here's how you need to do it:
- Website URL - This is where people clicking on your ad should be directed. It may be a link to your product or service.
- Campaign source - You want to track a Facebook ad, so the source here is Facebook.
- Campaign medium - Do you want to track using impressions or clicks? Use CPC here for clicks or CPM for impressions.
- Campaign name - The name you enter here should be the same as your Facebook ad campaign name.
- Campaign term - This should be the same as the name of your Facebook ad set. You can copy and paste it here.
- Campaign content - This should be the same as your Facebook ad's name to allow for individual ad tracking.
After defining your parameters, the tool will then auto-generate a unique URL. Copy it and use it as the destination URL for your ads. Once you're sure everything is okay, press the 'publish button'. You can now track the performance of your Facebook ads using Google Analytics.
Step 3: Track the Campaign
Login into your Google Analytics account and choose the 'Acquisition' option which is on the left side menu. From there, select 'All Traffic' and then click on 'Source/Medium.' Here, you can see the number of users who came from Facebook. You can even follow their journey from Facebook to your landing page and determine how long they stayed, whether they visited other pages, and whether they bought something or completed an action, such as signing up.
From the conversions, you can determine whether your Facebook ad campaign was a success, or it needs a little tweaking to deliver the expected results.
How About Hiring a Facebook Ads Expert to Help Track ROI?
Does this whole process look a little complicated for you? Save yourself the work by hiring an expert to do the work of tracking the ROI of your Facebook ad campaigns! A professional has the time, tools, expertise, and experience to evaluate your entire ad campaigns and determine whether they're producing your desired returns. The professional can also recommend techniques to make your ads more effective for a better ROI. That way, you can concentrate on building your business in other ways.
To know more about how a professional can help track the ROI of your Facebook ads, get in touch with us at SparrowBoost today!