Facebook ad : What are the KPI's for a successful ad ?

[Dantheman]

Hey guys,

Pretty new here, we started our first Shopify store three weeks ago. We started running some FB ads and got some results  (Reach 2,611, Impressions: 2,807, Link Clicks: 28, CTR: 1.00%, Cost per content view: $0.39). Still 0 Orders.... as our site reached its 500 visits. Problem is, we got nothing to compare these figures to. Maybe it is too soon to get any conclusions but could you guys share your views about what are good KPIs for an ad ? 

Every comment is welcome here 🙂

Daniel

[MatthewHerchel · Accepted solution]

Hi @Dantheman 

Let me work through some quick definitions and math so everyone can follow along.

Reach (Facebook reach is the number of unique people who saw your content): 2611

Impressions (How many times 50% or more of your ad (measured in pixels) was on a potential customers screen): 2807

Link Clicks (How many times a potential customer clicked you ad and was directed to your website): 28

CTR - Click Through Rate (The total number of clicks divided by the number of impressions - displayed as a percentage): ~1.00%

CPC - Cost per Click (How much you are charged when someone clicks your ad/link): $0.39

Okay, the math starts now.

On average advertisers online can achieve a CTR ranging from 1% to 3% (depending on the product and audience).

That means in order to get 100 people to click the link and reach your store you need to display your ads to between ~3000 - 10,000 people

Once they make it to your store there is additional drop off.

Simply put

You show your ad to 3000 people

1 - 3% of people click the link

~100 people reach your store.

Not everyone that views your store buys a product. The average conversion rate (depending on your products and audience) range from 1 - 7%

~100 people reach your store

1 - 7% makes a purchase

1 - 7 people buy a product.

HOWEVER

We also have to measure these numbers from Unique Users. The same person may visit your store multiple times and never make a purchase (increasing your Impressions/link clicks without actually converting.

This lowers your conversion rate.

Industry average KPI's

1 - 3% CTR

1 - 7% Conversion

In many industries competition is quite high. As profit margins go up, the amount an advertiser is willing to spend to acquire a customer is more (legal services, financial products etc.)

What is the URL of your store? I'll probably be able to help you further if I had more info.

I don't want to jump to any conclusions about why your store has zero orders without checking it out.

Best regards,

Matthew Herchel

2H.Media

[DuaneBrown · Accepted solution]

When it comes to an ecom store... your KPI is either going to be your CPA & return on ad spend (ROAS) or your LTV of a customer. Everything else is a distraction because your focus should be on building a profitable business. Things like CPC and CTR are a distraction and not worth heavily focusing on.

[Dantheman]

Exactly the kind of numbers I was looking for, cheers 🙂

My website is https://iamnotredame.com/

FB Pixel says we just reached 1.3K PageViews and 460 Contentviews. No orders yet. So either we continue the FB ads to have some bigger numbers, either we"ll have to change the content

[DuaneBrown]

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@Dantheman wrote:

Exactly the kind of numbers I was looking for, cheers 🙂

My website is https://iamnotredame.com/

FB Pixel says we just reached 1.3K PageViews and 460 Contentviews. No orders yet. So either we continue the FB ads to have some bigger numbers, either we"ll have to change the content

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I would look at how many people add to card and initiated checkout to tell if your ad is working or not. Those will help you tell if people are closing to making a sale.