So you’re running some ads, but how do you know if they’re performing well? There are a few key areas to look at, specifically your Click Through Rate (CTR) and Conversion Rate. But first, let’s talk about the definitions.
Click Through Rate (CTR)
Your ad’s Click Through Rate is the percentage of times your ad is view vs how many times it is clicked on. There are a few breakdown options for clicks, but if you’re looking at Clicks (All) this would mean any sort of click on any part of your ad.
Your Conversion Rate is how many times someone clicks on your ad and completes a Conversion goal. Conversion goals will be set in advance using the Facebook Pixel. A Pixel is a snippet of code that is added to the header of your website, and allows you to track user traffic and behaviour leading from your ad to your website.
Using this tool, you can select what you consider a successful Conversion, which can be completing a checkout on an online store, or filling out a lead form.
Once a goal is set up, you can select which Conversion you will be tracking based on your ad content.
Alternatively, you can track your Conversions separately for more detailed results. The Facebook pixel just tracks the journey from ad to website goal, but you can use additional tools like Google Analytics and Microsoft Clarity to get additional data on your users’ behavior from ad to Conversion.
So how are other businesses performing?
Here are some industry benchmarks to compare you data to:
Lower than you expected?
We often hear from people new to ads that they expected higher results. There can be a long list of reasons for this, but often it just comes down to human nature. Most potential customers need to see ads multiple times before they take action, and often even clicking on an ad won’t lead to a conversion the first time.
The key to successful ads is consistency, persistance and creativity. Keep your business top-of-mind with ads that catch users’ eye and give them a reason to want to learn more.
Something else to keep in mind is quality vs quantity. Having a low CTR isn’t necessarily a bad thing if you’re getting a high percentage of conversions. You ultimate goal should be to target potential, high quality customers who are most likely to convert and keep coming back for more.