As of March 2017, Facebook had 1.28 billion active users each day, and over 85% of those users were outside of the U.S. and Canada.
With such a large portion of the world use Facebook, marketers everywhere know Facebook is an ideal place to reach and engage new audiences.
Youave likely heard these stats before. After all, Facebook is a no-brainer for marketers. And if youare trying to reach new audiences, “youre supposed to” know paying for Facebook Ads is a great style to do that.
That said, knowing a channel is effective is far different from creating an effective ads strategy for your unique brand. With more and more marketers advertising on Facebook each quarter ,~ ATAGEND its harder than ever to build a strategy that will stand out from your competitors and make the return on investment( ROI) your brand needs.
But if youare ready to start putting budget behind your Facebook advertising strategy, itas important to fully understand how your ads endeavours affect your businessa bottom line. Otherwise, how else do you justify your ad spend?
Fortunately, with help from Socialbakers, a global leader in social media marketing analytics, we put together a data-packed report and how-to guide to help you build a better Facebook Ads strategy, benchmark your success, and be enhanced the ROI of your ad spend.
First, weall teach you how to calculate your paid social ROI so you can benchmark your ad spend against your industry and region. Then, use your computations and compare them to the benchmarks in the full ebook. Weall also help you create a strategy for your Facebook ad campaigns along the way.
How do you begin measuring social media ROI?
Why measure your ad spend ROI? Itas pretty simple. If you want your ads to make an impact on the rest of your marketing funnel, you have to measure what itas driving and how much of a return youare getting, which was eventually frame where marketing dollars are best spent for future campaigns that drive the best outcomes, leads, conversions, customers, etc.
Letas look at an example. Say your cost of customer acquisition( CAC) is typically $100 per customer. Your boss wants you to run a Facebook ad campaign to generate new customers and gives you a budget of $1000. You operate your first campaign and produce eight new clients from it. Was it worth it or not?
How to Measure ROI:
Measuring return on investment is pretty simple. You simply take the amount you spend( cost) and divide it by your returns *.
* The areturnsa youare measuring will differ based on your ad objective form. If your goal is to generate more leadings, you divide your expenses by the number of results you generate. The same is true for client acquisition ads, app install ads, website clicks, etc.
In the above instance, youad take the amount you expended ($ 1000) and divide it by the number of new customers your generated (8 ). That would mean you acquired eight new customers at a cost of $125 per new customer. If your boss tells you your typical CAC is $100 per customer, you know that the return you got from that ad campaign is higher than your typical CAC.
ROI= Total sum of such investments/ total return
If your ad campaigns are producing a lower return on investment than other strategies, it likely means you need to optimize your strategy to lower your costs. You can do this in a number of ways, like optimizing your ad copy or focusing your targeting strategy. Get more tips in this full-length ebook.
The example we just used assumed that you already know a benchmark to compare your campaign outcomes to. But what happens if you donat already have that info?
In this Facebook Ads Optimization ebook ,~ ATAGEND we have brand new data that details typical ad spend by campaign type and region to give you a starting point for benchmarking the success of your ad campaigns.
Read more: blog.hubspot.com