When it comes to analyzing Meta ads performance, it’s super helpful to break down the metrics into three main categories: Conversion Metrics, Engagement Metrics, and Traffic Metrics. This way, you can get a clear, comprehensive picture of what’s working and what needs tweaking.
Here’s how we do it and why it matters.
Conversion Metrics 💰
Conversion metrics are the heart and soul of any ad campaign because they show if your ads are doing the work. Make sure to complement these metrics with other tools such as Triple Whale for better accuracy.
Key Conversion metrics:
• Cost Metrics:
How much you’re spending (Amount spent),
CPM (Cost per Thousand Impressions)
Cost per conversion
• Purchase Metrics:
How much value those purchases bring (Purchase conversion value),
Purchase ROAS (Return on Ad Spend)
Number of purchases
Average Order Value (AOV)
These metrics help you see if your money is being well spent and what kind of return you’re getting. For instance, purchase ROAS and AOV show how much revenue each dollar spent is bringing in.
Engagement Metrics 🪝
Engagement metrics tell you how well your ads are connecting with your audience. They’re all about interaction and can help fine-tune your content strategy.
Key Engagement metrics:
• Video Metrics:
Hook rate (how many people stop scrolling to watch your video)
Hold rate (how many stay engaged)
Video average playtime
ThruPlays
• All Formats Metrics:
Outbound CTR (Click-Through Rate for clicks that go outside of Meta platforms)
Post reactions
Hook rate and Hold rate are custom metrics that I use to see if a video ad grabs attention and keeps viewers watching. As a benchmark, I aim for a Hook rate of 25% and a Hold rate of 30%. Outbound CTR is crucial because it focuses on clicks that lead users to your site, unlike regular CTR, which includes all ad clicks. For Outbound CTR, I consider 1% as a good benchmark to aim for.
Traffic Metrics 🚃
Traffic metrics give an overview of how far your ads are reaching and the quality of the traffic they’re driving to your site. These metrics are maybe less relevant than those above but it's still good to keep an eye on them.
Key Traffic Metrics:
• Traffic Metrics:
Impressions (how many times your ad is shown),
Reach (how many unique users see your ad),
Unique outbound clicks
Frequency (how often the same user sees your ad)
• Meta to Google Metrics:
Search traffic
Go to search rate
One key metric I always watch is Frequency, which tells me the average number of times a user has seen the ad. This helps prevent overspending and ad fatigue. I try to keep Frequency around 2 over a 7-day period to ensure the ad is seen enough to be effective but not so much that it becomes annoying.
Metrics like Unique outbound clicks and the Go to search rate help understand how well your ads drive meaningful actions and interest.
By categorizing and monitoring these metrics, I can make informed decisions to optimize ad performance continuously. Whether it’s adjusting creative elements based on engagement metrics or fine-tuning budgets according to conversion and traffic metrics, this approach ensures every aspect of ad performance is thoroughly analyzed and improved for success.
What’s your experience with analyzing Meta ads?
Any favorite metrics or tips?
Let’s share and discuss!
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