This blog post will break down the fundamentals of using Facebook Ads benchmarks for better marketing performance.
Key Facebook Ads Benchmarks to Track
When it comes to Facebook advertising benchmarks, there are several key metrics you should track, including:
Click-Through Rate (CTR)
Click-Through Rate (CTR) measures the number of clicks your ad receives relative to the number of times it’s shown. Tracking CTR helps you understand how well your ads are performing and identifies areas where you need to make improvements. High CTR means that viewers are engaging with your ads and will likely result in increased conversions and ROI.
Cost-per-click benchmark (CPC) indicates how much you are spending on your ads and the number of people who are clicking through. Knowing this metric can help you determine which campaigns are working and which need to be adjusted or abandoned.
High CPC may indicate that your ad targeting or messaging isn’t resonating with your target audience or that your bidding strategy needs adjustments. A low CPC may indicate that your ads are performing well, and you’re reaching your target audience effectively. By tracking CPC and comparing it with industry benchmarks such as average cost-per-click, you can identify areas for improvement and optimize your ad campaigns to achieve better results.
Cost Per Thousand Impressions (CPM)
Cost per thousand impressions (CPM) allows you to determine how much you’re paying for every thousand times your ad is shown to users. By tracking CPM, you can evaluate whether your ads are being shown to your target audience efficiently and at a reasonable cost.
A High CPM may indicate that your targeting is too broad and your ad is being shown to users who are unlikely to engage with it. A low CPM may indicate that your ad is resonating well with your target audience and you’re getting a good return on investment.
Conversion Rate (CVR)
Conversion rates provide insight into the effectiveness of your ad campaigns in driving desired actions from users, such as making a purchase, filling out a form, or downloading an app. By monitoring conversion rates you can determine how many users are taking the desired action after clicking on your ad.
A high conversion rate may indicate that your landing page is optimized and your call-to-action is clear and compelling. A low conversion rate may indicate that your ad targeting or messaging needs adjustment, on your landing page needs optimization.
By tracking conversion rates and comparing them with industry benchmarks such as average conversion rates, you can identify areas for improvement and optimize your ad campaigns to achieve better results, such as increased sales, leads, or app downloads.
Finding Industry Benchmarks for Facebook Ads Benchmarks
There are several ways to find industry benchmarks for Facebook Ads benchmarks. Some include:
Check Facebook’s Ad Library
Facebook provides an Ad Library that allows you to view current and past ads running on Facebook and Instagram. You can search for ads from your industry and review their performance metrics, such as CTR, CPC, and CPM. This will give you a general idea of what other advertisers in your industry are achieving.
Consult with Facebook Marketing Partners
Facebook Marketing Partners (Meta Business Partners) are third-party companies that have been vetted by Facebook to provide marketing expertise and tools to advertisers. Some of these partners offer benchmarking data that can help you compare your ad performance with industry averages. And in case you were wondering, New Path Digital is a Meta Business Partner.
There are several third-party tools available that provide benchmarking data for Facebook Ads. Examples include AdEspresso and AdStage. These tools allow you to compare your ad performance against industry averages and identify areas for improvement.
Conduct Your Own Research
You can conduct your own research by analyzing your ad performance data and comparing it with industry averages. This will give you a better understanding of how your ads are performing and help you identify opportunities for improvement.
Factors that Affect Facebook Ads Benchmarks
There are several factors that can affect Facebook Ads Benchmarks, including:
The ad objective you choose can affect your benchmarks. For example, if you choose a conversion objective, your conversion rate will be more important than your click-through rate. Similarly, if you choose an awareness objective, your cost per thousand impressions (CPM) will be more important than your conversion rate.
Where your ad appears on Facebook can affect your benchmarks. For example, ads that appear in the news feed tend to have higher click-through rates than ads that appear in the right-hand column. Similarly, ads that appear on Instagram tend to have higher engagement rates than ads that appear on Facebook.
The audience you target with your ads can affect your benchmarks. For example, if you target a broad audience, your cost-per-click (CPC) may be higher than if you target a more specific audience. Similarly, if you target an audience that is more likely to engage with your ad, your click-through rate (CTR) may be higher. Facebook also recently changed targeting options for teens that can impact your benchmarks.
The creative elements of your ad, such as the image or video, headline, and ad copy, can affect your benchmarks. For example, if you use high-quality images and videos, your engagement rates may be higher than if you use low-quality visuals. Similarly, if you use attention-grabbing headlines and ad copy, your click-through rates may be higher.
Facebook Ad Types
Different ad types have different objectives and can affect the metrics you use to measure success. For example, if you choose a video ad, your benchmarks may be different than if you choose a photo ad. Video ads typically have a higher cost-per-view and may have a lower click-through rate than photo ads. However, video ads may be more effective at increasing brand awareness and engagement.
Similarly, if you choose a carousel ad, your benchmarks may be different than if you choose a single-image ad. Carousel ads allow you to showcase multiple products or features within a single ad, which can increase lead engagement and click-through rates. However, the cost per click for carousel ads may be higher than for single-image ads.
Using a Facebook Advertising Agency
It can be beneficial to work with a social media or Facebook Advertising Agency such as New Path Digital to manage your Facebook advertising campaigns. Agencies have the expertise and resources to create effective ad campaigns and optimize them for better results. They can also provide valuable insights and analytics to help you understand the performance of your ads and make data-driven decisions.
Schedule a free consultation to learn how New Path Digital can help you achieve better marketing results.