Cómo leer métricas en Facebook ADS | Joseph Ramirez

How to Read Facebook Ads Metrics

Introduction to the Session

• Josep Ramírez introduces himself and mentions that attendees may have come from Instagram or YouTube.

• He outlines the session's focus on understanding Facebook Ads metrics and their application in business systems.

Setting Up Metrics

• The discussion begins with accessing the Ads Manager, where all metrics are displayed, specifically from August 16.

• Emphasis is placed on configuring a funnel from scratch, which is essential for those selling through websites or e-commerce platforms like Shopify or WordPress.

Key Metrics to Measure

• Important parameters include reach, impressions, frequency, CPM (cost per thousand impressions), CPC (cost per click), CTR (click-through rate), unique outbound clicks, and landing page visits.

• Custom metrics such as website load percentage and return on ad spend (ROAS) are introduced. Formulas for calculating these metrics are provided.

Understanding Each Metric

• Reach indicates how many people see the ads; impressions show how often ads are displayed; frequency measures how many times an individual sees the same ad.

• CPM reflects audience cost; lower CPM suggests less competition in the market. Examples of different products illustrate varying CPM rates based on niche competitiveness.

Cost Analysis of Clicks

• The cost per click (CPC) is discussed as a critical metric for evaluating ad performance. A lower CPC indicates more effective engagement with potential customers.

• The relationship between CTR and CPC is explained: CTR shows what percentage of viewers clicked on an ad. Higher CTR generally leads to lower costs per click.

Final Thoughts on Click Performance

• Outbound clicks measure how many users leave Facebook to visit a website. This metric helps assess actual traffic generated by ads compared to total clicks recorded within Facebook.

Analysis of Clicks and Conversions

Understanding Click Metrics

• The current cost per click is analyzed, revealing that out of 899 clicks, only 135 visits to the landing page were recorded. This indicates a conversion rate lower than the expected 80%, suggesting room for improvement.

Optimizing Web Traffic

• To enhance website traffic and increase purchases, it’s essential to optimize the web experience. More visitors typically lead to higher sales.

Initial Purchase Intentions

• There are 144 initiated payments indicating purchase intentions; however, only 44 have completed transactions. A benchmark rule suggests that at least 25% of visitors should convert into buyers.

Evaluating Offer Effectiveness

• If there are many initiated payments but few conversions (e.g., 10 purchases from 100 initiations), it may indicate an unattractive offer or pricing issues that need adjustment.

Return on Ad Spend (ROAS)

Defining ROAS

• ROAS measures return on investment in advertising. Current metrics show a general ROAS of 9.98 with variations across different products (33 for one cream, down to as low as three).

Tracking Purchases Across Platforms

• Not all purchases are tracked accurately on platforms like Facebook; discrepancies can occur due to unrecorded transactions despite API configurations.

Analyzing Product Performance

Investigating Low Sales Cases

• When a product fails to sell well, an audit is necessary. For instance, if there are high clicks but low conversions (87 visits resulting in only two purchases), this indicates issues with the landing page rather than the ad itself.

Conversion Rate Insights

• A healthy conversion rate is around 7%. In cases where it's below this threshold (e.g., less than 2%), improvements must be made to the landing page design and messaging.

Improving Landing Pages

Identifying Key Issues

• If conversion rates are low despite good traffic and ad performance, focus should shift from improving ads to enhancing the landing page's effectiveness in converting visitors into customers.

Importance of Communication

• Often businesses concentrate on creative aspects while neglecting how effectively they communicate their product value. Proper communication can significantly improve customer engagement and conversion rates.

Analysis of Campaign Performance

Understanding Creative and Product Issues

• The speaker discusses the notion that poor product performance is often due to a bad offer rather than the creativity behind it. They emphasize that high purchase costs can fluctuate throughout the day as more data becomes available.

• Initial metrics show good purchases, but there are slight increases in cost-per-click (CPC) and low traffic to landing pages, indicating insufficient data for conclusive analysis at this stage.

Metrics for Evaluating Campaign Success

• The speaker highlights critical differences between two campaigns, asserting that issues may not stem from creative elements or products but rather from an ineffective ecosystem.

• Key metrics to analyze include:

• High CPM indicates audience targeting issues.

• Low CTR suggests creative problems.

• Poor landing page performance reflects website issues.

• A low conversion rate points to ineffective landing pages or offers.

Conclusion and Learning Opportunities

• The speaker encourages viewers to analyze these metrics thoroughly and invites them to join an academy focused on Facebook Ads, TikTok Ads, and e-commerce strategies for further learning opportunities.