KEY INDICATORS AND THEIR VALUES

Clicks and CTR (Click-Through Rate)

CTR (Click-Through Rate), which stands for the rate of clicks, is one of the most important indicators of the effectiveness of advertising on Facebook. This indicator measures the percentage of people who clicked on your ad link compared to the total number of ad impressions.

CTR is one of the elements measuring the level of engagement of your target audience. A higher CTR means greater engagement of users with your ad.

If you have a low CTR (usually below 1%), you may notice that your ad lacks sufficient appeal to your target audience or does not provide relevant content. This may be a signal for content adjustments or targeting.

The ideal click-through rate is anything above 2%; if an ad has a click-through rate of at least 3%, it means the ad is sufficiently interesting to your audience. In the case of remarketing, the click-through rate should be even higher.

 

Unique Clicks and Unique CTR

Unique CTR is a similar concept to standard CTR, but instead of counting all clicks, only the number of individual users who clicked on the ad is considered. This means that if the same user clicks on the ad multiple times, it will be counted only once.

Unique CTR provides a more accurate measure of engagement of your target audience because it considers only one click from each individual user.

This indicator eliminates duplicate clicks from the same users, giving you a better view of how many individual people actually responded to your ad.

Essentially, unique CTR is a useful tool for more accurately measuring the effectiveness of advertising campaigns and provides a better understanding of how individual users are responding to your ads.

The ideal rate in this case is above 3%; generally, it should be at least 1% higher than the standard CTR.

 

Frequency

Frequency, in the context of advertising on Facebook, refers to how many times your ad is shown to a single user. It is an important indicator that helps you understand how often people in your target audience see your ad. When frequency is too high, it may mean that people are seeing your ad too often, which can lead to fatigue and decreased advertising effectiveness.

If frequency is too high, people may start to ignore your ad or even feel negative emotions towards your brand. This phenomenon is called ad fatigue and can lead to a decrease in CTR and ad effectiveness.

It is important to find a balance between reach and frequency. Some ads may require a higher frequency to achieve the goal (remarketing), while others may be more effective with a lower frequency.

If frequency is too high, it may indicate that your targeting is not precise enough and ads are being repeatedly shown to people who are not your target audience.

Ideally, the frequency of ad impressions should be below 2. Attention should be paid if this indicator is higher than 3, with 4 already considered high. However, values higher than 3 are acceptable in remarketing campaigns.

 

Orders, Cost Per Order, and Add to Cart

Tracking the number of orders, cost per order, and add to cart actions is important for successful management and optimization of e-commerce campaigns. Here are several reasons why it's important to monitor these indicators.

The number of orders provides you with an important indicator of how well your advertising campaigns are leading to actual conversions. It is the ultimate goal of most e-commerce campaigns, so it's important to track this metric.

Cost per order helps you understand the effectiveness of your marketing expenditures. Monitoring cost per order allows you to understand how much you need to invest in advertising to achieve a certain number of conversions. Reducing the cost per order can increase your profitability and advertising effectiveness.

Add to cart actions provide information on how many visitors to your e-shop are showing interest in your products or services by adding them to the cart. Monitoring this indicator can reveal potential obstacles or problems in the purchasing process that may be preventing visitors from completing the order.

Tracking these metrics over time allows you to recognize trends and seasonal patterns, providing valuable insights for planning future advertising campaigns and inventory stocking.

The number of orders and the cost per order depend greatly on the type of goods you're selling. The more expensive the product, the fewer orders you'll receive.

HOW FACEBOOK CAN IDENTIFY WHO AND WHEN MADE A PURCHASE ON AN E-SHOP

There are several models by which Facebook can attribute orders on an e-commerce website to ads in Ads Manager, namely:

1-day view model:

The 1-day view attribution pertains to a conversion attribution model that considers only ad views within one day prior to the conversion. In this case, if a user saw an ad and then made a conversion within one day of viewing the ad (without clicking on it), this conversion will be attributed to that ad.

This model is often used to measure the effectiveness of ads that have a short-term impact or act as the last touch before conversion. It can be particularly useful in cases where ads are targeted to people who already have a strong interest in the product or service and are ready to convert immediately after seeing the ad.

1-day click model:

The 1-day click attribution is another conversion attribution model that focuses on ad views where the user clicked and then made a conversion within one day of that click.

This means that if a user clicks on an ad and then makes a conversion the next day, the conversion will be attributed to the ad they clicked on.

The 1-day click model is suitable for ads that have a direct and immediate impact on conversion, and where it is expected that the user will convert shortly after clicking on the ad. This conversion attribution model is often used for measuring the impact of direct responses to ads, such as clicks on "Buy Now" or "Join" buttons.

7-day click model:

The 7-day click attribution is another conversion attribution model that includes ad views where the user clicked and then made a conversion within seven days of that click.

This means that if a user clicks on an ad and then makes a conversion within the following seven days, the conversion will be attributed to the ad they clicked on.

The 7-day click model is more extensive than the 1-day click model and provides a longer timeframe for conversion, allowing to track the impact of ads on conversion over time. This conversion attribution model can be useful for ads that have a more complex purchasing process or require more time for consideration from users.

 

The same principle applies to the 28-day click model; however, this one can only be viewed in analytics and is not available in ad set settings.

It's important to note that these models may underestimate the impact of other ads or touchpoints that may have contributed to increasing user interest and trust, which may eventually lead to conversion. Therefore, it's important to keep in mind that these conversion attribution models may not fully reflect the actual value of advertising campaigns.