Primary Paid Advertising KPIs

When setting up and scaling paid advertising campaigns for our clients, it is very important to know the KPIs to pay attention to.

This document will highlight the most meaningful metrics and how they can be used to make decisions around campaign performance.

Impressions/CPM

Impressions refer to the number of times your ad has been displayed to Facebook users.

This metric is often measured alongside CPM (cost per thousand impressions), which calculates the cost of your ads for every 1,000 impressions.

CPM is an important metric to track because it allows you to compare the cost of running different ads and see which ones are more cost-effective.

In general, a low CPM is desirable, as it means you're getting more impressions for your money.

The unique click-through rate (CTR) measures the percentage of people who click on your ad after seeing it.

Unlike regular CTR, which includes multiple clicks from the same person, unique CTR only counts one click per user.

This metric is important because it indicates how effective your ad is at driving clicks and engagement.

A high unique CTR is generally a good sign that your ad is resonating with your target audience.

Cost Per Lead (CPL) measures the cost of acquiring a new lead through your Facebook ad.

This metric is calculated by dividing the total ad spend by the number of leads generated.

A low CPL is desirable because it means you're getting more leads for your advertising budget.

Cost Per Booked Call (CPBC) measures the cost of booking a call with a potential customer through your Facebook ad.

This metric is calculated by dividing the total ad spend by the number of booked calls.

A low cost per booked call is desirable because it means you're spending less to book each call, which can lead to more sales.

Cost Per Call Conducted (CPCC) measures the cost of actually conducting a call with a potential customer through your Facebook ad.

This metric is calculated by dividing the total ad spend by the number of calls conducted.

A low cost per call conducted is desirable because it means you're spending less to convert each potential customer into a sale.

Cost Per Sales Call Conducted (CPSCC) measures the cost of conducting a sales call with a potential customer through your Facebook ad.

This metric is calculated by dividing the total ad spend by the number of sales calls conducted.

A low cost per sales call conducted is desirable because it means you're spending less to close each sale.

Cost Per Customer measures the cost of acquiring a new customer through your Facebook ad.

This metric is calculated by dividing the total ad spend by the number of new customers acquired.

A low cost per customer is desirable because it means you're spending less to acquire each new customer, which can lead to higher profits.

Return On Ad Spend (ROAS) measures the revenue generated from your Facebook ad campaign compared to the total ad spend.

This metric is calculated by dividing the total revenue generated by the ad campaign by the total ad spend.

A high ROAS is desirable because it means you're generating more revenue than you're spending on ads, resulting in a positive return on investment.