The Goal of this Module: Assessing Your Ad Campaign Results To Determine Next Steps

Welcome to Module 7 of the AI Sales Machine!

The Top 10 Key Performance Indicators

It is important to know and understand these main Key Performance Indicators for any type of advertising you do online.

These KPIs provide valuable insights into the effectiveness of your campaign and can help inform your optimization efforts. Please note that the average numbers provided below can vary greatly depending on factors such as industry, audience, and ad creative:

  1. Click-Through Rate (CTR): CTR is the percentage of users who click on your ad after seeing it. A good CTR typically ranges from 0.5% to 2%. A higher CTR indicates that your ad creative and messaging are resonating with your target audience.
  2. Cost Per Click (CPC): CPC measures the average cost of each click on your ad. The average CPC across industries is around $1.72, but it can be higher or lower depending on factors like industry, competition, and ad placement.
  3. Conversion Rate: The conversion rate represents the percentage of users who complete a desired action (e.g., purchase, sign-up) after clicking on your ad. An average conversion rate for Facebook ads falls between 2% and 5%.
  4. Cost Per Conversion (CPCV): CPCV measures the average cost of each conversion. Average CPCV can vary widely depending on the industry and product being advertised, but a good benchmark is to aim for a CPCV that allows for a profitable return on ad spend.
  5. Return on Ad Spend (ROAS): ROAS is the revenue generated from your ad campaign divided by the total ad spend. A ROAS of at least 2x to 3x is often considered successful, but higher ROAS targets may be necessary depending on the specific business and profitability goals.
  6. Impressions: Impressions represent the number of times your ad was displayed. The number of impressions needed to achieve your campaign goals will depend on factors like audience size, ad placements, and targeting.
  7. Frequency: Frequency measures the average number of times each user sees your ad. A frequency between 1 and 3 is generally considered ideal to maintain audience engagement while avoiding ad fatigue.
  8. Engagement Rate: The engagement rate is the total number of likes, comments, shares, and other interactions divided by the total number of impressions. An average engagement rate of around 1% is considered good, though higher rates may be achievable depending on the ad creative and target audience.
  9. Video Views and View Rate: For video ads, monitor the total number of video views and the view rate (the percentage of users who watch your video for a specific duration). An average view rate of 15-20% can be considered good, but this can vary based on the video content and target audience.
  10. Ad Relevance Diagnostics: Facebook's Ad Relevance Diagnostics provides insights into the relevance of your ad to your target audience, based on three factors: Quality Ranking, Engagement Rate Ranking, and Conversion Rate Ranking. Aim for above-average rankings in each of these categories to ensure your ad resonates with your audience and performs well in terms of engagement and conversions.

By monitoring these KPIs, you can gain valuable insights into the performance of your Facebook ad campaign and make data-driven decisions to optimize your ads for better results.

Keep in mind that the average numbers provided are rough benchmarks and can vary depending on various factors.

The Digital Product Campaign Assessment Checklist