Every time I speak with someone about advertising online, the same question always come up—what will my return on ad spend be if I spend X-amount of dollars? I understand that the primary focus of any ad spend is to grow revenue ultimately, but too often I come across business owners who only focus on the direct returns of their ad buys instead of the bigger picture, which ultimately results in them pausing a channel that is, in fact, growing their business.
Let’s dive deeper into Facebook as an example; Facebook is one of the quickest ways to efficiently drive targeted traffic to your site at an affordable cost. If you spend time on Facebook, you know that getting a consistently positive return on ad spend is much harder than initially anticipated, especially when you’re focused on new acquisition. So, what else are you supposed to measure to determine success if your direct return on investment (ROI) isn’t where you want it to be? Well, today is your lucky day. Below, I have listed four key performance indicators (KPIs) for success:
You measure open rates for all of your email campaigns, right? Impressions are comparable to opens in email marketing. Although a consumer may not take action immediately when served an ad, they’re still being exposed to the brand’s content. According to a recent study done by Facebook, consumers who were exposed to a campaign with a branding objective had, on average, a 60 percent higher ad recall than those exposed to a campaign with an engagement objective.
It isn’t common for someone to be scrolling through their Facebook News Feed, stumble across an ad for a brand they’ve never heard of, and convert right away. It is common for people to click, explore and then come back organically or have another touch point with the brand. That causes the conversion. For this reason, assisted conversions are your best friend(s). Assisted conversions give you insight into how effective each channel and if it is stronger from the last click or assisted conversion standpoint.
Overall Organic Lift
If you don’t think paid ads contribute to your overall organic growth, then you’re a little crazy, especially if Facebook is one of your top traffic sources. Do comparative reporting in Google Analytics and see how things have grown.
Before you start running ads, you should pixel your email capture so you can measure how many new leads your advertising drives. Usually, email campaigns are one of the strongest revenue drivers for most companies, and Facebook is one of the most powerful drivers of email capture. To not consider new consumers in your sales funnel a success would be a crime.
To sum it up, return on ad spend isn’t always the king of key performance indicators when measuring the success of your advertising efforts. There are many other ways (even more than I’ve named) to help determine if your ad dollars are being spent efficiently. So before turn off your Facebook advertising just because you aren’t seeing a strong direct ROI, make sure you do a little digging and understand how Facebook is indirectly affecting your business.