So, today we will analyze what small actions can be taken in the advertising account to improve advertising results…
To find out what we can improve in advertising, we need to analyze the advertising campaigns that have been launched or are running. We pay attention to all important metrics, namely:
– CPM (cost per 1000 impressions)
– CTR (click-through rate)
– CPC (cost per click)
– Hook Rates (this metric shows how much our creative touches the audience)
– Hold Rates (a metric that shows how many percent of people watched the video for more than 15 seconds)
– ROAS (return on advertising)
– If advertising works in different GEOs, we look at the breakdown of which countries work best.
Let’s look at the example of the pets niche: we launched our first advertising campaign with 5 different audiences and 2 creatives, and we launched it in several countries at once. Our BEP ROAS in this example is 1.55%.
After our launch, we analyze the campaign.
We go to the Ad Sets level and see which audience worked best, and we see that we have two winning audiences:
The first audience with ROAS 2.10 (we get the first profit from advertising)
The second audience with ROAS 1.57 (from this audience, our advertising works in 0)
Since we have launched ads in several countries, we need to see which countries brought us sales, so we select the breakdown (Country)
And so, we see that from the first audience we received a total of 7 sales. 6 – US sales and ROAS 2.63 and 1 – sales from CA with ROAS 1.65. But we also have a second audience that brought 4 sales. So we analyze it as well.
Now we see that in the second audience from CA we got 3 sales with ROAS 2.71, and from the US we got one sale and ROAS 1.77
We also analyze the creatives and see which one worked best, in this example, we see that the sales were brought by the creative Video#1, but at this stage we look at the metrics:
– CTR
– CPM
– CPC
– Hook Rates
So we see that Video #2 has different metrics with a smaller budget, different CTR, CPM and CPC on Video #2, and 2 times lower Hook Rates at the same level. So this creative is being tested further.
Let’s summarize:
From the first launch, we have:
Two audiences
Two countries
Two creatives
After a detailed analysis, we decided to launch in only one country, namely the US. + we increase the budget in order to get more sales and reduce the price per purchase, we also added another LAL audience based on customers.
As a result, we reduced the price per purchase, increased the number of sales, and improved ROAS on Facebook.
P.S. because there are difficulties with tracking data on Facebook. In this case, from 04.10 to 10.10, we received 44 sales on Facebook, and 55 sales on Shopify. and received sales of $2,560.31 for $586.09 in advertising costs. The total ROAS is 4.36
To summarize:
You need to look at creative from all sides. If you see the best creative, try to break it down into 2 parts: the offer and the visual.
We can build on the best creative and keep the best visuals and add new offers. In this way, we will find a new connection that will bring us x2 profit.
Also, do not forget to look deeply at the metrics:
– age
– country
– hook rate
– CPM
– CPR
– CTR
If we see that the CPC and CTR are decreasing, then the point is that the creative is burning out.
If we see that the CPM is only growing, then the Facebook algorithm is pushing us out of the auction, and strong competitors may have entered at that moment.
Hook Rate, which is above 30%, will show us which are the best 3-second offers.
Age and country gives us an understanding of where we should overspend and where we shouldn’t spend our budget.