How to Know that Your Facebook Ads Are Good Enough
Ever wondered why your campaigns do not convert as well as you wanted them to?
You spent so much time on analyzing the market, your competitors, audience insights, building your funnel…Yet, your ROAS is not growing…Damn!
In 2019, with Facebook paying more and more attention to the customer value, ads themselves have become as important as never before.
If a few years before, you could generate GREAT results with simple stock images, now, the Facebook auction has become SO competitive that you really need to work hard to compose HIGH-QUALITY ads.
But how do you know that they are indeed high-quality? Well, three simple letters – K P I.
In this article, we will discuss the MAJOR characteristics that will show you that your ad is OUTSTANDING and able to produce BEST results for you.
1. Frequency
Frequency is probably one of the MOST NEGLECTED ads performance indicators.
It is calculated as impressions/reach and shows how often the same potential buyer sees your ad, meaning that with frequency = 1.0, nobody saw your ad more than once.
However, if someone would say that 1.0 is ideal, they are TOTALLY wrong. This means that you target such a large audience with such a small budget that you SIMPLY MISS so many potential buyers!
If speaking about close-to-ideal numbers, we should distinguish between our cold and warm audiences:
– For cold ones – you should set up your budget and audience size to be between 1.1 and 1.5. Within these limits, you definitely REACH most likely buyers and do not overtire them with your ad
– For warm ones –the number to look for is between 2.0 and 3.0
Warm audiences are the ones that already engaged with your business, and you want to make sure that you do not miss out ANY of these people. Showing them your ad 2-3 times, with a unique offer, is a great way to boost your conversions.
2. Ranking
Ranking, or as FB calls it Ad relevance diagnostics, is another key factor that determines HOW GOOD your ad is.
In essence, it shows you where you stand comparing to others on the FB auction. Besides the bid you offer to Facebook, they also determine the value that your ad has for the user.
– Quality ranking identifies the public’s perception of your ad comparing to other similar creatives.
– Engagement rate rankingbasically identifies the chance that a viewer will perform a required action – click on the add, comment on it, share it, etc.
– Conversion rate ranking calculates how likely your add is to get a conversion comparing to other similar creatives.
Ideally, for best performance, you want to keep all three on at least average level.
As you can see from the example above, CPR drastically drops with any of the ranking factors being below average.
3. Major KPIs for ads – CPC, CTR, CPM
Overall, when looking at the KPIs to determine if your ads are good enough, you need to first of all look at:
– Click-through rate (CTR) – to see how many % of people seeing your ad proceed to the landing page. You want to keep this factor on at least 3%.
– Cost per click (CPC) – to see how much you spend on each click. Here, you want to make sure that you don’t pay more than $1 foreach unique user clicking on your ad.
– Cost per 1000 impressions (CPM) – shows how much it costs you to reach 1000 unique users with your ad. This factor should be kept as low as possible for cold traffic. Ideally, make sure it’s lower than the average price of 1 item that you sell in the ad.
4. ROAS
OF COURSE, return on ad spent is ALWAYS important.
This is the first thing you need to look at every time you open your ads manager.
Return on ad spent is determined as your conversion$/$spent on ads; hence, basically, ROAS of 2.0 shows that you earned twice as much as you spent on Facebook advertising.
ROAS can be tricky, and depending on your funnel, you will target to reach different values of it. BUT, of course, the higher the better!
While determining your Facebook ads management strategy, we recommend to determine your breakeven ROAS – where you definitely don’t lose money on advertising and go up from there.
5. Visual-Relevant-Valuable-CallToAction
Well, this is the golden rule of ad creators.
Having created a Facebook ad, ask yourself:
– Is it visual?– Here, you can see that the black background, the rainbow color scheme and the apple-like figure will IMMEDIATELY grab Mac users’ attention and make the pic appealing for them.
– Is it relevant? – Yes, of course, this ad is relevant for any Mac owner who deals with project management, and the ad copy SEVERAL times shows this.
– Is it valuable? – Definitely. The ad creators SPECIFICALLY show that the software is made for MAC, making it valuable for the users of such devices.
– Does it have a clear call-to-action? – Yes, it has the “Learn More” button on the bottom right corner, inviting all users to get more information if they are interested.
To wrap it up!
So, when deciding on HOW WELL YOUR AD PERFORMS, you should look for:
– Frequency
– Ranking
– CPC/CTR/CPM
– ROAS
– Visual/Relevant/Valuable/Call-to-Action
Always remember that each product is advertised in a different way, so you have to take EVERY CASE as a unique one.
Yet, it’s always useful to have some general parameters applicable for every case.
And that would be it this time. So what are your thoughts on this one? Do you need further elaboration on some points? What else would you suggest from your experience with creating ads? We are always open for interesting discussions.
Let’s share our ideas and boost our sales together!
Every month I choose a few entrepreneurs to personally help them scale their Facebook ads and businesses.

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