What are the KPIs to Measure Ad Performance on Google & Facebook & Its Industry Benchmarks?
For any business or marketer, ROI is at the top of the mind when rolling out Google and Facebook ads. Without KPIs or tracking the wrong KPIs can give you a false impression of your progress, while significantly influencing how you plan for the future. KPIs are essential to figuring out your next moves, helping you cut back, double down, or readjust to ensure your budget and efforts are spent well and profitably. Today, our online marketing services agency is here to set the record straight on what KPIs you’d do well to track for Facebook and Google Ads and here they are:
The KPIs to track for Google Ads:
Return on Ad Spend (ROAS)
As far as Google Ads go, many SEO services agree that this is one of the most vital metrics you should always be keeping an eye on. It gives you excellent insight into whether your campaign is making your business money or if it’s all going down the drain.
The ROAS is a percentage of total ad revenue against the amount you spent on the ad, and let’s demonstrate with an example. Say you’ve spent $2000 on ad campaigns, and reeled revenue to the tune of $6000. This would mean your ROAS in this case is 3, which holds as an excellent ratio in light of averages across industries.
Industry benchmarks indicate that a good ROAS would be 2.87:1, which is the average according to findings by Nielsen. In other words, this means that for every $100 that you spend on marketing, you should at least be getting back $287, which further translates to an ROI of approximately 287%.
Impression Shares (IS)
Google defines the impression share as the actual number of impressions your ads are getting against the total eligible ad impressions, which is your ad’s full potential in terms of the total impressions it could get.
Now ideally a 100% impression share would be the dream for any digital marketing service, but attaining that is no walk in the park. Short of that, industry benchmarks indicate the following ranges that you should be gunning for:
- Brand keywords – 95% IS
- Non-branded keywords- 80% IS
- At the very least aim for a 60% IS
A 60% IS can pass for pretty decent in special circumstances. That is if you are working with a constricted budget, and two, if you’re using highly-competitive keywords. Anything less than 60% should definitely be a wake-up call.
In simple terms, CTR is the total clicks you get from an ad as a percentage of its impressions. So say if you had 2,000 impressions resulting in 20 clicks, then your CTR would be 2%.
The click-through rate offers a great reflection of how well or poorly ads are being received by your market and also helps you know if you’re truly getting qualified leads. A high CTR means your ads are extremely relevant to search intent, while a low CTR implies the exact opposite, and may hint it’s time to get expert SEO services guidance.
But that inevitably begs the question, what exactly is considered a good click-through rate? Well, industry benchmarks indicate the following:
- Search ads command an average CTR of 1.91%
- Display ads average a CTR of 0.35%
The KPIs to track for Facebook Ads:
Cost Per Click
Cost per click (CPC) refers to the amount of money you spend to get a single click on Facebook. It can be an excellent measure of efficiency, but CPC alone is not enough to get you the full picture so you also need to stay on top of your cost per purchase (CPP), but more on that in the next point.
To calculate your CPC, pit campaign total spend against the total link clicks your ad has earned. The average CPC for Facebook ads 2022 holds at $1.68 but we can break it down across a few industries as follows:
- Finance has the highest CPC at $3.89
- The food and drinking niche has the least expensive CPC at just $0.42
- CPC in the pets and animals niche meanwhile stands at $0.61
Cost Per Purchase (CPP)
The end game for many internet marketing services and their Facebook ads is to trigger a purchase. Now the amount of money you spend to get one purchase is what counts as your cost per purchase, and this is a great way to work out ROI for your ads, as you get to know how much you’re spending to bring in a certain amount of business.
Your AOV is the total amount of money a customer will spend on a single order. The general rule of thumb for good CPP is that it should be some distance below your AOV or average order value. For instance, an AOV of $10 against a cost per purchase average of $2 would count as great as it means your ROI is 500%.
This KPI gauges how your ad fares in comparison with similar ads, and it often implies ad relevance and is in some way a reflection of the accuracy of your audience targeting. Usually, quality ranking is tied in with your ad creative, which encompasses your CTA, headline, copy, image, and more.
When it comes to quality ranking, your ad may be placed in one of the following categories:
- The bottom 10% of ads (Below average)
- The bottom 20% of ads (Below average)
- The bottom 35% of ads (Below average)
- Above average
The measure of success as far as quality ranking goes is featured in the “Above Average” or “Average” category. Anything below that means it’s time to go back to the drawing board in terms of your landing page design and creatives, so you may need to get a move on finding digital marketing services near me.
While this is by no means an exhaustive list as there are a ton of KPIs you can track for Google and Facebook ads, they are some of the most valuable. Of course, a few of the KPIs cut across the board, for example, ROAS, CPC, and CTR are some useful KPIs you can track for both platforms. If you aren’t too pleased with the KPIs you’ve calculated for your own ad campaigns using the information we’ve lined up today, consider assistance from the best service in digital marketing Ohio has to offer. And that’s Genexod. Let’s help you track the right KPIs, and make changes to ad campaigns to blow up ROI and get you closer to your goals.