Thread by @AuthenticDom, { How To Run Facebook Ads Like A Pro}Understanding these 7 key [...]

{ How To Run Facebook Ads Like A Pro}

Understanding these 7 key metrics will allow you to:

- Figure out why your Shopify store isn't converting sales

- Pinpoint exactly where the problem lies within your funnel process

{Huge Value Thread} ↓

Before we get started

Please RT this thread as you're going to find huge amounts of value in it.

Let's get this info out to as many goons here on money twitter as possible

But with that being said, let's jump right in !

Spending money on facebook ads and not converting sales is super annoying.

and it's even more annoying when you have no idea wtf to do.

so if you take the time to go through this thread, not only will I show you what metrics you need to be aware of

But I'll also show you what to do to fix them.

P.S You can refer to the screenshot above after you finish the thread to see how i set up my ads dashboard and copy it if you'd like.

I highly recommend it.

Metric #1 - Cost Per Mile (CPM)

This metric tells you how much money it will cost you to show your ad 1000 times on people's newsfeed.

You want this metric to be as low as possible.

For example: would you rather

Spend $10 to show your ad to 1000 people

or Spend $30 to show your ad to 1000 people?

$10 right.

You want to reach as many people as possible with your budget, so be aware of your CPM.

Shoot for something below $12

Here are 3 tips to try getting a lower CPM on your AD Campaigns

1. Try testing new interests

Some interests have more competition than others from other advertisers, which drives the cost up.

So it will cost you more to win that spot and show your ad on someone's phone

2. Try broadening the countries you target with your ADS

The same way certain interests contain more competition than others, the same applies to countries.

Everyone thinks the USA is this huge buyers marketplace,

which it is. But it's not the only one.

You can make tons of money by expanding the countries you target to include international countries which will always give you a better CPM.

I recommend you target all ePacket countries.

You can find a list of all ePacket countires on google

3. Create ads that pull in a lot of positive engagement.

People are on social media to be entertained.

Facebook knows this.

So if your ad is getting a lot of good engagement, Facebook will consider your ad as "High Quality" and show it to more people for less money.

Metric #2 - Unique Outbound Click-Thru Rate (CTR)

This metric tells you what percentage of people who saw your ad, actually clicked on it to go to your store.

This means that if 100 people saw your ad, and only 4 people actually clicked on it

You would have a CTR of 4%

You want this metric to be as high as possible.

Ideally, something above 2.5% is considered good.

If your CTR is low, that's Facebook telling you that your ad is not enticing enough for people to click on it.

Here's 2 tips that you can use to Increase your CTR:

1. Create more attention-grabbing ad creatives

The 1st goal of your AD is to get your customer to stop scrolling down their newsfeed.

If you can't get them to stop scrolling, you can't get them to click

Try adding some more eye-catching colors.

That has a big impact on if someone will stop scrolling or not.

2. Make a better description / Copy for your AD

If your copy is weak, too long, or too short, people won't be interested

REMEMBER THIS: Your goal of the entire AD is to build curiosity. Not to sell them on your product.

If you don't leave any reason for them to click through to your website to learn more about your product

then the definitly won't click thru.

Don't put all of your eggs in the damn basket AKA your AD.

If they read your ad copy and feel like they know everything about your product already,

what reason have you left them with to be curious or interested?

Don't sell in your AD, Build Curiosity.

Metric #3 - Cost Per Unique Link Click (CPC)

This metric tells you how much it costs you on average to get someone to click on your ad and go to your store.

You want this metric to be as low as possible in most cases.

Let's look at an example scenerio really quick:

Let's say your store has a conversion rate of 4%

That means that for every 100 people that visit your store, you get 4 purchases.

Scenario A: You have a CPC of .20 cents. That means it costs you $20 to get 100 link clicks

$20 / 4 Purchases = $5 Cost per purchase

Scenario B: You have a CPC of .40 cents. That means it costs you $40 to get 100 link clicks

$40 / 4 Purchases = $10 Cost per purchase

Would you rather it cost you $5 to acquire a sale, or $10?

$5 Right. More Profit.

Your CPC is going to be directly related to your CPM and CTR.

Remember you want a lower CPM and a Higher CTR.

This will give you the best CPC possible.

Use the tips that I gave you above to decrease your CPM, Increase your CTR, which will overall decrease your CPC.

Metrics #1-3 are all of your AD metrics.

If you have poor metrics here

don't go making adjustments to your website just yet,

because these 3 are simply giving you data about how your audience is reacting to your ads, not your website.

These next Metrics #4-7 are all of your website diagnosis metrics.

These will tell you the behavior and actions that people are taking on your website.

The goal with these is the see at what point people are falling off in your funnel process

This allows you to make improvements where they need to be made so you can get people converting.

If you're driving traffic to your site but they're not buying, you don't need to redesign your whole site.

You just need to fix where they're losing intertest at

Metric #4 - Cost Per Unique Content View

This metrics tells you how much it cost to get someone to view content on your website.

Think of a view content event as someone clicking on the "shop now" or "buy now" button on someone's home page

For example, here I'm using Bombas website

When someone clicks their ad and ends up on their homepage, that counts as a link click.

But when that same person also clicks "Shop" on their homepage it will count them as a "View Content"

You want as many people who go to your website to view content because that does 2 things for you.

1. It shows they're interested in your product

2. They get further down your funnel closer to buying

Metric #5 - Cost Per Unique Add To Cart

This metric measures how much it costs you to get a person to add your product to their cart

Metric #6 - Cost Per Unique Checkout Initiated

This Metric measures how much it costs you to get someone who added your product to their cart and proceeded to start the checkout process

Final Metric #7 - Cost Per Unique Purchase

This metric measures how much money it costs you to acquire a purchase.

You want all of these last 4 metrics to be as close together as possible.

When you see big leaps from one to the other, that means people are falling off at that point

For Example, take a look at this screenshot below.

Notice how it costs .32 cents for a content view, but $1.10 for someone to Add To Cart?

That is telling me about 1 out of every 3 people who view content to go to the product page, are actually adding the product to the cart.

Now in this scenario, that can be a good or bad thing.

It depends on your own store and what your profit margins are.

But let's say it was worse and only 1 out of every 7 people who went to the product page actually added to cart.

that would tell me that the product page needs some improvement.

same applies to the other steps in the metrics

From View Content → Add to Cart

From Add to Cart → Initial Checkout

From Initiate Checkout → Purchase

You want the ratio to be as close to 1:1 as possible.

The idea behind that applies to all of the 4 final metrics.

You want them all to be as close to the one on it's left as possible.

when you see a big leap in cost at one of these metrics, think of it as a big drop off at that part of the funnel.

That's how you pinpoint where the issue is on your site so you can actually make changes where they matter.

Well, that's it for this one guys.

If you guys have any questions, please comment it here on the thread so everyone can see it and learn from it.

And if you found value in this thread (Which you should have)

Please drop a RT.

This is knowledge. And Knowledge is wealth.

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