Every advertiser on Facebook Ads constantly pursues to improve their campaigns’ performance. Advertisers use different methods to optimize and improve their results. Although every ad account is different and requires a unique strategy, there are some mutual insights and audits that can be done to all ad accounts on Facebook Ads. These will help you better understand the details of your ad delivery and will break down the performance into the smallest details. It will allow you to understand where your ads are performing best and shift budgets to organize accordingly. Although each ad account is unique and requires a specific analysis, there are five points that I recommend to check for better understanding and improving performance.
Before jumping into the ad-level or campaign-level, every Digital Marketing Expert must evaluate your accounts on an overview level. When we optimize based on an account overview, then the data from all our campaigns and ads are combined and summarized together. It means that we can analyze our strongest points and our weakest points without needing to look at each individual campaign while trying to make sense of all the pieces of data.
For example, by looking at the account overview, we can see our overall cost per purchase, our overall click-through rate, our cost per click, and our overall return on ad spend. For each good campaign, we will probably have a bad one and if we only look at partial data, we are not evaluating our data properly. That doesn’t matter if you have three great campaigns and 15 bad ones, what matters is your overall cost and results.
Breakdown by placement
You must understand on which placement you are getting the best performance and most delivery. From there, you’ll better understand how to shift your budget and you’ll learn which creatives might be most effective in the best-performing placements.
For example, if you are getting more delivery and better ROI on Instagram than on Facebook, maybe it’s better to shift more budget towards Instagram by using dedicated campaigns stringently for Instagram. Or maybe you might want to create ads that are more native to Instagram than Facebook.
Breakdown by age and gender
Like placements, it’s important to understand how your ads are performing throughout different ages and genders. Understanding how different age groups perform in your ads will give you perceptions on how to write copy that will perform better with that demographic. But remember that in some cases, your targeted demographics may not be your best-performing demographics.
Especially, this is important if you are running ads in more than one country. You have to find out in which countries your ads are performing best. Using that information, you may optimize your prices to fit the countries where they perform best. Create specific campaigns for the top-performing countries and exclude the countries that hurt performance.
Breakdown by product ID
If you are using a catalogue in your ads and are running catalogue ads or conversions ads, then you have to analyse how your products perform on an individual basis is extremely helpful. Most e-commerce companies spend at least 50% of their daily budgets on dynamic ads. Whether it is for retargeting or prospecting, dynamic ads are very powerful. This can help you to understand which products have great results, but limited spend, and which products have a lot of sales, but poor ROI.
When we review which products get the best results and which perform the worst, we can make more effective campaigns by removing the poorly performing ones. We are also able to create a product set of just our top performers and increase spend on those products that don’t get enough reach. It also gives us guidance on which products should be ranked higher on our website and which should be promoted on our social media channels. Many advertisers are not aware of one thing that your top-selling items might not always be your most profitable items in terms of paid media costs. Using this breakdown, you can measure the true performance of each product and its associated media cost.
Although Facebook automatically optimizes delivery towards the best targeting and placements, cross-campaign learning rarely exists. That’s why it’s important to measure how your ads are performing across different breakdowns. Checking the breakdown by placement, age and gender, geo locations and catalogue, as well as analyzing your ads on an account overview level, allows you to make more educated optimizations and build a more effective strategy for your ads.