Knowing which metrics are the most accurate indicators of your standing in the market poses a challenge for many marketers. Yet, analyzing the effectiveness of your ads within the context of an industry, country, or region depends on measuring three key metrics: content, cost, and engagement performance.
1. Average Content Performance
Average Content Performance demonstrates how well your ads are tailored to your audience. In order to get positive response from the Facebook community, your content has to be quality, relevant, and convincing. It should also be delivered at an optimal frequency to generate great results without appearing overly intrusive.
Seeing how your ads perform within the market context is essential to improving your content strategy. Benchmarking your relevance score can be especially helpful, as it allows you to estimate just how good you are at understanding your target audience and delivering meaningful content in comparison to the competition. The better your relevance score compared to the industry, country, and region, the higher the chance that it’s you – not the competitors – who is going to successfully tap into the audience and turn them into customers.
2. Average Cost Performance
Average Cost Performance is a reliable indicator of how well you’re using your advertising budget. According to Facebook’s Q3 2017 earnings report, ad spend on the platform keeps growing, which means it’s more important than ever to understand how your own investments compare against this trend and to adjust them accordingly.
By benchmarking your spend against the industry, country, or region you can discern whether you are over- or under-spending for your Facebook advertising. It is also necessary to investigate your ad costs in relation to the previously mentioned engagement metrics to see how much value you are receiving from your budget.
3. Average Engagement Performance
Average Engagement Performance shows how well your ads are resonating with your audience. Since the number of Facebook advertisers is only increasing, you are constantly competing for the wider Facebook audience’s attention. That’s why each of your ads needs to be first-rate to stand out in the News Feed, therefore encouraging your audience to interact. What’s more, generating a high number of interactions is critical to lowering your advertising costs and improving your social media ROI.
Measuring metrics such as impressions, actions, reach, and Click-through Rate (CTR) will give you a partial picture of the ad’s performance. In fact, it is only after you benchmark these metrics against the industry, country, or region that you’re able to pinpoint the strengths and weaknesses of your ad strategy.