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Success Metrics for Online Advertising
   Facebook Ads: Reach over 800 million people
  Anna Jo (E-mail: blessedanna.j@gmail.com, Tel:+82-10 -8938-3926)
I. Facebook metrics
for Fan pages and Ads
Impressions                   Clicks   Unique clicks

Social Impressions            Social Clicks   Unique CTR

Social %      Interactions    CTR (click through rate)

Unique impressions            Social CTR

Action Rate           Actions CPC(Cost-per-click)

Conversions           CPM(Cost per thousand impressions)

Cost per conversion           New leads

Spent                         New Customers
20 Facebook Ad Metrics
           Marketer should know

1. Impressions:
How many times an ad has been
shown to a Facebook user.
* Watch this number => If it stops
increasing, the bid may have
fallen out of the suggested range.
20 Facebook Ad Metrics
           Marketer should know

2. Social Impressions:
How many times an ad has been
shown to a Facebook user with
social context (i.e. with
information about a user's
friend(s) who connected with your
page, event, or application).
* This is applicable only for
advertising within Facebook, such
as for fan pages, events, or apps.
20 Facebook Ad Metrics
            Marketer should know

3. Social %:
what percentage of the total
impressions were social
impressions.
20 Facebook Ad Metrics
            Marketer should know

4. Clicks:
The actual number of clicks on the
ad.
*A click is also counted if someone
„Liked' your fan page right from
the ad itself.
20 Facebook Ad Metrics
            Marketer should know

5. Social Clicks:
How many clicks you received
from an ad with social context (i.e.
with information about a user's
friend(s) who connected with your
page, event, or application).
*Only applicable when you
advertise within Facebook for fan
pages, groups, or events.
20 Facebook Ad Metrics
           Marketer should know

6. CTR (Click-Through Rate):
How many times your ad was
clicked, divided by the number of
times your ad was shown
(impressions).
20 Facebook Ad Metrics
           Marketer should know
7. Social CTR:
The number of social clicks
divided by the number of social
impressions. Theoretically, this
number should be higher than the
general CTR, because the ad was
targeted at a personal friend
who'd already 'Liked' the page,
thus demonstrating social proof.
20 Facebook Ad Metrics
           Marketer should know

8. Actions:
The number of people who took
the action desired from the ad
itself, such as 'Liking' your fan
page or responding to your event.

9. Action Rate:
The number of actions divided by
the number of impressions.
20 Facebook Ad Metrics
           Marketer should know

10. Conversions:
Measurement of how many people
responded to your call-to-action.
This counts actions from the ad
itself and includes when someone
visits your fan page and then
clicks 'Like.'
20 Facebook Ad Metrics
           Marketer should know

11. Cost-Per-Conversion:
Calculates your cost per
conversion, so you can see how
much you pay for a new fan, an
event RSVP, or a new group
member.
20 Facebook Ad Metrics
           Marketer should know
12. CPC (Cost-Per-Click):
How much each click you received
cost you. This number is
calculated even if you didn‟t bid
on the cost-per-click model. It
considers how many clicks you
received (even if you‟re paying by
impression) and calculates how
much it cost you for each click.
20 Facebook Ad Metrics
           Marketer should know
13. CPM (Cost Per Thousand
Impressions):
Even if you did not bid using the
CPM model when you placed your
ad, Facebook Reports will
calculate it for your reference.
This is helpful if you decide to
switch to the CPM bidding model
so you can compare how your ads
are performing between the
different bidding models.
20 Facebook Ad Metrics
            Marketer should know

14. Spent:
The amount you spent for that
time summary you chose in the
report: daily, weekly, or monthly.
20 Facebook Ad Metrics
           Marketer should know
15. Unique Impressions:
How many times your ad was
shown to a unique person.
Compare this against the number
of impressions to see how many
times your ad was shown to the
same person.
20 Facebook Ad Metrics
           Marketer should know

16. Unique Clicks:
How many unique clicks you
received. This data is helpful to
know if the same person
happened to be shown your ad
twice and clicked it both times,
because the second click wouldn‟t
be a unique click.
20 Facebook Ad Metrics
            Marketer should know

17. Unique CTR :
Unique clicks divided by unique
impressions. Again, in relation to
the unique clicks and the unique
impressions, you want to know
whether new people are clicking
through to your ad or if it is one
person clicking on your ad over
and over. It‟s best to have your
Unique CTR come close to your
CTR.
20 Facebook Ad Metrics
           Marketer should know

18. New Leads:
If your goal is lead generation,
then you need to make sure that
your ads are helping you convert
visitors into leads. How many
people converted on your offer
and opted in to continue their
relationship with your company?
20 Facebook Ad Metrics
           Marketer should know

19. New Customers
Were you able to drive new
customers from all that Facebook
advertising? If so, what was the
conversion rate from visitor to
customer compared to the same
conversion rate on a different
social network. You should have
the data to make such strategic
decisions.
20 Facebook Ad Metrics
            Marketer should know

20. Interactions:
Total number of comments, Wall
posts, and likes a page had. The
more interactions a page has the
more naturally viral it is in
Facebook due to the feeds.

- Interactions Per Post
- Post Quality Score
- Reviews
II. Online Advertising framework
    From the perspective of ROI metrics
Step 1: Choose             Step 2: Create
measurements                  metrics


                           Create two to four
Select one or two
                           metrics for each activity
activities that are good
                           identified. Always use
early proxies for future
                           the top two boxes, which
sales. Leads and
                           provide a cost-efficiency
interactions are obvious
                           and a quality metric
choices for B2B
                           which directly drive
marketers.
                           results for a campaign.
Step 3: Measure             Step 4: Learn
 and Optimize                and Apply



                           Learn from what is
Use the quality and the
                           working, and from what
cost efficiency metrics
                           isn‟t. Although they may
together. It helps avoid
                           not be primary success
the mistake of chasing
                           metrics, they give
volume from lower
                           context to the
quality sources.
                           performance.
Example.        Cost Efficiency            Quality

            Preferred:             Preferred:
            - Cost per Activity    - Activities/Clicks
Campaign
            Alternate:             Alternate:
Responses   - Cost per Click       - Page Views/Clicks
            - Cost per Visit



            Preferred:             Preferred:
            - Cost per Activity    - Activities/Impressions
Publisher   Alternate:             Alternate:
Audience    - Cost per Page View   - Page Views/Impressions
            - Cost per Visit       - Visits/Impressions
What is ROI?


1. ROI=
  (Gains-Costs)/Costs X 100

2. Savings                                            1st Contact
  - Call Deflection                                   Resolution
  (Direct/Indirect)
                                           Average
  - Average Handling Time                  Handling
                                            Time
  - 1st Contact Resolution       Call
                              Deflection
4 elements to calculate
             direct deflections


1. Cost of a call
2. # of Questions asked per
  month on Facebook
                                                        1st Contact
3. % of Questions answered by                           Resolution

  Super Users                                Average
                                             Handling
4.% of Questions deflected         Call
                                              Time
                                Deflection
How to calculate savings

1.   (# of Questions asked) (% of Answers)=
     # of conversations by super users

2.   (% of Answers)(% of deflections)=
     # of deflected calls

3.   (# of deflected calls) ($/call)=
     $ saved per month
                                                                      1st Contact
4.   ($ saved per month) (12)=                                        Resolution
     $ saved per year
                                                           Average
               Gains                                       Handling
                                                            Time
     Call Center savings                         Call
                                              Deflection
     - Direct deflection
     - Indirect deflection
     - Avg. Handling Time
     - First call Resolution
How to calculate ROI
Summary of Gains Versus Costs

          Gains
                                          ROI= (Gains – Costs)/ Costs X 100

 Call Center savings
 - Direct deflection
 - Indirect deflection
 - Avg. Handling Time
 - First call Resolution

          Costs
                                                                    1st Contact
 People costs(Manager, Analyst, Agents)                             Resolution
 - Employee
 - Third party consultants                               Average
                                                         Handling
 Technology costs                                         Time
                                               Call
 - Solutions and Services                   Deflection
 - Process(including Implementation)
  : Contact Center, Community Platform,
    Social Monitoring
Social Business ROI Metrics
1. Fan growth:
When a Facebook user “likes”
your Fan Page they become your
fan. This increases the exposure of
your message not only to that fan,
but to their friends as well. Fan
growth creates a portal that allows
your brand to enter the “friend
zone” (a good thing in social
media marketing!). This will
increase engagement as well as
“people talking about this”.
Social Business ROI Metrics

2. Like:
As you post content to your Fan
Page your fan community is given
several options as to how they can
relay to you that they were
exposed to your message.
* Enhance the experience: Thank
them for liking the post. Pick a fan
of the week from the fans that
frequently liked content posted on
your Fan Page wall.
Social Business ROI Metrics

3. Comment:
When a fan comments it opens up
the communication channel
inviting you to respond which can
deepen the relationship between
brand and fan.
* Enhance the experience: Add
value to the conversation by
asking open ended questions
allowing the fan and other fans to
expand the discussion.
Social Business ROI Metrics

4. Share:
The golden ticket! If a fan shares
content from your page they are
taking the role of a brand
ambassador. This seemingly small
act should not be taking lightly
since they are essentially
broadcasting your message to a
new audience that you may have
not tapped into without their help.
Social Business ROI Metrics
5. Tag:
Once a fan has liked your page
they are able to create hyperlinked
tags that link directly to your fan
page. Their friends are able to
click the link giving them the
opportunity to like your page and
create posts using your brand‟s
name. When a page is tagged in a
post by a fan others are able to see
the story through the “Friend
Activity” tab.
Social Business ROI Metrics

6. Check-ins:
Fans are able to use geo-location
based apps on smartphones and
other wireless devices that tell
their friends their real-time
location. Check-ins offer social
proof with the opportunity of
recommendations encouraging
others to visit your brand offline.
References
http://www.slideshare.net/HelenTodd/facebook-metrics-fan-
pages-and-ads

http://blog.hubspot.com/blog/tabid/6307/bid/30895/20-
Facebook-Ad-Metrics-Marketers-Should-Know.aspx

http://socialyt.wordpress.com/2012/01/31/social-media-roi-
mighty-metrics-pt-1-facebook-organic/

http://b2bdigital.net/2011/03/01/online-advertising-metrics-
a-simple-framework/

http://www.rimmkaufman.com/blog/facebook-advertising-
metrics/05052011/

http://www.thefacebookera.com/home.php

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Facebook ad metrics

  • 1. Success Metrics for Online Advertising Facebook Ads: Reach over 800 million people Anna Jo (E-mail: blessedanna.j@gmail.com, Tel:+82-10 -8938-3926)
  • 2. I. Facebook metrics for Fan pages and Ads
  • 3. Impressions Clicks Unique clicks Social Impressions Social Clicks Unique CTR Social % Interactions CTR (click through rate) Unique impressions Social CTR Action Rate Actions CPC(Cost-per-click) Conversions CPM(Cost per thousand impressions) Cost per conversion New leads Spent New Customers
  • 4. 20 Facebook Ad Metrics Marketer should know 1. Impressions: How many times an ad has been shown to a Facebook user. * Watch this number => If it stops increasing, the bid may have fallen out of the suggested range.
  • 5. 20 Facebook Ad Metrics Marketer should know 2. Social Impressions: How many times an ad has been shown to a Facebook user with social context (i.e. with information about a user's friend(s) who connected with your page, event, or application). * This is applicable only for advertising within Facebook, such as for fan pages, events, or apps.
  • 6. 20 Facebook Ad Metrics Marketer should know 3. Social %: what percentage of the total impressions were social impressions.
  • 7. 20 Facebook Ad Metrics Marketer should know 4. Clicks: The actual number of clicks on the ad. *A click is also counted if someone „Liked' your fan page right from the ad itself.
  • 8. 20 Facebook Ad Metrics Marketer should know 5. Social Clicks: How many clicks you received from an ad with social context (i.e. with information about a user's friend(s) who connected with your page, event, or application). *Only applicable when you advertise within Facebook for fan pages, groups, or events.
  • 9. 20 Facebook Ad Metrics Marketer should know 6. CTR (Click-Through Rate): How many times your ad was clicked, divided by the number of times your ad was shown (impressions).
  • 10. 20 Facebook Ad Metrics Marketer should know 7. Social CTR: The number of social clicks divided by the number of social impressions. Theoretically, this number should be higher than the general CTR, because the ad was targeted at a personal friend who'd already 'Liked' the page, thus demonstrating social proof.
  • 11. 20 Facebook Ad Metrics Marketer should know 8. Actions: The number of people who took the action desired from the ad itself, such as 'Liking' your fan page or responding to your event. 9. Action Rate: The number of actions divided by the number of impressions.
  • 12. 20 Facebook Ad Metrics Marketer should know 10. Conversions: Measurement of how many people responded to your call-to-action. This counts actions from the ad itself and includes when someone visits your fan page and then clicks 'Like.'
  • 13. 20 Facebook Ad Metrics Marketer should know 11. Cost-Per-Conversion: Calculates your cost per conversion, so you can see how much you pay for a new fan, an event RSVP, or a new group member.
  • 14. 20 Facebook Ad Metrics Marketer should know 12. CPC (Cost-Per-Click): How much each click you received cost you. This number is calculated even if you didn‟t bid on the cost-per-click model. It considers how many clicks you received (even if you‟re paying by impression) and calculates how much it cost you for each click.
  • 15. 20 Facebook Ad Metrics Marketer should know 13. CPM (Cost Per Thousand Impressions): Even if you did not bid using the CPM model when you placed your ad, Facebook Reports will calculate it for your reference. This is helpful if you decide to switch to the CPM bidding model so you can compare how your ads are performing between the different bidding models.
  • 16. 20 Facebook Ad Metrics Marketer should know 14. Spent: The amount you spent for that time summary you chose in the report: daily, weekly, or monthly.
  • 17. 20 Facebook Ad Metrics Marketer should know 15. Unique Impressions: How many times your ad was shown to a unique person. Compare this against the number of impressions to see how many times your ad was shown to the same person.
  • 18. 20 Facebook Ad Metrics Marketer should know 16. Unique Clicks: How many unique clicks you received. This data is helpful to know if the same person happened to be shown your ad twice and clicked it both times, because the second click wouldn‟t be a unique click.
  • 19. 20 Facebook Ad Metrics Marketer should know 17. Unique CTR : Unique clicks divided by unique impressions. Again, in relation to the unique clicks and the unique impressions, you want to know whether new people are clicking through to your ad or if it is one person clicking on your ad over and over. It‟s best to have your Unique CTR come close to your CTR.
  • 20. 20 Facebook Ad Metrics Marketer should know 18. New Leads: If your goal is lead generation, then you need to make sure that your ads are helping you convert visitors into leads. How many people converted on your offer and opted in to continue their relationship with your company?
  • 21. 20 Facebook Ad Metrics Marketer should know 19. New Customers Were you able to drive new customers from all that Facebook advertising? If so, what was the conversion rate from visitor to customer compared to the same conversion rate on a different social network. You should have the data to make such strategic decisions.
  • 22. 20 Facebook Ad Metrics Marketer should know 20. Interactions: Total number of comments, Wall posts, and likes a page had. The more interactions a page has the more naturally viral it is in Facebook due to the feeds. - Interactions Per Post - Post Quality Score - Reviews
  • 23. II. Online Advertising framework From the perspective of ROI metrics
  • 24. Step 1: Choose Step 2: Create measurements metrics Create two to four Select one or two metrics for each activity activities that are good identified. Always use early proxies for future the top two boxes, which sales. Leads and provide a cost-efficiency interactions are obvious and a quality metric choices for B2B which directly drive marketers. results for a campaign.
  • 25. Step 3: Measure Step 4: Learn and Optimize and Apply Learn from what is Use the quality and the working, and from what cost efficiency metrics isn‟t. Although they may together. It helps avoid not be primary success the mistake of chasing metrics, they give volume from lower context to the quality sources. performance.
  • 26. Example. Cost Efficiency Quality Preferred: Preferred: - Cost per Activity - Activities/Clicks Campaign Alternate: Alternate: Responses - Cost per Click - Page Views/Clicks - Cost per Visit Preferred: Preferred: - Cost per Activity - Activities/Impressions Publisher Alternate: Alternate: Audience - Cost per Page View - Page Views/Impressions - Cost per Visit - Visits/Impressions
  • 27. What is ROI? 1. ROI= (Gains-Costs)/Costs X 100 2. Savings 1st Contact - Call Deflection Resolution (Direct/Indirect) Average - Average Handling Time Handling Time - 1st Contact Resolution Call Deflection
  • 28. 4 elements to calculate direct deflections 1. Cost of a call 2. # of Questions asked per month on Facebook 1st Contact 3. % of Questions answered by Resolution Super Users Average Handling 4.% of Questions deflected Call Time Deflection
  • 29. How to calculate savings 1. (# of Questions asked) (% of Answers)= # of conversations by super users 2. (% of Answers)(% of deflections)= # of deflected calls 3. (# of deflected calls) ($/call)= $ saved per month 1st Contact 4. ($ saved per month) (12)= Resolution $ saved per year Average Gains Handling Time Call Center savings Call Deflection - Direct deflection - Indirect deflection - Avg. Handling Time - First call Resolution
  • 30. How to calculate ROI Summary of Gains Versus Costs Gains ROI= (Gains – Costs)/ Costs X 100 Call Center savings - Direct deflection - Indirect deflection - Avg. Handling Time - First call Resolution Costs 1st Contact People costs(Manager, Analyst, Agents) Resolution - Employee - Third party consultants Average Handling Technology costs Time Call - Solutions and Services Deflection - Process(including Implementation) : Contact Center, Community Platform, Social Monitoring
  • 31. Social Business ROI Metrics 1. Fan growth: When a Facebook user “likes” your Fan Page they become your fan. This increases the exposure of your message not only to that fan, but to their friends as well. Fan growth creates a portal that allows your brand to enter the “friend zone” (a good thing in social media marketing!). This will increase engagement as well as “people talking about this”.
  • 32. Social Business ROI Metrics 2. Like: As you post content to your Fan Page your fan community is given several options as to how they can relay to you that they were exposed to your message. * Enhance the experience: Thank them for liking the post. Pick a fan of the week from the fans that frequently liked content posted on your Fan Page wall.
  • 33. Social Business ROI Metrics 3. Comment: When a fan comments it opens up the communication channel inviting you to respond which can deepen the relationship between brand and fan. * Enhance the experience: Add value to the conversation by asking open ended questions allowing the fan and other fans to expand the discussion.
  • 34. Social Business ROI Metrics 4. Share: The golden ticket! If a fan shares content from your page they are taking the role of a brand ambassador. This seemingly small act should not be taking lightly since they are essentially broadcasting your message to a new audience that you may have not tapped into without their help.
  • 35. Social Business ROI Metrics 5. Tag: Once a fan has liked your page they are able to create hyperlinked tags that link directly to your fan page. Their friends are able to click the link giving them the opportunity to like your page and create posts using your brand‟s name. When a page is tagged in a post by a fan others are able to see the story through the “Friend Activity” tab.
  • 36. Social Business ROI Metrics 6. Check-ins: Fans are able to use geo-location based apps on smartphones and other wireless devices that tell their friends their real-time location. Check-ins offer social proof with the opportunity of recommendations encouraging others to visit your brand offline.