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I Learned a System To Analyse Facebook Ad Results In Minutes

Introduction

Over the past seven years, I've spent over $ 70 million US to generate more than $ 150 million US for my clients. During this time, I've personally reviewed and diagnosed thousands of ad campaigns, from accounts spending millions per month to new accounts with no data and not even a pixel setup. Due to this extensive experience, I've developed a playbook that enables me to evaluate an ad account and determine what needs to be done within just minutes.

Why Analyzing Ad Performance Matters

One of the most crucial aspects of running successful ad campaigns is the ability to measure and analyze the results using quantifiable metrics. If you don't know how to evaluate your ad performance, you won't be able to compound your learnings over time, which is vital for driving your business success forward. In this article, I'll cover the importance of analyzing ad performance, the steps you need to take, and what specific metrics you should focus on.

Live Example of Analyzing Ad Metrics

Here's an actual live example of evaluating ad metrics using Ads Manager in a custom column setup. We have four different ads housed within the same ad set, and it's clear that one ad is outperforming the others. For June of 2024, the algorithm prioritized this winning ad, indicating its high estimated action rate. It generated almost $ 25,000 in revenue from just $ 10,000 in ad spend, which is incredible.

  • Attention Score (Thumb Stop Rate): This ad has a 32% attention score, revealing that it's doing well but could be improved further.
  • Engaged Retention: The data shows a significant drop in user engagement between 25% and 50% of the video, suggesting an area for improvement.
  • CPM: The $ 17 CPM indicates strong performance, benefiting both the algorithm and the user experience.
  • Frequency: With an average frequency of 1.39, this shows that users have seen this ad 1.4 times, making it an excellent top-of-funnel ad.

Feedback Loop for Creative Testing

A structured feedback loop is vital for ongoing success. Interactive cycles of launching new creative tests, acquiring learnings, and implementing improvements ensure that you can eventually achieve profitable ads. There are four potential outcomes: acquiring learnings and losing money, making money, acquiring learnings and making money, and simply making money. The key is systematically analyzing the data to inform future creative tests.

Metrics Breakdown

There are three primary groups of metrics to focus on: core metrics, stickiness metrics, and vanity metrics.

Core Metrics

These directly indicate whether your ads are profitable:

  • Return on Ad Spend (ROAS)
  • Customer Acquisition Cost (CAC)
  • Cost per Lead (CPL)
  • Cost per App Install

Stickiness Metrics

These give insights into user engagement and ad performance within the algorithm:

  • Thumb Stop Rate (3-second video views divided by impressions)
  • Engaged Retention (timestamps where users drop off)
  • CPM (Cost per Thousand Impressions)
  • Frequency (how often users see your ad)

Vanity Metrics

While often regarded as less useful, these can still offer some insights:

  • Click Through Rate (CTR)
  • Cost per Click (CPC)
  • Quality Score

Deep Dive into Stickiness Metrics

  • Thumb Stop Rate: Measures how effective your ad is at stopping users from scrolling.
  • Engaged Retention: Shows the specific points where users lose interest in your video.
  • CPM: Indicates whether your ads are creating a positive user experience.
  • Frequency: Helps you understand where your ad fits in the customer funnel.

Keywords

  • Ad Analysis
  • Metrics
  • Thumb Stop Rate
  • Engaged Retention
  • CPM
  • Frequency
  • Creative Testing

FAQ

Q: Why is it essential to use specific metrics to measure ad performance? A: Specific metrics help you understand whether your ads are profitable and how users respond, which is crucial for long-term success.

Q: What is the thumb stop rate? A: Thumb Stop Rate measures the effectiveness of your ad in stopping users from scrolling past it, calculated as 3-second video views divided by impressions.

Q: Can click-through rates be misleading? A: Yes, because Facebook is an intent-driving platform, and not all traffic generated by high click-through rates is necessarily qualified or valuable for conversions.

Q: How do CPM rates reflect user experience? A: Lower CPM rates usually indicate that your ads are providing a positive user experience, keeping users engaged on the platform.

Q: What does ad frequency indicate? A: Ad frequency measures how often users see your ad and helps determine whether it’s a top, middle, or bottom-of-funnel ad.

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