How To Analyze Facebook Advertising Data In The Facebook Ads Manager - Part 4

TL;DR

Analyze Facebook advertising data by filtering Ads Manager to active ad sets, comparing cost per lead and cost per new customer with your KPIs, and turning off the ad sets that miss those targets. Miles Becker reviews a campaign with about $2,500 spent, 12,000 link clicks, 5,800 leads, and a $0.44 cost per lead, then explains how to pursue a break-even funnel and scale successful ad sets. Read on for the exact optimization sequence.

Transcript

hey miles here miles becker.com and in this video we're going to go inside of my Facebook ads manager and we're going to optimize a running Facebook advertising campaign that I've got up and going this is video number four in a series if you've missed the previous ones you can access them down in the description or the video where we actually launc... Read More

Key Insights

• The video is part of a series focused on optimizing Facebook advertising campaigns, demonstrating the process in real-time.
• The speaker uses a $5 per day ad strategy to test various ad sets, identifying which ones bring in new customers effectively.
• Key performance indicators (KPIs) such as cost per lead and cost per customer are crucial for determining the success of ad sets.
• The speaker emphasizes the importance of understanding lifetime value of leads to make informed decisions on ad spend.
• Optimization involves turning off underperforming ad sets and increasing the budget for those that perform well.
• The process of scaling involves adding new ad sets with untested interests to find additional profitable opportunities.
• The ultimate goal is to achieve a break-even or profitable campaign by continuously refining and testing ad sets.
• Dedication to testing and optimizing is necessary to build a sustainable and scalable Facebook advertising strategy.

Questions & Answers

Q: How do you analyze and optimize Facebook advertising data in Facebook Ads Manager?

Open the campaign, filter delivery to show only active ad sets, and begin with the campaign’s overall results. Compare each ad set’s cost per lead and cost per new customer with your KPIs, then turn off ad sets that produce no customers or exceed an acceptable acquisition cost.

Q: Why should you filter Facebook Ads Manager to active ad sets?

The campaign view can include ad sets that were previously turned off. Filtering delivery to active ad sets ensures that the displayed numbers reflect what is currently running and gives you a clearer basis for optimization decisions.

Q: What results had the Facebook advertising campaign produced?

The campaign had spent about $2,500 and generated about 12,000 link clicks and 5,800 leads. Miles estimated that the opt-in page was converting at about 45%, while the overall cost per lead was $0.44.

Q: Which Facebook ad sets should be turned off first?

First identify ad sets that have generated zero new customers, shown as a dash in the customer column. Among those, start by turning off the ad sets with the highest cost per lead, then continue removing the remaining ad sets that are not producing customers.

Q: How does cost per new customer guide optimization decisions?

Compare each ad set’s cost per new customer with the value of a customer and your established KPIs. In the demonstrated campaign, each customer was worth about $90, and Miles chose to turn off ad sets costing more than $120 per customer.

Q: Why does the lifetime value of a lead matter when evaluating Facebook ads?

Lifetime value helps determine whether a lead acquisition cost is acceptable even when the immediate cost per customer is high. Miles considered a $0.44 lead worthwhile because it was within his KPI and he understood what his leads were worth over time.

Q: What is a break-even Facebook advertising funnel?

A break-even funnel acquires customers for about the same amount as each customer is worth. Miles explains that this can effectively add 98 or 99 subscribers along the way, while the follow-up sequence and email list perform the remaining work.

Q: How should successful Facebook ad sets be scaled?

Keep the ad sets that generate customers within the required KPIs and increase the budget on those that perform well. Continue expanding by adding new ad sets with untested interests, then analyze and refine them using the same cost-per-lead and cost-per-customer criteria.

Summary & Key Takeaways

• This video is the fourth in a series on optimizing Facebook advertising campaigns, focusing on real-time adjustments to improve ROI. The speaker demonstrates how to analyze data, adjust budgets, and scale successful ad sets using a $5 per day strategy.

• Key performance indicators such as cost per lead and cost per customer are used to evaluate the effectiveness of different ad sets. The speaker emphasizes the importance of understanding the lifetime value of leads to make informed advertising decisions.

• Optimization involves turning off underperforming ad sets and increasing the budget for those that perform well. The process of scaling involves adding new ad sets with untested interests to discover additional profitable opportunities, aiming for a break-even or profitable campaign.