By Noah Jarosh In baseball, the two most important stats are the number of runs scored against your team and the number of runs your team scores. For individual players, things like ERA, OPS, and batting average are key statistics. They are the numbers that directly weigh how well you are achieving your end goal---to get on base for batters, to keep players off the base paths for pitchers.
However, outside of these primary statistics are a number of peripheral figures that can help indicate future performance: strikeouts and walks, batting average on balls in play, etc. These aren’t figures that show an end-goal, but they can be excellent resources when attempting to estimate how a player will perform moving forward.
There is a similar concept with Facebook advertising. There are, of course, KPIs that are expected to be met. These are things like acquiring a certain number of new fans for a Facebook page, earning a certain number of engagement, and driving ROI in e-commerce advertisements. Likes, engagements, conversions, app installs, etc. The end goals.
When you first start an ad, after you’ve set up all the targeting and creative, you’ll start seeing your first results trickle in. However, until you spend some coin you won’t really know how well these ads are doing. If you have multiple targets that you are testing, the ideal is to know which will work best as soon as possible. This is where the peripheral stats come into play, allowing you to at least get a sense of how well one can expect an ad to drive KPIs. Here are three statistics that can help you predict the future.
1. Cost Per Click
A high click-through rate and low cost-per-click can be major indicators of future ad performance. If people are clicking on your ad, that means they are seeing something that caught their eye. It may not be liking the page (yet) in the case of fan acquisition ads, but there must be some allure. The worst reaction is apathy and indifference. Clicking on the ad means someone’s interest has been piqued. That means you’re within the wheelhouse in your targeting. Plus, hey, liking a page counts as a click. If you’re getting a myriad of clicks, it’s likely you’ll see a hefty amount of likes.
2. Cost Per Thousand Impressions
Most likely, you are using Facebook’s native optimizing on your advertising. Therefore, Facebook is optimizing to show your advertisement to only the most relevant audience based on how likely they are to meet your goal. Your cost per thousand impressions (CPM) may show how well Facebook is able to optimize within your selected target.
If you have a high CPM, this may be an indicator that your targeting is off. Facebook is attempting to find people who will be most likely to engage with your ad or find its content relevant with regards to your objective, but may not be finding many people in your offered audience. A high CPM means you are paying more to reach fewer people. Ideally, you are paying less to reach a lot of (relevant) people.
3. Cost Per Link Click
Often times, link clicks will be your main objective. This is true if you are, say, linking people to an awesome company blog. However, there are times when link clicks are secondary to your main objective. For instance, if you are hoping to drive leads for an event or if you are running e-commerce ads with which you would like to drive sales, you probably will have a pixel set up where you can optimize for conversions.
If this is the case, cost-per-link-click can be a huge indicator of how well your ads will perform. If your copy is on point, people who click through the ad should know what to expect when they see the landing page. Thus, they must have some semblance of interest in the product. If you are driving plenty of link clicks at a low cost, it’s reasonable to expect conversions to follow!
Are there any other statistics you look at to judge early advertising performance?