Facebook Advertising Math

Are you tracking the right Facebook Advertising metrics? Do you know how to calculate your KPIs for successful ad campaigns? If not, you are setting yourself up to lose money on your Facebook ad campaigns without even realizing it.  If you get this right, you can move forward testing as sets, ads and campaigns knowing exactly what numbers you need to see in order to start scaling your FB ads fast! Facebook advertising is known to be the best ad platform available today, but most people struggle running profitable or break even ad campaigns... And it is because they don't know their numbers well enough! This video covers the two numbers you must track and how to calculate them for your funnel. Here are the two math examples from the video written out for you... First is an example where you make $100 for a sale. In this example, you have a 2% conversion rate on your sales page. This means you should expect one sale for every 50 visitors to your sales page. (100 / 2) Since this is the OTO your visitors see after they opt in, this means you need to generate 50 leads for every $100 sale... 50/$100 = $2 When you divide the 50 leads by $100 you get a $2 cost per lead... Or CPL. So you need to see $2 leads coming through your Facebook ads manager and when you reach the $100 spend mark, you should expect to see 1 sale! Simple, right? Ok, lets do the second example from the video... In this example, lets say you earn $25 per sale. You also have a 1% conversion rate, meaning it will take 100 leads to generate 1 sale on average. So you divide the 100 leads by $25 and you get $0.25 In this scenario you need to get 25 cent leads in order to be on pace to have one $25 sale for every 100 leads. Simple, right? Knowing your numbers is so important... And ignoring facebook's cost per click is often important since you need data that is backed by conversion. Also, stick around to the end of the video where I explain how to be sure you are getting real data from the facebook advertising system because they are notorious about trying to 'claim' more sales than they generate. If you want to go deeper and see how this applies to my past campaign, watch this video next: https://www.youtube.com/watch?v=mAsr-kO2G6E