This is Why Metrics Matter With Facebook Ads

When it comes to Facebook Ads, metrics matter more than you think.

metrics matter with facebook ads
Spread the love

About three months ago, I got on the phone with a prospect.

He, like many of my clients, needed help generating more sales for his business. I know, it sounds redundant. It’s your typical story from an average day, but trust me this is going somewhere.

Of course, the goal of any business, including mine and yours, is to increase sales. If your business isn’t making sales, you’re losing money. And, nobody is in the game to lose money. We all what to make money off our investment.

We all want to win, right?

So, when you are thinking about Facebook Ads, ‘sales’ is all that matters.

But, what metrics do you look at if you want to make more money?

What is an indicator of whether the ads you are running are actually good?

Can you tell me what metric correlates with a positive ROI?

Is it the cost-per-impression, cost-per-lead, cost-per-click, or click-through-rate?

Actually, it’s none of the above. People like to brag about getting a 5 cent cost-per-click, but at the end of the day: Are they making any sales? Are they closing? Are their leads quality?

If you’re looking for a positive ROI with Facebook Ads, you aren’t going to care about all that fluff. You’re going to care about the final result: the cost-per-acquisition (CPA).

You want to understand how much money it cost you to make one sale. It’s pretty easy to do when watching the cost-per-acquisition (CPA).

What’s funny is that when I spoke with that man 3 months ago, he asked me what our average cost-per-lead (CPL) was.

So, I told him, “When working with people in your industry, we’ve gotten a cost-per-lead of about $15 on average.”

When he heard this, he freaked out. And, I mean freaked out. The man started to raise his voice, sounding flustered as he tried to comprehend what I had told him. He told me that a $15 cost-per-lead was way too expensive and went on-and-on about how he had gotten a $1 cost-per-lead (CPL) on his own.

I admit, at the time, I was a little shocked. A $1 cost-per-lead (CPL) is pretty good. But considering his story and why he had come to me in the first place, I could tell something was off. It didn’t take long for me to realize what was going on here.

“That is great, sir,” I responded. “It looks like you’re doing a lot better than us, but let me ask you. How many of those leads are you closing? What’s your cost-per-acquisition?”

Do you want to take a guess to what his response was? Because, it wasn’t pretty.

He didn’t have a freaking clue!

“Uh, I don’t know,” He said. “I don’t keep those numbers in mind. I want to keep cost down.”

“Oh I see,” I said trying to contain myself. ” Well, I can tell you our leads have a conversion rate of about 30%”

After doing the math, it came out that our clients (in his industry) were making on average $12,600 for every $1000 they invested. They saw a huge return with a $15 cost-per-lead (CPL). To me, that was great. You have to pay to play and you have to play to win. That’s how I think and that’s how every business owner should think. But what made our leads better than the leads he was getting? Why did our leads become customers and his didn’t?

It was because they were quality leads! Our ads were driving the right traffic. These were people that would actually buy. These leads weren’t just anyone; they converted!

I tried to explain this to him, but the man wouldn’t stop talking about all the cheap leads he was getting. It was as if they were some sort of accomplishment. They weren’t!

And honestly, I could have done a better job trying to make him understand what’s more important. But, he was fixated on the cost-per-lead. He didn’t care about how much money we were making off of them. And I can tell you, this made me want to scream:


There is something I want you to understand. Cheap leads don’t mean more sales. Not all leads are quality. There are other metrics that do a better job at telling you that.

If you focus on details and don’t take the time to look at the big picture, you will get nowhere. Focusing on the wrong metrics will throw you off.

Your cost-per-click (CPC) is not going to tell you that you’re making money. Your cost-per-lead won’t do it either. Those won’t tell you anything!

What matters is your cost-per-acquisition (CPA), because it tells you how much it costs to make the SALE!!!

Now, why would anything else matter?

What matters more than sales?

(And don’t say attention ?)

Of course those other metrics are important, but at the end of the day you need to make sense out of your investment. It’s good to look at the cost-per-click (CPC), the cost-per-lead (CPL), the cost-per-impression (CPI), the click-through rate (CTR). The cheaper you can get things the better, but don’t fixate on them. Because when you do, you lose sight of the big picture and quality leads fall through the cracks.

It’s important to know what numbers make sense for your investment, for your business and your goals.

With that in mind, worry less about metrics that aren’t making you any money. Focus more on metrics that show that you are pulling in leads and making money off your investment. Look at the cost-per-acquisition (CPA) and determine if your leads are quality or not. Metrics MATTER with Facebook Ads!


Interested in learning more from the best and the brightest in Facebook Advertising?

Click below to listen to ‘The Nexo Network’ .


Listen Now

 iTunes/Apple Podcast | Spotify | Google Podcasts | Breaker | Stitcher | Castbox | Overcast | Pocket Casts | Radio Public | Web

November 20, 2018

Back to our blog