Facebook is in the process of creating a reporting feature that will better report on how Facebook ads affect an advertiser’s bottom line. It’s nice to know how many people engaged with an ad, but it’s better to know how much revenue that ad produced for a company. This move by Facebook to better prove the ROI of money spent on ads is important now that Facebook is making it increasingly difficult to gain exposure on the social network without using ads. Here’s what you should know about the ROI reporting feature that is currently in the works.
Why is this Important?
- Prove your ROI: Many companies have invested large portions of their PPC budgets into Facebook Ads over other options such as Google Ads. This trend is continuing to grow thanks to lower ad prices from Facebook. The problem for marketers has been reporting and proving ROI to superiors and company members. Once this feature is rolled out to all users, advertisers will be able to effectively report sales from social media advertising, campaigns and time periods.
- Rely less on Clicks and Engagement: Since reporting has been available for Facebook Ads, advertisers have focused on clicks and engagement to help report the value of Facebook Ads. Although clicks and engagement can tell us that our products and content pique the interest of consumers, it cannot easily tell us if the consumer receiving the ad turned into an actual buyer. Businesses want to know exactly how ads effect the bottom line, and that’s the knowledge this feature is striving to provide.
- Focus your Campaigns: The end goal of any ad campaign is to create sales. Knowing more information about ad performance and failures can help all advertisers hone their campaigns to be the best results-driven campaigns possible. This will also help you hone other parts of your internet marketing strategy such as your content marketing.
Facebook is constantly bringing new ideas and options out for their users. Be sure to stay up to date with these changes by following our internet marketing blog!