How to effectively analyze Facebook ads?

Analyze Facebook ads
Last updated: 27/11/2023

Many people starting with a campaign lack the knowledge to Analyze Facebook ads and are unsure whether to continue, pause, or make changes.

Why is it important to review the results of Facebook ads? What is the significance behind it?

You are in the right place to figure it out. Let’s delve deep into this.

Disclaimer: This article is for individuals with previous experience running a Facebook ads campaign. However, there is no objection for those who would read without any prior Facebook ads experience.

#1 Why Analyze Facebook Ads Results?

Facebook Ads Analysis provides data about your business that helps you understand what is working and what is not in your industry. This data includes insights into customer satisfaction, demand, revenue, return on investment, and more.

Facebook Ads can also reflect your prominence in the industry, which was not an easy task two decades ago.

Another reason is that you can determine when to pause, modify, or scale your ads. I have witnessed individuals becoming stuck at this point.

They were receiving favorable sales from their ad campaign, and then it suddenly plummeted.

Alternatively, they were not achieving desirable outcomes from the campaign, and they had heard advice to keep the campaign running for a period of time to see improvements. Now they are uncertain.

Once analyzed systematically, you will be able to understand everything. Most importantly, ensure that you have a Facebook pixel installed on your website/app/landing page.

Otherwise, your data will be incomplete. If you are unsure or have not yet installed the Pixel, read my article, ‘What is Facebook Pixel? And How Can It Increase Your Sales?

#2 How long should the ad campaign run to gather sufficient data for analysis?

Typically, you need to run ads for a week to gather sufficient data. However, this can be debated based on the size of your business, the industry you operate in, or the campaign setup.

Alternatively, if you have multiple products, run different ads for each or use catalog ads to gain deeper insights. There are various types of analysis, but we will focus on one here, which helps you determine the fate of the ad campaign – whether to stop or to scale.

#3) The Key Metrics to Analyze Facebook ads

Analyze Facebook ads

I’m only mentioning the important metrics to analyze Facebook ads here. However, you have to choose the metrics based on your Campaign type.

If you are running ads optimized for Video views, choose metrics specific to Video (video plays, video-average playtime, etc.) to get distinctive data.


Note that reach refers to the number of individuals who viewed your advertisement, not the frequency of views.

CPM - Cost Per Impression

CPM is a standard metric in the advertising industry used to measure the cost-effectiveness of a campaign. In simple terms, CPM represents the number of times your ads have been shown to the audience.

This is the basis for how Facebook charges you. It often takes multiple views to convert one person, and even if the same person watches the ad again, it will still count towards the CPM.

For example, if you spent $100 and got 10,000 impressions, your CPM was $10.

Keep in mind: Using a competitive interest such as health & beauty will result in a high CPM.

CTR - Click Through Rate

CTR indicates the ratio of Link clicks to ad impressions. For instance, if your CTR is 3%, it means that out of 100 people who viewed your ad, three clicked on it.

CPC - Cost Per Click

CPC shows the average cost of each link click. In general, CTR is inversely related to CPC. When more people click on the ad, you will have a lower CPC.

CPL - Cost Per Lead

CPL is calculated by dividing the total ad spent by the total leads acquired. For example, if your ad campaign spent $200 and resulted in eight leads, then your CPL is $25.

CPR - Cost Per Result

CPR varies depending on the type of campaign you are optimizing. For example, if you are optimizing for Facebook messages (Messenger campaign) and received 50 messages with an ad spend of $75, then your CPR is $1.5.

Sometimes CPR is regarded as CPA (Cost Per Acquisition/Action).

ROAS - Return on Ad Spend

ROAS, which stands for Return on Advertising Spend, is calculated by dividing the total profit generated from a campaign (excluding net profit) by the amount spent on advertising.

For instance, if you ran a Conversion campaign with an ad spend of $300 and sold 30 products at $60 each, your total profit would be $1800 and your ROAS would be 6.

It is worth noting that ROAS is sometimes used interchangeably with ROI (Return on Investment).

Landing page views

Tracking the landing page views is crucial for calculating the Landing Page Conversion Rate, especially when directing traffic to a website or landing page.

Landing page Conversion Rate

The landing page conversion rate is calculated by dividing the total conversions/leads by the unique landing page views, then multiplying by 100.

For example, if you obtained 80 leads out of 200 unique landing page views, the landing page conversion rate would be (80/200)*100 = 40.

Landing page Conversion Rate

The landing page conversion rate is calculated by dividing the total conversions/leads by the unique landing page views, then multiplying by 100.

For example, if you obtained 80 leads out of 200 unique landing page views, the landing page conversion rate would be (80/200)*100 = 40.

#4) The Anatomy of Analyze

The first thing I check in a campaign is CTR

Understanding the demand for a product is crucial. If the audience is engaging with the ads, it indicates that the ads are being shown to the right people.

The industry-standard CTR is generally above 1%, but I always strive for a CTR of more than 3%. Having a well-crafted ad copy and creative can help achieve a CTR above 3%. There have been instances where the CTR was over 10%.

If your click-through rate (CTR) is below 1%, it might be due to poor targeting, ad copy, creatives, or offer. You have to dig a little deeper and figure out which one is wrong.

The second thing I check is CPM

This provides me with a clearer understanding of the necessary ad spend to achieve my desired results. In the initial stages, it can be difficult to determine the average CPM for your industry.

However, this step allows for a more precise course correction of the budget and goals based on the current CPM.  

It’s important to note that using a competitive interest can result in higher ad expenses.

Pro tip: it’s always better to tap into a relevant interest for your business that doesn’t have competition to reduce the ad expense and get the early advantage.

3rd goes to CPC

CTR and CPC have an inverse relationship: higher CTR means lower CPC, and vice versa. Monitoring both metrics ensures effective ads.

The 4th one is CPR/CPL

When preparing for the campaign, it is important to have a Projected CPR/CPA to determine the maximum amount you can afford to spend on acquiring a single sale or lead. This will help calculate profitability.

For example, if you are selling a $100 product, the maximum amount you can allocate towards acquiring a single sale is $30. 

If it exceeds this amount, the campaign may no longer be profitable. Therefore, it is essential to consider the Projected CPR/CPA when budgeting for the campaign.

If you are confused about budgeting, get more details here, Maximizing ROI: Strategic Facebook Ads Budget

The 5th on the list is the Landing page Conversion rate
Analyze Facebook ads

To calculate that, I require the Landing page views and the total number of Results up to this point. The conversion rate for the landing page should be over 20% for a free lead magnet.

Similarly, a conversion rate of 1-5% is ideal for the paid product landing page. 

For instance, imagine you got 30 conversions or sales from a campaign. And your unique landing page view is 650. So your conversion rate would be (30/650)*100 = 4.61%

If the conversion rate is meeting or exceeding the desired level, then you are doing a great job. However, if the conversion rate is not up to the mark, then you might need to consider making changes to your landing page copy, design, or offer.

Sometimes changing the target audience’s interests can also help improve the conversion rate. 

If, even after these changes, the conversion rate still remains low, it might be time to reevaluate whether your product is the right fit for your audience.

Your advertising may not be effective for two reasons:

1) Your competitors may have run their ads before you.

2) Your product may not have enough demand in the market.

In either case, you should revise your advertising strategy and understand that it’s not the end. It’s the offer or product that needs improvement, not you.

In the field of marketing, it’s typical to succeed only one out of ten times, so never give up until you achieve success.


Evaluating the effectiveness of an advertising campaign, particularly on platforms like Facebook, is essential for business growth. The process of identifying the optimal mix of advertisements requires considerable time and effort.

Hence, it is imperative to adopt a mindset to analyze Facebook ads and be open to experimentation, and possess the patience to investigate various innovative strategies in the realm of Facebook advertising.

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