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Facebook Ads Course: Facebook Analytics Tutorial

Facebook Ads Course: Facebook Analytics Tutorial

So you followed our Facebook Ads course and
launched your first Facebook ad. You spent $15 or $20 and ran it for four days. Now the results are in… but what the heck
do all those numbers mean? That’s the question we’ll answer today,
in this bonus round of our Facebook Ads course! If you’ve spend money on an ad and are trying
to interpret the results, this video is for you. Watch until the end to learn…. How to create a custom report
How to interpret Facebook ads results Whether to kill or scale an ad Ready to begin? Let’s get started. Hey everyone it’s Jessica from Oberlo. In this bonus segment of our free Facebook
ads course, we’ll talk all about how to interpret the results of a Facebook ad. By the way, if you haven’t taken the Facebook
ads course, check out the link in the description below. If you have taken the course, you’ll remember
that we created an ad for a dog water bottle. We actually launched that ad, and now we’ll
review the results of that ad together. We’ll also talk about what actions we could
take from here. Just a word of warning before we begin. Succeeding with Facebook ads requires constant
learning. In the next few weeks, we’ll release interviews
with six-figure dropshippers who grew their businesses with Facebook ads. Hit subscribe now so you don’t miss their
valuable insights. Alright, before we dive into ad results, let’s
take a look at the actual ad we launched. We titled this campaign Dog Water Bottle,
and we set a Campaign Objective of Conversions. At the ad set level, we set the Conversion
Event to View Content. The last time you saw us choose from conversion
events, you might have noticed a red dot next to the View Content option. That’s because our Facebook pixel hadn’t
yet recorded any View Content events on our store. Now, a few days after we’ve run our ad,
we see a green dot. That’s because our Facebook pixel now has
recorded a few View Content events. We’ll talk about how many in just a bit. We set our daily budget for this ad at $5
a day. While we didn’t schedule an end date, we
turned this ad off after 4 days. We targeted people who live in the Big 4 countries
for ecommerce shopping: the United States, Canada, the United Kingdom, and Australia. We didn’t filter by age or gender, but we
did target people who speak English. That’s because English is the official language
of the Big 4 countries we targeted. We narrowed our audience to include people
who like dogs AND are engaged shoppers, according to Facebook. That brought our audience size to about 27
million. That’s a huge number, sure, but that’s
OK. The countries we targeted are huge. We can use data from this ad to narrow down
our audience later. We edited placements so that our ad only appeared
in Facebook feeds, in-stream videos, and suggested videos. I’ll tell you why in just a second. Finally at the ad set, we set the conversion
window to 7 days click or 1 day view. Let’s go the ad now. I mentioned that we narrowed down our ad placements
to only Facebook feeds, in-stream videos, and suggested videos. The reason? Well, we created a video ad! We shot this ad in our office with a test
product that we ordered and the help of a friend’s dog. We added text with Camtasia, a video editing
software, and voila. Video ad. We added copy to emphasize the problem this
product solves – dog dehydration. Then we made sure the ad linked directly to
our product page. Speaking of the product page, we cleaned up
our storefront ad product page to give our ads a better chance of landing sales. We left a link to our store below in case
you want to check it out. In the process of reviewing this ad, you’ve
gotten a sneak peek of the results. Now it’s time to dive deep into those results. We want to figure out what’s working–and
what’s not–with our Facebook ad, and maybe even our dropshipping store. Facebook collected a ton of information about
our ad. However, as beginner dropshippers, not all
of that information is relevant. So our first step in analyzing our results
is to create a custom report. We want to tell Facebook exactly what data
to show us so that we’re seeing only what’s relevant to us. Here, I’ll show you how. To create your custom report, go to your Ads
Manager. Press Columns and then Customize Columns. On the right you see the columns that are
in your report. They’re listed from top to bottom as they
appear from left to right in your report. You can remove columns in this report by clicking
the X on the right. You can also reorder them by clicking the
six dots on the left and dragging the title of the columns up and down. In this middle section you select and deselect
columns for your report. As you can see, if I check a box in the middle,
that column appears on the right. If I un-check it, it disappears. Let’s start with a blank slate. We’ll delete all existing columns so it’s
easier for you to see which columns to add. In the Performance section, the first column
we’ll select is Amount Spent. It’s critical to track your Facebook ad
spend. If you don’t, you could accidentally spend
way more on Facebook ads than you intended. In this same section, also click Frequency,
Clicks, and CTR. Frequency tells you the average number of
times each person saw your ad. Clicks is the number of clicks on your ad. And CTR stands for clickthrough rate. It’s the percentage of times people saw
your ad and clicked on it. Now click the Conversions section the left. Check the boxes for total and cost for the
following major conversion events: Content views
Adds to cart Checkouts initiated
Purchases De-select the “On Facebook” conversion
events. Now we can see, for example, the number of
Content Views associated with our ad. We can also see how much it cost us for one
Content View. We see that for every conversion event, from
Content Views to Purchases. Review the columns on the right. I like them to appear in the order of my sales
funnel, from Content Views all the way to Purchases. When everything looks good, click Apply. Now that we have our custom report set up,
it’s time to analyze the numbers. We want to figure out what they mean. I’ll share a view benchmarking numbers,
and we can use these numbers to judge our ad’s performance. Let’s start by looking at the ad frequency. Facebook is telling us that, on average, the
people who saw this ad only saw it once. This is pretty standard for a new Facebook
ads account. As you scale your Facebook ads effort, this
number might increase. If it does, and your overall ad performance
decreases, it could be a sign that your audience is so used to your ad that they’re starting
to ignore it. If that’s the case, you can change the ad
creative and copy to get your audience’s attention again. If this is your first Facebook ad, however,
this probably isn’t something you have to worry about. We should feel fine about ad frequency and
move on. Now let’s look at clicks and clickthrough
rate. Sure, the number of clicks you get will depend
on the video or image you use in your ad and the ad copy. But your ad budget will also have a big influence
on this number. If you spend more money, you’ll get more
clicks. Before we spend more money, though, we want
to know if our ad creative is effective. That’s where the clickthrough rate comes
in. The clickthrough rate is the percentage of
time people saw our ad and clicked. The CTR will be different for different campaigns
campaigns and ad placement. For a first campaign targeting a broad audience,
a CTR over .5% is just fine. So we should be pretty pleased with our clickthrough
rate over 3%. It tells us that our video is catching our
target audience’s attention and prompting them to click. If your CTR is lower than .5%, it could be
because your ad creative needs work. It could also be because you’re not targeting
the right audience. However, if you followed our Facebook ads
course, you probably targeted a really broad audience. It’s unlikely that audience targeting is
the problem. Try changing your ad creative. Create a new video or take your own product
images. If your CTR is still low, and nobody is adding
your product to their cart, you probably need to find a different product to advertise. On the other hand, if your CTR is low but
you’re getting a few add-to-carts, you’re on the right track. Don’t worry too much about the CTR in that
case. See, great thing about Facebook ads reports
is that they don’t just tell you about the effectiveness of your ad. They also tell you about the effectiveness
of your website, product selection, and check-out process. Let’s return to the screen and I’ll explain. In the next few columns, we see how many store
visitors went through our sales funnel. Of the 168 people who clicked the ad, 93 viewed
our product page. The rest probably bounced off the site as
soon as they arrived. We can calculate our bounce rate by dividing
our content views by ad clicks, in this case 93 divided by 168. That’s a 55% bounce rate. Anything below 50% is really good. For a new dropshipping store, 55% is definitely
an acceptable bounce rate. Next we see cost per content view. As with any cost-per-conversion event, the
lower the number, the better. Keep in mind some basic conversion math: ideally,
you would get 2 sales for every 100 store visitors. This is a 2% conversion rate, which is an
average ecommerce conversion rate. If you’re not there yet, don’t worry–you
can adjust your store design, product descriptions, and product photos to improve this number. But here’s the point I want to make. At 24 cents per content view, we’d need
to spend 24 Euros to get 100 visitors. If our store had a 2% conversion rate, each
sale would need to make us 12 Euros in profit to break even. When you’re advertising on Facebook, it’s
crucial to know your break even point. It’s not a big deal if you lose money on
ads. In fact, when you’re just starting out,
you probably WILL lose money on ads. But whether you lose $20 or $200 will depend
on how well you’re tracking your profits and ad spend. Don’t just take our word for it. Dropshipping Chris Wane built a $500,000 dropshipping
store over two years. Chris told us that every dropshipper should
know their break-even point. To learn more, watch this video here. Now let’s finish reviewing our Facebook
ad results by looking at three crucial conversion events: add to carts, checkouts initiated,
and purchases. Our ad got one add-to-cart, called ATCs for
short, and two initiate checkouts. The Facebook pixel fires an ATC event whenever
someone clicks an “Add to Cart” button. It fires the Initiate Checkout event when
somebody is already in their cart and clicks the “Checkout” button. What probably happened here was that one person
added the dog water to their cart, and then tried to checkout once but failed. Maybe they had doubts about buying. Or maybe there were bugs or points of confusion
in the checkout process. Whatever the reason, nobody decided to buy
our dog water bottle. We shouldn’t be too discouraged by an abandoned
cart. On average, 68% of shoppers abandon their
carts. However, we should look at our store analytics
and our checkout process before we run another ad. The same would be true if we had a lot of
Add to Carts, but very few purchases. For more tips on optimizing your store and
sales funnel for sales, check out this video. So where should we go from here? That depends on how much you’ve budgeted
to launch your store. If your budget is lean, consider turning off
your Facebook campaign. Use you Facebook ads data to optimize your
store, then try driving free traffic to your website. Watch this video to learn how. The biggest tradeoff with this tactic is time. You can drive traffic to your store for free,
but it’ll be hard to drive traffic to your store fast. So if time is of the essence, keep your Facebook
ad running at $5 a day, but narrow your audience. Here’s how. In Ads Manager, Go to the campaign level view. Click the bulleted dropdown menu on the right. Check country. Now we can see our Facebook ad results by
the countries we targeted. We want to continue running our ad but we
want to be cost-effective about it. So we’re looking for audiences that are
engaged, but not expensive. This pops out to me. We only got 18 clicks from the United States,
yet we paid more for those clicks than for clicks from any other country. And our one ATC came from Australia. If we wanted to spend another $15 on Facebook
ads, we could retarget this ad to customers in Australia. To do this, just go to the Ad Set of the ad,
click Edit, delete the other countries, and click Publish. Then revisit the ad in a few days and check
the results again. Based on our initial ad data, if we retarget
the ad and exclude the US, we’ll probably get more clicks, and maybe even more add to
carts, for the same amount of money. And that’s the art and science of Facebook
advertising: getting more results for less money with every ad. You’re on your way to your first sale–I
can feel it. What Facebook ad numbers are you watching? How would you scale this ad from here? Leave a comment with your thoughts and I’ll
make sure to respond. Thanks for watching. Until next time, learn often, market better,
and sell more.

70 thoughts on “Facebook Ads Course: Facebook Analytics Tutorial

  1. Thank you Jessica I look forward to courses at the shopify of your production because your style is easy to understand

  2. WTF View Content conversion are you serious??? You should always start with Sale
    P.S: Start learning fb ads by people that dropship & have experience running ads, not by Shopify employees

  3. Thank you, I like this course, I look forward for more course. Jessica I keep getting this on my Shopify ( Facebook Marketing is not connected to a Business Manager. Connect a Business Manager. Now when I try getting this setup on FB, it won't connect.

  4. Jessica, this was so helpful! I thought I knew a lot about FB ads but this really helped. THANK YOU SO MUCH AS ALWAYS! I look forward to each and every video you put out.

  5. Isn't duplicating the ad set and editing the copy to include only australia better than editing the original adsets? Won't that affect the facebook optimisation process? Either keep the original and the new running or let the new one run and turn off the original. Thoughts?

  6. That was amazing thank you for the follow up series it connected all the dots for me thank you ❤️

  7. Wouldn't it be a 45% bounce rate? because that would mean 55% stayed and the other 45% bounced? or am I not understanding this

  8. Hi jessica great content as always your videos really help me a lot. I have a question I already build a good instagram and Im about to put money for the first time should I put it in a giveaway or in facebook ads? I also don't have followers in facebook is this a problem? thank you

  9. QUESTION: Why are Cost per Content Views higher in the United States than other countries? Thank you for this video. I found it to be a great primer.

  10. Hi Jessica.. great video…as always! I really look forward to watching the videos and learning lots:-) Just an observation though, i looked through the thirstypup website and found it really clean and easy to navigate. I really liked the style of the site but there isn't a link where if a customer wants to contact the site? Like a contact us page or a contact email? Or am i not seeing the link? Is it allright to not have a contact email? Please advise!

  11. Hello , my CTR is %7.6 but I have not get any sales or add to cart , Do you have any advise to get sales ?

  12. HI there when you say look the video here 11:33 with the figure but I could not see any video link on top Right corner for example I would like to know my break even point where is the link of that video

  13. Jessica, I did well with frequency and numbers but didn't get any add to carts or sales. I spent $20. I am tempted to go with a completely different ad as I chose a unique bathing suit that is perhaps not as salable as what is needed for facebook. Thank you! At least I can review the charts now as well as create ads. It is a LOT of work! I'll keep watching your videos. You rock!

  14. Thank you for the video. I could tell that a lot of work went into creating it. Also your videos always have great content and I love that they aren't gimmicky. Seems it all boils down to trail and error with attempts to lessen the errors lol

  15. Hello Jessica, I really love your videos cause I find true values in them. However, here's a suggestion. Please link all the videos in the description that you refer to within the main video, so that we can watch them one by one while maintaining the focus.

  16. Jessica is one of the most talented presenter i ever seen on Youtube and course presentation tutorials… She is pleasant and amiable, speaks clearly with proper diction, smile always, and the pace of going thru the videos is perfect. Embarrassingly i am a competitior user of another dropshipping platform, but yet i spend most of the time on Oberlo's channel learning dropshipping. Omg. ://

  17. It says you targeted an audience of 27,000,000 . In the Facebook ad course it seemed that we were narrowing down to 200,000 – 500,000. Can you please tell me why it was different when you actually ran the ad please?

  18. Wonderful video, clearly explained and full of value. 2 thumbs up from me. Thank you for creating it 🙂

  19. what? bounce rate = view content / clicks? so if you have less and less view content for the same amount of clicks that means you will have less percentage? isnt that better if people who click also view content? fo if you have 168 clicks the view content aproaching clicks should be better no?

  20. I try to arrange my columns but every time when I close my Facebook page, they disappear. Of course I press "apply" but it doesn't help to much… 😕 How do you save your columns? Thank you! 🙏🏻😊

  21. Thanks you for this vid, Jessica. I noticed that there were no video suggestions appearing where the arrow points at.

  22. You never sale any thing on Facebook, the Facebook people not going to buy anything from Facebook, Jerk. . .

  23. I had two stores with Facebook for advertising almost one year, and I paid $3 a day and $5 a day I did not sale anything yet, and also they changed me $0.63 cent per click if one of your friend click on like or share it will be $. $0.63 per click, Facebook will deducted from your credit card, I spended $3,000 for my two stores with advertising for selling online, be careful before you fall in love .
    good luck.
    PS -Facebook people will not buy anything from your store

  24. in the second video of the course, your audience size was 300,000 people and you left the language blank,

  25. United States has no official language. English is just the language used by government, but not official language

  26. Where is the video where you make the video ad? I've only seen the ones where you make the photo ad.

  27. Thank you Jessica. I've always been confused and lost when it comes to facebook analytics and this 12 minute video helps allot. Now I feel I can run facebook ads and know what I'm doing. lol Thank you so much! Just the video I've been looking for.

  28. Hi jessica good am here from the philippines. I hope your well while reading my post. I really love how you help starter like me in this business. I want to know if theres any possibility that the facebook pixel can generate the report even if youre still running the ads? I also notice that my CTR ave. at 5% but I don't see any content views. should I worry about it? thanks and more power

  29. I've been doing fb ad for a few months and i never knew this. thank you so much Jessica for the concise and useful information.

  30. Thank you much for such a great explanation of features that were unknown to me until now! Great vid. Please share more like this 🙂

  31. Hi Jessica. I have a CTR of 10.19% but no sales. Am I missing something here? Also I have 97 content views and 110 clicks. So does this mean that I have a bounce rate of 88% or 12%. oh this is so confusing

  32. Love the break even point analysis and overview. This video provides great direction for how to interpret FB ads results to drive multiple aspects of your advertising and sales funnel. Thank you. You have a new Subscriber🏆🥇

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