There are 2 very important concepts you must understand in order to track and optimize your Facebook Ads Campaign. A lot of people get confused during this part. Those 2 very important concepts are Click-through Rate and Variation.
Click-through Rate is the number of clicks you received divided by the number of times your ad was served by Facebook.
For example if 1000 people have seen your ad and only 20 have clicked on it, it means you got a 2% Click-through Rate on that ad.
The dollar amount you set in the campaign pricing when you created the ad is what is called maximum bid per click. It means that the dollar amount will be the maximum amount you will pay to Facebook per Click. It also means Facebook may charge you LESS than that amount.
The Click-through Rate is the means through which Facebook may charge you LESS than the maximum bid per click you have set. The higher the Click-through Rate percentage the less Facebook will charge you per click.
That Click-through Rate will increase depending on how good your ad is up to the point that the majority of people who see the ad click on it, and at the same time this will drop your CPC up to the point of getting those super low CPCs that only gurus get.
But this will only be achieved by testing a lot of different combinations of your ad until you get to the sweet spot, and there we come to the second concept: Variation.
By variation we mean the action of creating as many ad variations as possible so that you can test as many of them as possible until you get the CPC you want.
At the beginning you may end up paying the maximum bid per click you set because you are just starting out. But because you created 6 ads at the same time, you just need to pick the winning one and clone it, make variations of it, and see what happens.
Then, after you see the results, you will easily see which ads convert the best. You will end up getting closer to the most effective ad, and that’s how you get to the winning ad paying only $0.05 per click to Facebook.
Now that you know what to track, you just need to optimize your ads with as many variations as possible so you can get the best possible results.
The great thing about Remarketing on Facebook is that you will be advertising to people who are alive. These will be real people who have interacted with your website or offer and who are on Facebook. So for that reason you will see that the CTR will be really high, and your CPC should significantly drop.
Here you have a really nice example. These two ads are exactly the same ad. I did not change a thing on them.
First I created the bottom ad. As you can see the CTR is really good. And the CPC dropped to $0.22 from the Max. Bid of $0.25 I set when I created the ad.
The ad reached only 31 people, and 5 people decided to go to the website and check the offer.
Then I decided to clone the ad. I disabled the custom audience and targeted people on all of Facebook. The audience I targeted on Facebook was directly related to the topic in the offer, but the results were different.
The CTR went down by 50%. The CPC increased significantly and I had to reach 1,000+ people so only 10 could decide to visit the website.
As you can see, though this was a really small test, it’s real; Facebook Remarketing can dramatically change your results for the better.