These days we have more data than ever before! But like most things, too much of any one thing isn’t good. And if we’re not careful, this abundance of data can both help us and hurt us.
Until recently, we may have had some good indications that our marketing efforts were working, but we didn’t know what parts of the campaign were actually working. We could spend $1.00 on a campaign, and know that $.50 worked and got results… but we didn’t know which $.50 worked or why.
Now, thanks to the unprecedented accuracy and measurability of digital marketing, we have the opposite problem; we have almost too much data to sort through. We have so many numbers and metrics to look at, it’s overwhelming and confusing—unless you know which metrics to focus on.
Here at Abacus we prioritize honing in on those few key metrics and delving into deep data to leverage them completely, knowing that this is the best way to help our clients grow their revenue and scale their businesses.
What Is Deep Data?
Many of us are running our businesses in a world of Big Data, which really just means “a lot of it.” Big Data is overwhelming, with so many numbers that you don’t really know what to start dissecting first. However, most of us will agree that Big Data is a hell of a lot better than no data.
Deep Data is the solution; it’s like laser sharp focusing compared to Big Data’s shooting in the dark (which, yes, is still better than straight up shooting blind).
Deep Data prioritizes focusing on a few key metrics and digging deep into them; when leveraged correctly these fewer (but more important) streams of information can provide significant results.
The Metrics that Matter Most
When it comes to Facebook Ads, the bottom of the funnel metrics are the ones that matter most. We care about the conversion metrics that drive revenue, directly impacting ad performance and ROI.
The two most important metrics that we focus on are conversions and CPA; these make up the core of our deep data, and it’s where we put the majority of our time and energy.
The most obvious metric to watch is our conversions metrics for each ad campaign. These can be leads, sales, downloads, and event registrations; they’re actual measurable results that come as a result of our ads. You can find this information in your Ads Manager, where the number of conversions will be listed for each campaign. This is the performance metric, telling us how much results we got.
Your cost per acquisition (CPA) metric is also crucial; conversions are the performance metric, and your CPA is your ROI metric. It lets us know how much it cost to get each of those leads, sales, downloads you obtained through your Facebook Ads. This metric matters just as much as your conversion rates; it doesn’t matter if you sold 300 apps for $1.00 apiece if your CPA for each was $2.14!
While conversions and CPA make up the core of our deep data and focus at Abacus, we still track other metrics and factor them into the equation. Clicks, impressions, and engagements all matter, and we use them for optimizations. To do this, we use our extensive experience and enormous database to determine how metrics like clicks and impressions actually impact conversions and cost. High CTRs, for example, can actually lower the cost of your CPA, increasing your ROI on your campaigns.
We do care about video views, impressions, and ad engagement because it shows that you’re interested, which means that you’re aware of our brand and you are in our digital sales funnel. These metrics do still matter, but it’s important not to get too distracted with superfluous metrics. Instead, understand how they fit into the overall equation and how they impact your primary goals, and let your ad agency take care of the rest.
The Necessity of Verification of Metrics
In order to fully utilize the data we’re monitoring for best results, verification of metrics is essential. Simply put, this means that the metrics that you’re monitoring should be standardized and verifiable. The advertising and agency industry in general does not always place value on standardization or verification, but in order to truly understand your metrics, they need to be consistent across the board.
The metrics we focus on at Abacus are already standardized and verified through Facebook; there is no guesswork or attribution involved. Your CTR is your CTR, and your CPC is your CPC.
For reference of why this matters, compare your CTR score to Facebook’s relevance score. You know exactly what your CTR is and how it’s calculated: it’s the number of clicks divided by the number of impressions. That’s an exact formula that we can firmly grasp and utilize to our advantage; we can get detailed insight into how to increase this metric and what it means for our ads.
Our relevance scores, on the other hand, are a black box metric; while we’re given a specific score and a general understanding of how it’s calculated (positive and negative feedback), we don’t know exactly what that formula is. We do know that it impacts the cost of your Facebook Ads, but because we don’t know exactly what it is, it’s impossible to measure the exact impact on your campaigns overall. For true deep data, we need that exactness.
Verification is particularly important if you hire an ad agency. While we guarantee fully transparency here at Abacus—meaning that you’ll always know where your money is going and why—not all ad agencies are created equal. Always ask to see your results, and if the metrics aren’t standardized, ask for third party verification.
How to Use This Data to Grow Revenue
Deep data incorporating the essential, bottom of the funnel metrics is the best way to get that laser-sharp accurate view that can help you understand how your ad spend is working for you. And by having the big picture, accurate view of what’s working in your ad spend, you can cut away what isn’t working and maximize what is.
Not only will this drive profits, but it will do so while simultaneously reducing your costs by eliminating everything that wasn’t getting results. This means a much larger ROI and a much bigger revenue, giving you the opportunity to scale your business faster.
Start growing your revenue—and your business with Facebook Ads & Abacus today!