Measure Your Facebook Ads Against Benchmarks
No matter what you’re investing your marketing dollars in, you need to know whether it’s working. Your Facebook marketing strategy is no different. Once you’ve begun purchasing Facebook ads, you will want to begin measuring whether it’s aiding in lead generation and, ultimately, conversions.
A study conducted by WordStream is one of the first to explore industry averages for Facebook ad effectiveness. The results have served to inform companies across a variety of industries, helping them see where their Facebook marketing strategy stacks up against other similar organizations. The study’s findings are now known as the Facebook Industry Benchmarks.
The study examined three main areas: the average click-through rate, cost per click and conversion rate. Of course, for most businesses, the key indicator of Facebook ad success is the conversion rate. If a company enjoys a healthy click-through rate, but never sees a conversion, their strategy needs to be adjusted.
Here are a few details from the study that may inform your own Facebook marketing strategy and determine whether you’re on the right track:
Average click-through rate: Across all industries, the average click-through rate is .90 percent. It’s important to remember that your Facebook ads aren’t competing against every ad on the site. It’s more important to know the average click-through rate of your own industry. Only a few industries, including retail, fitness, legal, beauty and apparel, manage to get an average click-through rate of more than one percent.
It’s important to get a higher click-through rate, and not just because it means you’re getting traffic to your website. Facebook also rewards those companies with higher click-through rates with a lower price for ads.
Average cost per click: Certain industries pay more per click, such as finance ($3.77 per click) and insurance, but these industries are still capturing a good opportunity when you consider that GoogleAds charges around $50 per click for keywords like, “loan” and “mortgage.”
Some industries pay far less for Facebook ads, with their cost per click averaging $0.45 for apparel and $0.70 for retail.
Conversion rate: The fitness industry has the strongest results in conversion rates, with 14.29 percent. Education and healthcare also do well with conversions, at 13.58 percent and 11 percent, respectively.
The conversion rate is the most important metric for determining the effectiveness of your Facebook marketing strategy. If you’re failing to generate new business through Facebook, you may need to consider investing in a different social media platform.
Managing your social media strategy can take a lot of valuable time from the overall management of your business. Talk to SJC Marketing about the benefits of outsourcing your social media marketing strategy. Contact us for more information.