Facebook remains the most popular social media platform, making it a necessary tool for advertising your business.
Yet, running Facebook Ads is much different than making regular posts on your company page. Learn how to run ads that drive the right traffic to your site that convert into customers.
Any action can be considered a conversion based on your business goals. A Facebook Ads conversion involves a user seeing your paid ad, clicking on the link, then completing the predetermined conversion action.
What is a conversion action? Common actions companies set as conversions include:
Your conversion rate (CVR) describes how many visitors completed the desired action as a percentage. The higher the percentage, the more visitors are becoming customers, users, or completing any other action.
What exactly is a good conversion rate, and does yours make the cut? The averages and benchmarks help you understand the results others are generating from Facebook Ads.
The overall average Facebook Ads conversion rate is 9.21%. Using that same study, we can look at Facebook Ads conversion rate by industry:
You can see how drilling down into industry-specific benchmarks highlights the significant degree results may vary based on your business.
Varos is a platform that helps keep your competitor’s results in mind and avoids looking at sporadic reports. Below, you can see how our platform breaks down a range of Facebook Ads metrics and shows you compare:
The average CTR for Facebook Ads and the average CPC Facebook marketing play into your conversion rate.
If your CTR is too low, you aren’t sending enough traffic to your site or app. And if your CPC is too high and not resulting in enough sales, you may spend more on the campaign than it’s generating.
It’s essential to stay aware of all related KPIs to identify any areas for improvement that will support a better CVR.
A Facebook conversion campaign is a type of ad campaign that encourages people to follow a link and convert it into a customer, user, or lead. Let’s go over how to set up a campaign within the Facebook Ad manager so it’s ready to drive conversions.
For now, we’ll assume you already have an ad ready. One of the first things you’ll do when setting up the Facebook Ad campaign is picking the objective. There are several different options, and you’ll likely want to pick ‘Conversions.’
However, other options are available under the conversion category you may want to consider: catalog sales and store traffic. You may wish to experiment with these options if they’re relevant to your business.
Event tracking is a powerful feature allowing you to track the end result of your campaigns to understand how much revenue you’re generating from them. Event tracking allows you to track almost any activity on your site. That includes the number of signups, the amount of revenue generated, or the raw amount of traffic.
You can also determine which event should be tracked as a conversion, which may vary based on your company and goals. Nearly every possible conversion action we discussed earlier can be set as a custom event within the Facebook ad manager.
You don’t necessarily need to enable this option, but we recommend it. Dynamic Creatives asks you for different headlines, ad copy, and headlines, then mixes and matches them to find the most effective combination.
This option is excellent for newer companies or small teams as it can help maximize the result of your ads without needing to refine each specific ad. Instead, you can create compelling components of an ad and let Facebook decide the best combination.
Now you’ll add the text, media, and URL to send traffic to. If you choose Dynamic Creatives, keep in mind that the URL will remain the same, but other elements will be mixed and matched to create the best possible ad.
Make sure that your URL corresponds to the ads you’re running. Nothing will hurt your campaign more than sending traffic to a page that’s entirely unrelated to the ad they clicked on. For example, if you’re offering a free trial on a service, you should send traffic to a specific landing page that follows up on that offer and helps them sign up.
Above, we went over the general process for setting up the ad, but what else can you do to maximize your conversion rate? Let’s go over a few ways to make the most of every dollar spent on Facebook Ads.
Facebook allows you to pick incredibly targeted demographics, such as people who live in an entire region or small city, have particular interests, or have specific job titles. This capability is a powerful way to target specific audiences with tailored ad campaigns to convert them into customers.
Yet, if you target too broadly, you may waste money on people who are unlikely to be interested in your product or service. However, if you target too narrowly, your audience may become too small for your business to generate enough conversions.
Instead, try an approach called ‘narrowcasting.’ This method calls for starting with a target audience that is as broad as possible, then gradually narrowing down the demographic as time passes, and you get more information about what works and what doesn’t.
When done correctly, this can result in higher ad conversion rates than those that use more generic targeting methods alone.
Facebook will determine your ad’s relevance based on its content, specific audience, and how users engage with it. A better ad relevance score makes it more likely for you to win the background auction without spending more. If your ad is more relevant, you’ll beat other advertisers willing to pay more but have more irrelevant ads.
So how do you increase ad relevance? Correct audience targeting is essential, as is creating the entire ad to be relevant to that audience. Create every element of your ad to speak specifically to the targeted audience at an individual level to get the best ad relevance score.
Below, you can see how Varos shows your Facebook Return on Ad Spend (ROAS). Improving your relevance score is an ideal way to get more from your ads without spending more, increasing your ROAS.
Ask yourself what you’re trying to achieve and how you want the user to feel at the end of it when writing your copy. Once you have these two things in mind, crafting a compelling ad that speaks directly to the user becomes easier.
Your ad copy should be concise and make users feel like they are getting something valuable from clicking on the ad – such as a discount or special offer. Give users a reason to take action.
The ad’s call-to-action should tell the user exactly what you want them to do with actionable verbiage. Facebook CTA options give a high level of control over exactly how you compel users to click on your ad. Experiment with different options and verbiage to see what works best for your audience.
Facebook Ads can work wonders for your business growth. The massive user base and optimized ad management tools can drive targeted visitors to your site that are ready to become customers.
However, without the right benchmarks, it’s a challenge to understand the success or failure of your campaigns. Varos offers a powerful way to have the full story behind your Facebook KPIs, including your conversion rate.
Below, you can see how the Facebook Ads CVR is compared directly to the industry median. You can then better understand if the conversion rate of your campaigns is leading the pack — or falling behind.
Are you ready to gain an advantage with real-time Facebook Ads benchmarking? Sign up with Varos or book a demo today to get started.
About the Author
Yarden Shaked
Co-founder & CEO at Varos
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Bottom line: I’m recommending Varos to you all because it’s FREE (for now) and it’s already added a ton of value for myself and my clients.Check it out 👇
I would definitely recommend checking out Varos. With Varos you can easily see how your peers are performing, for free. You get insights into not only TikTok Ads benchmarks, but also similar data for Facebook Ads, Google Ads, and more. #VarosAmbassador
Varos allows thousands merchants to upload anonymize marketing data across meta and google and aggregating it to show what the average is across different categories and ad spend
With varos.com, I can see exactly how our performance across channels stacks up against our competitors in our space.
Compare your ad performance to benchmarks of companies just like yours, anonymously.
I would've killed for this tool years ago and now it's here and oh it's free. Amazing.
I've been seeing some content about @Varos_com so we decided to check it out.
One underrated feature of theirs is the Shopify Benchmarking, which is FREE btw.
Literally impossible to access this data anywhere else. Check out what we're seeing at @my_obvi 👇
I'm loving what @Varos_com is doing with providing much more relevant benchmarks for #ecommerce... especially since it shows that we are absolutely DOMINATING @Elumynt on #facebookads!
This is in the Baby and Children vertical.#fbads #ppcchat #retail #dtc
Bottom line: I’m recommending Varos to you all because it’s FREE (for now) and it’s already added a ton of value for myself and my clients.Check it out 👇
I would definitely recommend checking out Varos. With Varos you can easily see how your peers are performing, for free. You get insights into not only TikTok Ads benchmarks, but also similar data for Facebook Ads, Google Ads, and more. #VarosAmbassador
Varos allows thousands merchants to upload anonymize marketing data across meta and google and aggregating it to show what the average is across different categories and ad spend
With varos.com, I can see exactly how our performance across channels stacks up against our competitors in our space.
Compare your ad performance to benchmarks of companies just like yours, anonymously.
I would've killed for this tool years ago and now it's here and oh it's free. Amazing.
I've been seeing some content about @Varos_com so we decided to check it out.
One underrated feature of theirs is the Shopify Benchmarking, which is FREE btw.
Literally impossible to access this data anywhere else. Check out what we're seeing at @my_obvi 👇
I'm loving what @Varos_com is doing with providing much more relevant benchmarks for #ecommerce... especially since it shows that we are absolutely DOMINATING @Elumynt on #facebookads!
This is in the Baby and Children vertical.#fbads #ppcchat #retail #dtc
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