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3 Simple Steps to Measure Your Facebook ROAS

26/12/2018
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Are you eyeing to optimize the returns obtained from Facebook ad campaigns?

This article will let you know how can you measure your return on ad spend i.e. ROAS for Facebook ad campaigns.

What Is Return on Ad Spend (ROAS)?

Return on ad spend or ROAS is the cornerstone metric that depicts the success of your Facebook advertising. It lets you know whether your pennies are giving positive results or you’re just burning your money.

Understand the concept of ROAS with this example- Suppose you spend $10, 000 in a month on Facebook ads and they generate $ 50, 000 in new sales for your business. That’s a 5X ROAS!!!

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Steps to Measure Facebook Return on Ad Spend

1. Set Your Facebook Pixel and Conversion Tracking Standards

In order to measure ROAS of Facebook ad campaigns, you have to set and install Facebook pixel on your site and also any relevant conversion events.

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Suppose, you run an eCommerce business and employing Facebook to generate product sales, you need to set eCommerce event actions including add to cart, initiate checkout, and purchase.

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Next, select your pixel and open the full dashboard. Under the graph view, you’ll see the event actions that are firing, along with the status of each event and the number of events received.

If they’ve been installed correctly, the status column would say Active and when the event was last received.

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Now, choose your pixel and open the complete dashboard.

If events have been installed correctly, the status column would show Active and when the event was last received.

If any events aren’t firing and showing Inactive in the status column, click on the diagnostics option appearing above the graph view and check if there are any issues with the installation of your pixel and event.

Ensure Your Pixel is Tracking the Purchase Value  

If you’re using purchase events to track sales, and want to effectively measure ROAS needs you to track the value of purchases, not their volume.

Click on View Details inside the Purchase event action in order to check the value of orders sent through the pixel to your ad account.

Next, look into the pop-out window under Parameter, check the value parameter and numbers of items parameter, as well as content IDs and currency.

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2. Make Your Custom Reporting Column in the Facebook Ads Manager

After setting up the pixel and event actions, it’s time to create a custom reporting column that shows metrics like a number of purchases, conversion value of the purchases and ROAS value.

To perform this action, go to your Facebook Ads Manager. Then click on the columns, like Performance drop-down list and choose Customize Columns.

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Then, you’ll find reporting creation window.

The reporting window includes three columns, the first one is of metrics categories, the second one is of metrics you can report, and the third one i.e. on the far right are the specific metrics.

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You can remove the currently unwanted metrics appearing in the reporting column, except these 11 core metrics-

  • Campaign Name
  • Delivery
  • Ad Set Name
  • Bid Strategy
  • Budget
  • Last Significant Edit
  • Results
  • Reach
  • Cost per Result
  • Amount Spent
  • Ends

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Now, you go for adding in the purchases, conversion value, and ROAS metrics.

Choose Standard Events to present under Conversions in the left column of the categories section.

In the middle column, you’ll find a row for each of the standard event actions.

Go to the Purchase ROAS row and choose Total checkbox.

Next to that in the same row, choose the checkboxes for Total, Cost, and Value.

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By choosing these metrics, Ads Manager adds them to your custom reporting column on the extreme right.

Go to the bottom of the column, if you want to edit the segments.

Now, in the total purchase field, you’ll find these metrics in a different manner by purchase type like the mobile app, website, and offline.

If you’re intended to track purchases from your website, and not from a mobile, deselect all of the ticked boxes including website purchases. This may look counterintuitive, but you need the total purchase value, not the segmented data.

Perform the same action for purchase ROAS and purchases conversion value metric. You should have a custom reporting column in the last including-

  • Campaign Name
  • Delivery
  • Ad Set Name
  • Bid Strategy
  • Budget
  • Last Significant Edit
  • Results
  • Reach
  • Cost per Result
  • Amount Spent
  • Ends
  • Website Purchases (no segmenting)
  • Cost per Purchase
  • Purchases Conversion Value (no segmenting)
  • Website Purchase ROAS (no segmenting)

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Lastly, you’ll for setting your reporting window. The attribution window of 28-day click and the 1-say view will be selected by default.

To know better about the performance of campaigns and ads, you can add the 28-day view window as well.

Now, choose the Window Comparison appearing in the bottom-right corner of the custom reporting creation window. Then choose the checkbox next to 28 Days in the View column.

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In the end, click on Save as Preset appearing in the lower-left corner. You give a name to your custom reporting column a name and click on Apply.

3. Find Your Facebook ROAS for Purchases

Now, you should go for analyzing the Purchase and ROAS metrics in your new reporting column.

You’ll find two columns for each metric, where the first column will display the results for the default attribution window: 28-day click and 1-day view. The second column will display 28-day view results.

To analyze ROAS, set your date through the date picker technique available in the top-right corner.

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If you’re new to this, choose Lifetime. But, if you’re already spending enough per month on Facebook, select Last Month to do a monthly ROAS analysis.

Now, see your totals row and combine your two ROAS figures to get your overall ROAS across both data views. Your ROAS value will appear in decimal such as 2.5. This means your overall ROAS return is 2.5 times the money spend on your ad.

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Conclusion

Facebook can provide good business leads if you take the right actions. But, you need to measure how your ads and campaigns are performing.

To do this effectively, here are three steps to help you analyze your Facebook ROAS analysis.

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