Facebook Ads: Measure your conversions!

Cotswold Web • 6 December 2023

Heading 1

Facebook Ads are a very effective form of advertising for many businesses. But how effective? If you don’t measure your conversions, you really can’t be sure, as you will have no idea how good your return on investment (ROI) is.

How to advertise on Facebook in 2021 (cotswoldweb.co.uk)

By focusing on conversions, you can ensure you are reaching the right audience and measure your ROI to ensure you’re not paying more for a conversion than you should.

First things first – what is a conversion?

A conversion is when an ad achieves its purpose. It is an action or event which is part of a customer journey. Different businesses will have different actions which they class as conversions. The most obvious conversion is a sale, but it could also be booking a call, filling in an enquiry form or signing up for a subscription.

You can track a huge number of metrics through Facebook Ads Manager (also known as Meta Ads Manager), so it is important to focus on the ones which are most relevant to your business and what you want to achieve. If the only conversion you are interested in is purchases, there is no point in tracking any other form of conversion.

A yellow measuring tape with the numbers 1 through 12 on it

Some common conversions to focus on are:

·      Website purchases

·      Leads

·      Downloads

·      Subscription sign-ups

By doing that, you can work out how much it is costing every time to achieve that goal - known as the Cost Per Action (CPA) on Meta Ads Manager.

Facebook ads mistakes to avoid (cotswoldweb.co.uk)

Results on Meta Ads Manager are the number of times an ad campaign achieves its desired outcome ie a conversion. The result will vary from business to business and industry to industry, depending on the type of ad campaign you use and the goal you have set.

You can measure your ROI using the formula: Revenue divided by ad spend. So if you make £100 revenue and your ad spend is £10, your ROI is 10.


Conversion rate


Conversion rate is the metric used to measure the success of an ad. When you know the aim of your ad campaign, you can measure your conversion rate (sometimes known as the result rate).

This is the percentage of desired results you achieved compared to the total number of impressions. Impressions are the total number of times your ad appeared on a screen in front of your audience.

The formula for your conversion rate is the number of conversions divided by the number of impressions. This is then multiplied by 100 to give a percentage.

If your Facebook ad gets one person to buy a product for every 25 impressions, your conversion rate is 1/25 x 100, which gives a conversion rate of 4%.

Conversion rate is likely to be very different depending on whether you are aiming to reach a business to business (B2B) audience or a business to consumer (B2C) audience. Consumer products are generally cheaper and only one person needs to make the decision.

Using Facebook Ads for B2B businesses (cotswoldweb.co.uk)

Products for a B2B audience are likely to be significantly more expensive and the decision will generally be made over a longer period of time and by more than one person. But when it does convert, it will be worth the wait, with a single B2B conversion usually worth significantly more than a single B2C conversion - or even significantly more than multiple B2C conversions.

Conversion rate also varies significantly from one industry to another. A ‘good’ Facebook Ads conversion rate might be 10%, but that would be considered low in some industries and very high in others. To know what a good conversion rate for your business would be, you need to focus on industry-specific conversion data and make sure your conversions are at least in line with that, then focus on improving them.

It’s important to remember that conversion rate doesn’t account for the money made from a conversion or the money spent to achieve that conversion. If 5% of consumers are converting for two businesses, but are buying something for £10 from one business and £200 from another business, the conversion rate is still the same.


A person is pointing at a graph on a piece of paper

Conversion lift


Conversion lift is a service specifically offered by Facebook to its advertisers. It helps you understand the value of your Facebook Ads in driving sales and conversions (it is also used for Instagram and Audience Network ads). 

Conversion lift measures conversions for the 2020s and is based on the fact that most people are switching between devices, rather than sat at the same desktop computer all day. This means cross-device conversion measurement is more important than ever, which is what conversion lift on Facebook offers.

It looks beyond traditional measurement - by measuring the impact of being exposed to an ad across devices, conversion lift offers a more holistic view of an ad's performance, rather than just relying on the number of clicks.

While people use multiple devices throughout the day, a significant proportion of purchases still happen in physical shops. Conversion lift helps you understand ad performance across multiple devices and conversion events, whether they happen online, offline or in-app.

It compares the actions of real people in randomised test and control groups to measure the additional online, offline or mobile app business driven by Facebook Ads. Companies advertising with Facebook have the option to create their own lift studies for key business questions.

All kinds of companies use Facebook to advertise from small, local businesses through to big multinationals. While some industries may see more frequent conversions, its targeting will fit all industries, as well as very localised advertising.

By measuring your conversions, you will know whether or not Facebook Ads are right for the bottom line of your business and whether you need to make any changes to your advertising strategy in the future.

Historically, Facebook Ads have always had 11 ad objectives to choose from. But from January 2024, that is being simplified to six, which should align with a business or organisation’s goals.

More Posts.

silhouette  of a person against a backdrop of computer text
19 November 2024
Heading 1 Artificial intelligence (AI) has had a huge impact in many areas of life and SEO is no exception. While it has made online searches easier for consumers, keeping up with it and staying ahead as a business can be challenging. As Google integrates advanced AI into its search results, businesses must rethink their SEO strategies. Understanding the future of SEO in the context of AI is essential to appear high on search rankings and remain competitive. Traditionally, search engine optimisation (SEO) has relied largely on keyword optimisation and link building. If you sell garden products, you would make sure the phrase ‘garden products’ was used frequently throughout your website. You would also look to get some links back to your site from other websites – maybe other businesses in your local area or in a complementary sector. These traditional SEO methods are becoming less effective. AI means search engines like Google and Bing have become better at understanding the intent behind a search, through machine learning algorithms analysing huge quantities of data, as well as natural language processing. Natural language processing doesn’t just understand the words in a query, it understands the context and intent behind it. AI can even understand synonyms, slang and regional variation in language! When someone searches for something online, AI can analyse, interpret and predict their behaviour. So businesses have to adapt their SEO strategies to changing algorithms to stay competitive. You need to have a deeper understanding of your target audience and produce content which meets their needs and answers their queries. It is about providing the best answer to the questions your audience is asking, because AI algorithms are skilled at recognising content which meets the search intent of users and provides value. This means that content which is designed to meet specific needs, answer questions and provide the solutions to problems is more likely to rank higher in searches. AI algorithms will prioritise content which resonates with users on a human level – with every paragraph adding more value and depth. This aligns with AI’s preference for content which engages and informs – and also helps build a stronger connection with your target audience. In addition, AI is making voice searches (e.g. Alexa) much more effective. Voice searches tend to use more words than online searches e.g. ‘find me healthy snacks for pre-school children’ rather than just typing ‘healthy snacks’ into Google with no context. This aspect of AI will continue to grow in importance and become even more widely used.
SEO Audit by Cotswold Web Cheltenham
by Cotswold Web 1 October 2024
An SEO audit is a way to evaluate how well your website is optimised for search engines
A computer monitor is sitting on a desk with purple lights behind it.
30 July 2024
When was the last time you had your business website redesigned? If it's been more than two or three years, it likely needs an update...
The word seo is written on scrabble tiles on a wooden table.
24 June 2024
Local SEO (or search engine optimisation) is a way of allowing your business to rank highly in local search results
A black and white logo of a monkey wearing headphones and a hat.
23 May 2024
Automating your business with Connectors - Marketing your business is powered by data – and your company needs that data to stay ahead of the competition.
13 March 2024
Heading 1 The best way to drive traffic to your website for most businesses is through search engines, so it is essential to secure a prominent position on a Search Engine Results Page (SERP). The two ways to do this are through search engine optimisation (SEO) and pay-per-click (PPC) advertising. The two options offer a different approach to generating leads and sales. Depending on what you are looking to achieve, either PPC or SEO might be better at reaching your business goals. With PPC, businesses bid on relevant keywords to appear as a sponsored link at the top of SERPs. When visitors search for those keywords, the ad will be displayed in the sponsored results section. A business only pays for the ad if the link is clicked. The most popular ads are Google Ads, but advertising on Facebook, LinkedIn (ADD LINK - Why you need LinkedIn paid ads for your business (cotswoldweb.co.uk)) (ADD LINK - Facebook Ads: Measure your conversions! (cotswoldweb.co.uk)) or other social media can be just as effective, depending on your own target audience. SEO is a long-term strategy to generate clicks without having to pay for them directly. It is about optimising your website content around relevant target keywords to convince a search engine that your business is a leading authority on a particular subject. Here we will discuss the pros and cons of each, and which delivers the better return on investment (ROI) for your marketing budget. One way to help you make a decision on which is the best option for your business is to check out the competition. They are targeting the same audience as you, so you can learn from their successes and their failures. If your competitors are investing heavily in PPC, it could indicate it would work well for your business too. And on the flipside, if they are ranking well in search results, investing in SEO could be the way forward. 
Share by: