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Facebook Ads ROI Calculator: Plan and Track Ad Campaigns Using Vaizle

Shweta Sadana
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Shweta Sadana

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Measuring your Facebook ROI allows you to see what works–and what doesn’t–so you can concentrate on the efforts that have the most potential to increase sales.

If you’re reading this piece about calculating Facebook ad ROI, you’re definitely wondering about a few things:

  • Is it worth it to advertise on Facebook for B2B?
  • What is a good return on investment for B2B Facebook ads?
  • How do I figure out how much my Facebook advertising is worth?

You’re not the only one who feels this way.

Most advertising efforts result in greater revenue. But if your boss or clients don’t smell a financial return, you’ll have a hard time securing more funding for future ads.

You can stop reading now if you prefer collecting “leads” from people who have purchased your eBook or attended your webinar.

However, if you’d rather track your Facebook ad ROI with metrics like pipeline and revenue, keep reading.

It’s all too easy to get carried away with vanity metrics like likes, comments, and social shares.

In all honesty, these metrics can help you figure out what your audience thinks of your content and, in turn, can help you plan the remainder of your marketing campaign.

However, this information is insufficient to assess the ROI of your Facebook advertising.

On that note, marketers must be able to demonstrate how Facebook affects lead generation efforts and how this translates into income.

So, in this blog, we’ll talk about:

Common Facebook Ads to Avoid 

If you commit these common mistakes made by B2B marketers, Facebook advertisements might be a waste of money.

  1. Using poor targeting
  2. Optimizing your adverts based on the incorrect metrics

Using poor targeting

I’ve already gone over how to locate your ideal B2B Facebook target demographic, but targeting is one of the most common roadblocks to getting a good return on ad spend (ROAS).

When using Facebook’s native platform, you only have a few alternatives for finding the individuals and accounts you’re looking for.

You’ll show ads to a lot of people who don’t fit your ICP if you don’t get better at things like leveraging your own first-party data and setting exclusions.

Which will have a negative impact on your return on investment.

You should group audiences based on common B2B factors like job title, industry, and staff numbers.

Optimizing your ads based on the wrong metrics

Aside from targeting, the most significant issue with Facebook ad ROI is your analytics.

Do your company’s top executives include impressions when presenting marketing results to the board? Like Clicks? Engagement?

I sincerely hope not.

The bigwigs are considerably more interested in hearing how you’re affecting the bottom line. They expect you to give data such as:

  • Pipeline and revenue generated.
  • Lead opportunities created.
  • Cost-per-opportunity

In the end, you want to link your ad spend to revenue, but because your sales cycle may make that a lengthy process, these are good performance metrics to track social media and adjust against along the way.

The issue is that you can’t use these analytics to optimize your ad success on Facebook. The platform only gives you one option: optimize for the first conversion event, which is a higher funnel measure.

This conversion point is faulty because it ignores lower funnel data that are important to the company, such as opportunities, pipeline, and revenue.

As a result, you can wind up with a bunch of “leads” who downloaded your guide but don’t end up buying your product or service.

Initially, the volume appears alluring.

After that, Facebook keeps optimizing your advertising based on this data, sending you more of the same.

D’oh! It’s a waste of money.

This is fantastic for Facebook, but not for you.

Connecting your Facebook performance data with your marketing and sales performance data is the way to get off this merry-go-round (and drive actual ROI).

The traditional way to calculate ROI from Facebook

The following process is the most basic approach to tracking the ROI of your Facebook Ads and is widely used by advertisers that sell things online.

Don’t worry if this isn’t your thing.

In a moment, we’ll show you how to track the return on your Facebook leads. For the time being, let’s look at this tried-and-true approach to calculating Facebook ROI.

Create your own URLs

To track where your conversions or sales are coming from in tools like Google Analytics, you’ll need to put up specific URL parameters.

UTM codes enable you to track each visit by adding tags to your URLs such as source, medium, and campaign.

Google’s URL generator is the best tool for creating custom URLs.

This unique URL will be added to your Facebook ad when you create it so you can monitor which campaign is delivering your traffic.

Create Facebook Tracking Pixel

You can use a Facebook pixel to link Facebook traffic to certain events on your websites, such as a sale or download.

Select “Pixels” from the drop-down menu in the upper left corner of your Facebook Ads Manager. Then select “Set up Pixel” from the drop-down menu and follow the on-screen instructions.

You can utilize an Integration or Tag Manager if you run an e-commerce business or use Wix. If you’re more comfortable copying and pasting the code, go ahead and do so.

After you’ve created your pixel, click “Create Conversion.” You can use this to link Facebook traffic to a specific event on your website, such as a sale or download.

There are 17 basic Facebook pixel events that you may track, and if none of them fit your needs, you can construct your own custom conversion.

How to measure your ROI for Facebook Ads

The ROI of any advertising campaign, including Facebook’s, can be calculated using a simple ROI calculation formula:

ROI = (Money Received – Money Spent) / Money Spent

Connecting the spend to the money coming into the firm is the hardest part.

So, how do you link all of your data together?

You have a few solutions for putting the information together.

Aggregate all of your own data

Hello, spreadsheets! 

You may use a data connector to get everything we need into a Google sheet—Facebook channel data as well as opportunity data from our marketing automation platform (MAP). Then there are the computations to net out the ROI of our Facebook advertisements on the Google sheet.

It can run clumsy and constantly break and requires a lot of time patching it occasionally, but it definitely provides the ROI statistics needed (namely, SQOs and cost per SQO).

If you’re a little more advanced, you can do this integration and number crunching with a business intelligence (BI) platform like Microsoft Azure.

If you know how to use BI tools, they will make your life much easier. To manage the technology, you’ll probably need the help of a data analyst or a skilled marketing analytics person.

Use UTM codes to your advantage.

This is the next best thing if you can’t quite make it to fully aggregating your data. When you advertise on Facebook, keep the following in mind:

  • For your campaign, create a unique UTM.
  • In your MAP, label everybody who engages as a lead.
  • These leads should be funneled into a CRM campaign.

This method allows you to keep track of how many people join your campaign, how many of them convert into opportunities, how many people show up for their demo calls, and so on.

The catch is that you won’t be able to see campaign spend in Salesforce; you’ll have to manually import it from the ad channel (i.e. Facebook).

Make use of an analytics service that calculates your Facebook ROI

If you’re tired of hacking it together, we make it simple by importing data from your ad channels, MAP, CRM, and other sources. 

It’s everything in one spot, with figures crunched behind the scenes, so you can access the ROI metrics that matter immediately (adios, impressions).

This can help you set reasonable ROI expectations, whether you’re an eCommerce site looking to generate direct sales or a SaaS company looking to book demos.

Use our Facebook Ads ROI calculator online to calculate the return on investment (ROI) for your next Facebook Ads campaign as well as the breakeven ROAS for your company.

To find out if your Facebook ad campaign will be profitable, keep the following information handy:

  1. Your Estimated Monthly Ad Spend
  2. Number of link clicks you expect to get in a month
  3. Estimated Sales
  4. Average Order Value
  5. The cost you’re paying your agency or a freelancer
  6. The cost of using any marketing tool or services
  7. Gross Profit Margin

Have you made friends with the ROI elephant yet?

If you use Facebook ads as part of your marketing strategy, you must track your return on investment (ROI).

It’s the most accurate predictor of whether or not your campaigns are bringing in money for your company.

I understand how difficult it is to let go of the metrics you’re used to. They’ve been imprinted in the minds of marketers.

To analyze and optimize against lower-level metrics, some rewiring is required. Because concentrating on the metrics that matter to your boss—and your company—is the only way to get the most (ROI) out of your Facebook ads.

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