Find out what your Facebook ad KPIs should be with our Ecommerce Calculator
Written by Tom Wiseman
31st March, 2020
How much do you expect Facebook advertising to grow your ecommerce revenues?
Whatever your level of experience with Facebook ads, the current global situation will have you questioning the potential of your Facebook campaigns. And to navigate the changed market you’ll need clear targets.
We’ve put together an ecommerce KPI Calculator, based on our aggregated data, to help you understand the opportunity on Facebook.
What is the Ecommerce KPI Calculator?
The Ecommerce KPI Calculator is for determining what your KPIs should be when you launch campaigns on Facebook.
The calculator draws from our aggregate data, providing a benchmark for what your own KPIs should be. This data is automatically updated at the start of every week.
The Facebook KPI Calculator is for people that:
- Want to understand the opportunity for their ecommerce business on Facebook
- Need to adjust their KPIs after seeing varied results on Facebook over the past weeks
- Are currently running Facebook ads without clear targets
How the KPI Calculator works
The KPI Calculator draws from the average data across our portfolio. This is automatically updated every week, so you’re able to track how your average KPIs change over time.
Benchmark your Facebook ad performance against these KPIs:
- Website conversion rates
- Total link clicks
- Ad clickthrough rate
- Cost per click
- Cost per thousand impressions
- Total impressions
How to use the KPI Calculator
It’s really easy to use the KPI Calculator.
First of all, if you haven’t yet opened the KPI Calculator, you can access it here.
Before you use the sheet, you will need to make a copy. This ensures that everyone can use their own sheet and you’re not overriding someone else’s data.
Go to File > Make a Copy, and save a version to your drive.
Then, when you’ve got access to your own sheet, you’ll just need to follow these steps.
Enter your revenue target and enter your average revenue per sale
The sheet will do a calculation to tell you how many sales you need to hit your revenue target just below.
The number of sales you need at your price point will appear in the cell below that. You don’t need to touch that cell.
You’ll notice we’ve already populated this cell with the average website conversion rate for our own clients. If you know what your average website conversion rate is, add it into cell B11.
If you’re not sure what your site’s conversion rate is, leave this cell as it is.
All the data below cell B11 is automatically calculated, using the average across our portfolio for that week.
See what your target cost per thousand impressions (CPM), ad clickthrough rate (CTR) and cost per click (CPC) should be, along with the number of impressions and link clicks you should be aiming for.
With those KPIs in place, you’ll also be able to automatically see how much you need to spend to reach your revenue target, your cost per sale (CPA) and what your Return on Ad Spend (ROAS) is.
What to do with the results from your KPI calculator
Once you have your results you’re already at an advantage.
You’ll know which KPIs to hit to get Cost Per Acquisition down, you’ll know how many impressions you’ll need to buy, and you’ll know how much you should be spending.
Now it’s time to build a testing methodology for your ads to improve the efficiency of what you do. The KPI calculator can help you here too. Here are three use cases for the calendar you’ve settled on your KPIs.
- Because the data is updated each week, you’ll be able to understand how the opportunity for Facebook spend changes
- The data gives you a real sense of the auction dynamics for ecommerce businesses, helping you sense-check your live campaigns
- You’ll have evidence to challenge existing views in your business that ‘Facebook doesn’t work’