Facebook has dominated the performance marketing space in India for quite some time now. Despite being at the pole position, they have been creative in ways to help advertisers reach out to appropriate target audience, relative quality of ads and effective way of measuring outcomes.
Evaluating Ads Performance
Last week, Facebook announced the release of new measuring yardsticks going live from 30th April 2019 onwards. One of the metrics to go away is Relevance score. Relevance score has always intrigued us and being a performance oriented digital marketing agency, we wanted to understand the nuances of it. Till now, our finding was that it was primarily driven by CTRs – a metric which in itself does not define success of an ad. Thankfully, Facebook is replacing it with three metrics instead – Quality ranking, Engagement rate ranking, and Conversion rate ranking. Facebook suggests to evaluate all three together for diagnostics than individually.
According to Facebook the metrics will have below possible values for engagement rate ranking are (where average represents the 35th to 55th percentile):
- Above average
- Below average (bottom 35% of ads)
- Below average (bottom 20% of ads)
- Below average (bottom 10% of ads)
For example, ranking of below average (bottom 20% of ads) means that your ad had an expected engagement rate amongst the bottom 20% of ads competing for the same audience. At least 80% of ads competing for the same audience had a higher expected results.
Important to note here is that it is for “the same audience”. Now, this means that your ad is compared against all other advertisers for the same audience, quite like google quality score. However, where it differs is that Facebook offers to compare the ad against same performance objective ads for the same audience across your competitors. A great actionable insight for marketers to weed out bad performing ads or improve upon existing ones based on the ranking provided for quality, engagement and conversions!
ROAS Metrics Change
Another change, which seeks to change the mindset of advertisers about users’ increasingly omni-channel path to purchase. While marketers acknowledge this for long time, they were still hesitant to attribute cross-channel attribution owing to lack of a tool to measure it affectively. By culling the two channel-specific ROAS metrics (i.e. mobile, web, on-Facebook), Facebook consolidated ROAS metrics into one, holistic Purchase ROAS metric.
We, at Mozak Labs (www.mozaklabs.com), have been a big advocate of multi-channel and multi-touch attribution methods and are delighted by this change. Please share your opinion about this change or what should Facebook improve upon next!