Defining and Predicting Your Facebook Ads ROI

Claudia Pilgrim      Thursday, November 2, 2017

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Setting up the right goals for your ecommerce shop can make or break the return on your ad spend.


According to Monetate, the average value of online shopping orders in the United States is $92.36  (smartphone) and $95.54 (tablet).  Are you maximizing how you run your Facebook™ Ads?


Let's breakdown what you need to look at in order to run an effective campaign.


There are 2 groups of conversions you will need to look at (1) Macro-conversions and (2) Micro-conversions.


Macro-conversions (e.g. ad click, opt in, purchase, etc.) are the primary actions a visitor takes when engaging with your ecommerce shop. Micro-conversions (e.g. interactive chat, reading blog posts, liking social media posts, etc.) are the steps in between your macro-conversions that lead up to the desired action you want a visitor to take.


So what if you don’t know which KPIs you should be looking at when it comes to running Facebook™ ads?


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Macro-conversions assume you are selling to your best client and have identified your key performance indicators (KPIs) that will result in a positive return on ad spend.  In its simplest form you’re looking at 3 of the most recognized points of conversion:


  • People who click on your ad to your product (Visitor)

  • People who come to your product and opt in (Lead)

  • People who come to your product and buy (Customer)

The Macro KPIs


With macro KPIs you’re analyzing how much traffic (aka visitors to your shop). Here’s at-a-glance some of the macro KPIs you can start tracking to improve your Facebook™ ad ROI:


Conversion Type


How It's Calculated

Cost Per Conversion


Ad Spend/Clicks

Cost Per Lead


Ad Spend/Lead (Opt in)

Cost Per Acquisition


Ad Spend/# of Sales

Earnings Per Click


Total Revenue/Clicks

Earnings Per Lead


Total Revenue/Lead (Opt in)

Average Customer Value


Total Revenue/# of Sales






Not every visit to your shop will result in an immediate sale (wouldn’t that be nice). So this is where micro-conversions come in to play. Micro-conversions are the steps in-between your macro-conversions that transforms a visitor into a customer:


  • Add to cart or made it to checkout but didn’t buy
  • Interactions via Facebook™ Messenger or live chat
  • Reading blog posts
  • Liking social media posts
  • Opening emails (and clicking through)
  • Commenting in your Facebook™ Group


The Not Often Talked About Follow-Up Sequences

The most talked about way to recoup your ad spend is by sending follow-up email sequences for people who added to cart or abandoned cart. But what if your email gets lost in the abyss of their inbox?


Check out a few (not so talked about) ways to make your products sell!

#1 Use Messenger Ads

Facebook’s™ latest release on their ads platform allow your potential and buying customers to see ads in the home tab of their mobile app for Messenger. Now that’s not too shabby considering, of the 2 billion user’s of the platform, 1.3 billion globally use Messenger.


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How To Track ROI: In Ads Manager you can see the number of people who clicked on your ad.

#2 Cross-sell with existing customers

Get clever using Carousel Ads based on their purchases and cross-promote other products they can scroll through in their News feed from your shop.

How To Track ROI: Use a coupon code specific to the campaign so you can measure effectiveness.

#3 Follow up with those who didn’t make the purchase

Let me just come out and say it. Facebook with its just about 2 billion users isn’t the only platform in existence to reach your customer. This means you can interact with them outside of Facebook using retargeting campaigns in, say Google ads, for your specific product.

How To Track ROI: Install Google Analytics tracking code on your site.

Calculating Your Facebook™ Ads Performance

Finally, I want to help keep your eComm shop ad tracking in one place so you can know the performance of your campaign and can meet your monthly targets. I’ve put together an FREE Facebook™ Ads Calculator that will allow you to track (and predict) your revenue and sales.


Download your free Facebook Ads calculator and know at a glance if your ads are profitable.





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