Speaker 1: What's up marketers, I wanted to let you know that I have a free training series going on right now with Motion called Make Ads That Convert. We've already had a few live sessions together and the feedback has been incredible, but we are not done yet. Be sure to sign up in the description bar below. Motion is the tool that I use to power my creative analytics. It's completely automated my top performing reports, my individual ad creative reports, and helps me to build out dashboards to help answer questions like, should I be investing more in UGC or in image graphic ads this season? Very important as we are heading into Q4, please be sure to sign up in the description bar below to Make Ads That Convert. And if you missed our previous sessions, do not fret, there are also recordings of those as well that are available. I'll see you there. What's up marketers, in today's video, I'm gonna show you how to analyze Facebook ads data the right way. I'm gonna show you my exact dashboard column setup, how I'm actually analyzing this data, and why your CPMs, your CPCs, and your click-through rates don't really matter in 2023. So let's go ahead and jump to the ad account where I'm gonna show you my exact dashboard setup. Okay, so here is my column setup, DD Master. Initially, you can see delivery, bid strategy, attribution, budget, amount spent. Next up, because I work in e-commerce, most of my clients are going after those initial purchases. But really, whatever you are optimizing for, that is what I would put in these columns. So if you're optimizing for leads, I'd go ahead and put your leads there and your cost per leads. But here, I'm going after purchases, so I have my purchase and my cost per purchase. Next up, I have reach and impressions and frequency. Now, frequency is a metric that I don't see that a lot of Facebook marketers are paying attention to, and that's a really big mistake, because this is going to tell you, hey, are you actually reaching net new audiences, or are you hitting the same people over and over again? When analyzing my Facebook ads data, I really like to have a frequency that's about a two or under, especially if you're using a blended prospecting and retargeting campaign. But if you still have retargeting campaigns, I really wanna have a four or less over the last seven days. And for the month mark, I'm looking at something like an eight or below. I sometimes find that when I'm doing audits for brands, sometimes what I'll see is they'll have a 10 frequency over the last seven days, which means that they are wasting a lot of money on people who aren't gonna buy. Next up, I have CPM. Now, your CPM is something that I would recommend that you monitor, and I also have CPR here, so cost per reach, which is just another inverted metric of frequency. But really what your CPM is going to tell you is, hey, how much does it cost in general for my industry? And this is something I also like to cross-analyze when I am launching net new creative tests, because sometimes Facebook is going to reward you for good creative with lower CPMs. So that's something that I really like to monitor. I'm also going to be looking at hook rate. So hook rate is the percentage of everyone who has seen a video ad, and how many of them are watching the first three seconds. Now, this is a wildly important data metric to be able to analyze how good you are at actually hooking your audience's attention. Same, I have hold rate here, as well as video average watch time. Now, the reason why I like to have these two together is because hold rate is going to trigger at a throughplay, which is 15 seconds. However, if your video is less than 15 seconds long, then it's going to trigger once someone watches the entirety of the video, which is why I also like to look at video average watch time so that I can cross-analyze those a bit more. I'm also going to be looking at unique outbound click-through rate. The reason why I like looking at this one and not link click-through rate is because I really want to make sure that someone has got to the landing page, and I'm just looking at each individual user. This is like the purest click-through rate possible, and I find that this is the one that I think is more accurate, so that's why I like to use that. I'm also going to be looking at the cost of that, landing page views, leads, checkouts, initiated post shares, and post engagement. For post shares, I like to see how much free traction I'm getting, and the same for post engagement. I like to see how engaging my individual creatives actually are. So how do I actually use this dashboard column setup, right? The way that I like to think about it is I have two different sets of KPIs that I am really looking at. Number one, I have my main KPIs. So what I'm really looking for and what is going to guide me to make the decisions in the ad account are really two things. Number one, the amount spent, and number two, the amount of purchases or cost per purchase. So what the amount spent is going to tell me is when I see a specific creative or a specific ad set or campaign getting the most amount of spend, this is what the algorithm is telling me is working best in the ad account. I also like to cross-analyze that with purchases because for me, every time I'm gonna be looking at, oh, what are our top performers? Most of the time, I'm actually gonna look at the amount of purchases because I want to zero in on the creative that is actually making people take that action. If you are doing lead generation, then you're going to be looking at leads in place of purchases. And honestly, when it comes to making really big decisions in the ad account, I am just looking at those two things. I am looking at amount spent, cross-analyzed with purchases. And the way that I would tell that story is, okay, I'm going to look at an ad account over the last seven days or the last 30 days. And I'm going to look at, hey, what are the creatives or the ad sets that got the most amount of purchases? I'm also gonna cross-analyze that with the creative that got the most amount of spend to make sure there isn't a discrepancy there. But nine out of 10 times, we're seeing that the highest spend goes with the highest amount of purchases and we're able to say, hey, in this scenario, this is what your top performer is. Sometimes what I will see though when I'm launching a new creative test is, oh, a specific creative is getting a lot more spend while there's another creative that's getting more purchases. And I like to dig into my secondary KPIs to figure out why that is. So like I said, I have my main KPIs, really there are only two. And then I have my secondary, what I like to call storytelling KPIs. So those KPIs are gonna tell the story of why a certain ad creative is working or not. And those KPIs are going to be hook rate and hold rate, video average watch time, as well as click-through rate. Now, of course, we are going to be looking at, here's what creative worked, here's what didn't, but why did it work? Oftentimes when looking at hook rates, I can see, oh, the best performing creative is the one that got the most amount of attention, AKA the highest hook rate, or it had the highest hold rate or the highest video average watch time. So I like to look at those metrics and say, hey, we created a more engaging piece of creative here. It got more traction in the initial three seconds, more people watched it, and that is why it is doing better. Now, I also like to take a look at the click-through rate. And while that really doesn't matter as a benchmarking metric, I like to compare that to what the average is in the ad account. Because sometimes I'll see, oh, this top performing creative actually got a higher percentage on the click-through rate. Very good. Why is that? What did we say in that ad creative or what kind of CTA did we have in that ad creative that made that so effective? Now, some other metrics that many people don't talk about when analyzing their creative are things that aren't really metrics at all. So other things that I like to look at are number one, your ad comments. That's actually gonna be an amazing resource to determine, hey, why or why not is this creative working or not working? So every time I launch a net new ad test, I'm actually looking through the comments to see, hey, are people here actually telling me why it's working or why it's not? Oftentimes, yes, you're going to find out that you're getting a lot of feedback in this area. Some other places that I'm gonna be looking for that type of data are also on the organic social, especially in places like TikTok ad comments. I'm often finding that I'm getting a lot of hints as to why a certain piece of content is working or why it's not. Now, I wanna zero in on why CPMs and CPCs and click-through rates don't really matter. And the reason why they don't matter is because these are not metrics that you should not optimize for. And what I mean by that is because an ad has a higher CPM, that should not be the trigger to turn off that ad. Same thing for a low click-through rate or a high CPC. Now, sometimes you will find that your lowest performing creatives have those poor metrics on CPMs, CPCs, click-through rates, and that's why you should turn them off, but not because of CPMs, not because of CPCs, and not because of click-through rates. Now, the reason why CPM is not something that you should be optimizing for is because nine times out of 10, that is actually going to be indicative of the industry you're in. Some industries, like the finance industry, have naturally much higher CPMs. And again, CPM should be used more as a storytelling metric in comparison to your baseline average across the account. Same with CPC and click-through rate. Now, because a lot of the brands that we work with, their best performing audiences are completely broad, that inherently is actually going to give you, in many cases, lower click-through rates, because think about it, you have a much wider, broader audience, so less people are going to be interested in your ad. So you should not be optimizing your creative choices based on, oh, this has a low click-through rate, it's not working, because the whole nature of Facebook ads now is that actually Facebook ads aren't going to be as effective click-through rate-wise because we are working with so much bigger, broader audiences. But again, sometimes you're going to look at an ad creative, you're going to see that it didn't do well, and you're going to dig in a little deeper and see, oh, the click-through rate was kind of low, so maybe there is something in the CTA, or maybe your creative wasn't actually connecting with your audience well enough to get them to stop, or to get them to watch, or to get them to click through. But again, CPCs, CPMs, and click-through rates really should not be something you optimize for, but they should be something that you note as a comparison for the rest of your ad account. And that's all. Guys, I hope you enjoyed this video. I hope it demystified a lot of how I'm thinking about creative analytics. Now, I really do a bulk of my creative analytics these days looking inside of motion, so I really hope to see you during the four-part series that I am doing with them coming up. And that's all. Can't wait to see you there. See you soon, bye.