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How Do You Know if Your Facebook Ads are Working (and the Solutions to Implement if they Aren't) ?

facebook ads facebook ads strategy instagram ads key performance indicators kpi's Feb 22, 2024

How Do You Know if Your Facebook Ads are Working?


In the dynamic realm of digital marketing, Facebook ads stand as a powerful tool for businesses aiming to boost their online presence and drive new leads and sales. However, navigating the complexities of ad performance can be challenging. Understanding whether your Facebook ads are working and knowing how to address issues is crucial for maximizing your return on investment (ROI). This comprehensive guide delves into the intricacies of Facebook ad performance, offering a roadmap to diagnose, analyze, and optimize your campaigns. 

This guide is here to illuminate the way, helping you understand if your Facebook ads are hitting the mark and what to do if they're not.


Understanding KPI's: Ad Performance Metrics

Understanding your Key Performance Indicators or "KPI's", is the foundation of any successful Facebook ad campaign.. Key performance indicators (KPIs) such as Click-Through Rate (CTR), Cost Per Click (CPC), Conversion Rate, and Return on Ad Spend (ROAS) provide valuable insights into how well your ads resonate with your target audience and drive desired actions.

As you run ads for your business, you will establish the KPI's that work for you and be able to measure the success of an ad campaign based on the past performance of your other campaigns. But you've got to start somewhere, right? Below, I'll share the benchmarks I use on my clients' campaigns to understand if an ad is performing "well" or "working."


Click-Through Rate (CTR)

CTR measures the percentage of people who click on your ad after seeing it. A high CTR indicates that your ad is relevant and engaging to your audience, while a low CTR suggests the need for creative optimization or a change of audience. I aim for a CTR of 1%  or GREATER.


Cost Per Link Click (Link CPC)

CPC tells you how much you pay, on average, for each click on your ad. Monitoring CPC helps manage your budget efficiently, ensuring you're not overspending for engagement. I love to see a Link CPC of less than $0.50.


Conversion Rate

Conversion rate evaluates the effectiveness of your ad in driving the desired action, whether it's making a purchase, signing up for a newsletter, or another specific goal. It directly correlates with the ad's ability to fulfill its intended objective. This KPI can't be lumped into one "good number." It depends on if we are talking about ads going to a warm or cold audience; if we're selling something or giving away a free value offer, on the industry; and many more variables. Often though, I will compare new campaigns to a cold audience to industry benchmarks. . I often refer to the industry benchmarks shared by Ad Flex here


Return on Ad Spend (ROAS)

ROAS calculates the financial return from your ad campaigns. It's a critical metric for assessing the profitability of your Facebook advertising efforts, and guiding budget allocation decisions. 


Diagnosing Why an  Ad Might Not Be Working

Identifying why an ad isn't performing as expected is the first step toward optimization. Here are common issues and diagnostic tips:


Analyzing Audience Targeting

Look here if the Link CTR is low, or the Cost Per Click is HIGH for an entire Campaign or Ad Set. An ad's success heavily relies on reaching the right audience. If your campaign is underperforming, reassess your targeting settings. Are you focusing too narrowly, or perhaps too broadly? Utilizing Facebook's Audience Insights can help refine your targeting strategy, ensuring your ads reach individuals most likely to engage and convert.


Evaluating Ad Creatives

IF the Link CTR is low, or the Cost Per Click is HIGH for an individual ad, but not necessarily the entire campaign, then look here. The visual and textual elements of your ad play a significant role in capturing attention and driving action. Low engagement rates often signal the need for creative refreshment. Testing different images, headlines, and ad copy through A/B testing can uncover what resonates best with your audience.

Landing Page Optimization

A well-performing ad must lead to a landing page that continues the narrative and encourages conversion. High click-through rates with low conversion rates might indicate a disconnect between the ad and the landing page experience. Ensure your landing page is aligned with the ad in both messaging and design, offers a seamless user experience, and has a clear call-to-action (CTA).


How Do You Fix Your Facebook Ads: Strategies for Optimizing Facebook and Instagram Ads

Once you've identified the areas needing improvement, implementing targeted strategies can significantly enhance your ad performance.


Refining Targeting and Segmentation

Revise your audience segments to ensure they align with your ideal customer profile. Experiment with different demographics, interests, and behaviors. Consider using Lookalike Audiences to reach new users similar to your existing customers.


Creative Innovations

Innovate your ad creatives by incorporating high-quality visuals, compelling narratives, and clear value propositions. Utilize Facebook's various ad formats to find the one that best suits your campaign goals and resonates with your audience.


Enhancing Landing Pages

Optimize your landing pages by improving load times, simplifying the design, and ensuring the content directly addresses the needs and interests of the visitors. Test different elements of your landing page, including headlines, images, and CTA buttons, to maximize conversion rates.


Continuous Testing and Learning

Adopt a culture of continuous testing to refine your Facebook ad campaigns constantly. Use the insights gained from A/B testing to make data-driven decisions, adapting your strategies based on what delivers the best results. Read about my favorite form of testing, Sprint Testing, here



Determining whether your Facebook ads are working and knowing how to fix them involves a deep dive into campaign analytics, a willingness to experiment, and a commitment to optimization. By closely monitoring key metrics, diagnosing potential issues, and implementing targeted strategies for improvement, you can significantly enhance the effectiveness of your Facebook ad campaigns. Remember, the landscape of digital marketing is ever-changing, requiring marketers to stay agile, informed, and ready to adapt to new trends and technologies.

Meredith Kallaher helps small business owners Expand Their Reach and Explode Their Sales with

Facebook and Instagram Advertising Strategy and Management.

Learn How Meredith Can Help You Build Your Business and Exceed Your Sales Goals. Book a FREE DISCOVERY CALL Today.

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