What to do if…
a. Your ROI is higher than 30%: Congratulations!
When the ROI of your campaign is positive, you must scale up your campaign and get more sales to maximise your profit all the time keeping an eye on your ROI!
Just because your ROI is positive after 24 hours doesn’t mean that it twill be after 48!
To increase the profit on your campaign, you have 2 options:
- Double your marketing budget to reach the maximum of your audience to at least 40/50 € per day (conservatively)
- Increase your budget fivefold to 100€ per day to scale up your campaign as fast as possible and maximise your profits in a more aggressive approach if your CTR > 12%.
b. You ROI is Slightly Positive: That’s Good!
The ROI for your campaign is slightly positive. You still earn money but profits are low. You are paying too much to acquire your customers: it means you need to watch the metrics of your publication much more closely.
Here it is important to consult your Ads Manager to learn more about your audience. Are they sharing your publication? Are there any likes on your publications? Have they clicked on your link?
You need to ask yourself if you should continue the advertising campaign if the following conditions are not met:
- A CTR > 5%
- The number of clicks on your link > 40
- The number of positive comments > 3 or more
- The number of shares > 30 or more
- A Cost Per Engagement (CPE) < 0,15€
By positive comments we mean “Wow, I want one!”, “I’m buying this”, etc.
Feel free to re-engage your audience by posting in the comments of your Teezily campaign link regularly.
If these conditions are met, reinvest 20 € into your advertising and recalculate your ROI on the 2nd day to see if it is still positive or not. If so, scale up your campaign by switching to 50 € a day, if not stop the campaign.
c. Your ROI is Negative: What a Shame!
The ROI of your campaign is slightly in the negative and your losses are low. You have lost money.
Rest assured, the benefits of your campaign will catch up to your losses! It is worth looking over your reports again to verify the correct interaction. Or it could just be a slow starter…
It will be appropriate to continue if your campaign meets the following criteria:
- A CTR>5%
- The number of clicks on your link > 40
- The number of positive comments > 10 comments or more
- The number of shares > 30
- A Cost Per Engagement (CPE) < 0,15€
We suggest that you reinvest 20 € into your campaign and calculate your ROI on day 2.
If positive, continue and scale up your campaign by investing 50 € if not then stop after the 2nd day.
d. The ROI of Your Campaign is Clearly Negative and There is no Engagement!
After consulting your interactions report regarding your publication and find that there is no interaction on your publication. You can stop your ads here.
Your CTR is bad, less than 5 %, there can only be 2 explanations. Either your design is inadequate and fails to convince people that you are targeting, or your targeting is not precise enough and you pay Facebook to submit your shirt to users who have no desire to buy… It would be difficult to sell Manchester United T-shirts to Liverpool fans for example…
Do not hesitate to stop your advertising. You will surely find new niches and new targets for future campaigns!
How can you see the click through rate (CTR), the number of shares and the number of comments on your advert?
Below, you will find how to see the number of shares and comments on your ad. You need to click on « Ad Preview », « Placement » then « View in News feed (Desktop) ».
To the right of your screen below you will find a report that shows the interactions and performance “Clicks”, “CTR” and “Impressions”.
You need a CTR greater than 5 % to continue your advertising. Remember that the higher your CTR the lower your Cost Per Engagement (CPE) will be.
The report on the right allows you to analyse changes in your CTR from the beginning of your campaign, and to see social interactions.
This is the traditional classification of actions that you will find on the “Actions” report on the right:
- Page Photo Views
- Post likes
- Website clicks
The screenshot below is a representation of the advertisement interactions.
Summary:
- If you have over 40 website clicks after 20 €, this means that you have targeted the right audience.
- If you have the tab “Shares” before “website clicks” this means that your campaign will be viral.
- The CTR decreases during the campaign and the CPE will increase accordingly.
- The column “Frequency” will increase and we will explain in a later chapter how to fix it.
- The more targeted your audience is, the higher the CTR will be.
- Do not be afraid of small audiences if you have targeted your potential buyers very well.