Here is the math to settle the argument. A Click Through Ratio (CTR) of 0.02% equals 2 clicks per 10,000 impressions. So what's the average? Well, according to Silicon Alley Insider the sector averages are in the graph. But really, there is no average as it depends on your target audience, geographic and demographic information, industry and the quality of the promotion you are running.
And an average of what? An average of somewhere between the response a big brand like Pepsi might get to a promotion where they are giving away $10K worth of holiday travel or the local Pizzeria who has a 2 for 1 deal every Friday night? For most uf us, somewhere in the great big gap between these two scenarios is where we sit. So there's the average.
All you should focus on is improving your CTR with each campaign. We started off with a CTR of around 0.02% and have managed to get it to 0.189% by following a few things we've noticed that help improve the performance of an ad. We also got our Cost Per Click (CPC) down to $0.27 out of a suggested bid of $0.52 – $0.85.
Here are some of the things we now know that improve the performance of Facebook Ads:
- A photo of a person – preferably female
- Narrow your target audience as much as you can
- Ask a question in the headline
- Use the same keywords and interests in your target audience profiling as part of that question – eg: Like Psychology and Films?
- Include a STRONG CALL TO ACTION – eg: Do this 2 minute survey now! (this is the single biggest reason for low CTR in our experience)
- Run three versions of the same ad with a different picture and measure. Then run three versions of the same ad with the winning picture and slightly different headlines and measure. Then run three versions of the same ad with the winning picture and headline and slightly different body copy and measure.
- Always bid at or above the top end of the suggested bid. So if the suggested bid is $0.52 – $0.85, bid $0.85 or $0.90. In our experience most people are afraid of actually paying that much so they bid lower and there ad doesn't get the impressions it needs to take off. It's an auction remember. If you bid higher you'll frighten the competition off and dominate the target audience with your impressions. In this example we got our CPC to $0.27 even though we were prepared to pay $0.85 and Facebook suggested $0.52 – $0.85.
If you're running ads for a Facebook Page or Event, the real metric you should be watching is your CPA or cost per action. If your Facebook Page is doing it's job you'll get those who click on your ad to also like your page, spreading your social reach. If someone clicks on your ad but does not take action (like your page or rsvp your event) then you are no closer to knowing who they are or being able to communicate with them.
In our real life example we got a CPA of $0.88. Not a bad cost per acquisition given that we can now communicate directly with this customer.
Hope that's helpful.