The Top 5 KPIs You Should Be Tracking in Every Facebook Ad Campaign

Facebook remains one of the most powerful digital advertising platforms, offering granular targeting, flexible ad formats, and vast reach. But with so many performance metrics available, it can be easy to get overwhelmed. For businesses that want to make the most out of their advertising investment, tracking the right Key Performance Indicators (KPIs) is essential. Whether you’re managing ads in-house or working with a Facebook marketing agency in Melbourne like SIXGUN understanding which KPIs to monitor will help ensure your campaigns are working hard to deliver results.

Click-Through Rate (CTR)

Why it matters: Click-Through Rate (CTR) measures how often people who see your ad end up clicking on it. It’s a strong indicator of how relevant and engaging your ad creative and messaging are to your target audience.

How it’s calculated: CTR = (Number of Clicks ÷ Number of Impressions) × 100

What to aim for: The average CTR for Facebook ads can vary by industry, but a CTR of 0.9%-1.5% is generally considered solid. A low CTR could signal that your ad isn’t resonating with your audience, or that your targeting needs adjustment.

Tips to improve CTR:

• Test different headlines and visuals
• Use strong calls-to-action (CTAs)
• Ensure your ad copy aligns with your audience’s intent

Cost Per Click (CPC)

Why it matters: CPC tells you how much you’re paying for each click on your ad. It’s a direct reflection of the efficiency of your budget and how competitive your targeting settings are.

How it’s calculated: CPC = Total Amount Spent ÷ Total Number of Clicks

What to aim for: There’s no one-size-fits-all answer, as CPC varies across industries and campaign objectives. However, in Australia, CPCs for Facebook ads typically range from $0.50 to $2.00. Lower CPCs generally indicate a more cost-effective campaign – so long as the clicks are high-quality.

Tips to reduce CPC:

• Narrow your audience to be more specific
• Improve your ad relevance score
• Continuously A/B test ad elements

Conversion Rate

Why it matters: Getting clicks is only half the battle. Conversion Rate tracks how many users completed a desired action after clicking on your ad – be it a purchase, sign-up, download, or another goal.

How it’s calculated: Conversion Rate = (Number of Conversions ÷ Number of Clicks) × 100

What to aim for: Depending on your industry and offer, conversion rates can vary widely. However, a conversion rate of 2%-5% is a healthy benchmark for most campaigns.

Tips to improve Conversion Rate:

• Ensure your landing page matches the promise of your ad
• Optimise your website for mobile and fast loading speeds
• Use persuasive, benefit-driven copy

Return on Ad Spend (ROAS)

Why it matters: ROAS measures the revenue generated for every dollar spent on advertising. It’s perhaps the most important KPI for businesses focused on profitability.

How it’s calculated: ROAS = Revenue from Ads ÷ Cost of Ads

What to aim for: A ROAS of 4:1 (or $4 earned for every $1 spent) is often seen as a good benchmark, though this will depend on your business margins and objectives. E-commerce brands, for example, may need a higher ROAS to cover product and fulfilment costs.

Tips to increase ROAS:

• Retarget website visitors or abandoned carts
• Upsell or cross-sell with dynamic product ads
• Segment your audience based on intent

Ad Frequency

Why it matters: Ad Frequency shows how many times, on average, a user has seen your ad. While repetition can aid brand recall, excessive frequency may lead to ad fatigue and declining performance.

How it’s calculated: Frequency = Total Impressions ÷ Reach

What to aim for: Aim to keep your frequency between 1 and 3 for awareness campaigns, and no more than 4-5 for conversion campaigns. A frequency that’s too high can increase CPC and reduce CTR.

Tips to manage Frequency:

• Rotate creative regularly to avoid ad fatigue
• Expand your audience if frequency creeps up
• Set frequency caps in your campaign settings

Bonus KPI – Engagement Rate

Why it matters: While engagement doesn’t always lead directly to conversions, it’s a useful secondary metric. High levels of likes, shares, and comments can improve your ad’s relevance score, lower your CPC, and increase organic reach.

Tips to boost engagement:

• Ask questions in your copy
• Use humour or emotional appeals
• Include user-generated content or testimonials

Bringing It All Together

Tracking these KPIs will give you a comprehensive view of your Facebook ad performance. Rather than focusing on just one metric in isolation, it’s important to assess these figures together. For example, a low CPC may look great – until you realise the conversion rate is also low, resulting in poor ROAS. By keeping a close eye on CTR, CPC, Conversion Rate, ROAS and Ad Frequency, you can make smarter, data-driven decisions that maximise your ROI and ensure your Facebook advertising strategy stays on track.

In the fast-paced world of digital marketing, performance is everything

Monitoring the right KPIs empowers you to respond quickly to underperforming ads, scale what’s working, and ultimately drive better business outcomes. Whether you’re selling products, generating leads, or simply trying to raise awareness, these five KPIs are your roadmap to Facebook advertising success. If you’re looking for expert support to elevate your campaigns, partnering with a specialist can make all the difference. With the right team, tools, and tracking, Facebook can become one of your most reliable and rewarding marketing channels.