Social media is sometimes intimidating in and of itself. Setting up the account, let alone creating the ad and campaign takes work. Now is the time to figure out if all the time and effort was worth it. The question is, how do you determine if your Facebook Ad is generating enough return on investment to make it a good business decision?

Well, don’t worry; I am here to tell you exactly how to determine if your social media is working for you.

Facebook Ad Terminology For Determining Your Results

Before we dive into seeing if your Facebook Ads are working, lets go over some relevant terms. These terms help you figure out if your Facebook Ads are performing.

  • Click Through Rate (CTR): The number of clicks that your ad receives divided by the number of times your ad appears. If you have five clicks and 1000 impressions, then your CTR would be 0.5%.                                                   
  • Cost Per Click (CPC): How much you pay for each time someone clicks on your ad.                                           
  • Average Conversion Rate (CVR): The average number of conversions (sales, downloads, etc.) per ad click, shown as a percentage. If you have 50 conversions from 1,000 clicks, your conversion rate would be 5%, since 50 ÷ 1,000 = 5%.            
  • Cost Per Action (CPA): Average cost-per-acquisition (CPA) is the result of dividing the total cost of conversions by the total number of conversions. 

Double Checking To Make Sure Your Ad Is Set Up For Success 

Are FB Ads Working? Break down and understand results | Three65 Marketing provides online social media, blogging, website design, SEO for construction and restoration companies

The goal of any advertising to not only pay for itself, but increase the company’s overall sales, and hopefully the bottom line. The line to any successful venture is rarely straight; it is usually up, down, and sideways. Don’t give up if your ad doesn’t work at first. An advertisement that doesn’t work the first time around just means you need to adjust or tweak your ad. Not quit.

Before you go into the metrics of determining if your Facebook Ad is working, I want you to double check and make sure your ad has the following elements:

Appealing Visual


Enticing Value Proposition

Clear Call To Action

These four elements are critical to the success of an ad, so if you don’t have those, stop reading and go back and redo your ad. If you have any questions about creating your Facebook Ad, check out my second blog in this series, Step By Step Guide To Setting Up Facebook Ads For Your Restoration Company.

Digging Into The Data: What Restoration Companies Should Expect

One of the best ways to judge an ad is to compare it to the others in your industry. You are going after the same people after all. For the sake of comparisons, we will use benchmarks for the home improvement industry.

Now we are going to use those four digital advertising terms I outlined above: Click Through Rate (CTR), Cost Per Click (CPC), Average Conversion Rate (CVR), and Cost Per Action (CPA)

  • What is a good CTR for my ad?

Click through rates can vary anywhere from .47 percent to 1.61 percent depending on the industry. The home improvement industry has an average of .70 percent. Yes, less than 1%. This fact is one of the most surprising things to businesses new to Facebook and digital advertising.  Less than one percent is good! It is important to note that the more targeted your ad is, the more likely the CTR is to rise.

  • What is an acceptable CPC?

Now we are dealing with real money.  Like CRT, cost per click varies by industry. The banking and insurance industries have average CPC of around $50. Yes, 50 dollars!  We in the home improvement industry have an average of $2.93. Again, the more targeted your ad is, the lower your CPC. If someone clicks on your ad, you want to make sure it is someone who is most likely to buy from you.

  • What should my CVR be?

The home improvement industry has an average conversion rate of 6.56%. The good thing is Facebook Ads are ideal for remarketing. Reusing ads over time increases your ads overall CVR. The more a user becomes familiar with your ad, the more likely they are to click on it.  

  • What CPA should I target?

The average CPA across all industries is $18.68. Home improvement has a higher than average cost per acquisition of $44.66. The high cost isn’t as scary as it sounds because restoration projects are high-cost items, making the cost worth getting a new client.

You can lower your cost per acquisition by specifically targeting your audience and also having a well-developed customer “on boarding” or acquisition plan.  What is the point of paying money to advertise on Facebook, if you don’t do anything with the lead once they click on your ad?

Can I Find This Information On Facebook?

Why yes you can! Go to your Ads Manager account, which you can get to by clicking on the upside-down triangle in the upper right hand corner of your Facebook Business Page right next to the question mark help icon. Go down to the Manage Ads selection. Click on it. This takes you to your Ads Manager Account.

The Account Overview, Campaigns, and Ad Sets tabs have all the information you need to see if Facebook Ads are worth your time. There is a lot of information in your Ads Manager account so take time to process all the data.

Like I mentioned in my last two blogs, Facebook has GREAT tutorials and information. Check out this tutorial on Ads Manager Basics and this one on how to Measure Results In Ads Manager.  With the industry specific information I provided above, you can easily see if your ad is performing or not.

While Facebook does provide analytics, I highly suggest you get additional software to help you manage your social media advertising along with your other digital marketing efforts. You can use Google Analytics, HootSuite, or HubSpot to name a few. Here is a list of top social media marketing software.

Facebook Ads Are A Journey

Remember, advertising and Facebook Ads have many moving parts and many outside influences that you cannot control or predict. This fact is particularly true in the case of the restoration industry.  An ad posted right after a major weather event is going to perform better than an ad in the middle of the fall where the weather more stable.

There is no one easy way or 100 percent guarantee in advertising just as there is none in running your restoration company, but the metrics I explained above are an intricate part of determining if your Facebook Ads are working.

Good Luck In All Your Facebook Advertising! 

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Three65 Marketing staff are here to help if your stuck with the social media for your restoration or construction company.






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