Facebook is an important distribution outlet in today’s video marketing world. With 2.01 billion monthly active users and 1.32 billion daily active users (FB Newsroom, 2017), it’s proven to be a platform with endless marketing opportunities.
Let’s say Business A is already advertising their video content on Facebook and they are currently seeing a sudden increase in inquiries. Great! The only problem here is that Business A has launched several other video marketing campaigns on different distribution platforms across the web at the same time. Maybe the sudden increase in inquiries is caused by a campaign outside of Facebook. Or maybe not.
Business B is in the exact same situation as Business A, with the only difference being that they understand what KPIs (key performance indicators) they should track and how to determine their ROI (return on investment) on Facebook. The only way to gauge the effectiveness of a Facebook video marketing campaign is by tracking what you are doing and isolating observations from other campaigns.
So how do I measure my Facebook Video ROI?
Facebook video ROI is more abstract than traditional online marketing ROI. But just because it’s more abstract doesn’t mean that your efforts on the platform aren’t effective. Here are the most important KPIs for you to track and determine your ROI.
Engagement (Likes, Comments, Shares, and Link Clicks)
This is actually a KPI category consisting of individual KPIs, but they are all used to measure engagement. The most important reason you want to measure your engagement is to determine if your audience is actually interested in your content. More people will engage if your content is compelling. More engagement also means a greater organic reach, since people will share the content with others by ‘sharing’ or by ‘mentioning’ their friends.
You can find statistics on likes, comments, shares, link clicks, and more in your ad manager dashboard on Facebook. We want to compare the impact of your ads to the money invested by dividing your results by the amount of money you spent. For example, if you gained 30 likes and spent $10, then you acquired (30/10 =) 3 likes per dollar. Facebook also has a separate KPI for the cost per like, which is calculated by dividing one dollar by the previous calculated amount of likes, so in this case it would indicate (1/3 =) $0.33 per like.
Do this early on in your campaign to determine a baseline. Calculate your engagement rates again later down the line, and compare it to your baseline values. If your engagement rates are stabilized or have seen an increase, you are on the right track. If they have seen a decline, it’s time to reevaluate your video ad and make adjustments.
Video Average Watch Time
Another important KPI is the average watch time. This is arguably more important than the actual video view count since we should always prefer quality over quantity. If most people watch a large part of your video, you are doing something right and getting your message across. If most people drop off within the first 10 seconds, you might want to adjust your video and add more value to the beginning of your video to capture your audience’s attention.
If you are measuring a video ad on Facebook, link clicks are a very important KPI. You want to track this KPI because it shows you how effective your video ad is as an actual CTA (call to action): does your video content really convince people to perform a specific action?
Facebook offers many different variations of the CTA button that appears right next to your video. Make sure you choose one that is relevant to your video content. If you are aiming to convert viewers to subscribers, use a ‘Sign Up’ CTA button, and if you want viewers to read more about your product, use a ‘Learn More’ CTA button.
Of course you can also track additional KPIs, but make sure the above-mentioned KPIs form the base of your video marketing campaign on Facebook. Also, make sure your video content is of professional quality, and you will be much more likely to see increases in ROI.