Facebook’s latest financial report in 2021 shows that its monthly number of active users reached 2.9 billion. The huge traffic hidden behind the huge users makes Facebook a competitive place in the global market expansion advertising. Chinese advertisers’ importance to the Facebook platform cannot be underestimated. According to the data, Facebook has become one of the platforms most favored by Chinese advertisers. And among the top 30 seats with the largest amount of advertising on Facebook, advertisers from China account for one-fifth. So, when advertising on Facebook, how to use the least advertising cost and get the maximum advertising revenue?

Ⅰ.Facebook’s Advertising System Structure

In simple and popular terms, Ad Campaigns decide what to do, ad sets decide whom the ads will be shown to, and the ads determine what customers see.

(1) Ad Campaigns have higher operation authority for ad sets and advertisements

  • Set an advertising goal for each of your campaigns
  • Open or suspend all ad sets and advertisements in the ad campaign
  • Adjust campaign budget

(2) The ad set can control all advertisements in this set

  • Determine the audience of each ad set (country, gender, interests, etc.)

  • Include one or more advertisements and control the budget and arrangement of each ad set

  • Start or suspend the operation of all advertisements in the ad set (when the advertising number is limited, the advertisement cannot be switched on and off, but can be operated by the switch group)

(3) The type of ad material will affect the result of the advertisement

The most common ad materials are usually pictures or videos. Ad materials have a great influence on the result of the advertisement. An excellent material can continuously create profits when it successfully passes the audit. The material needs to understand the tonality of Facebook over time and accumulate more popular offer types through spy tools.

II. Key Data Analysis Indicators and Optimization Logic

With a framework, there needs to be series logic. We find that among all data, the most important advertising data always revolves around five data standards, which are: CPM, CPC, CTR, CVR, and CPA.
These indicators can help us plan the advertising objectives of different product delivery periods, from product “exposure”, generation of “click” to actual “conversion”, and then check the user’s response to the advertising content through “click-through rate” and “conversion rate”.

  1. CPC (Cost Per Click)
    “Cost Per Click” refers to the fee that the advertiser needs to pay to the platform for each “click” of the advertising content that users make.

  2. CPM (Cost Per 1000 Impression)
    “Cost Per 1000 Impression” refers to the advertising fee you need to pay every time a thousand people see your advertisement.

  3. CPA (Cost Per Action)
    “Cost Per Action” refers to when the user completes a specific “conversion action”, such as “filling in the registration form”, “purchasing the products”, “registering as a website member”, and other situations such as these. The advertiser needs to pay the platform fee.

  4. CTR (Click Through Rate)
    The rate at which users see your advertisement and click on it. The calculation method is the number of times the advertisement is clicked divided by the number of times the advertisement is displayed.

  5. CVR (Conversion Rate)
    The number of conversions generated after the user clicks the advertisement. The calculation method is the number of conversions of the advertisement divided by the number of clicks of the advertisement.
    The following figure shows the relationship between various data and influencing factors:

From the figure above, we can see that when advertisers want to analyze data, don’t be in a rush to work hard. We suggest that data optimization should be carried out step by step to break through the advertising problems layer by layer. Look at the audience selection optimization through CPM, look at the click-through rate optimization through CTR, optimize the two data to get the best CPC, combine with CRV, check the landing page quality, establish a user-friendly website and improve the CPA.

In conclusion, the correct data analysis method can help advertisers gain insight into new business opportunities from the data, avoid problems from rising, realize accurate data tracking through pixel, establish corresponding event transformation funnel and corresponding key indicators, and correctly interpret the data. Carrying out advertising optimization according to the five core data, breaking through the data problems layer by layer, to achieve efficient advertising.

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