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36 thoughts on “Facebook Advertising Math – The Two Numbers You Must Track For Winning Ads & How To Get Them”

  • aaron stelmach says:

    I was almost pulling my hair out the other day on another video trying to explain this math! After this video, its actually pretty simple

    You have a talent for breaking information down even for simpletons like me lmao,because my teachers took FOREVER to get me to understand new formulas, was always doing math a grade lower than everyone else, (i was actually a grade ahead of everyone for english tho…)

    Anyways I kinda went on a ramble there… Thanks again for your videos man! This actually gave me the confidence to go out and try to get my first client for my SMMA The main reason I haven’t gone out yet is I wasn’t trying to play with businesses money if i didn’t know how i was gonna manage it

  • Super valuable (yes I understand why people use that word so much now) I've learned a lot from your videos man. Keep up the great work!

  • Karl Sultana says:

    If we have just 1 ad set at $5/day, with 1 interest and 1 ad… and the cpl is way off target, we can also duplicate the ad to split test it (e.g. the image) to improve it. Because we might get a better ctr on the ad, which decreases both the cpc and cpl. Correct?

  • G4 Guitar School - OKC says:

    Man, I tested every aspect of my creative and then tested it on different ad sets and got cost per lead down to like $1.13 on the winning ad. Launched it and $700 later its averaged nearly $10 per lead! Super sad. Lol hey, you mention creeping up the ad spend on well performing ads. How much daily increase do you suggest?

  • Sylvia Kerali says:

    Great video. Thank you for all of your awesome content and advice 🙂 So quick question! When do you monitor the $5 ad for no longer than 3 days vs letting it run for the length of your break-even product price? I'm confused about that as both methods have been taught by you and I want to ensure I understand the difference!

  • Miles or anybody
    Page post which can't be promoted in this type of ad error message.
    This appears after I create a dark page post engagement ad and hit submit. I created a business pg and went through it to create an ad for a post for t-shirt design that I am testing. Any ideas why this happened and instruction as to what I can do to get this ad posted?? thanks

  • Londya England says:

    Can you do a video on how to set up google analytics to track data from facebook ads and how to set up offline tracking?

  • Hi Miles, thanks for the great content! Is it called "cost per website conversion" in 2018, in Ads Manager now, that we monitor?

  • Mohamed Ashiq says:

    Miles Beckler, Thanks for the video which gives a good insight to the number game. Got a question on the term “Click”. Is it a link click[which takes the user to seller page] alone? Or will a share, like, comment etc. also be considered as a click?'

    And more point please. Is the definition of click same for WC and PPE ads?

    Regards,

  • You keep mentioning the term 'lead'. AFAIK a 'lead' is someone that has showed interest in the product but that can mean a few things like viewing the video ad, engaging on the ad, clicking the "Shop" button, adding the marketed item to the cart, entering checkout and purchasing. Those would be examples of leads at varying degrees of power in the realm of physical goods at least the way I perceive it.

    So what exactly do you mean with the term 'lead' when considering the physical products e-com model?

  • Miles, great video! You gave 2 examples of calculating CPL in this video (AOV / leads per 1 customer), so that made perfect sense. But you said there is another number we need, the Cost per Customer or CPA i believe… how do you calculate and use that please?

  • Maybe I'm missing something, especially since it's been a few years since I took a math class, but I think there is a simpler way to calculate cost per lead. In the video, you figure out how many leads you need to get 1 sale and then you divide how much you make per sale by the number of leads.If you simply multiply how much you make per sale by the conversion rate you arrive at the same number.For example: If you make $100 per sale and the conversion rate is 2%. .02 x $100 = $2. If the conversion rate is 1% and you make $25 per sale:  .01 x $25 = .25

  • Glad to see you have a sense of humor 😀.
    Honestly, I can't remember the last time I watched a video at regular speed.

  • Adriana Sanchez Loyer says:

    Miles I was looking if you have a website or course about Facebook ads but I could find your website anyway. Do you have any course about FB ads were do you teach about this stuff? Let me know I'm interested

  • ThomasAwesomeness! says:

    Hey Miles, your videos have changed my life! I finally get FB ads after 6 months of throwing $ blindly at ads without any real strategy, so thanks! My question: because I’m starting out, I’m running Traffic ads, not Conversion ads – so my “ask” is Learn More”, not “Shop Now”. Can I still consider my cost-per-lead (based on a sale during my Traffic campaign) as accurate, even though the ask was “Learn More”?

  • Vilikia Dyer says:

    Miles this is a bit overwhelming. I am new at this I am more of a visual person will to see it demonstrated. I am selling T Shirts and other items for photographers on Shopify and I am using a drop shipping company to produce the T shirts for me. I have not made a sale yet so my first ad will be like a hope I get a conversion. So my ad will have target the right people so they will hopefully click the shop now button on the ad and purchase from the store. So I was going to start of with a 5 dollar conversion ad and run it for 24 or 48 hours and see what happens. For some reason the first ad I attempted at was approved but never shown on Facebook not sure why.

  • Very informative. I was just wondering if bid amount should be set to automatic or manual? If it's manual then do we strictly have to follow within the range given or the suggested bid shown?
    I did noticed that the range given and suggested bid will fluctuate.

    I have been pricing the manual bid amount below the range given, unfortuantely to no avail. Should I increase to the suggested bid instead?

    Will each click be at the suggested bid price if I set to that? Or Facebook will charge me lower whenever possible? No idea how the algorithm works.

  • Martin Hobelman says:

    Hey Miles, thanks for your time and putting out such great content. I've been advertising dropshipping products on FB and Instagram. I've been trying to get customers to my store with F+S items that produce roughly a $5 profit per sale. I've done research, found audiences that are highly engaged, if I don't get a sale from that audience after $5 ad spend, does that mean the product is a bust and I should turn off that ad? In the video you mentioned Facebook might take a few days to find the right customers. Maybe I need to be patient and spend $10 or $15 on that audience before calling it?

  • Great info. I'm just getting started with digital marketing (yeah, I know…don't laugh) and my commission per sale is anywhere between $500-$1500 per sale. When you talk about 65 cents per lead…I WISH my costs were that low. I'm HAPPY with $25 per lead. Even if my cost per acquisition were $50 I'd be extremely happy with that. I do f2f sales in a geographic area of about 110 mile radius. Part of that area is a fairly large metro area but I'm still very limited in my audience. According to the demographics of my audience in FB it's about 27,000 people. I want to really turn up the scale on my marketing campaigns but I'm afraid I'll burn out my audience too quickly. Should I be worried about that?

  • Ruben Sarian says:

    Hey Miles. Awesome videos. Two points of constructive criticism for you. All you're thumbnails look the same. If you can switch it up with possibly different colors, I think it would help the audience know if they've watched that particular video or not. Also, they are a bit convoluted. I would use a bigger, easier to read font.

    2nd thing is. If you can incorporate some motion graphics, or any cutaways, I think that would make your videos 10x better. Give the audience something to look at while your explaining these things.

    Cheers

  • J.Carlos Fitlab says:

    * QUESTION MILES
    When it comes to budget /ROAS I am having a bit of confusion trying to see if I got enough data to shut off ad set.
    The CPL is where I wanted but my Click to Link are WayyyYYYY to low
    Do I scratch ad set and start all over again????

  • Hey Miles, thank you so much for this man. I've just spent a few days researching so called "Facebook gurus" and you're giving the nitty gritty on what a profitable Facebook campaign takes. I'm a numbers guy from real estate and transitioning
    to internet marketing and you're the first guy I've found that goes in
    deep with the numbers which is ultimately what dictates financial success or not. Thanks and keep up good work. Sorry, I think my avatar might not give my post credibility but fuck it, just google facebook gurus and they'll either be charging a $1000 to $2000 for the stuff you're talking about for free. Thanks for sharing

  • REAL FOOD LIFESTYLE says:

    What are your thoughts on using Qwaya? Some people swear by it, but it's kinda expensive. $149/month – Do you use it? Would you recommend it? Why / why not???

  • Very stoked to have found your channel. Getting lots of useful info from you!! Wondering how the FB ad info you teach applies to a local business that provides a service. Especially with the funnel. Appreciate the great content!!

  • Charles Mitri says:

    Would be interested to hear your thoughts on a service based business (photography) using FB ads. I guess you would run the ad set (interest) up to the point of one's average sale (photography package).

  • Daren Harrison says:

    Hello. I have a nice size client that needs Facebook advertising, but he wants me to show the ROI numbers before he will start. If you can help me with this client we can split the income. Thx. Daren 404-748-2191

  • Miles, I notice different results referring to your statement about Facebook performing better over time. For example, my lead generation ads will maybe start at around 40 cents per lead and by time the campaign is complete (2 or 3 weeks) it'll be closer to 80 cents. Now typically you'd think this is because the numbers in the beginning are a bit more sensitive as there's less data but actually, even the rate at which leads are generated is turned down over time as well. So for example, I'll have 40 leads at 40 cents each but then at the end of the campaign, I'll have 60 leads for 80 cents each overall. Which effectively means those last 20 leads really cost 1.20 each (ish) to generate when you average it out. Thoughts?

  • Operation Freestylez says:

    Hi Miles,
    From 8:30, I'm a little confused about how you calculated the CPC should be 0.25 with the example you used?
    thanks for the help!

  • Mohammed Shalan says:

    Miles, I think it would be much greater to understand and follow for those who are not good at number if you do a Powerpoint-like show. For me , it's because another language and I always have problems with the numbers so I had some trouble. But I figured it out thanks for the video it's GREAT !

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