Cost per result

You might have heard about CPM, the metric that allows digital marketers to measure the efficiency of their advertising cost for Facebook Ads? Today, we’re exploring its synonym, Cost per result.


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What is cost per result?

Cost per result is a metric that refers to Facebook advertising and allows digital marketing and social media marketing agencies to assess the efficiency of their advertising costs when it comes to Facebook ads. Ultimately, it is a measure of return on investment. By analyzing these benchmarks within one’s Facebook ad campaign, it is much easier to determine if your marketing strategy is successful if you are achieving campaign objectives, and if you are optimizing your interactions with your target audience.

Facebook ads provide massive engagement opportunities, and through the Facebook ads manager, marketers, and eCommerce small business owners can gain valuable information and understand where they may need to reassess their ad budget, audience demographics, ad sets, or ad placement.

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How to calculate your cost per result

By tracking your average costs and ads results, you can successfully improve your ad quality, ad spends, and audience targeting. The first step in calculating your cost per result is establishing which metric and business goal you are measuring. For example, is it the ad click-through rate (ctr, meaning the cost per click (CPC)? Or are you measuring the conversion rate, meaning, the number of link clicks that resulted in purchases on your website? This metric is typically measured in CPM, or, cost per thousand views.

Cost per result formula:

Let’s say you are measuring your conversion rate ad spend, or, your cost per conversion. The formula to calculate this is:

Cost per result = Total Facebook ads cost / Total number of clicks that resulted in a sale.

What is a good cost per result?

When it comes to Facebook Ads, This return on ad spending (ROAS) can vary greatly depending on industry and niche, but the average cost per result can fall somewhere around $1.72. This shows that for Facebook ads, optimizing your ad spend can be challenging and take significant investment over time, with consistent analysis through the Facebook ads manager. To achieve better CPA, CPM, and CTR figures, it is essential to consistently tweak your Facebook page and Facebook ads strategy.

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What is a bad cost per result?

Sectors like finance and insurance typically see the highest CPM and CPA figures, landing well above $1.72 and averaging around $3.77. This goes to show that determining a bad result is entirely industry-specific, but if you are landing with a cost per result higher than $1.72 for your Facebook ads, consider adjusting your Facebook ad campaign tactics.

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Cost per result KPI examples & templates

Reports give you a good view of all your online marketing strategy metrics and overall online performance. You cost per result can be added to a few KPI templates :

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Social media advertising template Social media advertising template

This template is filled with metrics for all your social media online advertising, from LinkedIn ad placements, Facebook advertising costs, demographics metrics, YouTube video ads, average CPC and more.

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PPC report template PPC report template

Get the best out of your ad campaign. From social media to AdWords and Google Ads, measure your ad results with this awesome digital marketing report which helps you track important metrics and optimize your efforts.

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Ecommerce report template Ecommerce report template

A report with all the most important metrics for your eCommerce business site. Measure your conversion rate, the average cost of acquisition, the total number of sales, cost per click, ads cost, ad spend, revenue, all from your marketing channels.

See this template live

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Cost per result best practices

To improve your lead generation and the number of results, consider optimizing your Facebook advertising through the following strategies.

Cost per result best practices

step 1 icon Use strong images and videos

These visuals will help you build better brand awareness, increase video views, and increase the total amount of viewers who will engage with your content, thereby increasing the likelihood that they will click through and make a purchase.

step 2 icon Experiment with different campaign objectives

Adjust your ad spend, your target audience, and your goals with various campaign parameters to continuously test and assess the sweet spot for your business and industry.

step 3 icon Optimize your ad targeting

This will help you get a better understanding of your audience and viewer to enhance your quality of engagement and adjust your target audience to where the market opportunity lies.

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