Here are some terminologies that you’ll need to know and the average benchmarks!
A conversion rate is the percentage of website visitors that complete a desired goal (or conversion) out of the total number of visitors. A high conversion rate means that people want what you’re offering and they’re able to get it easily.
The average conversion rate for Facebook ads across all industries is 9.21%. You can see industry averages here.
Click-Through Rate (CTR):
A CTR or Click-Through Rate measures the number of clicks you receive on your ads vs the number of impressions. Your click-through rate is important because it affects how much you pay every time someone clicks on your ad.
The average click-through rate (CTR) for Facebook ads across all industries is 0.90%. You can see industry averages here.
Cost Per Click (CPC):
A cost per click is the price you pay for each click in your marketing campaign. Each click represents a website visitor or interaction with your company’s product or service.
The average cost per click (CPC) for Facebook ads across all industries is $1.72. You can see industry averages here.
Cost Per Action (CPA):
A cost per action is the price you pay when a user does a specific action – a signup or registration for example. It can also be called a cost per acquisition.
The average cost per action (CPA) for Facebook ads across all industries is $18.68. You can see industry averages here.
Cost Per Mille (CPM)
Cost per mille (also known as Cost Per Thousand) is a term used to describe the price of 1,000 impressions. The “M” in CPM represents the word “mille” which is Latin for “thousands.”
You can read about the benchmarks based on location here.
Check out this case study where we talk about the Facebook Ad strategy we use for our clients!