How to Measure the Effectiveness of Facebook and Instagram Ads

As our lifestyles continue to diversify, it is becoming increasingly difficult to just make general statements about our products and services.

Of course, contextualizing your message to each and every person is necessary, but even when looking at the same person, you need to first get them to be aware and then successfully communicate with them until they hopefully come to want it.

Measuring incrementality is necessary, but few companies are able to put this into practice. Here’s all about incrementality and how to properly measure the effectiveness of advertising in the present day.

Incrementality measurement

Many businesses want to know what kind of people are likely to become fans of their product. They may be new customers or they may be amongst your existing customers.

We often use this type of pyramid below, but you need to have a clear grasp on what’s actually happening in order to conduct PDCA effectively. This is where incrementality measurement comes in.

Customer pyramid - TAMKO

incrementality refers to the net increase in business performance from advertising.

In other words, by measuring the amount gained through advertising, you are able to more accurately measure the effectiveness of your advertisements and how much of your budget you should allocate to it.

Measuring the ROAS of ad campaigns more accurately - TAMKO

For example, let’s say that a customer searched for a specific product in your online shop, and purchased it. If you only focus on their last click, you will online evaluate their search for that specific product, and you may tend to allocate more of your budget to reaping-type, conversion-centric ads.

Last-click attribution doesn’t provide a full picture on your ad performance - TAMKO

Last-click attribution doesn’t provide a full picture on your ad performance - TAMKO

However, these ads only capture customers who are already in consideration, and it’s impossible to assess whether or not you are creating any new demand.

There are a couple ways within Facebook and Instagram to help you achieve more accurate measurements of the efficacy of your ads.

Conversion lift survey

The Multi-touch attribution model more accurately measures ad effectiveness - TAMKO

The Multi-touch attribution model more accurately measures ad effectiveness - TAMKO

Conversion lift surveys reveal the indirect effect of your ads, and allow you to accurately evaluate your them.

By doing a conversion survey, you can get a clearer picture on how much of each strategy is contributing to sales. You will find out if that customer watched a video on Instagram, saw a banner ad, or any number of other elements that caused them to make their purchase.

Search lift survey

Search lift surveys help clarify your Facebook ad performance’s impact on other channels - TAMKO

Search lift surveys help clarify your Facebook ad performance’s impact on other channels - TAMKO

Search lift surveys measure the impact of Facebook ads on other sales channels. They make it possible to see if there is a difference in customer behavior in other sales channels, comparing with and without Facebook ads.

If you’re running other ads such as Search, you will find out how much of an impact your Facebook ads have had on peoples' searches.

It is important to conduct measurements that consider the customers' journey

These research methods show that measurements based on the customer journey is important.

By making the role that each ad plays more visible, they will allow you to better review your budget allocation and recognize the importance of brand advertising.

Incrementality measurement will make it easier to make decisions regarding the next strategy for your business. You will be able to prioritize and plan for the medium to long term, including whether or not you should increase new customer acquisition measures or maximize sales among existing customers.

The Conversion Lift and Search Lift surveys mentioned here are not special services or options. They are amongst the options that many businesses are already practicing with regards to their Facebook ads. Based on our experience in Japan, we recommend starting from around JPY ¥300,000 (just under USD $3,000) per month to acquire the minimum reach volume for these lift surveys.

Ryohei Tokunaga

Account Director

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