How to analyse your Facebook ad performance using the CRFC Method

Are you analysing your Facebook ad performance on an on-going basis? 

It's the most important campaign management activity, as it allows you to recognise ad fatigue and adjust your campaigns accordingly. 

In this article you’ll discover how to analyse your Facebook ad performance using four core metrics, known as the CRFC Method.

Analyse ROAS before using the CRFC Method.

Before you use the CRFC Method you first want to analyse the Return-on-ad-spend (ROAS) of your campaigns to identify ones that are underperforming. Measuring your ROAS answers the two most important questions when it comes to successful Facebook advertising.

1. Are you generating new revenue?
2. Is it more than your Ad Spend?

Meaning, is the total revenue generated from your Facebook ad campaigns higher than your total ad spend? If it is then you are ROAS positive, if it isn’t then you are ROAS negative and if it’s the same then you have breakeven ROAS.

For more information on how to implement ROAS analysis click here.

What is the CRFC Method?

The CRFC Method is a way to identify and analyse the performance of your campaigns and the ads within them.

One of the most common mistakes people make with Facebook advertising is launching an ad campaign and doing no analysis once it is running.It’s the analysis of your campaigns and the subsequent actions you take, depending on your findings, that delivers exceptional ROAS.

The CRFC method consists of analyzing four core metrics:

• Cost
• Relevance
• Frequency
• CPM

Let’s look at each one in turn.

1. Cost

First is Cost. This isn't your overall spend or amount spent on each of your campaigns, it’s specifically your cost per result.

When you have a set daily budget and aren’t scaling your campaigns, if you see your cost per result decreasing, then your campaign results will be increasing.

For example, if you are running a conversion campaign optimising for Add to Cart actions and it is targeting your website traffic you’d see the cost per Add to Cart decrease and the number of Add to Cart actions increase therefore driving more clicks and sales from your website.

The opposite will be true if your cost per result is increasing. Your campaign will be decreasing in performance and therefore you’ll be getting fewer results for your budget.

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