Facebook ads have become an indispensable part of most businesses’ marketing strategies. With over 2 billion monthly active users, Facebook offers unparalleled reach and targeting capabilities. However, simply running ads on Facebook does not guarantee success. To determine if your Facebook ad campaign is effective, you need to look at the conversion rate.
What is Conversion Rate?
Conversion rate is the percentage of people who take a desired action after seeing your ad. The action can be signing up for a free trial, making a purchase, downloading content, etc. A high conversion rate indicates your ad copy, imagery, and targeting are effective at motivating users to convert.
For example, if your ad was seen by 1,000 people and 50 of them signed up for your email list, your conversion rate would be 5% (50/1,000).
What is a Good Conversion Rate for Facebook Ads?
The average Facebook ad conversion rate across all industries is around 2-3%. However, this number varies significantly based on factors like your niche, offer, targeting, and objectives. A 2% conversion rate may be excellent for a high-ticket B2B service but low for an ecommerce store selling low-cost products.
According to Wordstream research, here are some typical conversion rates for different industries:
| Industry | Good Conversion Rate |
|---|---|
| Ecommerce | 2-3% |
| Lead Generation | 5-15% |
| SaaS | 5-12% |
| Webinars | 15-25% |
As you can see, conversion rates vary quite a bit based on your goals. For example, getting someone to sign up for a webinar is simpler than getting them to purchase a high-priced software subscription. Context is key.
Ecommerce Conversion Rates
For online stores, a good conversion rate is around 2-3%. This means for every 100 people who see your ads, 2-3 end up purchasing. Anything above 3% is excellent. However, your expected conversion rate should factor in the value of sales too.
If you’re running branded ads to sell products with an average order value (AOV) of $50, a 3% conversion rate equals $15 revenue per 100 impressions. But if your AOV is $500, a 1.5% conversion rate would generate $75 per 100 impressions.
Lead Generation Conversion Rates
For lead generation offers like free trials, consultations, or quote requests, a good conversion rate is 5-15%. Getting someone to fill out a lead form requires more trust and intent than simply clicking on an ad. Conversion rates on the higher end usually mean you have a highly targeted, relevant audience.
SaaS Conversion Rates
For software and SaaS products, expect conversion rates between 5-12%. Signing up for a subscription service is a bigger commitment than a simple ecommerce purchase. Quality targeting and persuasive copy are required to convince users your product is worth the ongoing spend.
Webinar Conversion Rates
Getting people to register for webinars and events has the highest conversion rates, usually 15-25%. Attending a webinar requires minimal commitment from the user while providing enormous value. Therefore, people are more likely to convert compared to offers that require immediate payment.
How to Calculate Facebook Ad Conversion Rate
Figuring out your Facebook ad conversion rate is simple. You just need two numbers:
- Total conversions (purchases, lead signups, etc)
- Total reach or impressions
Then divide conversions by reach to get your conversion rate percentage.
For example:
700 conversions ÷ 28,000 reach = 2.5% conversion rate
In Facebook Ads Manager, you can find these metrics under the “Results” column when viewing your campaign or ad set.
Optimization Tips to Improve Conversion Rate
If your current Facebook ad conversion rate is lower than expected, here are some tips to help increase it:
- Use more specific targeting – narrow down your audience.
- Test different creative images, copy, and formats.
- Only advertise to warm audiences like email lists or website visitors.
- Make your CTA and landing page more relevant to the ad.
- Split test ad variations to find what resonates best.
- Exclude people who previously saw your ads but didn’t convert.
Benchmarks for Top, Average, and Low Conversion Rates
As a general benchmark, here are conversion rate ranges for “good,” “average,” and “low” performance:
| Low | Average | Good | |
|---|---|---|---|
| Ecommerce | 0.5-1.5% | 1.5-2.5% | 2.5-4% |
| Lead Generation | 2-7% | 7-12% | 12-20% |
| SaaS | 2-4% | 4-8% | 8-15% |
| Webinars | 10-15% | 15-20% | 20-30% |
Aim for conversion rates in the “good” range. If you are significantly below, it means there are likely issues with your targeting, creative, or offer.
How to Tell if Your Facebook Ad Conversion Rate is Good
Wondering if your Facebook ad conversion rate is actually good or needs improvement? Here are a few quick ways to evaluate it:
Compare to Your Industry Benchmarks
The first step is to compare your conversion rate to typical rates for your industry. Are you in the average range or below/above? Use the benchmarks provided earlier as a relative gauge.
Compare to Your Past Campaigns
Look at conversion rates for your previous ad campaigns for the same product/service. Are your current numbers higher or lower? Improving upon past performance is a good sign.
Compare to Your Cost Per Conversion Goal
If your cost per conversion is in line with targets, your conversion rate is likely fine. If cost per conversion is too high, you may need to improve the conversion rate to bring it down.
Review Conversions Against Reach
Even if your conversion rate seems fine, look at the absolute number of conversions you received. Low conversions from a huge reach could indicate your rate needs work.
Ask “Could It Be Better?”
There is almost always room for improvement in conversion rate optimization. Strive for continuous incremental gains through ongoing testing.
How to Increase Your Facebook Ad Conversion Rates
Here are 10 proven strategies to improve Facebook ad conversion rates:
1. Use Detailed Targeting
Leverage Facebook’s robust targeting options like interests, behaviors, demographics, and more. Ultra-specific targeting ensures you reach users more likely to convert.
2. Split Test Ad Creatives
Run A/B split tests comparing different ad images, copy, formats, etc. Find out what creative variation converts best.
3. Optimize Your Landing Page
Send traffic to a dedicated landing page that matches your ad offer and persuades visitors to convert.
4. Use Lead Ads or Forms
For lead gen campaigns, use Facebook Lead Ads or instant forms to capture conversions directly, instead of sending users to your site.
5. Personalize Dynamic Ads
Leverage Facebook’s pixel to create customized Dynamic Product and Dynamic Retargeting ads for each user.
6. Retarget Engaged Users
Create saved audiences of people who previously viewed product pages or added items to cart, then retarget them.
7. Exclude Users Who Didn’t Convert
Stop showing your ads to users who have seen them but did not take any desired action.
8. Make Your CTA Stand Out
Use contrasting colors, urgency cues, and action-driven language to make your calls-to-action compelling.
9. Advertise to Website Visitors
Remarket your ads to people who have visited your website – they are primed for conversion.
10. Measure, Analyze and Optimize
Dig into campaign analytics to identify optimization opportunities then implement changes.
Conclusion
Monitoring and optimizing conversion rate is crucial to maximizing the ROI of your Facebook ad campaigns. Use the benchmarks, analysis tips, and optimization strategies provided above to improve your ad performance. With continual testing and refinement guided by data, you can achieve consistently high conversion rates.