Advertising on Facebook in 2021 can be lots of fun. For starters, the social media giant has built an advertising platform with numerous targeting options that makes it possible for businesses to target their audience with increased accuracy. But, as fun as setting up ads campaigns can be, if your prospects are seeing your ads without taking any action, then something is not right.
The conversion rate is a key metric that you can use to measure the success of your campaign. It tells you what percentage of your visitors convert after seeing your ad.
It’s calculated as:
Number of conversions / Number of visitors) x 100
So, if you are getting 3 out of 50 people to buy your product, then you have a conversion rate percentage of 6%.
That brings us to our question: what is a good conversion rate for Facebook Ads?
Let’s find out!
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Average Facebook Ads Conversion Rates By Industry
Just as with Google Ads, conversion rates for Facebook ads can differ across various industries. A study from Wordstream found that industries like fitness (14.29%,) healthcare (11%,) or real estate (10.68%) have higher conversion rates as opposed to technology (2.31%) or industrial services (0.71%.)
The study found by looking at different industries that the average conversion rate for Facebook Ads is 9.21%.
Does that mean that if you are an industrial services company with a conversion rate of 0.70% should you try to increase it?
Well, not really and here’s why.
While you may not have the high conversion rates of a fitness brand, for example, one single contract for an industrial services company may add millions of dollars in revenue. On the other hand, a fitness company may be selling $20 sports bras, and it’s easier to sell that then convince prospects to spend thousands of dollars in one day on an expensive holiday, for example.
Moreover, the target audience for an industrial services company is generally smaller, so their conversion rates for Facebook ads is lower too. But, that doesn’t necessarily mean that their Facebook advertising is not effective, just that you should always look within your industry to understand what a good conversion rate is.
We also mustn’t forget that the cost-per-click (CPC) for fitness ads is three times higher than ads in the travel industry, for example.
So, What Conversion Rate Should I Aim for?
While it’s always a good idea to look at how other companies in your industry are performing, it’s more important to understand your goals and how the particularities of your campaign are influencing your conversion rate.
Look at past campaigns and estimate the average traffic, click-through rates, and conversion rate you need to see to generate a positive return on your investment. Then, optimise your ads campaigns accordingly. Write a stronger call to action and improve your landing page to make it easier for prospects to turn from viewers into buyers.
The conversion rate is a key metric for assessing the effectiveness of your Facebook advertising efforts. However, a good conversion rate for a travel company may be an impossible target to achieve for industrial services one. So, always take this data with a grain of salt and look at your business and your industry to understand the average conversion rate that you should be aiming for.
Of course, to achieve your industry’s top Facebook conversion rates, you need to optimise your ads to perfection. That’s where the online advertising gurus at Australian Internet Advertising come into play. We can help your business reach your audience, increase your sales, and grow.
Call us now to learn more.