Advertising on Facebook is a “must have” in the advertising repertoire for many big brands, especially those that are end consumer focused. Historically, executives and marketing managers have had a difficult time demonstrating a Return on Investment (ROI) from that social media advertising spend.
To help alleviate this, Facebook has developed a number of different algorithms to measure advertisements and attempts to quantify relatively qualitative data. As part of their ad selling strategies, they give their customers some tools to measure advertisement performance. According to Facebook’s website, “The more relevant an ad is to its audience, the better it’s likely to perform. Ad relevance scores makes it easier for you to understand how your ad resonates with your audience.”
Each advertisement is score based on the following:
“After your ad is served more than 500 times, your ad receives a daily relevance score from 1–10, ten meaning we estimate your ad is highly relevant and one meaning we estimate it’s not very relevant. You can view the score in Ads Manager by going to Campaigns and clicking Ads.
Your ad’s relevance score is based on positive and negative feedback we expect from the people seeing it, based on how the ad is performing. It is calculated differently depending on your objective (e.g. clicks to website or video views).
- Positive feedback. The number of times we expect people to take a desired action such as share or like your ad, or help you achieve your objective, such as visiting your website.
- Negative feedback. The number of times we expect people to hide your ad or indicate a negative experience such as choosing not to see ads from you” (Facebook, 2016).
Tools such as this go a long way in terms of justifying advertising spend on social media and demonstrating ROI to executives and members of senior management.