You’re a skilled digital marketer who knows the potential of advertising on Facebook. At the very least, you’ve explored the possibility to advertise on a popular source of traffic. It’s easy to wonder how your conversions compare with Facebook advertising.
It is a good idea to compare your results to the average conversion rate of Facebook ads. But it should not be used to determine your advertising budget. Continue reading to learn more about Facebook’s average conversion rate and how you can make your company succeed with Facebook ads.
Average conversion rates for Facebook advertising
Facebook advertising has many benefits. Advertise to as many people as you want. It is difficult to compare conversion rates across platforms statistically. However, it can be helpful to compare your industry to see where you stand.
Wordstream, a SAAS platform for advertising, has created benchmarks that will help you understand the situation. Facebook ads convert between 9-10% on average. The table below shows an industry-by-industry breakdown of conversion rates for Facebook Ads.
Apparel 4.11% Beauty 7.10% & B2B 10.63% Education 13.58% Finance & Insurance 9.09% Finance & Insurance 9.09% Healthcare Improvement 6.56% Industrial Services 0.71% Legal 5.60% Technology 2.31% Overall Average 9.21% According to the above conversion rates, the sector of industrial services has a conversion rate.71%. Ads in the fitness industry have a 14% conversion rate.
It wouldn’t be fair to say that the industrial service sector is more adept at advertising on Facebook than its counterpart in the fitness industry. A single contract with an industrial services company could result in millions of dollars in revenue. Through highly targeted Facebook ads, a business advertising in the fitness industry may sell $10 water bottles.
The target audience for industrial services companies is smaller, which means conversion rates for large contracts can be low. This is a reason to advertise industrial services on Facebook. No!
A company selling water bottles needs to convert lots of traffic to compete in the industrial service market. How do you know if your Facebook ads convert well?
What is a good Facebook conversion ratio?
It’s tempting to compare yourself. It is okay to compare yourself with others. It’s important to not compare conversion rates for Facebook ads.
Many factors can impact your conversion rate. Offer discounts and free trials to increase your conversion rate. You can increase your conversion rates by improving your ad targeting.
The most important question to ask is “What is your return on investment (ROI) for Facebook ads?” Your ROI is the measure of your success. This will help you determine your average Facebook conversion rate.
Calculate your average Facebook Ad Conversion Rate
You can use the average conversion rate chart as a guide when starting your first campaign. It is possible to calculate the conversion rate by yourself. This will allow you to estimate traffic, click-through rates, and the conversion rate needed for a positive ROI.
An Excel spreadsheet can be used to run the calculations. Bonus Facebook advertising ROI Calculator
These factors can be improved to increase conversion rates and achieve a greater ROI.
Are you getting the ROI from your Facebook conversions?
Here is where the fun starts. To see if Facebook ads bring you positive results, you can always increase your ROI.
The conversion rate of your last campaign can be used as a benchmark for the next campaign. Everything can be improved. You’re on the right path as long as your ROI keeps rising. The average Facebook conversion rate for your industry might be lower than yours.
Facebook advertising is only successful if it helps you grow your business.
