I was playing around with Facebook Analytics and Google Analytics and really wanted to figure out one question: how do I see which demographic is the most valuable to me?
The reason for wanting to ask this question was specifically so I could set up a separate Facebook Ad campaign in order to target the demographic who had already proven their worth. You’ll sometimes see 200% or 300% increases in ROAS just by making sure to target the correct demographic – so finding out which demographic was most valuable is naturally the obvious thing to do.
I found Facebook to be more helpful in this regard and simpler to understand, though to be perfectly honest I only have a quite superficial understanding of Google Analytics.
I figured out there’s two methods by which you can solve this exact question.
Method 1: Facebook Reports
I generated the below report using Ads Reporting tool, as you can see below. It immediately becomes apparent how incredibly valuable this is.
Let me explain some of the parts:
- Campaign Name: If you look closely, I’ve included the “Campaign Name contains ‘PROSPECTING’” filter at the top. The specific reason for this is that I have multiple ad campaigns running at once (prospecting = cold audiences, retargeting = warm audiences). When you look at my actual campaigns, I’ve named them such so that I know exactly which ones are NOT retargeting campaigns i.e. going out to people who have no idea about my website.
- If you wanted to see demographics that were most valuable for RETARGETING, you could totally do that too, just by changing the that filter. Just make sure your campaigns are named in a way that helps you do that.
For context, here’s what my own ad campaigns were named in the first place:
- Set up the correct columns. The most important ones are: ROAS, Amount Spent, Purchases Conversion Value, Cost Per Result. Other metrics like CTR, CPC, and CPM are probably going to be more useful to see how “relevant” your ad is to a particular audience, but I’d be much more interested in Cost Per Result and ROAS as – at the end of the day – other metrics don’t really matter if you’re making sales.
Looking at the above data, there are some very clear actions that it would make sense to tackle right away:
- Almost all of my prospecting purchases have been from people who are over 45 years old
- Although I have a pretty crazy ROAS of 10.04 from that one purchase from a 65+ year old, it’s clear that 3 + 3 of my purchases are from 45-54 year old Males/Females.
- Despite only being tens years age difference, the 55-64 year old generation tends to spend less when they do buy things, so I probably won’t be targeting them straight away.
Method 2: Looking at Ads Manager’s campaigns to see their breakdowns
The downside of the Ads Reports tool is that you can’t do nuanced analysis for seeing exactly which age/genders are responding to specific ad campaigns. I mean, technically you could just use exact name matches in the filters part of the ad reporting tool, but that seems cumbersome if you have lots of campaigns.
So, if you wanted to see which campaigns are getting good responses from which demographics, you should use the breakdown dropdown of Ads Manager in order to put this detail on full display:
Conclusion and next steps
So there you have it. You now know your most valuable demographic.
You should aim to broad match to them and combine them with an ‘Online Shopping’ interest (e.g. in my case, create a specific campaign that is aimed at “AU 45-54 | Online Shopping”).
When seeking to horizontally scale, could further combine this with other interests by using Audience Interest tool to find out other pages that people like, and targeting 45-54 year olds who – for example – like Bose products. Using Audience Insights, which I can talk about in a different article, will help you do this:
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Scaling Facebook Ads from $0 to $10,000+/day spend – Dimitri Nikolakakis Facebook Ads Strategy Notes
Dimitri Nikolakakis - an Australian internet marketer who consults multiple 7-figure eCommerce brands for his own...