If you are just getting started with Facebook ads or even if you have been running Facebook ads for some time, the ‘custom metrics’ are super important. Essentially, with custom metrics on Facebook – you can use your calculation or formula that is not available in FB’s standard reporting metrics.
Custom metrics on Facebook ads are as simple as creating formula on Excel
For example, Install Rate (IR%) – which is basically (number of installs/number of link clicks)
How to create custom metrics on Facebook ads
Step 1: Click on columns (next to breakdowns) and select customize columns.
Step 2: You will see Create Custom Metric next to the search bar at the top of this view. Click this and you can get started with creating your own custom metrics.
Step 3: You will now have a popup window appear when you can create your metrics. Here you can name, set the format (Numeric, Percentage, or Currency), and formulate your custom metric.
Here are some of the custom metrics which are important for mobile apps:
1. Install Rate
Knowing the install rate is critical to assessing the quality of traffic. IR% also signifies how well the play store/app store is optimized (screenshots, title, reviews, etc.).
This is calculated by dividing the number of installs by the number of app installs.
This is a critical metric to analyze creative performance. IPM is an essential KPI that calculates the number of installs for every thousand impressions.
This is calculated by (total installs/total impressions)*1000.
The higher the IPM, the higher is the chance of that creative winning across multiple other campaigns.
3. Thumb stop ratio
This was coined by paid media veteran David Herrmann. Thumb stop as a metric helps us understand how eye-catchy or attention grabby a video or GIF creative is.
If you’re achieving above 30% for your campaigns, you’re nailing the creative. And of course, the higher, the better.
Thumb-stop ratio stats from one of the gaming apps:
4. Purchase rate/IAP %
This helps you determine which audience creative is yielding the highest purchase conversion. Also, if there’s any leakage in the funnel, i.e., the payment page is broken or other issues within the app.