Smarter Advertising Strategies for Facebook

A New Facebook Ad Metric Matches Spend to Cross-Channel Experiences

2 minute read
Pierre DeBois avatar
One specific update for Facebook ads consolidates multiple return on ad spend reports into a single, cross-channel view.

When Facebook announced it would be replacing several ad performance metrics, it introduced a number of metrics which focused on ad engagement with an intended audience. But one specific update took on cross-channel activity: how return on advertising spend (ROAS) is calculated relative to the cross channel experiences that Facebook users are increasingly having.      

Related Article: Does Facebook Really Care About Privacy?

Introducing Purchase ROAS

Facebook traditionally calculated ROAS for separate specific channels. So an analyst would see a ROAS for a campaign on Facebook, a ROAS for mobile-only campaign, and so forth. The ROAS is calculated as a conversion value divided by campaign spend.

The new metric, Purchase ROAS, calculates the results in the same way, but aggregates the channels that contribute those factors. The redesign is meant to reflect the cross-channel behavior that is becoming increasingly typical.  

Purchase ROAS metric will replace Mobile App Purchase ROAS and Web Purchases ROAS. You can see the new metric, along with the other recently introduced metrics covered in a previous post, within the Ad Manager. 

Learning Opportunities

The change in metrics is part of a number of initiatives from Facebook to remain competitive against other high profile advertising platforms, namely Google and Amazon. What is at stake is satisfying marketers who want more transparency of how ad value is determined.  

Related Article: Facebook Ad Metrics Updates Aim to Help Marketers Track Reach

Other Additions to Facebook Digital Ads

Other improvements related to digital ad campaigns include:

  • Creative Compass, a new tool that ranks the elements of an ad creative to help marketers learn which components will best encourage ad viewers to click.
  • Cost Cap Bidding refines bid strategies into a combination of maximizing conversion volume (bid cap) and cost predictability (target cost). Both factors were treated previously as a choice. The change will simplify how marketers better manage campaign costs and ad reach.
  • A new interface for Ad Manager. The simplified interface offers an improved design and navigation updates, all meant to improve the campaign management experience.

The demand among marketers for cross-channel metrics is high. A recent eMarketer report found cross-channel attribution and cross-channel audience identification the top priorities for marketers in their strategies and their budgets. Simplifying the measured elements of an ad campaign performance ranks among Facebook’s best bets to address that interest. 

About the author

Pierre DeBois

Pierre DeBois is the founder of Zimana, a small business digital analytics consultancy. He reviews data from web analytics and social media dashboard solutions, then provides recommendations and web development action that improves marketing strategy and business profitability.

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