Using social media to advertise your SaaS business is an important step in growing your company.

Social media platforms are the perfect place to target the right people, and Facebook is one of the best avenues to find new customers. Facebook ads are an effective channel for engaging customers and driving traffic to your SaaS business.

This, in turn, can drive conversions. 

But how do you know if your Facebook ads are working? Are they finding their way to the right audience? The key metric you're looking for is click-through rate (CTR), which measures how many people are clicking on your ad.

The click-through rate (CTR) is a metric commonly used by marketers and business owners to measure the effectiveness of their Facebook ads. 

But, what is a good CTR for Facebook ads? Depending on who you ask, you might receive a different answer.

In this guide, we'll answer this question in detail. We'll also help you fully understand what a CTR is, how to calculate it, and where to find it. 

What Is a Good CTR for Facebook Ads? 

If you're running Facebook ads, you might be wondering: what is a good click-through rate for Facebook ads? Well, there’s no universal answer to this question.

Facebook ads performance depends on many factors and may be different for every business. Some of these factors are: 

• Your industry
• The type of ad you’re running (photo, video, or other)
• What stage you’re at in the customer journey (awareness, consideration, retention, etc.)
• Your targeting strategy
• Your ad placement (mobile, main feed, right column, etc.)

To illustrate this, let’s analyze, for example, the ad placement factor. According to a study by AdStage, in the second quarter of 2019, the average CTR for Facebook ads across all industries depending on the ad placement were: 

• News Feed: 1.20%
• Right-hand placement: 0.10%
• Marketplace: 0.58%
• Audience network: 1.23%
• Facebook Messenger: 0.66%

Based on these numbers, you can see that the CTR can vary greatly, depending on the factors mentioned above.

To determine if your Facebook ads are doing well, you need to benchmark them against other advertisers in your industry. This will help you determine if your numbers are too low compared to your competitors.

What is a Good CTR for eCommerce Facebook Ads? 

If you’re running an eCommerce business, you’re likely interested to find out what is a good CTR for the eCommerce industry. Again, it will depend on various factors, such as:

• The type of products you’re selling
• Where on Facebook you’re advertising
• The images and the text you’re using in your ads
• The audience you’re targeting.

However, according to a study by Databox, a good CTR for eCommerce Facebook ads is between 2 to 5%.

So, if your CTR is within this range or higher - congratulations! Your Facebook ads are doing really well.  

What Is a Good CTR for Facebook Ads Per Industry? 

The average CTR for Facebook ads across all industries is 0.90%.

But, what is a good Facebook ads click-through rate for different industries?

Let’s see. 

• Pets & Animals: 1.68%
• Retail: 1.59%
• Apparel: 1.24%
• Food & Drink: 1.20%
• Beauty: 1.16%
• News: 1.05%
• Technology: 1.04%
• Fitness: 1.01%
• Real Estate: 0.98%
• Hobbies & Leisure: 0.93%
• Business & Industrial: 0.89%
• People & Society: 0.85%
• Home & Garden: 0.71%
• Internet & Telecom: 0.68%
• Finance: 0.58%
• Jobs & Education: 0.55%

It’s no surprise that the industries with the highest average CTR for Facebook ads are pets, retail, apparel, food, and beauty.

These industries often feature beautiful models wearing beauty products or clothes that we want to have or high-quality photos of delicious food that make our mouths water! And pets? Well, who doesn’t love puppies? 

It’s no wonder that these types of ads grab our attention and entice us to click on them. This is exactly why we’re on social media in the first place: we want to see beautiful photos, funny memes, or cute cat videos. 

On the other hand, industries such as business, finance, jobs, or education have the lowest average CTR on Facebook ads. This also doesn’t come as a surprise. People looking for this kind of products or services are more likely to look for them on other platforms, such as Google or LinkedIn. 

We’re usually scrolling through our News Feed to distract ourselves from our problems, jobs, or school.

So, an ad selling an educational course or telling us to join a job board is less likely to catch our attention. 

How to Calculate Your Facebook Ads CTR?

Facebook ads CTR is an easy metric to understand and track. It’s calculated as the number of clicks on a Facebook ad divided by the number of impressions that the ad received.

So, if your ad had a thousand impressions and was clicked on ten times, your CTR would be 1%.

If you're using the Facebook Ads Manager to run your ad campaigns, you can find your CTR in the 'Ads' tab. To find it, you need to:

• Open the “Columns” dropdown
• Choose “Performance and Clicks”
• Scroll until the CTR column appears.

However, to calculate your Facebook ads CTR manually and see how it compares to the average eCommerce Facebook ads CTR, you can use the formula below:

CTR = (number of clicks/number of impressions) * 100

Ready to Increase Your Facebook Ad Click-Through Rate? 

A good CTR is a strong sign that your ad is relevant to its target audience. It also indicates that your product photos and ad copy are working together to convince people to click through and learn more about your product.

However, as you can see, there are various factors to consider when determining whether the Facebook ads CTR for your eCommerce business is good or not.

Many factors contribute to your CTR, such as your industry, ad design and placement, audience targeting, and more. Therefore, it may be hard to determine exactly what a good Facebook ads CTR is for your business.  

We hope that the stats provided above will be helpful to you in your quest to calculate and improve the CTR for your eCommerce ad campaigns.