One reason Why is Your Facebook Campaign is Not profitable?

Facebook has a group of tools for marketers to understand the performance of their campaigns.

One of the most underutilized of those tools is the Ad Set Delivery Status "Inspect" tab.

Clicking into this allows you to really see what is going on under the hood.

When you click into here, you start to see a much deeper level of analysis into how your ad set is faring in the auction.

scroll down, you may see a chart such as the below, which is focused on audience saturation.

Audience saturation shows you some metrics around frequency, reach, and percentage of audience reached.

As you scale up your spend, you will naturally start hitting a higher percentage of the available audience or a higher frequency (meaning you are hitting people you’ve already reached again with ads).

As you increase your frequency, this will decrease your “first time impression ratio,” which is the percentage of users on a given day that are seeing their first impression in that ad set.

As campaigns go on, this tends to lower over time. In the above example, you can see the bold green line getting lower each day, and the blue line is rising at almost a directly correlated rate.

The blue line is the CPA cost per acquisition of the ad set, which is the crucial piece here. 

As the first-time impression ratio goes up, CPA typically will go up over time.

As you can see the first-time impression is low means

first time impression is 40.50% means facebook algorithm is showing your ads to the same audience by itself, How can you stop the declining first-time impression ratio?

While creating the new prospecting campaign do exclude the retargeting audience like if you're running a video do remove 95% audience or if you are running a website audience then remove the last 180 days' audience to increase your first-time impression.