Custom Metrics Every Advertiser Needs to Create in Facebook Ads

When it comes to running Meta Ads, success is all about measurement.

While Meta provides plenty of metrics by default, there’s a layer of detail and insight you can only unlock by creating your own custom metrics.

Custom metrics help you track user behaviors that truly matter, giving you more granular control over your ad performance analysis.

Alongside key metrics like ROAS, Purchases, and Purchase Value, custom metrics enable a deeper understanding of ad and website performance.

Common Pitfalls with Facebook Metrics

1. Relying Solely on Default Metrics

Meta’s default metrics are good for general performance tracking, but they don’t tell the whole story.

Important aspects like user engagement and drop-off points are not captured in standard reporting, leading to incomplete insights.

2. Ignoring Engagement and Retention Rates

Metrics like CPC and CTR tell you if your ad gets clicks, but do they show whether the clicks are valuable?

Often, advertisers don’t track deeper engagement metrics like “Engaged Visits” or retention rates, missing out on crucial information.

3. Not Customizing Ad Columns Based on Key Metrics

Every campaign has unique goals.

Whether you’re driving sales, generating leads, or promoting video content, you need metrics tailored to measure these goals accurately.

Using default metrics across the board won’t provide actionable insights.

I previously covered how to customize columns based on campaign goals in DAS #28 - How to Set Up Meta Ads Columns for Quick Insights & Instant Clarity, which you can check out for additional details.

How to Set Up Custom Metrics in Meta Ads Manager

Setting up these metrics might sound complex, but it’s straightforward.

Taking a few extra minutes to set these up will unlock insights that can transform your campaign performance.

1. Go to Ads Manager and click on Columns > Customize Columns.

2. Select Create a Custom Metric.

3. Enter the metric name, formula, and format (percentage).

4. Save and add these custom metrics to your reports.

By adding these metrics to your default reports, you can instantly see how your campaigns perform based on more advanced criteria.

See the images below for better understanding:

Here’s a breakdown of 8 essential custom metrics you should set up right now, divided into two core categories:

Ad Engagement Metrics and Website Metrics

Ad Engagement Metrics

These metrics focus on how users engage with your ads directly within the Facebook and Instagram platforms.

1. Video Hook Rate

Does your video ad stop users from scrolling and make them start watching?

Formula: 3-Second Video Plays / Impressions

Format: Percentage

This tells you if your video grabs attention in the first three seconds. A low hook rate means users aren’t engaging with your ad right away.

A low hook rate might indicate that the first few seconds of your video aren’t compelling enough.

This formula for the Video Hook Rate, also called Thumb-stop Ratio.

Aim for 20% or higher.

2. Video Hold Rate

Do users continue watching your video for at least 15 seconds?

Formula: ThruPlays / 3-Second Video Plays

Format: Percentage

It shows the retention power of your video. If people drop off early, you might need a stronger narrative or visual elements to keep them engaged.

A low hold rate indicates that the video does not deliver meaningful information aftet the hook, so the users gets annoyed and scrolls past.

Aim for 25% or higher.

3. Ad Engagement Rate

Do users interact with your ad when it appears in their feed?

Formula: Post Engagements / Impressions

Format: Percentage

This metric captures the overall engagement (likes, shares, comments) your ad generates. The higher the better.

High engagement rates can also lower your costs, as Meta prioritizes content that resonates with users.

Website Metrics

These metrics are for understanding what users do once they leave Facebook and land on your website.

Some small business owners think that ads convert users into customers, neglecting website optimization, and blaming media buyers for not bringing sales.

Kind Remember: Marketing ≠ Sales

Before we dive into these formulas, it's important to distinguish Link Clicks, Outbound Clicks and the term "Unique".

Link Clicks: Refers to the total clicks on links within an ad that directed users to destinations or experiences, whether on Facebook or external sites.

This includes: clicks to message, clicks on the photo, Maps/directions and also links to that lead to a website or app.

Link Clicks are basically an aggregate total of all clicks on an ad from all time. This means if one single user clicks an ad five separate times, five Link Clicks will be recorded.

Outbound Clicks: Refers to any instance of clicking a link that directs the user off Facebook.

Unique Link Clicks and Unique Ourbound Clicks: Both Link Clicks and Outbound Clicks have a "Unique" variation. Unique measures the number of users who performed an action.

For instance, there could 12 Outbound Clicks, but only 7 Unique Ourbound Clicks, meaning that 7 users performed those 12 Outbound Clicks, some of them clicking multiple times.

Marketers measuring Link Clicks, CPC, CTR and not considering the quality of the clicks are mistaken and performance optimizations might suffer if not taken into consideration Outbound and unique clicks.

So, now that these terms are clarified, let's continue.

4. Conversion Rate (Purchase Conversion Rate)

How effective is your website at turning visitors into customers?

Formula: Purchases / Unique Outbound Clicks

Format: Percentage

It tells you if your website experience is compelling enough to convert visitors from your ads into buyers.

A low conversion rate indicates issues with your landing page, product page, website or overall user journey experience.

5. Average Order Value (AOV)

Are your ads driving high-value purchases?

Formula: Purchases Value / Purchases

Format: Numeric

This helps identify if your ad strategy is attracting high-value customers or not. It’s essential for optimizing ROI, as a higher AOV can justify higher ad spend.

Quick Note: Meta recently introduced Average Purchases Conversion Value, which is now a default metric. However, it might not show up in your Ads Manager, yet.

This is how to find it, if you have already have it:

6. Cart Abandonment Rate

Do users add items to their cart and then leave without purchasing?

Formula: 1 − (Purchases / Adds to Cart)

Format: Percentage

If cart abandonment is high, you might need to optimize your checkout process or offer incentives to complete the purchase.

A small discount, a gift or free shipping may prompt the user to finish the purchase and not leave products in the cart.

7. Checkout Abandonment Rate

Do users start the checkout process and then leave without completing it?

Formula: 1 − (Purchases / Checkouts Initiated)

Format: Percentage

A high checkout abandonment rate indicates a problem during the payment stage.

Some might be scared off by unexpected extra costs such as shipping, sales tax or other extra unforeseen costs.

Another problem could be that you payment methods are not attractive enough. Always offer as many payment methods you can.

Have after sales cash option, card payments, bank transfer, Paypal etc.

Fixing this can significantly boost your overall sales.

8. Drop-Off Rate

Do users exit your website before it fully loads after clicking on your ad?

Formula: 1 − (Landing Page Views / Unique Outbound Clicks)

Format: Percentage

This reveals if people are bouncing due to slow page load times or poor user experience.

A high drop-off rate can undermine your campaign, no matter how good your ads are.

Optimizing your page load time and user experience is crucial. Even a few seconds of delay can have a significant impact on your campaign’s effectiveness.

Conclusion

By leveraging these custom metrics, you’ll go beyond the surface-level data Meta provides and uncover the real impact of your ads.

Understanding how people engage with your ads and what happens on your website will help you optimize your campaigns for higher performance and more sales.

Don’t just take my word for it—implement at least one of these custom metrics in your next campaign and see the difference in your performance insights.

What other custom metrics do you use?