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3 Performance Metrics To Concern For More Effective Advertising Campaigns

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Take a look at key metrics of performance to know how users engage with your ads. From that, take action to optimize your ads for more effective advertising campaigns.

  1. CTR

For digital marketers in general and Facebook marketers in particular, CTR (click-through rate) is a metrics that cannot be absent in any report. It shows the ratio of users who click on ads to the number of total users who see your ads.

CTR tells the story of the attractiveness of your ads. Do your creatives attract users? Is your image eye-catching? CTR answers these questions.

For high CTR, marketers should focus on targeting the right audience and show benefits of products. High CTR means more traffic and the conversion rate is more likely higher.

Why your CTR is low?

  • If your target audience is right, the message you deliver is not suitable with that audience, users cannot be drawn into your ads.
  • Wrong target audience: if you have a good ad creative and the audience is not relevant to the content, it is definite that CTR goes down.

 

  1. CPM

Have you ever feel frustrated or disappointed when your Facebook Ads campaigns do not drive results as expected?

It may result from low frequency or conversion rate and higher budget. When it happens, you should try new images, messages or audience.

Understanding CPM and how it works to deliver your Facebook ads is important for any marketers.

When you run Facebook Ads and pay for impressions, there are two issues to concern:

  • The more detailed the target audience is, the higher the CPM becomes.
  • Competitors also try to reach the same audience as yours.

Even experienced marketers sometimes miss these in analyzing ad performance.

When Facebook Ads cost you every day and results are not as expected, take a look at CPM change and marketers can decide whether ad creatives or target audience need to be adjusted or not.

 

  1. CPC

When you pay for impressions, CPC and CTR always go together. The relation between CPC and CTR clearly shows in the following example:

Your ad set budget is $20 with a CPM of $10. This means 2,000 impressions. When your ad drive 200 clicks and CTR equals 10%. So CPC is $0.1.

With the same budget, if your ad drives 400 clicks, CTR is 20% and CPC equals to $0.05. The higher the CTR is, the lower CPC becomes.

To optimize ad campaigns, three mentioned performance metrics are necessary to have an exact decision at the right time. How is your ads today? Do you have any problems with the report of these metrics? Tell us by leaving a comment in the box below.

eggflow Team

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