Which ads metrics are most important?
Let’s investigate…
CPC, CTR, and CPM
Is it Cost Per Click? If you prioritize CPC, you can manipulate it. Lower the cost by optimizing for link clicks or landing page views. Target the cheapest countries. But that obviously won’t help your bottom line.
Is it Click Through Rate? You can manipulate it in the same way. More clicks won’t necessarily lead to more conversions. In both the case of CPC and CTR, you can aim to improve these metrics, but there are far more important considerations.
Is it CPM? A high CPM can be challenging, but a low CPM doesn’t guarantee anything. You can send your advertising into a hell-spiral by obsessing over getting the CPM down.
All of these stats can look amazing by themselves without leading to meaningful results. They can be indicators of something going well or not, but they can easily lie, too.
The Reality
The most important metrics are those related to conversions and conversion value. Cost per purchase. Return on Ad Spend. But even then, these numbers can be inflated.
We’ve all seen it. If you don’t dig below the surface level conversion results, you can be especially misled by remarketing results and view-through conversions. Utilize the compare attribution settings feature to get an accurate view of these stats.
And if you’re focused on leads, look beyond Ads Manager. Your direct ad results won’t tell the whole story, especially if you have a long customer journey like I do. Follow the leads that come from ads through your funnel to determine their value.
CPC, CTR, and CPM aren’t completely worthless, but they are secondary metrics that reflect performance on a very surface level. Don’t ignore them, but they aren’t your guiding light, either.
