Which advertising metrics are the most important?
Let’s investigate…
CPC, CTR and CPM
Is it cost per click? If you prioritize CPC, you can manipulate it. Reduce costs by optimizing link clicks or landing page views. For the cheapest countries. But this obviously won’t help your bottom line.
Is it click rate? You can do it the same way. More clicks don’t necessarily lead to more conversions. In the case of CPC and CTR, you can aim to improve these metrics, but consider more important considerations.
Is it a CPM? A high CPM can be challenging, but a low CPM does not guarantee anything. You can send ads to hell by obsessing with CPM.
All of these statistics can look great on their own without resulting in meaningful results. They can be indicators of going well, but they can also be easily lying.
Reality
The most important indicators are those related to conversion and conversion value. Cost per purchase. Advertising expenses return. But even then, these numbers will be exaggerated.
We’ve all seen it. If you don’t dig out surface-level conversion results, you can be particularly misleading by remarketing results and watching conversions. Use the Comparative Attribution Settings feature to get an accurate view of these statistics.
And, if you focus on your leads, go beyond the advertising manager. Your direct advertising results won’t tell the whole story, especially if you’re having a long customer journey like me. Follow potential customers from ads to funnels to determine their value.
CPC, CTR, and CPM are not entirely worthless, but they are secondary indicators of performance reflecting surface level. Don’t ignore them, but they are not your guide light either.
Focus on what matters.
