Clicks Are Vanity, Conversions Are Sanity

I'd be lying if I said that seeing a high click-through rate (CTR) didn't feel good. It's validating that the ad copy and creative we've worked so hard on resonates with the audience, but are the high CTRs truly driving your business forward?

Gemini AI says that there's an old saying that goes, "Vanity metrics are for show, but real metrics are for dough." I don't know if this is actually real, but it works here, so we're going to use it. In the world of PPC advertising, conversions are the dough – the actual results that matter are what move the needle for your bottom line.

Clicks Don't Guarantee Success (and Facebook Agrees)

Over the last several weeks, you may have seen the topic of high CTR and whether it's a metric we should optimize towards floating around. Yes, it's easy to get caught up in the excitement of seeing a high CTR, but before we start ordering extra celebratory tacos, consider this:

Facebook's internal data shows that 90% of people who saw an ad and then bought the product didn't click on it. ??

Nielsen's research reveals no significant correlation between CTR and ad recall, brand awareness, purchase intent, or ROI.

In other words, clicks don't necessarily translate into more memorable ads, better brand recognition, increased sales, or a higher return on your investment.

So, why are we still chasing clicks?

The question is fair. I think it's partly because they're easy to measure. A high CTR is a quick ego boost (heck, internally, we'll still sometimes celebrate it - it's a nice feeling). However, as the title of this month's newsletter states, "Clicks are vanity, conversions are sanity." Focusing on CTR can lead to optimizing for the wrong things.

The Case for Conversion Optimization

I must say that it feels a little weird having to make a case for conversion optimization over clicks because, for as long as I can remember, I have always been more focused on the bottom line for our clients at Hop Skip Media and in, general, my entire career; clicks haven't been a big focus.

Making the shift from focusing on clicks to conversions (the actions people take after clicking your ad, like making a purchase or filling out a form) is important for several reasons:

It aligns with your business goals: At the end of the day, we want our ads to drive results, not just clicks.

It reveals what's working (and what's not): With conversion tracking, we can see what ads, time of day, devices, locations, keywords, etc, are actually generating leads and sales.

It guides your optimization efforts: Because we can see what pieces of the campaign are generating the results we're looking for, it'll help guide our next optimization move.

Tips for Optimizing Conversions

Set Clear Goals: I want you to do two things here. First, determine what actions you want users to take that add to your bottom line (aka primary conversion). Second, determine what actions users take that lead to a primary conversion (aka secondary conversion).

Read more about the difference between primary & secondary conversions.

Refine Your Landing Pages: You've probably heard this one before, but please make sure they're relevant, user-friendly, and optimized for conversions. Add tools like Hotjar | by Contentsquare to your LPs to track how users navigate the page - it'll help you find any issues.

Test and Iterate: One size does not fit all; experiment with different ad copy, keywords, and targeting options to see what drives the most valuable actions.

Consider Alternative Metrics: Explore view-through conversions and other indirect impacts of your ads.

Remember, PPC isn't just about getting clicks; it's about achieving your business goals. By shifting your focus to conversion optimization, you can ensure that your ad campaigns deliver results.

Source: https://www.ianbarnard.ca/post/the-worst-social-media-metric-according-to-facebook