How do you know how well your campaign is performing? Let's go over some basic elements you should be tracking.
- CTR (Click-Through Rate): The percentage of people who clicked your ad after seeing it. If 100 people saw your ad, and 10 clicked it, your CTR would be 10%.A higher CTR is better! That means more folks who see your ad are interested enough to click for more.
- CPC (Cost Per Click): How much money you pay each time someone clicks your ad. If you spent 1000THB and got 500 clicks, your CPC is 2THB (1000THB total spent / 500 clicks).You want a lower CPC so each click costs you less! That way your budget goes further.
- Conversion rate: This measures how many people take your desired action (make a purchase, sign up, book appointment,etc) out of total visitors. If you get 100 visitors and only 2 completed the desired action, your conversion rate is 2%
- CTR shows how compelling your ad is. A low CTR signals your creative or copy needs improvement to drive more clicks. A high CTR means your ad is resonating and attracting engagement.
- Conversion rate reveals how effectively your ad convinces visitors to complete the desired action. Higher conversion rate means more bookings/purchases/sign-ups for the same amount of spend.
- Monitoring CPC lets you know your average cost per click. Lower CPCs help your budget go further.
- Combine CPC and conversion rate to calculate cost per acquisition (CPA). For example, with a CPC of 2 THB, 100 clicks, and 5% conversion rate, you spent 200 THB total to get 10 conversions. That's 20 THB per acquisition. This metric helps you determine if your cost is a reasonable amount to spend to acquire new customers.
CTR (Click-Through Rate):
- Good: 2%+
- Average: 0.5% - 2%
- Needs Improvement: Below 0.5%
- Good: 2%+
- Average: 1-2%
- Needs Improvement: Below 1%
That's it for today! Hope you enjoyed this content. Follow for more tips - Tomorrow, i'll talk about 'Hooks' you can use to boost CTR on your ads!
