Welcome to the next instalment in our series, where we explore and improve upon each metric within the User Conversion Journey that might be hindering your ad performance.
Till now, we have talked about CPM, CTR, Thumbstop ratio and hold rate, and in this week’s Baweja Buzz edition, we are going to talk about CPC.
Here are the links to all of them in case you want to revisit them
CPM: https://sannidhyabaweja.com/decreasing-the-cpm-of-your-facebook-ads-its-possible/
CTR: https://sannidhyabaweja.com/unlock-the-magic-behind-skyrocketing-your-ctr/
Thumbstop Ratio:
Part 1: https://sannidhyabaweja.com/29-reasons-why-your-video-ads-suck/
Part 2: https://sannidhyabaweja.com/66-ways-to-enhance-your-facebook-ads-thumbstop-ratio/
Hold Rate:
Part 1: https://sannidhyabaweja.com/improve-your-hold-rate-improve-your-meta-ads-roas/
Part 2: https://sannidhyabaweja.com/how-to-boost-your-facebook-ads-hold-rate/
Now, let’s unravel the intricacies of CPC and explore ways to optimize it.
But first, a quick maths reminder: CPC is essentially the division of CPM by CTR. Surprised? It’s simple when you think about it.
So, CPC is a dependent metric, hinging directly on CPM and inversely on CTR. Understanding this relationship is crucial because it means that to influence CPC, you need to focus on tweaking both CPM and CTR.
Now, you might ask, “If CPC is dependent, why include it in the User Conversion Journey?” Good question!
Focusing solely on either CPM or CTR can sometimes lead to neglecting the other, which can adversely affect your overall ad performance. For instance, improving CPM might inadvertently reduce CTR. That’s why keeping an eye on CPC is essential—it provides a balanced view of both metrics.
Also, it’s easier and less complex to monitor one metric (CPC) rather than juggling two (CPM and CTR). This approach saves time and simplifies early indicator analysis. If CPC seems off, dive deeper to identify whether CPM or CTR is the culprit.
To effectively use CPC as a benchmark, you should be familiar with your ad account’s historical performance data. If you’re new to this, head over to Statista or analyze your best-performing ad. Note down the metrics (CPM, CTR, Hold Rate, etc.) and use these as your standard for future ads. Continually update this benchmark with data from your new top-performing ads to consistently raise the bar and enhance your ad strategies.
Remember, while you can’t control CPC directly, you can manage the metrics that influence it. If you notice an unusually high CPC, investigate whether it’s due to CPM or CTR, and tailor your strategy accordingly.
Next week, we’ll explore Cost Per Landing Page View. Stay tuned for more valuable insights!