Alright, let’s get real—Meta ads are packed with more metrics than you could ever need. If you’ve ever felt like you’re drowning in a sea of ROAS, CPC, CTR, CPM, and all those other acronyms, you’re not alone. But here’s the thing: not every metric matters equally. Some metrics are pure gold for your small business, and others? Well, let’s just say they’re better left ignored.
So, here’s a breakdown of what metrics actually deserve your attention and which ones you can happily forget about.
The Metrics That Matter
Return on Ad Spend (ROAS)
Let’s kick it off with the big one. ROAS is the holy grail metric, showing you exactly how much return you’re getting for every dollar spent. If you’re spending $1 on ads and making $5 in return, that’s a 5x ROAS—and a good sign you’re on the right track! Just remember, it’s not just about having a high ROAS. Make sure it’s profitable within your specific margins. After all, one business’s gold mine could be another’s break-even point – I once had a client that needed a 30x ROAS to be profitable, and that is not a typo. Work out your profitability point and don’t worry about what everyone else is getting.
Cost per Purchase (CPP)
How much does it actually cost to get someone to buy? Your CPP is critical because it gives you a clear idea of how much you’re spending to convert each customer. This is especially useful when you’re scaling because it helps you see if increasing your ad budget is actually sustainable. Use this in tangent with your ROAS – together they tell the real story.
Click-Through Rate (CTR)
CTR tells you if people are actually engaging with your ad. It’s like a thumbs-up from the audience, indicating they’re interested enough to learn more. A low CTR? It could mean your creative needs work, or maybe your offer isn’t resonating. But a high CTR with no conversions? That’s a signal you might have a disconnect between your ad and landing page. Just make sure you’re using the (link-clicks version – the other one is useless! It tracks is someone hid your ad, or clicked see more, you only want to know if people clicked with the intent to shop)
Frequency
How often is the same person seeing your ad? A frequency between 1 and 3 is generally good for most campaigns, but once you’re hitting a 6 or 7? That’s a sign of ad fatigue or small audiences, and it’s time to freshen things up. A high frequency can annoy your audience and waste ad dollars on people who just aren’t converting.
Landing Page Views and Drop-off Metrics
Landing Page Views, View Content, Add to Cart, and Initiate Checkout metrics are like breadcrumbs showing where potential customers might be dropping off. If you’re seeing a big drop between Landing Page Views and View Content, it could mean there’s an issue with your page’s load time or messaging. A gap between View Content and Add to Cart might indicate hesitation around product details or price, while a high number of Adds to Cart with low Initiate Checkout actions often points to friction in your checkout process (think shipping costs or unexpected fees or a clunky check out). By following these steps, you can identify exactly where people lose interest and make targeted adjustments that keep them moving toward purchase.
The “Nice to Know” Metrics
Cost per Thousand Impressions (CPM)
CPM shows how much it costs to reach 1,000 people, which can give you an idea of your ad’s competitiveness. But focusing on CPM alone won’t necessarily lead to profitable campaigns. It’s a good number to note in high-level analysis, though as it can indicate problems. Either crazy high competition like in the lead up to Black Friday or poor audience targeting. All of which you’d want to work on resolving – $20-30 is a good bench mark for most eCommerce brands (but does differ by industry and time of year).
Cost per Click (CPC)
CPC is often treated like a gold standard for evaluating ad costs, but it’s important to remember that a low CPC doesn’t guarantee sales. You could have the lowest CPC in the world, but if those clicks don’t convert? It’s wasted money. Focus on cost per purchase instead; that’s the metric that actually affects your bottom line. But keep an eye on it, if it gets too high – somethings up.
The Ones You Can Ignore (Most of the Time)
Video View Metrics
Unless you’re running a video-focused campaign, metrics like 3-second views or video percentage watched don’t usually offer much insight. These can be nice to track if you’re testing video length or format, but they’re not essential for ad campaigns focused on sales or conversions.
Impressions
Impressions show how often your ad has been displayed, which can be helpful to gauge reach but isn’t super actionable on its own. It’s more useful for brand awareness campaigns or if you’re trying to measure visibility. But for conversion-focused campaigns? Don’t spend too much time here.
Engagement Rate
Likes, comments, and shares are nice, don’t get me wrong. But unless these engagements are leading to sales, don’t let this metric drive your strategy. If you’re a small business, a funny comment is nice but ROAS pays the bills. Engagement is a plus, but it’s not the whole game.
Reach
Reach like impressions can be helpful for awareness, especially if you’re introducing a new product or brand. But it’s one of those “broad strokes” metrics that doesn’t tell you much about who’s actually taking action. It’s nice to see, but it won’t tell you much about the quality of your traffic.
Not every metric in your Meta ads dashboard deserves your attention. ROAS, CPP, and CTR are your best friends for tracking profitability and engagement, while impressions and reach are just passing acquaintances. So next time you’re tempted to obsess over every little number, step back, refocus, and stick with the metrics that actually drive results.
Need help cutting through the clutter and focusing on what matters? Book a Free Strategy Session with me, and let’s make sense of your metrics! Happy analysing!
