Running ads through an ad network can make a huge difference if you’re keeping an eye on the right numbers. It’s easy to launch a campaign and hope for the best, but hope won’t get you results. Tracking the right metrics ensures you’re not just spending money but actually making it back (and then some).
So, what should you be watching? Here are eight key metrics that will tell you whether your ad spend is working for you or if it’s time to tweak your strategy.
Table of Contents
1. Click-Through Rate (CTR)
CTR measures how many people see your ad on an ad network and decide to click on it. It’s a simple but powerful indicator of how well your ad is resonating with your audience.
A high CTR means your ad is relevant, engaging, and positioned well. A low CTR? It could mean your targeting is off, your ad creative isn’t compelling enough, or your call-to-action (CTA) isn’t strong.
How to Improve CTR:
- Test different headlines – Sometimes, a simple wording tweak can make a huge difference.
- Use high-quality visuals – Eye-catching images or videos will always grab attention.
- Refine your targeting – Make sure the right audience is seeing your ad.
2. Conversion Rate
Clicks are great, but they don’t mean much if they’re not turning into sales, sign-ups, or whatever action you want users to take. Your conversion rate tells you what percentage of people who click on your ad actually follow through.
If your conversion rate is low, the issue might not be your ad—it could be your landing page, the offer itself, or even the checkout process.
Ways to Boost Conversions:
- Ensure your landing page matches the ad’s message.
- Keep forms short and simple.
- Add social proof, like testimonials or trust badges.
3. Cost Per Click (CPC)
CPC is exactly what it sounds like—the amount you’re paying every time someone clicks on your ad. If your CPC is too high, it could mean you’re bidding too aggressively or that competition is driving up costs.
A high CPC isn’t necessarily bad—if your ads are converting well, paying more per click might still be worth it. The key is finding the balance between cost and return.
Ways to Lower CPC:
- Experiment with different bidding strategies. Sometimes, manual bidding works better than automatic.
- Refine your audience targeting. The more relevant your audience, the cheaper clicks tend to be.
- Improve your ad quality. Platforms like Google Ads reward high-quality ads with lower CPCs.
4. Return on Ad Spend (ROAS)
If there’s one metric you absolutely need to track, it’s ROAS—Return on Ad Spend. This tells you how much revenue you’re generating for every dollar spent on ads.
A ROAS of 3:1, for example, means you’re earning $3 for every $1 spent. If your ROAS is too low, you either need to reduce costs or improve conversions.
How to Improve ROAS:
- Adjust your targeting to focus on high-value customers.
- Optimize your sales funnel to increase conversion rates.
- Run A/B tests on different ad creatives to see what performs best.
5. Impression Share
Impression share tells you how often your ad is showing up compared to how often it could be showing up. If you’re missing out on impressions, it means you might not be bidding high enough or that your budget is limiting your reach.
How to Increase Impression Share:
- Raise your bids if you’re losing out to competitors.
- Increase your daily budget if your ads are hitting their cap too early.
- Improve ad relevance and quality score to earn more impressions for less money.
6. Quality Score (For Google Ads)
Google assigns a Quality Score to your ads based on factors like CTR, ad relevance, and landing page experience. A high Quality Score can reduce your CPC and improve your ad placements.
Ways to Improve Quality Score:
- Ensure your landing page is highly relevant to the ad.
- Use specific, well-researched keywords.
- Keep your ad copy engaging and clear.
7. Frequency (For Social Media Ads)
Frequency tells you how many times the same user sees your ad. If it’s too low, your audience might not be getting enough exposure to take action. If it’s too high, people might get tired of your ad and start ignoring it—or worse, get annoyed and hide it.
Best Practices for Ad Frequency:
- Keep frequency between 3-7 for most social media platforms.
- Refresh your creatives regularly to prevent ad fatigue.
- Test different audience segments to avoid overloading the same people.
8. Cost Per Acquisition (CPA)
CPA measures how much you’re spending to acquire a new customer. Unlike CPC, which just looks at clicks, CPA tells you what it actually costs to turn someone into a paying customer.
If your CPA is too high, you might be attracting the wrong audience, or your offer might not be compelling enough.
How to Lower CPA:
- Improve your landing page experience to increase conversions.
- Retarget users who have interacted with your brand but haven’t converted yet.
- Use lookalike audiences to find new customers who resemble your best existing ones.
Final Thoughts – Make Every Dollar Count
Running ads through an ad network isn’t just about setting a budget and hoping for the best. The right metrics will tell you exactly what’s working and what’s not, so you can optimize your campaigns for maximum return. Whether it’s improving your CTR, lowering your CPA, or boosting your ROAS, keeping a close eye on these eight key metrics will help you spend smarter and get better results.