How do I interpret the figures of my ads?
Tips 'n tricks about the web, digital trends, and online marketing
Advertising on channels such as Google, Facebook, Instagram or LinkedIn is inevitable for businesses. But once your ads are live, the most important question often follows: "What do all these numbers actually mean?".
In this blog, we will explain to you how to interpret ad results step by step so you can make better decisions for your business.
First things first
First, let's go back to the basics. To analyse ads properly, it is important to know what all the terms mean. Below is an overview of the most important data.
- Range / reach
The number of individuals who see your ad. - Views / Impressions
How many times your ad has been shown. This can be several times per person. - Click-through rate (CTR)
The percentage of people who clicked on it after seeing your ad. - Cost per click (CPC)
How much you pay on average per click - Conversions
The number of desired actions. This is different for each goal: purchases, downloads, completed forms, ... - Cost per conversion / cost per result (CPR)
How much you pay per conversion achieved
What objective do I want to achieve?
To run your ads successfully, it is important to have a clear goal in mind. That way, you can analyse and adjust in a targeted way.
Possible objectives:
- More visibility? Focus on reach and views
- More traffic to website? Focus on click-through rate (CTR) and cost per click (CPC)
- More leads? Focus on number of conversions and cost per conversion (CPR)
What are the guidelines?
Ad performance is influenced by several factors, such as budget, target audience and ad objective. Below are general guidelines to watch out for.
Keep in mind that these figures vary by sector
- Reach
Ensure sufficient reach to effectively reach your target audience. Specific numbers depend on your budget and market size. Ideally, this goes upwards - Views
A high number of impressions does not always mean success; it is important to look at this figure in relation to interactions such as clicks and conversions. - Click-through rate
We consider a click-through ratio between 0.7% and 1.5% to be average. A click-through ratio of 1.5% to 3% or higher is considered good. - Cost per click
We aim to keep costs as low as possible. A good guideline for many markets is between β¬0.30 and β¬1.50 per click. - Conversions
The ratio of clicks to conversions is important. A conversion ratio between 2% and 5% is a good starting point. - Cost per conversions
The lower, the better. As long as the quality of leads or purchases remains good.
What goes wrong?
A common mistake is to look at figures in isolation. A low CPC is not automatically a good thing if your conversion rate is low. Say you attract a lot of visitors but no one fills in your form, then maybe your ad is not relevant or your landing page is not persuasive.
So look at the overall picture. Here are some examples of what can go wrong
- High CTR + low conversion = Probably wrong message or landing page.
- Low CTR + high conversion = Possibly bad ad, but good offer.
- Low CPC + high conversion cost = You attract cheap clicks, but not the right audience.
- High reach + low CTR = poor message or targeting
How can I optimise my ads?
A good campaign needs optimisation. By looking closely at your figures regularly, you will know where you need to make adjustments. Is your click-through rate low? Then it's probably in the ad itself. Are you getting lots of clicks but few conversions? Then the problem may lie with your target audience or landing page. And are costs rising? Then it's time to take a close look at your bidding strategy. Below you can see which elements you can steer on, depending on where the bottlenecks are.
- Ad text and visuals β improve if your CTR is low.
- Adjust targeting β if you have many clicks but few conversions.
- Landing page β improve if you have high traffic but low results.
- Bid strategy β adjust if your costs get too high.
Many companies jump to conclusions. An ad campaign often takes several days to get going. So look at the results over a period of several days rather than every day.
Conclusion
Numbers by themselves reveal little. It is only really valuable when you understand how these figures are connected and how they align with your goals. By looking at your data in a structured way, you can steer ever better and get more results from your ads. Many channels have a business suite (e.g. Meta) where you can find everything clearly, making this easier.
π Does this still seem too complicated to you? Feel free to contact with us and we will think with you.
π Funkhaus goes the extra mile for you
We are the all-in-one partner that takes care of everything: from creative web designs to technical optimisations and strategic content. You focus on your business, we take care of the rest.
π Vrijblijvende even kennismaken?
Send an email, or schedule an appointment right away!
What our partners say
Yassine Vansant
Wout and colleagues helped me build and professionalise our website. A few online contacts where he specifically asked for feedback and what was just important to me as a customer ensured that my website got a nice upgrade!
Thanks Wout and team Funkhaus!
Hans Kenis
Very nice collaboration. Great input and ideas with a beautifully finished website as the end result!
Peter Claes
I contacted Wout as part of a mini RFP where he came out on top in a selection of 13 competitors. He was not the cheapest but stood head and shoulders above the competition in terms of responsiveness, clarity, transparency, helpfulness and willingness to listen.
From the start of my project, it turned out to be precisely these qualities that ensured that every question, every suggestion and the countless times I changed my mind were calmly and openly met and resolved by Wout.
Each time, he managed to clarify my sometimes confused suggestions, offer some solutions and then, above all, implement them at lightning speed (even "on the spot" in some cases).
His communication is calm, friendly, never pedantic or unnecessarily complicated. He is approachable, always accessible and keeps his appointments.
He will also explain his views on certain decisions and frame them with the necessary diplomacy.
He kept me informed at every step of the progress he had made, the next steps and the actions I still needed to take myself.
And the result is a website that runs flawlessly and that I can be incredibly proud of. NPS 10/10.
Annelies Belsack
In our collaboration with Funkhaus, we took care of UNICHIR vzw's website.
Funkhaus was responsible for the web strategy and design, inspired by the new UNICHIR logo. They then technically elaborated this design into the brand new website.
DSC was responsible for the fundraising strategy and content.
They provided us with a handy custom WordPress template, allowing us to easily add content on the website ourselves. The template works very easily.
The job was completed to perfection. Their approach was structured and smooth.
Funkhaus is also very accessible for additional questions and goes that extra mile for its customers.
Your project is definitely in good hands with Funkhaus!
We are satisfied with the approach, the follow-up and, of course, the final result.
Thank you, Wout and the Funkhaus team, and we look forward to seeing you on the next project.
Kylie Mineo
Fantastic website builder with a lot of experience! It was very smooth cooperation and you can't ask anything too much of Wout to get everything to your liking. Highly recommended!
Niels Geenen
These guys definitely deserve 5 stars! good approach, good communication and beautiful design.
Definitely highly recommended!
Mara Bisceglia
What a top service!
Thanks Wout !
Johnny Spies
A conflict in our association's woocommerce shop was preventing payments from being processed. Wout from Funkhaus checked with us and managed to identify the problem.
Good party that works quickly and professionally and keeps in touch very well!
Chayenne Van Den Eynden
Very satisfied with the service , always in good order
Saar
The entire Eurowaste team would like to thank your team at Funkhaus for the smooth and professional cooperation. We currently have a fresh new website that works well. Thanks also for getting our 'socials' like LinkedIn in order.