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what is a good click through rate for facebook ads

Published on: January 27 2023 by pipiads

What is a Good Click-Through Rate (CTR)? Average Click Through Rates for Google Ads and Facebook Ads

all right, what's up everyone. welcome to the Surfside PPC youtube channel. today's gonna be a pretty quick video. we're gonna be going over what is a good click-through rate. so it's a common question I get, especially for new advertisers, because you're not really sure you know what click-through rate you're trying to strive for. you know what impact click-through rate has on your ads, so I'm gonna try to go through that here. we're just gonna focus here on Google Ads search, Google Ads display and Facebook ads- so kind of a three biggest places where advertisers spend their money, the places where we have the most data. so we're gonna be sourcing a lot of data from a lot of different websites today. so, to get started, click through rate is the amount of clicks you receive on your ad divided by the number of impressions. so very simple, clicks divided by impressions will give you your click-through rate, which is a percentage. so if you get three clicks for every 100 impressions on your ad, then it's a three percent click-through rate. so pretty simple, very easy to to understand what it is and and how it kind of works. so the average click-through rate basically across entirely across the board. so for google search, the average click-through rate is one point nine one percent. for google display, the average click-through rate is zero point three, five percent and for facebook ads the average click-through rate is zero point nine one percent. we source this all from word stream- comm slash click-through rate. they have a ton of artikles on word stream. it's probably the best source of PPC, really everything. so if you're looking for anything to do with google adwords, if you looking for anything to do with facebook ads, they have a ton of content, a ton of resources and they're generally the best in the industry at creating content, in my opinion. so, coming down again from word stream, so google adwords, industry benchmarks. so this is where you can kind of see the average is one point nine one percent across the search Network and then 0.35% on the Display Network. this represents different industries and up top you can see what the search click-through rate is. the bottom you can see what the Google Display Network click-through rate is. so just taking ecommerce: here you can see for e-commerce the search click-through rate is one point six, six percent and display is zero point four or five percent. so if you're an e-commerce, that might be where you want to start. see, you know what your competitor average click-through rate is, and you really want to be above that. so if we look over here, this is dating and personal. so 3.40% on the search Network, 0.52% on the Display Network. so you want to be above that. the whole goal is to have a better click-through rate than your competitors because Google views that and they're gonna give you a better quality score. so that's really how that works. so next we're gonna look at Facebook advertising benchmarks. again, pull this from word stream com. you can see the URL up here if you want to, if you want to go directly to the artikle and see more about it. but you know, 0.9%, 0.91% is about the average click-through rate on facebook. and again you could look at the different industries here. so if you're in travel and hospitality it looks like it's about zero, about the average 0.9%, whereas if you're in legal it's very high at one point six, one percent. so on Facebook you have, you want to have a higher click-through rate because it helps with your relevancy score and I'll show you kind of a graph later where you can see really the impact that click-through rate has on your quality scores in Google ads and on your relevant scores and Facebook ads. and if you're not familiar with what quality score and relevance scores are. it's basically the way that Google is looking at your ads and they're taking in all the data of. you know this is what this ad looks like. this is the landing page. this is the audience it's going to. this is the ad copy and you know the image that you're using bait. you know whether it's a video image, anything like that. they're gonna look at all those different factors and basically give you a score and you're you're going up against competitors. so if you have the best you know landing page and legal, if you're targeting the perfect audience, if you have a great ad that people are responding to, then your relevancy score is gonna continue to increase, an increase. so for my click-through rate goals, this is generally kind of a minimum for, at least for search and Facebook ads. so for Google Display, I don't focus on click-through rate really that much. I really just focus on my conversion rate and Google Display, cuz it can really vary sometimes. if you're seeing good results and you have a 1% click-through rate, that really doesn't matter. I think I just try to look for, you know, 0.35% to 0.55- 5% because it's showing you know, people are seeing your ad and interacting with it. if you're above the 0.35 percent, that means you're above average, which generally helps with your quality scores on Display Network as well. so Facebook Ads: same thing. I want to be above average, at least 1%. if you can get this as high as possible, you'll see how important it is, you know, to get your click-through rate up. Google search: I've had clients with click-through rates above 12% and then I've seen in larger accounts with click-through rates right around 3- 3.5%. that performed very well. so it really depends on what you're targeting. you know what your keywords are. ultimately, what you want to do is let your quality scores guide you. so if you're seeing, hey, here's a set of 10 keywords where I have lower quality scores, here's a set of 10 keywords where I have, you know, quality score of 8 or above, what you want to do is try to optimize for those lower quality scores and then, you know, see if there's any opportunities with some of those higher quality scores. make sure that your conversions are matching that. so, coming down, a couple more things. so this: here is another graph from word stream that shows the impact your click-through rate has on quality score and kind of really the. you know how they kind of meld together. so you can see, here, a higher click-through rate generally means a higher quality score. so you really want to be kind of above this red line in this area here, because it's showing, hey, if you're above 8, I mean my goals is generally. so I looked at 7%, over at 7 for a quality score and 3% here. so 3% is about here, up to 7. so that's fine. right here, what you want to be is really in a high quality score or high click-through rate. so you want to be above this line. but you know, ultimately if you're a little bit below the line and you're still driving great results, it might, it might present an area of opportunity for you. or you can say: ok, you know, if I improve my quality scores a little bit, I can probably improve my click-through rates a little bit and therefore lower my costs. the whole point of increasing your click-through rate is because it tells Google, it tells Facebook: hey, this is a relevant campaign, it's organized and it it will help lower your costs over time, because Google wants to deliver the best results for you. they want to deliver the best results for people who are searching, because that helps Google. so if we keep going down here. we're gonna look at Facebook Ads. you can see here. so a relevant score of 1 has a very high cost per click and you could just see a huge drop all the way down to 2 for cost per click and it continues. good to go down and showing you. if you have a relevant score of 10, which is it's pretty hard to do- you're gonna have a very hike. it means you generally have a very high click-through rate- almost 8%, which is pretty ridiculous- and you're gonna have a very low cost per click because Facebook is going to deliver on a CPM basis. so if you have a higher click-through rate and you're getting more clicks, they're not charging you for each individual click, you're just getting charged for.

How To Improve CTR on Facebook & TikTok Ads (2022)

hi guys, welcome to another video. uh, now, first of all, I have to apologize because it's actually been a few months since my first YouTube video, on my last YouTube video, uh, but there is a very solid reason behind it why I didn't upload. basically, after I uploaded that video, um, I got into very serious health conditions. I actually ended up in the hospital for a while. I had to stay for at least a month, uh, in bed in the hospitals, had to go back, go back to home to the hospital again, and the reason to that was I got caught for covid for the second time. it wasn't even my first time for the second time, but this time it was incredibly severe for me and apparently it caused some stuff with my lungs and apparently there's something going on with my lunch for over a year that I didn't even know that I had. so we basically found out a few health conditions that I have and basically I was very, very bad when it came to my health overall and I was literally just not in a state to record new YouTube video. so that's the reason why I couldn't upload. so I really sincerely apologize for that, for not uploading, and besides that, I have to thank everyone that went ahead and watched my first YouTube video because it literally exploded. it got close to 10 000 views. I got so many subscribers having so many positive comments from you guys and I really appreciate that from the bottom of my heart. so, yeah, I hope you guys enjoyed this video. uh, this video will go about click-through rate, why it's important and why you need to focus on click to rate and what you can do to improve it in order to get better results with your Facebook ads or, you know, any paid ads. essentially all right. so, yeah, let's get straight into the video. [Music]. okay, so this video will be separated in two parts. so part one will be me explaining why click-through rate is so important and why I need to focus on it, and part two of this video will be, uh, me showing you guys examples and ways to improve your click2 rate. alright, so I put a little scenario here. um, so let's say you will need Thomas brand with a budget of 50 000 bucks a month and we have a average order value of forty dollars and we have a store conversion rate of two percent. right, I'm gonna use very generic numbers here, so let me pick up my pencil here. so let's say we have a ten dollar CPM, right, which is, you know, very average right. it's. it's not the best, it's not bad, it's, it's, it's all right, right. and let's say we have a 1.5 click to rate. what this means is that we actually are getting 15 clicks. now how do I know that we're getting 15 clicks? because this 1.5 percent is a percentage of the cost per thousand impression. so, obviously, 1.5 percent of a thousand is 15 clicks. so we're getting 15 clicks and in order to calculate our cost per click, all we need to do is divide, you know, our total ad cost by the amount of clicks that we got. so that is 10 divided by 15.. all right, so that is basically 10 divided by 15.. it's 0.66, 0.66, but this is basically, uh, our cost per click right now. so we know that, and previously I told you we have a store conversion rate of two percent, meaning we need to get 50 people on a website in order to get a purchase right. so what I'm I'm going to do is I'm going to do 50 times 0.66, because that's our cost per click, to get one person on the website. and that is 50 times 0.66, that is 33 euros or dollars. I'll refer that dollar in this video. right, so we're paying 33 in order to acquire One customer, right, and we have an average order value of 40 dollars. right, so our row as, basically, is 40 divided by 33.. which I believe is something around 1.2. 40 dividing by 33 is 1.21- 1.21. so that's our row as. so if we spend 50 000 on paid ads, all right, let's say this is 50 000.. by the way, sorry for my terrible handwriting, but I need you to bear with me. 50 000 times 1.21, right, so we're getting 50 000 times 1.21. we're getting sixty thousand five hundred dollars back with our fifty thousand spell, which is not that great because obviously, you know, the average break-even row, as that I've seen in the past, is always been around 1.8. that's really the average that I've seen. so 1.7, 1.8. so, obviously, if you were an e-comms brand and you're doing 1.2 row, as you know, this is not, you know, good statistiks to have, right, so it's very important to listen carefully right now. so we have a 1.21 rise, which is not good, which you know. this means we're not making any profit right now. so what I'm gonna do is I'm gonna remove some, some parts here, so I'll remove this here or remove this. I'll remove this as well, and I'm gonna remove this as well. I'll remove this as well. all right, so listen carefully. so let's say, actually, I need to remove this as well. so, uh, let's say, instead of having 1.5 click-through rate, uh, we actually have a three percent click to rate, which is actually, you know, very realistik, right, you know, three percent is nothing crazy. we've seen, you know, click-through rates as high as 12 in the past, right? so three percent is definitely a very good click-through rate that you can maintain for the long run, right? so let's say we have a two percent click to rate. this means we're getting 30 clicks this time instead of getting 15 clicks, right. and this also means our cost per click is 10 divided by 30. that's 0.33. so 0.33, that's your cost per click. right? look what instantly happened. so, instead of having 0.66 cost per click, we now have a 0.33. so half of it, right. and same goes for a cost per acquisition. so, remember, we had a soil conversion rate of two percent. so we need 50 people on a website and our cost per click is 33 cents. or 50 times 33 cents, that is, 50 times three, that is 16.5, 16.5. so instead of having a 33 dollar cost per acquisition, now we have a 16.5 cars per acquisition, right? this instantly means that we have a row as of 40 dividing by 16.5. [Music]: 40 dividing 16.5- a 2.4 OS. so if you were to spend 50 000, now right, and we have a 2.4 row, as- which is actually palpable for almost every brand, unless you have terrible backend numbers- so 50 000 times 2.4, you're making 120 back. oh, you're making 120 000 back. so look at the change, look at the difference with before and now. so the only difference, uh, the only difference that we made now is just the collector array. just by changing the collector rate, we went from spending 50 000 bucks on paid ads and receiving 60 500 back with a 1.2 row ads, to spending 50 000 and getting a 2.4 raw as back and receiving 120 000.. so it's literally double the amount that you're getting back. so it's very important that you need to focus on your collector right. right, because this alone proves to you that you, that you can get much more out of your squeeze when running paid ads. obviously, the most important metric when running ads is the row ads. that's the most important metric. but in order to improve your OS, you need to have better cost per acquisition. in order to improve your cost per acquisition, you need to have better cost per click, and in order to improve your cost per click, you need to have good click-through rate and also a decent CPM as well. so it all starts when you click your writing. you know I hate when every one is worrying about the tiknical side of things, but you know, in reality, their advert is just totally terrible, right? so you'd really need to have a look at your creatives, how you make them, etc. etc. because it's crucial if you want to make profit and if you also want to remain profitable and also if you want to scale as well. alright, so definitely have a look at that, and I'm sure that you now have an understanding of why the click2r rate is so important, right? so let's get straight to the second part of the video, all right? so the moment that you guys been waiting for: how to improve the click-through rate. so, as you can see, we have here the customer Avatar development. this is basically what I use at my marketing agency for our clients to make sure that we have every single information that we need before we go to the market right. so basically the first three seconds o.

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What is a Good Cost Per Click? Facebook Ads for Beginners 2021

so a common question we get on the channel are things like: what is a good cost per click? it's a very common metric using like facebook advertising or any other native advertising platform. um, it's very good to understand how- not just what it is, but also what's a good one and how you can leverage it to make better decisions in your business. so let's dive into all about cost per click. [Music]. okay, so at the root of it, right, cost per click is pretty simple. it's just the number of clicks you got divided by the amount of money you spent to get those clicks right. so if i spent 100 bucks in a day and i got 10 clicks, that's a 10 cpc or cost per click. okay, now we know what it is, but how can you actually use it? well, it's tough, right. if we look at what is a good cost per click, a common average that gets quoted around a lot for like the entire web in advertising is like two dollars and fifty cents is an average cost per click. now, we know average doesn't equal good and also averages are pretty murky, right. that's kind of like knowing i googled this right- like the average age of living humans is 32 years old- like it's really only useful if you're tracking a very long data trend and are interested in to see, like our ad costs going up or down across the web. so it's pretty murky, but i always hate the answers like it depends on your niche but it really does. right, like if you're a lawyer, right, or kind of going after clients that are big spenders or things like that, your cost per click is probably gonna be pretty high compared to most people. i know in like google search, for example, there's terms that can determine like, uh, let's say, 90 or more per click, right, imagine the lifetime value that those conversions have to drive from those clicks for that to back out. well, and people pay that because they know that a customer clicking on that type of term is going to be worth tens of thousands of hundreds of thousands of dollars potentially. right, so they might be spending an exorbitant amount per click compared to most people, but it's all relative to the average price, their conversions, the lifetime value of the customer and all this kind of stuff. so it's all relative, but it's important to understand how you can actually use that. let's just explore how cost per click kind of works, right, it's a indicator of a few things. obviously it's pretty simple: clicks divided by money spent is what you get. but it's more than that. it goes hand in hand with click through rate of the ad, right, if you're looking at the percentage of people clicking based on the impressions you're getting, that's your click-through rate. and if so, the better your ad creative is, the more engaging the images are, the better the headlines are written and the copy underneath and all this, anything that goes into that ad, the better that performs, the lower your cost per click goes, the further your money's going on those campaigns you're driving, right. so it's hand in hand with click through rate. um, it's also hand in hand with the competitiveness of the niche. you know, going back to those ninety dollar cost cpcs, they're that high because it's very competitive. those customers searching for those types of terms or those kind of things are very valuable. that's why those- it's a bid right. that's why it goes that high. so it's very relative to the competitive nature of the platform you're on or advertising on the niche you're advertising to the target audience you're trying to get in front of. all those things factor into how much you're paying per click. so if you're getting a very low cpc right, let's say, under a dollar. that would be. you know, in our space, in the direct response space, a dollar would be a pretty high cost per click, honestly. um, it's probably creeping up on some platforms. but let's say you're getting like 10 cent cpcs or even cheaper than that, right, um, you're probably in a fairly broad target audience. you're probably in a fairly- it might be- a competitive niche. you might just have really good creatives and you're kind of able to get a low cpc based on ad engagement and kind of maybe some social leverage there and things like that and drives the cpc down. but what is it actually doing? um, and it's important to understand this, because knowing if something's good or bad is relative to your campaign, your baseline, but if you're new, you don't have a baseline to your ad campaigns. it's hard. that's why mentorship can be so good. when i was running ads a few years ago- right, i was working on facebook to run ads to a digital weight loss offer- the mentor i was working with was quoting: like hey, you want to be targeting less than 30 cpcs- really less than 10 cents. if you can do it, the converting campaigns i got were around a 9 cent cpc on facebook, which seems pretty low to facebook now. but we're able to do it because we're targeting a very broad niche with very engaging image copy and really just trying to drive interest clicks to the warm-up campaign and landers eventually to the offer. so we were just trying to optimize for the best click-through rate we could to get a very low cpc. now the cpc again is just a metric of how far our dollars are going on those campaigns to actually generate those clicks. but let's dig into, like an example: right, if you've got a campaign rolling at, say, 30 cent cpcs and it's been performing well, you're profitable on it, all of a sudden you start to see cpcs climb up and creep up. what are you going to do with that information? right? and that's kind of where this making process of cost per click comes into play. if you see, if you see cpc creeping up, the first thing i would do is look at my click-through rate. is that holding steady or is that diminishing? if the click-through rate of the campaigns is diminishing and cpc is going up, it's probably because my ad creative or the audience is getting fatigued by that type of creative, right? maybe it's been scaled and everyone's seen it. maybe another affiliate has kind of copied my ad creative and it's kind of disseminating where i'm not actually doing it, but it's getting out to the marketplace in general and reducing the effect of effectiveness of it. maybe my target audience was too narrow. okay, if it's too narrow, i might have fatigued it much faster than if i was going very broad, right. so maybe i just need to kind of duplicate my campaign to a new target segment or niche or whatever it might be, or traffic source, um, and maybe it'll kind of: cpc will come down, click through rates will hold steady and i'm back to the races and i'm more profitable, right. so that's what i started asking. if click-through rates are still good, um, and it doesn't look like it's a target audience issue, but cpc is still creeping up, i'll start asking the affiliate managers i'm working with on the offers, or asking my colleagues or mentors like: hey, are you seeing cpcs creeping up? what's kind of happening here? this type of chatter happens a lot in the different facebook groups i'm in and just across different affiliates chatting with each other. it's like: yeah, man, last week was brutal, cbc's went up the roof, but through the roof, um, or no, like i'm fine, i don't know what's going on with you right, so it can help you start to problem solve where the issue might be. and let's let's go into story time for a second here. um, it's important to kind of look at the whole ecosystem sometimes because that can often dictate cpc in a big way. so if we go to the summer of 2020, there's a lot of social unrest. facebook was under a lot of scrutiny for kind of disseminating fake news or not locking down on some like racist kind of terms and things like that. and some big ad buyers on facebook- big brands- essentially boycotted facebook and pulled their ad spend off of facebook. now what does that do? it creates a vacuum. it creates less demand for those spots, so it drives the cost of running ads on facebook down right. there's less people paying for it, so it drives it down. it's a supply and demand. you know kind of visible hand theory coming into.

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Facebook Ads with Low Clickthrough Rate (CTR) - What to Fix? (FB Ads Optimization Tutorial)

this is a question that i received from my community. so, uh, it says: because when it comes to facebook advertising, metric analysis, as in, like you know, when it comes to facebook ads manager, you know there are tons of metrics, but a lot of people will have different school of thought in terms of what kind of metrics that you want to monitor. but one of the key metrics that i monitor is ctr, which is click-through rate. so basically, we have two sets of two types of ctr, fundamentally two types. one is ctr all all means. you know, because when it comes to facebook advertising, there are many things that you can click right. so you can click on the, the like button, you can click on the image, you can click on the video, you can click on command. you know there are many things to click. so your ctr all means your advertisement is getting actions. now the other ctr is ctr link click through, which is fundamentally on the call to action. so my indicator of you know at least a stable campaign is your ctr, or should be at least above two, meaning that at least you know it's kind of like, at least people are interested in playing the video or what not right, and your ctr link click through. my benchmark is one percent, so if you have relatively lower both ctr, then that could be an early indicator that your advertisement itself, your creative, is not getting interest among the audience. so you see, like i say, there are three main pillars that makes a good facebook ads right. so it has to be able to send the right message to the right people to get the right action. so the right people- i will. i will assume that you really know who are the people that you need to target in order to get the right people into the fund, because i assume that you have been doing your business for a while, so this is a no question. and i assume that you understand how to choose the right objective, meaning that, when it comes to facebook ads, there are 11 objectives right. so we all know that traffic and conversion are totally different thing and engagement and video view are doing different things. so you need to understand this part, which, during my six day challenge also, i will spend one day to tok about this. so if you understand your objective and you understand your audiences, i would say that then it could be an elderly indicator that your creative is not working. so you need to investigate. you need to tell me that. are you confident on these two? if you are, then let's look at improving your creative. when we are doing improvisation or optimization of a campaign, we optimize one variable at a time. usually we don't do like you know, i change the creative at the same time i change the audience, because that would not be able to giving you, to give you the, the hypothesis- whether is that the right factor that is affecting the effectiveness of the campaign? that's why, yeah so, but thanks for the question. for this, i would say: first thing, investigate. if your audience targeting and your objective is the correct one, is this: to optimize the right action that you should be targeting and the right people that you should be targeting, then, if everything is good, then we start investigating from the creative, which we will tweak, or we will, you know, just use another one to test. and when we test, of course we have another way of optimizing: whether, how long do we observe? and all that right, but anyway, that's where we start creating. first, you should start looking at your creative.

What's considered a good click through rate on Facebook Ads Vs. Google Ads?

[Music]. what's considered a good click-through rate on google versus facebook? google ads and facebook advertising are two very different platforms, but when you're advertising on both, it's tempting to compare metrics to see which is performing better. here's a quick overview on why you should be very careful about comparing the two and what kind of results you should be expecting from each. so one of the metrics we like to track to gauge whether an ad is resonating with our audience is the click-through rate, or ctr. this is essentially the number of clicks divided by the number of impressions or views your ad receives. it's a metric we'd want to see being improved over time. now there's lots of things that can affect your click-through rate, for example, your industry, your audience, your product or service that you're selling, your ad messaging devices, the locations you're targeting, etc. so it's important to look at benchmarks that are comparable with your industry and your targeting. but there's a few key things you need to understand before assessing click-through rate on each platform. let's look at google ads and click-through rate. the way google measures click-through rate is simply the number of clicks divided by the number of impressions, with a click being when someone clicks on your advert. in most cases, this click will result in a visit to your website if you are running search, display or shopping campaigns. google ads average click-through rate across all industries is 1.91, according to word stream, but it can be as high as six percent for some sectors such as online dating. that said, we've worked on accounts with uh 10 average click-through rate, so don't settle on 1.91, thinking that's your benchmark. anything's possible with a bit of fine-tuning. search versus display and click-through rate. if you're advertising on both the search and display network, you'll notike a big difference in your click-through rates. don't worry, this is normal. we'd expect to see the click-through rate on the search network considerably higher than campaigns on the display network. this is usually down to the fact that display campaigns are essentially banner ads that appear on other websites. they're not linked to an active search for a product or service. they can be shown at any time to your audience whilst they're browsing the internet, so there's a good chance that they'll get ignored. search campaigns, on the other hand, only appear when someone is actively searching for your product or service, so you know when they're interested in what your ad is offering, increasing the chances of a click. we'd always expect click-through rate on search campaigns to be above one percent, but that can often be difficult to achieve on a display campaign, and the same with shopping campaigns too. let's look at facebook ads and click through rate. according to word stream, the average click-through rate across all industries is 0.9, so considerably lower than google ads. so why is this? well, there's a few reasons, but the nature of the platform and the targeting have a lot to do with it. facebook isn't a search engine. its job is to connect people and communities, so adverts are not what users are looking for. in fact, your advert is likely to be getting in the way of what they were doing on facebook in the first place. so responses to ads can be par compared to google ads. another key thing to be aware of with facebook is its definition of a click. whilst with google we can assume a click is a visit to a website, ie you're paying for the traffic to your site, with facebook we're often paying for engagement on their platform instead, which isn't always as valuable to us as an advertiser. facebook has two metrics to be aware of. that you'll see in your reports: link clicks and clicks. all these are two very different metrics not to be confused. so here's how facebook explain the difference. firstly, link clicks. these can be clicks on an image or a call to action button within an ad that uses the traffic objective. there can be clicks on a url link in the text description of an ad. it can be clicks on an on ad format that takes someone into a full screen experience, such as lead forms, canvas and collection, or they can be clicks to a website and app stores directly from links in the ad. on the news feed clicks. all, on the other hand, includes link clicks, as all of the above plus post likes, comments and shares, clicks to a facebook page or instagram profile, or clicks to expand a photo or video to full screen. so how valuable these metrics are will depend on the campaign objective you have set. so bear this in mind when viewing your reports. in summary, what click-through rate should you expect from your google and facebook ad campaigns? the answer is always going to be: it depends, but hopefully you're now clearer on some of the benchmarks to use and how to understand how each platform reports and defines clicks. hope you found this video useful. be sure to check out the links in the description below. visit our blog for more content, sign up to our list and get that content delivered direct to your inbox. don't forget to check out the skittish academy for more training on how to use digital marketing to generate leads for your business. until next time, keep marketing.

Facebook Advertising For Beginners — Why The Click Through Rate Doesn't Matter | #199

today's question comes from video Channel. today, who is asking what is a good click-through rate using facebook? ass? welcome to the Till Waddell a show where I show you how to create the freedom and lifestyle you truly desire. tune in every day and get real-life strategies to grow your own business, pack your life and get more done in less time. subscribe to the show and add Kilwa dela on snapchat. the answer is: I don't know, and the reason why is because click-through rates are irrelevant. they simply don't matter. in advertising. now they do matter a little bit because if your click-through rate is too low, it means that usually the ad platform will stop serving your ad because it means it's not relevant enough. sometimes a higher click-through rate will result in more reach, which is a good thing, but for you, for your metrics, for your business, click-through rates are totally irrelevant. don't get obsessed with the click-through rate. it's a metric that matters more to advertising platforms like Facebook and Google AdWords, simply because for them it matters how many people click, how relevant your ad is in their eyes, but for you it doesn't really matter. what matters for us, do people buy right things like: how much money are you making per click? that's a metric called earnings per click. what's your earnings per click? that's an interesting metric. for you not what is the percentage of people that sees your ad and clicks? for you, those numbers don't really matter because they aren't focused on the ROI or on the revenue. you need to focus on the ROI metrics, okay, and that starts with the cost per click. you want to know your cost per click. you want to know your earnings per click. that way, you can quickly determine if you're making profit or not. if you're generating leads, you're gonna know your opt-in cost. if you are sending people straight to a crowd Paige, you want to know your cost per add to cart', your cost per purchase and stuff like that, and then you can easily determine if your ad is profitable. and if it is profitable, you can scale it up and you can keep measuring its profitability with these metrics, and then everything's fine. that's all you have to know. in fact, the click-through rate is so irrelevant that I recommend getting rid of it in your ad manager. that's what I did right in the Facebook ad manager. you can basically choose which columns you want to show, which metrics you want to display, and you can do this, by the way, by clicking on customize columns- I think that's what it's called- and then you can select all the metrics you want to show. and the first thing I do when I run ads for a new client or ads for myself, I go and customize the columns and I get rid of useless metrics like the click-through rate. it's the first thing I get rid of. the second thing I get rid of at the very beginning is the general cost per click. now Facebook has to click metrics. one of them is the cost per click for the link, and it's called CPC link, and the other one is the general cost per click, which also shows you any clicks that were made on images in your ad or clicks to your Facebook page and stuff like that, and those are irrelevant clicks. it doesn't matter for your business. it's a stupid metric that Facebook Likes, obviously because it makes you feel great as an advertiser. it means you got all these clicks and your cost per click is so low, but people didn't actually click on the link. they click on the image in your ad, they clicked on your Facebook page and stuff like that, and that doesn't matter to you. what you want is people clicking to the website and then buying stuff. so that's another metric that's irrelevant: the general CPC click-through rates. there's a ton of metrics you don't really need to pay attention to that Facebook prominently displays because those metrics matter to Facebook, okay, but you, as an advertiser, you need to focus on what matters to you and that is, as I said, ROI, your revenue, how much money you are making, your earnings per click, and so forth. so focus on what matters and completely eliminate these unnecessary metrics from your attention, from your awareness. they're simply not needed. that's why I don't know what a good click-through rate is on Facebook. I simply don't know. I don't even see that metric because I got rid of it. make sure you don't get lost in these arbitrary metrics that Facebook presents prominently that don't really matter for your business.