What Your Goal CPC and CTR Should Be
Do you look at your ad metrics and feel more like you’re in an advanced calculus class? Wonder if your data is considered successful and how it stacks up to others? What’s considered a good cost per click (CPC) or click through rate (CTR)? It’s natural to wonder what your competitors’ numbers look like and how you compare, but don’t worry. I’m here to fill you in on a simple measuring rule I like to use to determine if my clients’ ads are doing well.
I like to use what is referred to as the “Rule of Ones”. What’s that? It’s a simple rule I stick to when looking at my Facebook ad results. I like my CPC to be under $1 and my CTR to be over 1%. That’s a very rough and generic way that I can quickly determine if my ads are doing well.
If your numbers reflect the Rule of Ones, then you’re actually doing a pretty decent job. Pat yourself on the back! The average CTR (click-through-rate) in the US is just under 1%. So out of every 100 people who see your ad, about 1 person will actually click-through on your ad.
The CTR I am referring to only refers to the actual link clicks, not the total clicks, which will be much higher. So when you go to check your results, make sure you find the CTR (link) option. Why do overall clicks not matter as much as your link clicks? It’s because you shouldn’t worry too much about people clicking on different areas of your ad. You just want to focus on how many people clicked the link to get to your website.
The average CPC (cost-per-click) rate in the US is over a $1 at $1.72, so if your CPC is under $1, then you are doing a great job! If your CPC is getting up to $2, you need to reevaluate your ad and see what might be going on. Remember, just because your CPC is low doesn’t necessarily mean you are getting quality traffic. For example, CPC will be lower in countries outside of the US, Canada, and Australia where Facebook ads are less expensive to run. CPC will also be cheaper if you are running a traffic campaign vs. a conversions campaign. So keep in mind that CPC is just one piece of the overall data puzzle that can help relay to you the health of your ads.
It’s really important that you are looking at the right numbers. I can’t stress it enough. Make sure you are looking at the CPC and CTR for the link, not the overall CPC and CTR since those numbers will be more favorable, but not an accurate measurement of the health of your ads and the Rule of Ones.
There are lots of other great metrics you can also look at that are extremely important for measuring your ad performance like your relevancy score, conversion rate, and ROA.
But for this video, remember the Rule of Ones when measuring your CTR and CPC metrics.
Have you had success with using the Rule of Ones? Share your CTR and CPC below for your best performing ads!
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