Here are several scenarios you might experience while running your ad campaigns and these are the observations I have made from my experience of running several hundreds of both failed, successful campaigns and also from top sellers.
Low CTRs (<1%) – not a good creative or we are targeting wrong audience
High CPM – Try out a different audience.
CPC (Link) – Less than Rs. 10 is good.
CPC (All) – Less than Rs. 4 is good.
For PPE Ads:
The number of link clicks you have received divided by the number of impressions.
<5% - not so appealing creative or you are targeting wrong audiences
>5% - Good creative, Right Audience
> 20% - Highly passionate audience, your product might go viral.
Even though the engagement rates are high, we have come across several campaigns that failed to reach target sale numbers. Here are such scenarios and the insights they infer
High Engagement, Low Link Clicks –Right Audience, Product might not be attractive, the proposition you are making in the ad copy is not attractive enough.
High Engagement, High Link Clicks, No Sales –Right Audience, attractive product and traffic is coming to your campaign page but no sales. This will happen when the buyer is not happy with the pricing or he has very limited options to choose in terms of the product type, colours or the payment options.
Understand your ads, get the pulse of how your ad sets are responding, react and take corrective measures. It’s definitely a time consuming process but you should be analytically inclined and responsive enough to turn around things quickly.
Remember this quote by Charles Darwin..