𝐅𝐞𝐰 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐚𝐝 𝐛𝐮𝐲𝐞𝐫𝐬 𝐭𝐫𝐮𝐥𝐲 𝐮𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝 𝐡𝐨𝐰 𝐚𝐝 𝐚𝐮𝐜𝐭𝐢𝐨𝐧𝐬 𝐰𝐨𝐫𝐤 𝐨𝐧 𝐩𝐥𝐚𝐭𝐟𝐨𝐫𝐦𝐬 𝐥𝐢𝐤𝐞 𝐌𝐞𝐭𝐚, 𝐆𝐨𝐨𝐠𝐥𝐞, 𝐚𝐧𝐝 𝐓𝐢𝐤𝐓𝐨𝐤. Once you realize that your bids are multiplied by a quality score, it becomes clear how to build a winning eComm funnel that scales faster and more effectively than your competitors.
𝐊𝐞𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭: Brands with a 2x higher quality score can bid half as much as their competition and still win the auction.
𝐓𝐡𝐫𝐞𝐞 𝐅𝐚𝐜𝐭𝐨𝐫𝐬 𝐈𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐢𝐧𝐠 𝐘𝐨𝐮𝐫 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐒𝐜𝐨𝐫𝐞:
▶ Ad Click-Through Rate (CTR) and Engagement Rate
▶ Website/Landing Page Conversion Rate (CVR)
▶ 100% Accurate Data for Tracked Conversions
1️⃣ 𝐀𝐝 𝐂𝐥𝐢𝐜𝐤-𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐑𝐚𝐭𝐞 (𝐂𝐓𝐑)
CTR is the best indicator to ad algorithms that your ad is creating a positive user experience. Happy users spend more time on social platforms.
𝐀𝐬𝐬𝐞𝐬𝐬: Look at the number of clicks relative to the number of impressions. Example: 10 clicks / 1,000 impressions = 1.0% CTR.
𝐓𝐚𝐫𝐠𝐞𝐭: A 1.5-2.0% CTR is excellent for most brands. Use your historic performance to set your own benchmark.
𝐃𝐢𝐚𝐠𝐧𝐨𝐬𝐢𝐬: Low CTRs? You need better ad creative to drive more clicks.
2️⃣ 𝐖𝐞𝐛𝐬𝐢𝐭𝐞 𝐂𝐨𝐧𝐯𝐞𝐫𝐬𝐢𝐨𝐧 𝐑𝐚𝐭𝐞 (𝐂𝐕𝐑)
CVR is the key indicator to Meta/TikTok’s ad algorithms that your ad is achieving its goals. Happy advertisers spend more, so platforms reward ads that convert well.
𝐀𝐬𝐬𝐞𝐬𝐬: Look at the number of conversions relative to the number of website clicks. Example: 1 conversion / 100 clicks = 1.0% CVR.
𝐓𝐚𝐫𝐠𝐞𝐭: A 1.5-2.0% CVR is excellent for most brands. Set your benchmark based on past performance.
𝐃𝐢𝐚𝐠𝐧𝐨𝐬𝐢𝐬: Low CVR? You need a faster-loading, higher-converting landing page or website.
3️⃣ 𝐃𝐚𝐭𝐚 𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐢𝐨𝐧
Most brands only capture 70-80% of their conversion data, providing a partial view into their conversion volume. An advanced data connection that captures 100% of conversions gives ad algorithms full visibility.
𝐀𝐬𝐬𝐞𝐬𝐬: Compare your data coverage to your actual conversions. Example: 100 reported conversions vs. 100 sent server-side events = 1:1 accuracy.
𝐓𝐚𝐫𝐠𝐞𝐭: 100% of your conversions should be tracked and accepted. Your Event Match Quality scores should be 8.5/10 or higher. Your click-id acceptance rate should match your site traffic % from ad clicks.
𝐃𝐢𝐚𝐠𝐧𝐨𝐬𝐢𝐬: Low CVR? Upgrade your data connection to increase event volume, quality, and accuracy. (Try Popsixle)
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𝐒𝐮𝐦𝐦𝐚𝐫𝐲
By following best practices, diagnosing your funnel, and taking action to improve your quality scores, you can outperform competitors in the auction while bidding less.
With better creative, a higher-converting website, and an advanced data connection, you can drive higher quality scores, achieve better auction performance, and experience predictable business growth.