#paid-media
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Paid ads 101 question for the experts: What metrics/tactics do you use to determine your ad is done ‘testing’ and the CAC you’re seeing is indicative of its performance? E.g. Certain number of impressions, certain amount of $$ spent, etc. (I ran some of my numbers through statistical significance calculations, but the results didn’t seem to match reality). Interested in general principles and Meta-specific strategies.
Instead of impressions, we look at dollar spent around 2x to 3x of CPA and other metrics like ATC, IC
Considering there are no purchases yet
Gotcha - so how do you reconcile changing CPA early on in an ads lifecycle? E.g. it might take $20 of spend to get the first sale with that ad, but then as Meta’s algorithm learns, it might make 3 more sales on the next $20… When do you consider the algorithm has learned enough that the CPA is an accurate representation?
For new accounts apart from looking at CPA, suppose there are no purchases
Then look at leading metrics like ATC, IC if they are near to your target ATC, IC then let it spend more and run for more days
In some instances look at CTR if it is above average then again let it spend more
But still sometimes if you believe the ad is good, then isolate it and run for a few days with enough budget and let it spend
When an account is already getting more than 50 to 60 orders per day, then you can set CPA as an accurate representation