• In this video, we're talking about determining metrics for evaluating tests at the beginning and sticking to them. You're trying to figure out the budget when testing your copy, creative, and what audiences to target. A lot of people are spending too much energy on things that aren't important. So when you're going into a campaign, yes, monitor your CPM, monitor your cost per click, monitor your click-through rate.

• But at the end of the day, if you are looking to generate leads, what's most important to you is the cost per lead. If you're looking to generate sales, what's most important to you is the cost per sale. And then you look at the remaining metrics to determine what needs to be adjusted to improve those results. 

• The same thing goes in line with generating purchases, got to generate those leads into the funnel to see if you can get the purchases. So how else do you get purchases at a level that makes sense for you to generate leads at a cheaper cost, but then you also have to look at things going on in the backend. How do I improve my email? How do I improve the retargeting? So it's not just the ads that you're looking at. You're looking at the total picture. 

• So when you're looking at the metrics to track, always remember to focus on what's most important to you at the end of the day, the end goal, then reverse engineer from there to adjust accordingly. And from an ad standpoint, it's oftentimes going to be, how do I make my image and, or my copy, more effective, more in line with what people want so that I can bring it in at a cheaper cost, thus bring in more sales. 

David (00:01):

Hey, everyone. Welcome back. And in this video, we're talking about determining metrics for evaluating tests at the beginning and sticking to them. Now, here's what I mean by that in the very beginning of you testing any sort of campaign, you know, you're trying to figure out your copy, your creative, what audiences to target, how much budget am I going to be utilizing for all these tests? And quite honestly, most people forget that they have to determine what it is that they want to track in the first place. You know, a lot of people are spending too much energy on things that aren't important. It doesn't matter if your CPM is a hundred dollars, if it's generating sales or if your CPM is $150, if you're generating leads at a cost that makes sense for your business. So when you're going into a campaign, yes, monitor your CPM, monitor your cost per click, monitor your click through rate.

David (00:49):

But at the end of the day, if you are looking to generate leads, what's most important to you is the cost per lead. If you're looking to generate sales, what's most important to you is that cost per sale. And then you look at the remaining metrics in order to determine what needs to be adjusted to improve those results. For example, let's say your lead cost is $10. Now it's doable for you to spend $10 for a lead, but maybe you want to bring it down to $6. That's when you would look at what is your cost per click? What is your click through rate? How can we improve these ads? Is it from a copy or from a creative standpoint? Because improving the ads in those two categories could actually lead to a cheaper lead cost because more clicks means more opportunity for a cheaper lead.

David (01:32):

Same thing goes in line with generating purchases, got to generate those leads into the funnel in order to see if you can get the purchases. So how else do you get purchases at a level that makes sense for you generate leads at a cheaper cost, but then you also have to look at things going on in the backend. How do I improve my email? How do I improve retargeting? What can I do to make the offer sexier so that people want it? So it's not just the ads that you're looking at. You're looking at the total picture. So when you're looking at the metrics to track, always remember focus on what's most important to you at the end of the day, the end goal, then reverse engineer from there to adjust accordingly. And from an ad standpoint, it's oftentimes going to be, how do I make my image and, or my copy, more effective, more in line with what people want so that I can bring it in at a cheaper cost, thus bring in more sales. So would that being said, make sure you figured this out from the very beginning and then get to work.