Optimization Cheat Sheet
As you have learned from the Metrics > Analysis > Action framework, analysis is about understanding the possible reasons WHY a metric may have changed. Know and be comfortable with the fact that there may be more than one reason and the reason you believe to be most true could be wrong.
Here are the top 7 most common analyses (IF/THEN logic) that we make about changes in key metric pairs. To test your understanding of the logic behind why we make these hypotheses, try reversing the direction of the change in these metrics to see if you can explain logically.
- If you reached less than 1,500 people, you are optimizing too early!
Focus your effort elsewhere – creating new content or researching new target audiences. As a general gauge, start optimizing when you reach at least 5,000 people. - If cost per conversion is increasing, but conversion count is also increasing,
the law of diminishing utility may be “at fault”. - If there are no conversions but click-throughs are low,
you may be distracted by statistical noise. For example, you may have reached 10,000 people without converting anyone, but if you only had 10 clicks, consider optimizing for more clicks instead of blaming your landing page or offer. - If you have high clickthrough rates but low conversion rates
(<20% for conventional lead magnets and <1% for sales), you could be misleading your customers into clicking and expecting something that is not true on your landing page. You could also have problems with your landing page, whether it is the copy, layout, loading speeds, or the offer. Benchmarks of 20% and 1% stated are only for general reference and not for compliance. - If conversions suddenly drop but conversion rates and click-through rates are consistent,
see if your CPM has spiked. Logically, if you spend the same amount every day but the cost of showing your ads has increased, then your conversions will drop and cost per conversion will rise, keeping conversion rates and click-through rates consistent. - If click through rates (all) are high and clickthrough rates (link) are low,
your ad may be ineffective. A high clickthrough rate (all) signifies a lot of attention on your ad that resulted in some level of interest or interaction, but not enough to click through to see what you have to offer. - If click through rates are decreasing over a period of time while conversion rates remain relatively constant,
you may be facing ad fatigue or what we normally call news feed burnout.