When starting to run ads, many newcomers fall into the trap of "looking at the numbers but not understanding them." Ads reports are full of metrics like CTR, CPC, CPM, Conversion, but the more you look, the more confused you become, and the more you optimize, the fewer orders you get.

The reason isn't that these metrics are useless, but rather that beginners often misunderstand their meaning, leading to the wrong optimization strategy from the start.

A high CTR does not necessarily mean an effective ad.

CTR is one of the metrics that newcomers pay the most attention to. When they see a high CTR, many believe that the ads are performing very well. But in reality, CTR only reflects one thing: whether the ad is prompting viewers to click on it.

An ad might have a high CTR because of an intriguing headline, eye-catching image, or controversial content. However, if a click doesn't lead to further action, a high CTR doesn't mean much to the business.

Beginners often make the mistake of stopping or scaling budgets based on CTR, instead of looking at post-click behavior.

A low CPC (cost per click) doesn't necessarily mean good advertising.

A low CPC is often seen as a positive sign, as it means the cost per click is cheap. However, a low CPC only indicates that the ad is attracting clicks at a low cost; it doesn't reflect the quality of those clicks.

There are many cases where the CPC is very cheap, but customers only view the content and leave immediately, without leaving their information or making a purchase. In such cases, a cheap CPC simply means you're buying many irrelevant clicks.

For beginners, focusing on optimizing CPC without considering customer behavior often leads to the feeling of "cheap but still not generating orders."

A high CPM isn't necessarily a bad thing.

High CPM often worries newcomers who think their ads are "expensive." However, CPM reflects the cost to reach 1,000 impressions, and this metric is heavily influenced by the target audience, timing, and level of competition.

In many cases, a high CPM but targeting the right audience with genuine needs can lead to better conversions than a low CPM with an overly broad target audience. Judging effectiveness solely by CPM can easily lead to the elimination of potentially successful campaigns.

It is important that CPM be considered in relation to customer quality, not in isolation.

Conversion is more than just "getting orders".

Another common misconception is to view conversions solely as purchases. In reality, a conversion is any significant action you want the customer to take, such as leaving their information, sending a message, or filling out a form.

Newcomers often focus solely on the number of orders, overlooking intermediate conversions. This leads to a skewed assessment of advertising effectiveness, especially in industries that require longer-term customer consultation or nurturing.

Without clearly defining conversions that align with the business model, ads are difficult to optimize effectively.

Running ads for too short a time can lead to inaccurate data.

Many newcomers evaluate their ads after only 1-2 days of running them. When they don't see immediate orders, they quickly turn off the ads or change them constantly. This prevents the algorithm from having enough data for consistent distribution, and the metrics become distorted.

Ads need time to gather data and accurately reflect customer behavior. Reading data too early often leads to emotional decisions that aren't based on sufficient data.

Do not link ad metrics to actual business results.

A core mistake is viewing Ads metrics separately from business operations. Beginners often only look at the advertising dashboard without comparing it to actual orders, revenue, and expenses.

Without knowing which campaigns are generating orders and what percentage of total revenue is accounted for by advertising costs, ad optimization is almost meaningless in the long term. Good ad metrics but ineffective business performance are still a failure.

Ad metrics are only valid when placed within the system.

The essence of advertising metrics lies not in the numbers themselves, but in how they reflect the customer journey. CTR, CPC, or CPM are merely initial signals. The real value lies in understanding what customers do after interacting with the ad.

Newcomers often struggle not because they lack Ads knowledge, but because they lack a system to connect advertising data with sales data.

GTG CRM helps you see the true nature of your Ads metrics.

GTG CRM helps businesses link advertising data with customer data, orders, and revenue within a single platform. Instead of just viewing individual metrics on the ad manager, businesses can track the entire journey from the moment a customer interacts with an ad until an order is placed.

GTG CRM's dashboard system allows you to view an overview of sales activities, from the number of customers reached and conversion rates to the actual revenue generated by each campaign.

When data is centralized, Ads metrics are no longer misinterpreted or judged subjectively. Businesses can clearly see which campaigns are bringing in quality customers, how advertising costs are impacting profits, and where to optimize the sales process.

GTG CRM helps make ads an integral part of the business system, not a standalone display.

Conclude

Ad metrics aren't complicated, but they're easily misinterpreted when viewed in isolation. New advertisers need to learn how to interpret data in relation to customer behavior and actual business results.

Understanding the metrics correctly is the first step to correct optimization. And correct optimization only happens when there is a sufficiently clear system behind it.