Click-through rate (CTR), conversion rate (CVR), ROAS, CPM, CPC, Hook Rate…

When evaluating creative performance, it’s easy to get lost in a sea of metrics. But which ones truly matter? How do you cut through the noise to determine whether an ad is performing? 

In this article we’re going to breakdown the approach we take to creative analysis that massively simplifies the process and delivers real actionable insights. 

Start with Your Funnel Stage

Before diving into metrics, it’s critical to understand the stage of the funnel you’re analysing.

The KPIs you focus on will vary depending on whether the ad is targeting the top of the funnel (awareness) or the mid-to-lower funnel (acquisition).

For this article, we’ll focus on analysing conversion-focused creatives designed for the mid-to-lower funnel.

Set a Minimum Spend Threshold

One of the first steps in creative reporting is to establish a minimum spend threshold. 

This ensures you exclude ads that haven’t spent enough to provide meaningful data. Platforms like Meta often prioritise a few ads in a campaign, leaving others with minimal spend and insufficient performance data.

At Adnomics, we typically recommend setting the minimum spend limit at 5–10x your target CPA, depending on how high your CPA is.

Examples:

• For a £10 target CPA: Set a minimum spend threshold of £100 (10x).
• For a £75 target CPA: Set a threshold around £300 (4–5x).

Focus on CTR and CVR

After filtering out underfunded ads, we focus on two key metrics: Click-through Rate (CTR) and Conversion Rate (CVR). 

Using these metrics, we classify ads into four categories:

• High CTR + High CVR: These are your winning ads. They resonate with your target audience and convert effectively. Focus on scaling these.
  
  
• High CTR + Low CVR: These ads grab attention but don’t convert well. Investigate landing pages, on-page merchandising, or checkout friction to improve CVR.
  
  
• Low CTR + High CVR: While these ads convert well, they’re not capturing attention. Learn from high-CTR ads to enhance their appeal.
  
  
• Low CTR + Low CVR: These ads may need to be paused or reworked entirely.

Overlay ROAS for a Comprehensive View

To add more context, overlay Return on Ad Spend (ROAS) onto your analysis. This helps account for how Average Order Value (AOV) affects performance.

For example, we’ve seen cases where an ad with high CTR but low CVR still achieved the highest ROAS. 

This was due to the high Average Selling Price (ASP) of the products being promoted. While this ad remained highly profitable, we still explored ways to improve its CVR to unlock even greater performance.

Dive Deeper with Breakdowns

For a more nuanced view of performance, consider these breakdowns:

• Geography: Ads that work in one region (e.g., the UK) might perform differently in another (e.g., the US or EU).
  
  
• New vs. Existing Customers: If your structure allows, analyse performance for new versus returning customers to identify what resonates with each audience.
  
  
• Ad Format: Break down performance by format (e.g., video vs. image) to understand typical benchmarks for each.

Simplify Your Creative Analysis

Creative analysis doesn’t have to be complicated. By focusing on the right metrics for the funnel stage, setting clear benchmarks, and using data-driven insights, you can confidently identify and optimise high-performing ads.

If you need help unlocking the full potential of your paid social campaigns, get in touch with us at Adnomics—we’re here to help you grow profitably.

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