Why Facebook’s CTRs and CPCs Always Dazzle Brand Managers

Brand managers always love reviewing Facebook’s ad metrics especially in comparison to the performance of programmatic display ads where the performance comparisons are often a bit drastic. But the two metrics brand managers often look at – the questionable CTR metric and Cost Per Click are often misleading. And in many cases, the ad buyers managing social campaigns on Facebook do not always realize it. 

Facebook’s ad reporting offers two different measurements for CTR and CPC. The first and most often used in reporting from ad buyers and agencies is an all-encompassing report out on ad clicks. In other words, Facebook allows you to report on every single click interaction within an ad such as scrolling through a carousel ad, clicking on a video to start or stop it, expanding the text to read hidden information. All in addition to a person clicking on an outbound link to visit the brand’s website. 

The problem with this reporting approach is that it artificially increases the click activity, increases the CTR and greatly reduces the CPC inflating the actual results. 

However, Facebook ad buyers have the ability to just report on “outbound link clicks” to the brands’ website which in the end is exactly how all other forms of digital media measures CTRs and CPCs.  Under this measurement methodology, Facebook CTRs and CPCs suddenly will often decrease in efficiency anywhere from 40% to 70%. 

Facebook’s ad placements will still look favorable to programmatic display media in terms of the CTR. A recent campaign I ran saw the comparative average CTR around .30% for Facebook while programmatic display media was coming in at .09%. 

However, the relative CPC came in lower for programmatic at $3.50 vs. $5.25 for Facebook. 

The takeaway here for brand managers wanting to have accurate reporting should always ask for their social ad buyers to report out CPCs and CTRs based on Outbound Link clicks first and foremost. 

It will be much easier to understand how you paid social media is really performing.