CPC, CPM, CTR and more... what metrics don't help at all when making money on Facebook is the goal!

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Some of the most commonly talked about metrics that people use are cost per click and click-through rate. These are very important when you’re dealing with demand and inventory-based platforms like Google and Amazon and programmatic display.    However, when it comes to Facebook, these metrics are actually more or less irrelevant.   Let me tell you why Facebook will utilize what is called an optimized CPM algorithm. This means that Facebook tries to accomplish its business objectives of keeping somebody on the platform for as long as possible.    This means that Facebook is optimizing towards time on site, which is the exact opposite of what Google and Amazon etc. prioritize.  So why our cost per click and click-through rate irrelevant? This is because of three big reasons   Reason one: because Facebook is optimizing for the quality of the user experience, each user is of wildly different value to us as advertisers. This means that the unit value of a click can vary wildly.   Reason two: because Facebook controls the user flow across multiple platforms we don’t need to prioritize optimizing the lowest cost traffic or the ad that is most likely to get a click.    But what we need to do is optimize for the ads that drive the highest-quality users, and cater to the user flow as a priority.   Reason three: on Facebook, we cannot optimize with Conversion Campaigns to the cost of a click. We also cannot optimize the rate of a click. Very often on Facebook lower cost clicks or ads with a higher click-through rate very often in Jack’s too much lower quality users.   If we try to optimize towards the cheapest traffic, much like in lead gen, the lowest cost is rarely if ever the highest quality.   So be warned when you hear somebody talking about but I like to call garbage metrics for garbage thinking.    If somebody’s coming to you trying to talk about the value of an actionable metric that does not lead to a quality user, understand that that person does not understand what they are talking about and/or does not have your best interest in mind