Thread by @vonwilpert

1/ If you're looking at CPC, CPM + Relevance Score to make Facebook media buying decisions, you're doin' it wrong. Here's why...

1- Correlation between FB CPC and ROAS = 0.08
2- Correlation between FB CPM and ROAS = -0.12
3- Correlation between FB Relevance Score and ROAS = 0.04

2/ Here's what you should look at:

1- Unique Adds to Cart
2- Unique Checkouts Initiated
3- Website Purchases

^ That lil' insight is based on over $100m spent on ads for ecommerce brands by Taylor Holiday and his team at Common Thread Collective.

3/ From scaling some sick brands like PupSocks, ColourPop, and The North Face; Taylor and co have found a simple framework for scaling ecom FB ads.

They do it by having rules for "when to kill an ad" based on past experience.

4/ These are the rules:

1- Did the ad spend 1x AOV? YES

2- Did the ad get a purchase? YES

3- Are the three money metrics (cost per acquisition, cost per unique add to cart, cost per checkout) below the kill target? YES

4- Let the ad spend to the next AOV (2x, 3x, 4x etc...)

5/ Off to the races 🏇

Ps. Here's a link to the full write-up: sumo.com/stories/facebo…

Pps. If you're an advanced media buyer this may be nothing new to you. But virtually every ad buyer Taylor's team have come across are still using CPC, CPM and CTR to inform their decisions.