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Hoping you all had a great week, Im writing this with my feet kicked up, post Superbowl after a long 3 days of hitting the slopes in Vail.

It’s been such an eye-opening, event-packed week hanging out with some of the best entrepreneurs I know

Today’s newsletter idea came from a question one of my inner circle students asked me the other day

“What are the KPIs that drive your creative testing?”

So today, my goal is to go over exactly that - specifically on the paid ads side.

Welcome to this week’s edition of Moementum

Without any further ado, let’s get into it

Building Viral Brands

I'm sure you've heard the saying "you can't get to a place if you don't know where it is."

Well in business that quote stands true.

You can not grow without a Northstar - that North Star needs to be clear as daylight not just for you but for your team.

One common bottleneck I’ve always struggled with is the ability to properly report data and set specific rules for our scaling and testing

Why? Because the market conditions always change..or that’s what I told myself

My role as an operator is different every week - depending on the business needs

Last week I was cooking up new landers this week I’m in the trenches locking in new influencer deals or working on new formulas and product launches

But my team knows exactly what we need to do to grow

KPIs - Test, Analyze, and Improve.

Every time we launch a new ad creative we have a set target to identify it as a WIN or a BUST

I get asked this question so many times “What metrics do we use to determine the success of our brands?”

Here they are.

ROAS: Return On Ad Spend

The most important number I look at every day.

How much revenue are we generating in perspective to the amount of marketing dollars we are spending everyday.

If you spend time on Twitter you’ll see a lot of guys talk about LTV, AOV per cohort, and all this extra stuff sure its important

But not more than being profitable from day 1.

Never let a media buyer or agency tell you that you need to wait months to see profit come in.

The formula is simple, how much revenue are we generating in perspective to the amount of marketing dollars we are spending?

Our benchmarks are 2.0 for Prospecting and 3.0+ for Retargeting

CTR: Click-through rate

This is somewhat of a vanity number in my opinion but its very important.

The higher this is the more powerful your messaging is, usually high CTRs mean great ads.

We use the CTR to tell us how effective we are in encouraging people to take the desired action when they see our ad.

In my book, everything over 2-3% is a win worth scaling.

CPC: Cost Per Click

This goes hand and hand with our CTR > the more clicks we get the better.

Now if you see your ads hitting great metrics on CPCs and CTRs but your ROAS sucks it usually means your offer sucks, your landing page doesn’t do a good job educating or your product description isn’t congruent with your marketing.

The cheaper the better!

Anything under $0.60 is worth scaling. (depends on your product and industry)

Thumb stop Ratio

This is only applicable to video ads.

My creative strategist obsses over this.

The thumbs top ratio indicates how many people watched at least the first 3 seconds of our video ad.

And if we can do that at a rate higher than 30% then we know we have something worth keeping.

Anything less then that means you need a different hook visually or literally!

30% is the benchmark.

See more Rate - this is a lowkey KPI

This is something we monitor to specifically put our copywriting skills on the stage and see how they perform.

If we cant stop someone from scrolling with videos or imagery then we try and do it with text.

The see more rate signals to us how many people clicked the “see more” button to read the full text we have on our ads, the more they do it the better we are at our job!

CVR

This is the end-all be-all number on your landing page but also your creative.

No matter how high your CTR or how low your CPC is.

The “conversion rate” is key.

CVR tells us how many people visited the landing page, and how many of them reached checkout and ended up purchasing from us.

This changed from one industry to another but from my experience, we like to sit at 2.5% or higher.

Hopefully, those benchmarks gave you some proper insights to take with you into your next marketing meeting.

To put the cherry on top I am adding a screenshot that shows you a glimpse of how we carry our meetings and the structure we follow to track these week-to-week

With that being said, hoping you have an incredible week, see you next Sunday.

Until then..dont’t forget Moementum is coming!

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