PM Interview Question →As a Product Manager at Meta, what key metrics would you track to identify and measure the impact of poor-performing ads?

6 min readOct 7, 2024

As a Product Manager at a platform like Meta, it’s essential to know which metrics to track, how to analyze these metrics, and how to optimize ad performance based on data-driven insights.

In this article, I will share the key metrics to track for identifying and understanding poor-performing ads, organized into clear categories to streamline your analysis and drive actionable improvements.

A quick mind map of the metrics 👇

Let’s deep dive in detail.

1. Ad Engagement Metrics

Click-Through Rate (CTR)

CTR measures the percentage of users who click on an ad after seeing it. A low CTR may indicate that the ad’s creative or messaging fails to engage the target audience. Consistently low CTRs across multiple ads could suggest an issue with the ad’s relevance, targeting, or design.

Conversion Rate

Conversion rate is the percentage of users who complete a desired action (e.g., signing up, making a purchase) after clicking the ad. A low conversion rate may point to a disconnect between the ad’s promise and the landing page experience, suggesting that while the ad is intriguing enough for users to click, it’s failing to meet their expectations.

Engagement Rate

Engagement rates encompass user interactions such as likes, shares, comments, and reactions. Low engagement signals limited interest and may suggest that the ad content doesn’t resonate with the audience. Additionally, low engagement on video ads might indicate a lack of compelling storytelling or visual appeal.

Dwell Time

Dwell time tracks how long users interact with an ad. Low dwell times — especially on video ads — can be a sign that the content fails to capture and hold user attention, suggesting the need for changes in creative format or narrative approach.

2. Audience Quality and Relevance Metrics

Ad Relevance Diagnostics (Quality, Engagement, Conversion Ranking)

Meta provides in-platform diagnostic ratings for quality, engagement, and conversion ranking. These scores help assess an ad’s performance from multiple angles. A low quality ranking might suggest poor ad design, while low engagement and conversion rankings often point to targeting or relevance issues.

Frequency

Frequency indicates the average number of times a user has seen an ad. High frequency can lead to ad fatigue, where users repeatedly see the same ad, resulting in lower engagement and potential negative feedback. Monitoring frequency ensures that ads reach new users rather than repeatedly targeting the same group.

Reach vs. Unique Reach

Reach measures the total number of people who see an ad, while unique reach counts the number of distinct users. If reach is high but unique reach is low, it indicates that the ad is being repeatedly shown to the same users, potentially decreasing ad effectiveness and contributing to user frustration.

3. User Feedback and Sentiment

Negative Feedback (e.g., Hide Ad, Report Ad)

Negative feedback metrics, like ad hide rates and report rates, provide insight into user sentiment. A high hide rate suggests that users find the ad intrusive or irrelevant. Monitoring negative feedback allows product teams to address ad-related frustrations promptly.

Ad Recall Lift

Ad recall lift measures how many people remember seeing an ad after a specified period. Low recall rates indicate that users don’t find the ad memorable, suggesting issues with creativity or messaging. Improving ad recall often requires making content more visually distinctive or emotionally engaging.

Brand Lift Studies

Brand lift studies can provide more comprehensive insights by measuring brand sentiment changes (like awareness, consideration, or purchase intent) following ad exposure. Limited brand uplift indicates that the ad is failing to create a meaningful impression, which may necessitate a reassessment of the ad’s messaging or targeting strategy.

4. Cost and Efficiency Metrics

Cost per Click (CPC)

CPC measures the cost of each click on an ad. High CPC suggests that users are not readily engaging with the ad, making each interaction more expensive. Reducing CPC typically involves improving ad creative or refining targeting to better align with user interests.

Cost per Action (CPA)

CPA is the cost per completed action, such as a purchase or signup. High CPA indicates that the ad may not be compelling enough to drive conversions relative to its spend. Adjustments in audience targeting or landing page experience can help lower CPA.

Return on Ad Spend (ROAS)

ROAS measures the revenue generated for every dollar spent on advertising. Low ROAS signals that an ad may not be generating sufficient return, potentially due to ineffective messaging or poor alignment with the target audience’s needs.

5. Ad Quality and Content Metrics

Creative Score

Creative score is an internal metric evaluating the visual appeal, clarity, and effectiveness of an ad’s creative elements. Low creative scores indicate that the ad’s visual or messaging elements are not resonating with users, possibly due to unclear copy, bland visuals, or lack of innovation.

A/B Testing Results

Running A/B tests on different ad variations allows for testing elements like images, headlines, or CTAs to determine what resonates best. When multiple ad variations underperform, it could indicate broader issues with ad messaging or audience targeting.

6. Ad Placement and Targeting Metrics

Placement Performance (e.g., Feed, Stories, Reels)

Ads perform differently depending on where they appear. An ad may perform well on Stories but poorly on the Feed or Reels. Analyzing performance by placement provides insight into the best format for each ad and can guide the placement of future ads.

Audience Targeting Accuracy

Monitoring audience targeting accuracy ensures ads reach the right users. If ads are underperforming, it may be due to misalignment between the ad’s content and the audience’s needs or interests. Adjustments in targeting criteria, such as age, location, or interests, can improve performance.

7. Technical and Delivery Metrics

Load Times and Technical Errors

For interactive or video ads, slow load times or technical issues can impact user engagement. Tracking technical errors is essential to ensure users have a seamless experience, as slow-loading or glitchy ads can lead to disengagement and negative feedback.

Ad Delivery Errors

Delivery errors, such as under-delivery or incorrect placements, can significantly impact performance. Regularly monitoring ad delivery metrics ensures that technical or system issues aren’t affecting ad reach and efficacy.

Summing Up

Identifying poor-performing ads is a multi-dimensional process that requires analyzing engagement, audience quality, user feedback, cost-efficiency, ad quality, targeting accuracy, and technical reliability. By tracking these key metrics, product managers can gain a holistic view of an ad’s performance and make data-driven decisions to optimize ad campaigns.

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