Paid social media campaigns are one of the fastest ways to generate leads. But just because you’re spending money on ads doesn’t mean they’re working. Without tracking the right metrics, you could be wasting budget on campaigns that aren’t bringing in real results.
This blog breaks down five basic key metrics that will give you a clear picture of how well your paid social media campaigns are performing. These are the numbers that matter. Not vanity metrics like likes or shares, but real performance indicators that tell you if your paid campaigns are working.
1. Click-Through Rate (CTR)
Click-through rate (CTR) tells you how many people saw your ad and decided to click on it. This is one of the first signs that your ad is doing its job—grabbing attention and getting potential leads to take action.
A high CTR means your ad is compelling and reaching the right audience. A low CTR means your ad isn’t connecting. This could be because of the copy, the image design, or the offer itself.
Tip: If your CTR is below 1%, it’s time to tweak your ad. Try adjusting one thing at a time to test what the issue is. This could be the headline, call-to-action, or targeting settings. Even small changes can make a big difference.
Here is the formula to calculate your click- through rate:
2. Conversion Rate
CTR tells you how many people clicked on your ad. The conversion rate tells you how many of those people actually completed the action you wanted. Whether that’s signing up for a webinar, filling out a form, or making a purchase.
A high CTR with a low conversion rate is a warning sign. It usually means people are interested enough to click but are dropping off before completing the next step.
Tip: In most cases, the problem isn‘t the ad, but most likely the landing page. Maybe the page is too slow, the form is too long, or the messaging doesn’t match the promise in the ad. If your conversion rate is low, focus on optimising the landing page experience.
Conversion rate is calculated by dividing the number of completed actions (conversions) by the number of clicks:
3. Cost Per Lead (CPL)
Cost per lead tells you how much you’re spending to get a single lead from your paid campaign.
A campaign might be getting a lot of leads, but are they affordable? If your CPL is too high, you’re paying too much for each potential customer. For South African B2B businesses, a competitive CPL depends on your industry, but the goal is always to keep it as low as possible without sacrificing quality.
Tip: If your CPL is climbing, check whether you’re targeting too broad an audience, using the wrong ad format, or paying for unqualified clicks.
CPL is calculated by dividing the total amount spent on the campaign by the number of leads it generates:
4. Impressions vs. Reach
A campaign with high impressions but low reach means your ad is being shown to the same people over and over. This can lead to ad fatigue, where potential leads start ignoring your content.
On the other hand, if reach is low, your audience may be too narrow, or your budget may not be high enough to compete.
For B2B campaigns in South Africa, where niche targeting is key, balancing reach and impressions is crucial. You want your ad to be seen enough times to make an impact, but not so often that it becomes background noise.
- Impressions = The total number of times your ad has been shown (including repeats to the same user).
- Reach = The number of unique people who have seen your ad.
While most ad platforms track these numbers for you, the relationship between them can be understood with this formula:
5. Return on Ad Spend (ROAS)
At the end of the day, the most important question is whether your paid social campaigns are bringing in more revenue than you’re spending on ads. Return on Ad Spend (ROAS) measures exactly that.
In cases where B2B sales cycles tend to be longer, tracking ROAS over time is key. Not every campaign will deliver instant revenue, but if it consistently brings in high-quality leads that convert later, it can still be worth the investment.
Tip: If ROAS is low, before cutting a campaign, look at the full customer journey—sometimes, the real value is in the long-term pipeline, not just immediate sales.
(You can express this as a ratio—e.g., 4:1—or multiply by 100% to get a percentage.)
Conclusion
These might seem like basic metrics, but getting the basics right will take you further than you think.
Too many businesses focus on chasing trends, testing advanced strategies, or throwing more budget at their ads—without fixing the fundamentals. But the truth is, most paid campaigns fail because they get the basics wrong.
Mastering these five metrics gives you complete control over your paid social campaigns. When you understand what’s working and what’s not, you can adjust, improve, and scale with confidence.
