Having a high CPC (cost per click) and low CPM (Cost per thousand impressions) means that although the cost you pay as an advertiser for every 1000 impressions your ad gets is low, however the cost of each person clicking to your website is high.
We consider a CPC of above $1 to be high. and low CPM, we consider a CPM if less than $4 to be low.
A high CPC can be as a result of bad creatives, products, targeting options, pixel or even ad accounts.
Tiktok ad accounts or pixels that are old and have been used to run ads for products in a completely different niche, can constantly produce poor metrics for your new products ads.
The solution is to test your creatives and targeting options, if that doesn’t work, test another product and if the problem happens again, if the problem persists then create a new Ad Account or Pixel to run your ads.
This solution is applicable if you are trying to improve your ad metrics.
It is important to state that ad metrics do not always equate profitability.
Your ad metric can fall below the recommended metrics standard and you will still be profitable. In those instances there may be no need to turn off your ads with high CPC.
Generally a better metric means a higher chance at conversion.
If you high CPC ads are profitable, do not turn it off instead duplicate your ads, leave your profitable ads running and create new ads to test variables (such as creatives and audience targeting) for a lower CPC.
