Paid Ads Management Education Sheet

At TMG, we’re all about delivering exceptional results through strategic Paid Ad Management

We believe in complete transparency, keeping you informed every step of the way with clear, honest updates on your campaign performance.

Our approach is proactive, not reactive. We’re constantly refining, testing, and pushing for better outcomes across your campaigns.

Whether you’re new to paid ads or have experience already, we recommend reviewing our cheat sheet. It breaks down the key terms, metrics, and language we’ll be using, so you’re always across what matters.

Key Paid Ad Metrics explained:

CTR: Click Through Rate
Measures how many people click on your ad after seeing it, indicating how compelling your ad is and the level of intent it’s driving.
KPI: 1-2%+ (the higher, the better)

CPC: Cost Per Click
Measures how much you’re paying for each click to your website.
KPI: $1-5 (depending on industry and audience size, the lower the better)

CPR: Cost Per Result
Measures how much it costs to generate a result, whether that’s a purchase, booking, or lead.
KPI: Varies depending on the brand, offer, and industry

ROAS: Return on Ad Spend
Measures how much revenue is generated for every $1 spent on ads.
KPI: Varies depending on margins and business model, the higher the better

Bounce Rate
Measures how many people land on your website and leave without taking further action.
KPI: 20% (the lower the better)

Add to Cart Rate
Measures the percentage of users who add a product to their cart after landing on your site.
KPI: 16-20%+ (the higher the better)

Abandoned Cart Rate
Measures the percentage of users who add to cart but don’t complete the purchase.
KPI: 68% (the lower the better)

Conversion Rate
Measures the percentage of users who complete a purchase or desired action.
KPI: 2-3%+ (the higher the better)

Additional key Paid Ad terms explained:

Marketing Funnel:

The marketing funnel maps the journey from first touchpoint to purchase. It starts broad and narrows as people move closer to converting.

  • Top of Funnel (TOF): Cold audience. People who haven’t engaged with your brand yet. The focus here is awareness, education, and positioning your offer clearly.

  • Middle of Funnel (MOF): Warm audience. People who have interacted with your brand and are considering your offer. This is where we build trust through product education, social proof, and deeper brand connection.

  • Bottom of Funnel (BOF): Hot audience. People who are highly familiar with your brand and close to converting. This is where we focus on conversion driven messaging, retargeting, and nudges to drive action.

Our role is to guide audiences through each stage, turning awareness into intent, and intent into sales.

Customer Journey

The customer journey tracks the step by step path someone takes from seeing your ad to becoming a customer. This includes every interaction along the way, such as clicks, website visits, and engagement. Understanding this allows us to identify what’s working, where drop off is happening, and where we can optimise for stronger results.

Learning Phase

The learning phase is the initial period after an ad goes live where the platform is gathering data and optimising delivery.

This typically lasts around 7 days or until approximately 50 optimisation events are reached.

During this phase, performance can fluctuate as the platform tests different audiences and placements to find what works best. Once complete, campaigns stabilise and performance becomes more consistent based on the data collected.

Please find additional information here.

Ad Fatigue

Ad frequency measures how often someone sees your ad.

Repetition is important for awareness and conversion, but when frequency becomes too high, performance can drop. This is known as ad fatigue, where the audience becomes disengaged from seeing the same message too often.

To combat this, we refresh creative and messaging regularly to maintain performance and keep the audience engaged.

What’s the difference between... campaign, ad set and ad?

  • Campaign: Defines the goal. For example, driving purchases, leads, or traffic. This is also where we align with funnel stage such as TOF, MOF, or BOF.

  • Ad Set: Defines the audience. This is where we build and segment who we are targeting based on demographics, interests, behaviours, and location.

  • Ad: Defines the message. This is the creative and copy that the audience sees, designed to capture attention and drive action.Have any questions?

Questions?
If anything is unclear, ask. We’d rather you fully understand what we’re doing and why, than feel unsure at any stage.