One of the most common mistakes NZ businesses make with video advertising is measuring the wrong things. A video with 10,000 views and no enquiries has not performed well. A video with 800 views and 30 bookings has. Views are not results.

Here is a clear breakdown of which metrics actually tell you whether your video ads are working.

Metrics that actually matter

Click-through rate (CTR)

CTR tells you what percentage of people who saw your ad clicked through to your website or landing page. For video ads on Facebook and YouTube, a CTR above 1% is generally considered reasonable for cold audiences. Above 2% is strong.

Low CTR usually means one of three things: the audience targeting is off, the call to action is weak, or the offer is not compelling enough for that audience.

Video retention and watch time

Most platforms show you at what point in your video people drop off. This is one of the most useful pieces of feedback you can get. If 80% of viewers leave in the first three seconds, the hook is failing. If they leave halfway through, the middle section is losing them.

For short ads, aim for at least 50% of viewers reaching the halfway point. For a 30-second ad, that means keeping people engaged for at least 15 seconds, long enough for your core message to land.

Cost per result

Whatever your campaign goal is (leads, bookings, purchases, website visits), cost per result tells you what you are paying each time that goal is achieved. This is the number that tells you whether the campaign is sustainable and profitable.

This number only makes sense when compared to the value of that result. If a new customer is worth $2,000 and your cost per lead is $40, the economics are very good. If a new customer is worth $80 and your cost per lead is $60, they are not.

Frequency

Frequency measures how many times the average person in your audience has seen your ad. When frequency climbs above 4 or 5, people have seen your ad enough times that performance typically drops and ad fatigue sets in. This is a sign to refresh the creative or expand the audience.

Metrics that are easy to get excited about but rarely tell you much

Views and impressions

Views tell you how many times your video was played, but most platforms count a view after just two to three seconds. Impressions tell you how many times your ad appeared on a screen. Neither of these tells you whether anyone engaged with it, clicked through, or took any action.

Likes, shares, and comments

Social engagement can be a useful secondary signal, but it is not a business result. An ad can generate strong social engagement and zero conversions. It can also generate almost no engagement and strong conversions. Track engagement as context, not as a primary success metric.

Reach

Reach tells you how many unique people your ad was shown to. This matters for awareness campaigns, but for conversion campaigns it is a vanity metric unless paired with what those people actually did after seeing it.

How to read the numbers together

Metrics tell a story when read together rather than individually. High views but low CTR suggests the ad is getting attention but failing to drive action, which usually points to a weak call to action or misaligned offer. High CTR but low conversions suggests the ad is working but the landing page is letting it down. Low views and low CTR together suggest the audience or bidding needs adjustment.

The habit to build is checking the full funnel: how many saw it, how many engaged, how many clicked, how many converted, and what it cost to get each of those outcomes.

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If you are running video ads and want to make sure the creative is doing its job, get in touch with Studio30. We make short-form video ads for NZ businesses and can help you think through what kind of ad fits your campaign goal.