The Best Ad You've Ever Made Got Zero Sales (Here's Why)
A great ad can fail due to funnel problems rather than ad quality. The speaker outlines three critical metrics to diagnose where conversions break down: landing page bounce rate (should stay under 20%), add-to-cart conversion (around 10% depending on product price), and cart-to-purchase conversion (target 30%).
Summary
The transcript addresses a common frustration in digital marketing: creating what feels like an excellent ad only to see it generate zero sales. The speaker argues that the problem often lies not with the ad itself, but with the sales funnel. To systematically diagnose funnel problems, three key performance indicators should be tracked.
The first metric is bounce rate from ad click to landing page view. While many advertisers worry about high bounce rates reported in advertising dashboards, the speaker clarifies that these numbers are often inaccurate due to platform measurement limitations. Instead, advertisers should verify actual dropout using first-party tools like their hosting platform (Funnelish, Checkout Champ, Shopify) or analytics tools like Microsoft Clarity. The acceptable threshold is 20% dropout, meaning 80% of visitors should proceed beyond the landing page. Higher dropout rates typically indicate either poor traffic quality or slow page loading speed.
The second metric is add-to-cart conversion rate, which should target approximately 10% for products in the $30-40 price range. This benchmark is flexible and inversely correlates with product price: products priced $50-60 should aim for 8-9% conversion, while products $100+ can succeed with 6-7%. This metric reveals two things: traffic quality and page/funnel effectiveness.
The third metric is cart-to-purchase conversion, with a target of 30%. When this rate falls below 30%, it typically indicates a checkout process problem. The speaker recommends making test purchases yourself and auditing the payment processor to ensure acceptable payment success rates. By identifying which stage of the funnel underperforms, advertisers can pinpoint whether to improve the product page, increase ad click-through rate, or refine targeting. This structured analysis transforms funnel optimization from a mysterious process into a systematic diagnostic approach.
Key Insights
- Advertising dashboard page view counts are not super accurate, making reported bounce rates unreliable for diagnosing actual funnel problems
- The acceptable landing page dropout threshold is 20%, with 80% of traffic expected to continue; anything higher usually indicates either no traffic quality or poor page loading speed
- Add-to-cart conversion rate of 10% is flexible and inversely related to product price, with $50-60 products targeting 8-9% and products $100+ acceptable at 6-7%
- Cart-to-purchase conversion target of 30% serves as a diagnostic indicator, where rates below 30% typically reveal checkout process problems rather than traffic or page quality issues
- When add-to-cart rate is low, it immediately signals whether the problem is the product page quality, ad click-through rate, or targeting, enabling precise optimization focus
Topics
Transcript
[0:00] You run an ad and think: this is, damn, the best ad I've ever done in my life. You start it up , it works just horribly, and you're like, "Damn, I have no idea why." Well, maybe the ad was actually good, and the whole problem is in your funnel. The first thing I would pay attention to is the bounce rate from clicking on a link to viewing the landing page. Many people think this is a huge problem. But usually this is not a real problem . I can say this because the number of page views in the advertising cabinet is not super accurate. So if you're thinking, "Oh my god, I got 100 clicks…
Full transcript available for MurmurCast members
Sign Up to AccessMore from Mark Builds Brands
If Your Website Looks Amazing but Nobody Buys, Watch This
The speaker argues that aesthetic design quality does not directly correlate with conversion rates. While visual appeal matters for brand building, the primary focus for conversion optimization should be on metrics like Customer Acquisition Cost (CAC) rather than making a website visually stunning.
The Free Gift Objection That's Killing Your Conversions
The speaker argues that most marketers use generic offer packages (1-2-3 bundles, BOGO deals) that don't effectively overcome customer objections. Free gifts only drive conversions when they specifically address a distinct customer problem that the main product doesn't solve.
Take bigger swings
The speaker advocates for taking bolder, more creative risks in advertising and landing page testing, especially when operating at smaller scales. Rather than making incremental variations on existing winners, marketers should test diverse, extreme concepts to discover new winners and build account stability.
Never rely on one of anything
The speaker argues that relying on a single approach, platform, account, or creative format in e-commerce is inherently risky and creates vulnerability. By diversifying across advertising accounts, payment processors, business structures, and creative formats, businesses can build stability and avoid starting from scratch when one method fails.
The Real Bottleneck in Every Ad Account
The speaker argues that poor creative quality is the primary reason advertising accounts fail to generate profit. They provide specific KPI benchmarks for link CTR (minimum 3%), CPC for US traffic (around $1.50-$2), and native static CTR (5-6%), emphasizing that creatives are the real bottleneck in ad performance.