In order to get a positive return on investment with your pay-per-click (PPC) ad campaign, you need to pay attention to the numbers.
That’s really all PPC Online advertising is – a numbers game. And if you get the numbers right, you win.
But which numbers matter most? And how can you boost those numbers as much as possible to increase your success and revenue?
Well, it all starts with a good click-through rate (CTR).
In this article, we’re going to dive into the nitty-gritty of what click through rate is, why it’s important, what percentages you should be aiming for, and clever (somewhat random) ways you can get better results.
Let’s go all the way back to the basics and dig into what the Average click through rate(CTR) metric represents, how to calculate it, and all of the basic 101-level information that usually gets glossed over.
If you already know this stuff, great – consider it a quick refresher (or move on to the section below on benchmark PPC CTR rates). If you’re totally new to the PPC game, then this will give you a baseline understanding so that everything else we’re about to discuss will make sense.
So, without further ado, let’s get into the definition.
An Average click through rate(CTR), is basically the percentage of impressions that result in total number of clicks. In order to calculate this number, you simply take the number of clicks and divide it by the total number of impressions (people who saw the ad). Then you multiply that number by 100.
For example, let’s say your online ad got 5,000 impressions and 75 people clicked. The equation would look like this:
(75 / 5,000) x 100
The result is (.015) x (100). This comes out to 1.5 percent. This is your click-through rate. It means 1.5 percent of people who saw your online ad clicked.
Okay, great – but so what?
The simplest answer is that the click-throughs on paid ad platforms like Google and Facebook use Average click through rate CTR to quickly evaluate the health and value of an ad. If lots of people are clicking, then it tells the algorithm that this is an attractive ad that’s making them lots of money. And if the ad is making them lots of money, they want to make sure you keep serving the ad. This leads them to lower the cost per click (CPC) as a way of incentivizing you to continue online advertising on their network.
In the case of Google Ads management,(CTR) also impacts something known as a “Quality Score.” This score is awarded on a 1-10 scale and is determined by a mixture of factors like Average click through rate(CTR), landing page UX, and ad relevance.
An ad’s Quality Score impacts its “Ad Rank,” which Google uses to determine where ads show up on search results. A high CTR leads to a higher Quality Score, which in turn leads to a higher Ad Rank. This ends up putting your ad in front of more of your target customers at a lower price.
If that’s all a bit confusing, here’s a simple visual to make it easier:
CTR → Quality Score → Ad Rank → PPC Ad Placement → Higher CTR
It’s basically a self-feeding cycle. As your CTR increases, so do all of the other metrics. This usually leads to a higher CTR, which…well, you get the picture.
Once you understand what (CTR) is and why it’s important for PPC ads, the next logical question is, what’s a good click-through rate?
The answer is…it depends!
I know – that’s not the answer you’re looking for – but we’re going to take a deeper dive in just a moment. The point is that there’s no concrete figure. There are dozens of circumstantial variables that come into play based on your product, industry, creative, and the PPC platform (Google vs. Facebook vs. Others).
When evaluating baseline PPC CTR, there are a few quick factors you can take into account right from the start. This includes (a) how the ad is being displayed, and (b) the industry you’re in.
Let’s start with how the ad is being displayed. With Google ads, there are two different networks. You have the Google or other search engines network and the Google display network.
The search network includes text-based ads that pop up within Google search results (at the top and bottom of the page). The display network serves ads on other websites. These are typically image-based ads and banners.
Google search network ads tend to have a slightly better click through rate(CTR), simply because they appear within the search results. Averages across all industries are usually somewhere in the 1.75 – 2.00 percent range.
Ads in the Google display network are usually much lower – somewhere south of 0.50 percent. (This is due to the fact that many users use ad blockers and other plugins that make it less likely they’ll even see the ad.)
When it comes to the industry, the average click through rate(CTR) can change dramatically from one sector to another. Here are some examples pulled from recent reports:
As you can see, the standard from industry to industry is different. Achieving a 4 percent CTR in dating and personals might be extremely low, whereas it would be an incredible rate in technology. This just goes to show there are a lot of unique factors in play.
Even within specific industries, averages vary based on the offer, type of product, brand, etc.
The fact that click-through rates vary so much can actually be viewed as a good thing. It means you always have the ability to increase your numbers. And, sometimes, all it takes is a little creativity.
Now that we have some basic context established, let’s dig into the juicy stuff. How can you improve your PPC click-through rates so that you stand a better chance of producing conversion rate and increasing revenue?
Here are several suggestions:
Humans have a wide range of emotions. And while we like to assume that we’re fairly rational creatures who make logical decisions after having all of the facts laid out for us, the truth is that we typically act on emotion (then justify with logic after the fact).
As an advertiser, you can use this little bit of knowledge to your advantage. Avoid the logical plea and get emotional. Ethically leveraging love, fear, hope, belonging, shock, and surprise can help you get better click-through rates.
For example, let’s say you’re running an ad for roses during Valentine’s. Leading with something like “2 Dozen Roses for Just $29” is actually a fairly weak hook. You might make a few sales, but there’s nothing other than price at play. What about all of the buyers who are less price sensitive?
A better ad might read: “She Thinks You Forgot. Roses Delivered Same Day.” Do you see how much better this ad copy is? It makes an emotional appeal – not just a logical dollars and cents pitch.
Questions can be powerful when used appropriately in your PPC ads management. People are naturally curious and posing the right query can get people thinking about things through whatever filter or context you’d like.
When asking questions, try wording them in a way that the answer is obvious. (Not only that, but the answer should be obvious and certain to push them closer to clicking.)
Going back to our roses example, you could do something like this: “Miss Her Birthday Again? 2 Dozen Roses Will Do The Trick.”
Or if you’re a financial advisor: “Unprepared for Retirement? Learn How to Create a Guaranteed Stream of Income in Your Golden Years.”
A good question can save valuable space in your ad by letting your prospect tell themselves why they should click. This can be more powerful than using a direct command.
Humans have a huge, oversized fear of missing out on something. You might even say this is a distinctly human trait. Dogs don’t see other dogs walking with their owners as the sun goes down and think to themselves, “No! I hope I don’t miss out on a walk with my owner before the sun sets!” Now, if you tell a dog that you’re going on a walk, they might get really excited. (And they might even get sad if you’re then unable to take them out.) But they don’t have a fear of missing out.
With humans, we’re constantly fearful of being left out or missing the boat. In many cases, we’ll do anything to avoid this feeling – even if it means spending time or money on something we might not truly need.
In advertising, you can tap into FOMO by creating urgency and/or playing the scarcity card. You can do this by setting a deadline for a sale, releasing a limited order quantity, or using some sort of tiered discount based on when people place an order.
While not perfect for every brand, humor can be a very useful mechanism for increasing click through rate(CTR) and getting a better response. Having said that, it’s a somewhat risky play – simply because everyone has a unique sense of humor. You could easily miss the mark and drive your click through rate(CTR) close to zero.
If you’re going to attempt humor in your ads, we recommend running multiple variations. Have a humorous version and a non-humorous version and split test the same ad creative. This will give you a pretty good feel for the response. After gathering enough data, you can make a decision on whether to move forward with the funny ad or nix it.
We can talk all we want about ad creatives, copy, and other elements, but it all comes down to ad-audience fit. If you aren’t focusing on the right audience, you aren’t going to have high CTRs.
For Facebook in particular, where you have a massive amount of control over your audience, niching down to a very specific part of the market is going to give you the ability to create much more targeted ad copy and images that resonate.
For example, don’t just target business owners. Target restaurant owners. And then split your ad campaign up so that you can target South Carolina restaurant owners and California restaurant owners separately. This gives you so much more relevancy and control.
One school of thought says you should max out your ad by using every single character you’re allowed to use within the character limit. But is this really the best way to go?
There’s ample research to suggest shorter ads (particularly on Facebook) get more number of clicks and better engagement. In fact, as character count increases, response rates steadily fall off.
The fact that shorter ads do better is likely due to the fact that people have very small attention spans. An ad that can be consumed in three seconds is much more enticing than an ad that takes 90 seconds to read. Even if your copy is great and you can effortlessly compel people to read sentence after sentence with mouth-watering copy, there’s simply too much friction to attract a large percentage of your audience. Keep it short!
When dealing with Google display network ads and/or Facebook ads, the image is the most important part. People will process the image long before they read the copy or call-to-action. So when you run an ad, always split test at least three different images. This will give you a feel for what your customers respond to best.
PPC is both an art and a science. It requires equal parts creativity, technical competence, and experience. If you’re lacking in any of these three areas, you aren’t going to get the sort of results you need.
But there’s good news: We can help.
At PPC.co, we partner with entrepreneurs, digital marketers & email marketers/ email marketing professionals, agencies, startups, small businesses, and established enterprises to make PPC advertising a smooth, seamless experience that ultimately results in more clicks and conversion rate.
Want to learn more about whether we’re a good fit for each other? Let’s chat!
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When you want to use paid search marketing platforms, Google Ads often leads the list. Because of its versatility, simplicity, and popularity, it’s obvious why it’s a popular choice. But when you drop all of your PPC advertising money into one marketing strategy, you could lose some leads.
That’s why some businesses explore paid advertising marketing outside of Google, with many turning to Linkedin Ads.
Google Ads and Linkedin Ads are highly efficient ways to market your products and services to businesses and consumers. But each marketing channel has its advantages and disadvantages. Whatever you choose, make sure you discuss the matter with your web development company.
Below is a closer look at each option.
We think it’s reasonable to conclude that Google reaches a vast audience worldwide – its ad reach is a stunning 4 billion people. Google search handles about 70% of desktop searches, and many companies report that they get about 90% of their organic traffic from the search engines. Also, up to 95% of the mobile search market comes from Google.
People use Google’s search a lot, and having the ability to target search terms with specific search ads is a massive benefit of Adwords. People tend to search for very specific things in Google, so if you can customize your Google advertising for your targeted audience, you’ll receive plenty of leads.
So, we can assume that most people’s targeted audience uses Google to some degree. That’s a massive advantage for companies when they want to target an audience.
However, businesses that want to narrow down their search may have issues getting their Google ads settings right with both Google Ads. And if you blunder when segmenting your audiences, your digital ad campaign could suffer.
LinkedIn features a narrower audience – 500 million users – namely businesses and business professionals. But this more limited audience makes it the perfect place for effective B2B marketing. LinkedIn lets marketers serve online ads to decision-makers and vital audience members in several ways.
Summary: For B2B firms that want to reach decision-makers, Linkedin is a terrific advertising platforms. If your B2C company intends to increase its reach, Google Ads could be the best fit.
When you target your audience with Google Ads, you have a few options: location, affinity, technology, buyer behavior, demographics, and interactions with your app or website.
No matter how much you know about your buyer, you may struggle to avoid clicks from worthless leads that cost too much.
In some cases on Google, people may not even know what they’re looking for. You can try to advertise to your desired targeted audience on Google Ads, but it can be challenging to get to the precise people who will most likely buy what you sell.
When people sign up for LinkedIn, they usually provide many details, such as their occupation, title/job title, experience, industry, education, interests, and more. All of this information can be leveraged for great advantage when you start your marketing campaigns.
Also, LinkedIn users can join many groups, start conversations, and obtain followers. The data is priceless when you want to target a specific audience and market to them. LinkedIn also has a Matched Audience that helps advertisers match their email marketing lists and website visitors with users on LinkedIn.
Many marketing experts think that LinkedIn Ads offer more value. LinkedIn has refined targeting, and you can make your product known to them so that you can tell them about something they didn’t know existed.
Summary: For B2B and B2C companies looking for a broad audience, Google Ads has enough targeting features. But for B2B firms that want to target specific groups, LinkedIn Ads has about 100 segmentation methods for micro targeting.
When you want lead generation, Google Ads has a broader reach and is the most effective. First, you can bring in a lot of prospects to your site without breaking the bank. The audience you’re after on Google visits the search giant with the idea to find the best product or service. This makes generating leads easier.
Getting leads from LinkedIn can be more challenging. Users of the platform may sign in to read industry news or talk to group members. No matter how perfect your ad is, viewers may not be in the mood to buy anything.
That said, Linkedin has a way to target ad leads through in-site messaging, which can generate plenty of leads.
When it comes down to dollars and cents, LinkedIn Ads usually are more pricey than Google Ads. As in Google, you can select cost-per-click or cost-per-impression.
LinkedIn also features a cost-per-send for InMail advertising. Typically, you’ll pay about $5 for each click, $6 for 1,000 impressions, and .80 for each send.
With Google Ads, the average CPC is $1. But to leverage that low cost, you need to work on your audience segmentation. If you don’t your ROI may be below what you want.
Summary: Advertising budgets for each platform depends on several factors. On average, Google Ads cost less than LinkedIn Ads. If your B2B company has a tight budget, you may want to focus on a limited variety of LinkedIn ads instead of a broad range of Google Ads.
So should you advertise with Google Ads vs LinkedIn Ads? Yes!
What we mean is, it depends. The correct choice depends on your budget, product or service offered, marketing goals, and target audience. You should not assume that when you need a digital marketing campaign, Google Analytics Adwords is the only choice.
It’s critical to evaluate the market, understand who your buyer is, and make a data-driven decision about the best marketing platform to reach your well-defined goals. One type of company might do better with Google Ads, and another may find LinkedIn Ads preferable.
The great news is you don’t need to choose between the two platforms. Many businesses use both, as well as Facebook, Instagram, and others. If you have the budget, it may pay off to diversify your paid search advertising to get the best ROI.
Pay-Per-Click (PPC) Digital marketing is a classic marketing strategy that’s commonly used to supplement organic web traffic, but it’s hardly the most straightforward way to increase your site’s audience. In fact, from a technological perspective, it’s a rather fussy practice. That’s why brands that want to include a PPC marketing strategy in their overall strategic decisions need to work with an experienced agency. Agencies facilitate ad distribution, track clicks, and calculate fees – and the best ones can help their clients thrive. Unfortunately, there are a lot of subpar agencies and bad actors out there, and you need to know how to spot them.
So, how do you know if it’s time to fire your PPC agencies? Keep an eye out for these 9 red flags. They could indicate you’re working with the wrong agency and that it’s time to make a move.
Companies leave their PPC agencies behind for all sorts of reasons, but according to a 2015 report by the Society for Digital Agencies (SoDA), the most common reasons include outgrowing the agency’s capabilities, cost overruns, and dissatisfaction with their strategy. These are all valid reasons, and ultimately many of them can be reduced to an agency’s failure to generate any or enough growth. After all, disliking the agency’s strategy isn’t likely to be much of a problem if that strategy is generating major growth. Similarly, a brand is unlikely to view itself as having outgrown the agency is their accounts continue to grow.
Ultimately, what these different reasons for firing PPC agencies demonstrate is that, any way you slice it, no one wants to work with an agency that isn’t making them money. So, while it might take a little while for your PPC ads to gain traction, if you’re not seeing growth based on the launch of or changes to your PPC campaign, it’s time to move on to a different agency.
While most brands work with a PPC advertising agency to run their campaigns, it’s not only possible but advisable for you to set up your own accounts with the major PPC advertising platforms, which include sites like Google AdWords, Yahoo, and Facebook. Still, if you’re not the most technologically savvy, it can be tempting to let your agency do it for you. Don’t give in to the impulse. Instead, ask them to guide you through it so that you can ensure that you’re the one with owner access rights.
Unless you have the owner access rights to your company’s PPC accounts, you can’t be sure you have unmediated access to your campaign metrics or feel good/ confident that you’ll be able to transfer your accounts to another agency or bring them in-house if needed. In other words, your agency could be misrepresenting best results to you or could refuse to relinquish control if you end your contract. You need to retain those rights and then give your PPC agent the appropriate permissions to manage your campaigns. If they balk at this arrangement, show them the door.
Typically, when you look at your company’s profile on a site like Google AdWords, you’ll see that your PPC agency has set up specific goals to help your business grow. These commonly include such metrics as Cost Per Acquisition, Return On Advertising Spend, and Cost Per Lead, though there are plenty of other valuable metrics that are worth tracking. Such measurements assure you that you’re spending your Digital marketing money in the right place, help you budget for ad spending, and offer insights into what’s working and what isn’t.
Unfortunately, you’ll occasionally encounter PPC advertising agencies that fail to set up these metric reports, and they’re not to be trusted. Even if they claim to be using an in-house system, it’s your right to demand they use the standard reporting system for each PPC platform and to fire them if they refuse to. Dashboard-based metrics exist to provide consistent measurements regarding the success of PPC campaigns ad those are the numbers you want to reference.
In a similar vein, some PPC advertising agencies skip the core metrics noted above in favor of less valuable but more appealing “vanity metrics.” Vanity metrics don’t help your business make money and they offer limited insight into your operations. Examples of vanity metrics include any campaign value based on impressions, engagement metrics that don’t drive conversions, and even many of the behavior-based metrics that used to be considered the gold standard in website evaluation, such as bounce rate or time on site.
Ultimately, vanity metrics don’t serve your company because they can be created artificially. An untrustworthy PPC agency might drive up engagement numbers by sharing a great meme on your brand’s landing pages, which will drive likes and other reactions, but won’t actually funnel clients to your site or create sales. Similarly, you can get a huge number of impressions by getting your PPC new ads onto a very popular site, but if no one is clicking on it, all you’ve got is a tally of how many people visited/ web traffic to someone else’s website.
Having the right metrics is important, but if you’re going to meet your goals then your Good PPC agency needs to be adjusting your account settings regularly to refine your campaigns. At a minimum, that means accessing your account to regularly monitoring and fine-tune the settings at least once a week. Such regular check-ins allow your agency to quickly adjust your social media campaigns based on updates to the search engines algorithm, catch any conversion mistakes that could cost your company money, and even react to competitors campaigns.
Be sure that you not only ask your PPC agency how often they access and update your accounts, but that you’re also checking your accounts regularly for updates. The reality is that, although many companies run PPC campaigns, only 10% of AdWords accounts are updated weekly. If your PPC agency can’t meet that standard, ditch them for one that will stay on top of your campaigns.
Just as your PPC agency needs to be fine tuning your accounts regularly, they should also be reporting back on your campaigns at least monthly. While seeing week-to-week progress would be great, as with many kinds of growth, this can be hard to evaluate. Comprehensive, monthly reports, on the other hand, can help you see what your agency has been doing on your behalf, how your accounts are growing, and allow you to be an active participant in your Digital marketing strategy.
Never settle for a company that doesn’t offer substantive reporting. While great reports may offer added insights from your account manager or more labor intensive explanatory work, the majority of PPC reporting is automated – any company that doesn’t provide it is just lazy.
It’s unrealistic to expect that you’ll speak to the same person every time you contact your PPC agency; that doesn’t even happen at your bank or your doctor’s office. That being said, there should be one person who acts as the lead on your account because that allows them to master your brand’s voice, develop a big picture strategy, and generally build up a knowledge base around your brand’s needs and preferences. They might be busy or out of the office occasionally, but anyone whose experienced both approaches – a core account manager and a rotating cast of agents – can tell you that having a point person makes a difference.
If your PPC agency doesn’t have you working with a single, core agent, you may want to ask a few questions to get a better sense of what’s happening. Do they have an unusual in-house strategy, or are they having trouble with employee retention? Do they think it doesn’t make a difference? You can also request that they place you with a single representative, but if that’s not their standard practice already, you’re probably better off going elsewhere. It just doesn’t bode well.
Google AdWords isn’t a new program and there are plenty of other PPC programs out there, but if an agency is committed to this work, then they should have complete Google’s AdWords certification program. You can check on this by asking them to show you their Premier Partner page – it really is that simple. Not having one isn’t necessarily the worst offense a company can commit, but it’s a good indicator that you can do better and should commit your ads spend elsewhere.
Did you pick your PPC agency based on their portfolio of appealing PPC ads/ads or optimized images? That’s a great starting point – it certainly indicates that they can do high-quality work – but it’s not enough if they’re not actually showing you your brand’s own ads before they launch them. Obvious, right? It should be, but many entrepreneurs have been duped by PPC agencies who tell them that their ad is similar to another ad product, which is called ad copy; the client, not wanting to be pushy, walks away with their own notion of their brand’s ad, and meanwhile the agency may not have done any work at all.
Your PPC agency should be giving you the final say on all your paid ads, so if you’ve supposedly got a campaign running and you haven’t seen your ads, ask to see them right away. Odds are good that if your agency isn’t showing you your PPC ads before launching them that they either don’t exist or they’re extremely low quality for online visibility. Great PPC agencies are proud of their work and they want you to see it. Anything less should raise concerns.
Hiring an agency to manage your PPC campaigns will obviously cost more than just the fees for the campaign itself, but the costs involved in running ads with your agency shouldn’t be confusing. That’s because, ultimately, your money should only be going two different places – to the agency and to the ad platform – and everyone at the company should be clear on the split. So, when we say you should be wary about confusing fees, we’re not talking about total cost (that’s a matter for you and your budget), but rather about how the money is split up. For any payment there should be the fee to the agency and the ads spend and it should always be obvious what the division is there.
As popular as PPC marketing is with businesses today, many of the agencies that execute these campaigns don’t do a very good job. They’re wasting your ad spend and your time, and you deserve better. That’s why you should switch to PPC.co’s PPC Management Service.
At PPC.co, we’re committed to ensuring that your ads are reaching the right audience and we know that most agencies just don’t deliver that. Starting from our understanding that website conversions often top out at 2%, we emphasize PPC marketing that pairs first contacts with retargeting efforts to ensure that your brand remains a top-of-mind solution for past visitors. A non-converting visitor is often just someone who hasn’t seen the right content yet, and we want to help you make those connections.
What else makes our PPC Management program stand out? With dual Google Ads and Google Analytics certifications, we have a deep understanding of the systems & AdWords account that get your ads seen and can use tracking data to its fullest potential of web traffic. In fact, that’s why we start every client engagement with a full PPC audit, because even when we’re not leading the campaigns, our skilled professionals can quickly see what’s working and what’s falling short in your current campaigns. From the start, we put our expertise to work for you.
If your PPC agency has exhibited any of the above warning signs, you can’t afford to wait around for progress. It’s time for the protection of business and moves on – to PPC.co. Contact us today to learn more about our PPC Management Services and say goodbye to wasted ad spend and rock bottom conversions. Once you’ve seen the difference a top PPC agency can make in your campaigns, you’ll never believe you let anyone else handle your PPC needs.
