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Click-Through-Rates

Why Click-Through-Rates Are Something To Consider

When it comes to a Pay-Per-Click (PPC) campaign, success is often based on whether the initiative is able to direct traffic towards a particular site in order to yield actual sales. And rightly so, as this is more or less the number one purpose of starting a PPC campaign; however, it can be so much more. Particularly savvy business owners in Toronto understand that other factors related to PPC can reveal the strengths and weakness of their marketing choices. The Click-Through-Rate (CTR) is the most important of these factors, as it takes into account the number of times an online user actually clicks the ad compared to the total number of times the ad is shown. If analyzed properly by a marketing consultant, the CTR can indicate the success of the overall project.

The concept is straightforward enough for those employing a PPC campaign. A high CTR is a good thing, signifying that more people are actually clicking the ad involved, but it also suggests something deeper about the quality of the campaign and the future of the business. A professional digital marketing consulting firm can explain how.

Click-Through-Rates

First, a higher rate of clicks indicates that the ad is reaching the right people. Your PPC campaign relies on carefully chosen keywords that are selected specifically because they are suitable for your targeted audience. There is no confusion about whom the ad is directed toward, so only those who are searching for the advertised service will see it. By narrowing down the audience to one that’s appropriate to the service, you’ll have more people who legitimately want tointeract with the ad, so you end up only paying for purposeful clicks.

Second, a high rate of clicks indicates more than just an appropriate target audience—it also suggests the overall strength of the message. There’s only so much targeting can do if the message isn’t effective; the ad has to do some of the heavy lifting, enticing people to actually click through. When the numbers of the CTR are analyzed, one can understand what works and what doesn’t. A keyword that yields a high number of clicks means the message and brand resonate with the intended audience.

A CTR can also help businesses estimate offline success, as the number can reflect the level of interest consumers have with a particular brand and message. While some consumers will click through and immediately finalize their purchase (generating a new sale), it’s an unfortunate fact that most do not. Many people prefer to complete their research online well before they make a purchase, and when they do they often use the phone or buy in person in a physical store. If the numbers suggest a high CTR without immediate conversion, business owners can more confidently estimate their offline conversion for future sales.

As the name suggests, Pay-Per-Click can be a necessary addition to any marketing strategy. A high CTR can help lower the cost of each individual click. On most interfaces, the rank of a bid is determined by the sum of the quality of the ad and the maximum bid price set by the business owner. According to Google Adwords, one of the most popular PPC platforms, CTR affects the quality score. The higher the CTR is, the higher the quality score is, meaning a business doesn’t have to front as much money in the maximum bid price in order to rank highest. In this way, a low cost-per-click can be achieved without sacrificing high-cost keywords.

The Click-Through-Rate is an important part of every PPC campaign, and in today’s market, it cannot be ignored. As can be imagine, they also have to be analyzed correctly. Start looking for dedicated marketing companies in Toronto to get you results and to give you an expert opinion on the matter. These consultants can explain how to interpret the CTR, adjusting where necessary to strengthen the success of the ad, and ultimately help your business grow.

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