In any click-based ad system (Google, Facebook, Twitter, most ad networks & re-targeting platforms), advertisers who have high CTRs* are rewarded and advertisers who have low CTRs are punished.
The platforms describe this as “rewarding relevancy” because they assume that users click on content/ads that they find most relevant (not an inaccurate assumption). It makes sense why the platforms have this system - they are in business because their users have been happy with the relevancy of their content. The less relevant the content, the less frequently users will use the platform, and quickly any of these platforms could be having a painful board call or (gasp!) could become MySpace. It also doesn’t hurt that in most cases either directly or indirectly, the platform is making most of its money from those user clicks, and thus the platforms want to promote as many clicks as possible.
Yet, as an advertiser, you are the one who is paying the platform for the clicks - you are from whom they are making their money. In a perfect world, you will then be making even more money from the fabulous visitors who came to your site via those clicks and you’ll all live together in perfect cyclical economic harmony.
In reality though, that cyclical kumbaya relationship requires you, the advertiser, to be highly in tune with your ROI needs, and it requires you to draw the line on CTR optimization because the platforms will not. Sometimes high CTR can be detrimental to your business, and you need to find the balance that works for your ROI needs and for your users.
Here are some guidelines to protect your ROI, even when it may prevent maximum CTR:
1) Be savvy about promotional language
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*Also included in this definition are social engagements - likes, shares, etc. as they are also "clicks."
**Note that if you are focusing on a social platform such as Facebook or Twitter, if your users are not typically engaging with you over sales/deals it is unlikely a sale will drive CTR, it may even reduce your CTR if what they expect from you is interesting content.
The platforms describe this as “rewarding relevancy” because they assume that users click on content/ads that they find most relevant (not an inaccurate assumption). It makes sense why the platforms have this system - they are in business because their users have been happy with the relevancy of their content. The less relevant the content, the less frequently users will use the platform, and quickly any of these platforms could be having a painful board call or (gasp!) could become MySpace. It also doesn’t hurt that in most cases either directly or indirectly, the platform is making most of its money from those user clicks, and thus the platforms want to promote as many clicks as possible.
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| Marketing Meme: Philosoraptor |
Yet, as an advertiser, you are the one who is paying the platform for the clicks - you are from whom they are making their money. In a perfect world, you will then be making even more money from the fabulous visitors who came to your site via those clicks and you’ll all live together in perfect cyclical economic harmony.
In reality though, that cyclical kumbaya relationship requires you, the advertiser, to be highly in tune with your ROI needs, and it requires you to draw the line on CTR optimization because the platforms will not. Sometimes high CTR can be detrimental to your business, and you need to find the balance that works for your ROI needs and for your users.
Here are some guidelines to protect your ROI, even when it may prevent maximum CTR:
1) Be savvy about promotional language
One of the easiest ways to drive CTR is to offer an awesome, competitive deal. Offering 50% off will often result in significantly higher CTRs, especially during key holiday periods when users are looking for deals. BUT, before you do this, ask yourself:
- Can we even afford to offer 50% off? (Think of the many businesses destroyed by running Groupon offers that they couldn’t afford).
- Does our target customer consider us a price-competitive commodity or a high-end quality brand? Big discounts can imply lower quality, and can set a precedent to repeat users that they should wait for big sales (think Banana Republic with their constant 40% off offers).**
- Will a customer who buys because of a discount be a return prospect for us? Would we have acquired this customer anyway through other means? (Again, the Groupon example rings clear).
Before stepping out on a discount limb, remember that it is hard to move away once you’ve taken the plunge. Sometimes it’s still worth it, sometimes it’s not. You have to know your business to decide.
2) Avoid overblown or “Up to” claims
2) Avoid overblown or “Up to” claims
Can you offer 50% off on everything that the ad would lead to on the site? If only a few products are 50% off, then users will likely click through from your ad and be disappointed. Annoyed users don’t typically browse for an alternative to what you advertised - they bounce immediately and leave with a bad taste in their mouths. You will not only pay for non-converting clicks, but you might also make their first experience with your brand an untrustworthy one.
3) Avoid false relevancy
3) Avoid false relevancy
Similar to overblown claims, advertising products when you have very limited or no inventory or services that come with a can of worms can have the same effect. Even something as simple as “Shop Gucci Boots” can be annoying for a user and expensive for you if you don’t actually sell Gucci boots, or if you only have one pair. Don’t require an email sign-up or phone number to even see what your service is. Users remember experiences in which relevant ads led to a feeling of being taken advantage of and they will be highly unlikely to give you a second chance.
4) Avoid confused clicks
4) Avoid confused clicks
Sometimes disruptive ads can drive CTR from startled or confused users. Think about basically all of the mobile ads on Zynga products or those annoying blinking display ads on news websites. The sites/platforms use those ads because they trick the unqualified user into clicking. You don’t want this user. They will associate their annoyance at the disruption with you. Earn their click, and then they will be a loyal customer.
5) Make your landing experience relevant
5) Make your landing experience relevant
Even a qualified click can be bad for your ROI if you are landing the user on the wrong page. Keep conversion optimization on your website top of mind at all times. Every user who has a bad experience navigating your site is a lost acquisition that you paid for. Users decide if your site is relevant within seconds, so make those seconds count.
“OK,” you say, “I’ve implemented all of these ROI optimizations, now I have to worry about the platforms punishing my lower CTR, right? My higher CPCs will make all of this work irrelevant because the higher cost per click will reduce my ROI, right? I just can’t win…”
“OK,” you say, “I’ve implemented all of these ROI optimizations, now I have to worry about the platforms punishing my lower CTR, right? My higher CPCs will make all of this work irrelevant because the higher cost per click will reduce my ROI, right? I just can’t win…”
If your ads and content are showing to relevant users and are following the guidelines above, then increasing your CTR within those strategic constraints will only help your business. Unless you don’t offer something valuable to your target user, you shouldn’t need gambits to drive CTR.
Here are some non-gambit tips for increasing your relevant CTR:
Here are some non-gambit tips for increasing your relevant CTR:
- Structure your digital marketing programs (search, display, behavioral targeting, re-targeting, social media) to be highly focused on your target user - don’t cast a wide net, cast numerous niche nets and revel in the rewards.
- Provide clear relevancy and value to the target user with every pixel/character. Don’t just target the right people, use your knowledge of them to appeal directly to their niche. Make it clear in an instant why you’re God’s gift to them.
- Use enticing, bright, relevant images whenever possible. Images = clicks. As long as you don’t use something irrelevant, images can be a great way to grab the eye and the click.
- Test and optimize. Digital platforms are entirely focused on evergreen campaign optimization. Launch something you think will work, gather data, and iterate over time to make it work better.
- Begin with a roar. Pay more upfront to gain traffic and knowledge and pull back with ROI optimizations later. Show the systems you can produce good CTR, build your high quality history within the platforms, and then use your strategic hand to pull back irrelevant traffic in ROI optimizations later.
Stay tuned and subscribe for more posts on many other topics near and dear to the 2014 Digital Marketer's heart!
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*Also included in this definition are social engagements - likes, shares, etc. as they are also "clicks."
**Note that if you are focusing on a social platform such as Facebook or Twitter, if your users are not typically engaging with you over sales/deals it is unlikely a sale will drive CTR, it may even reduce your CTR if what they expect from you is interesting content.
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