Introduction
We are all aware of what Click-Through Rate (CTR) is and how significant a number it is.
It is crucial to note that a high CTR does not necessarily translate into a high Return on Investment (ROI).
Lower CTR creatives can frequently lead to higher profit.
It all comes down to how much you spend on traffic and how much money you make in the end.
On the other hand, it would be a mistake to completely disregard CTR, and I would like to share with you 5 reasons why you should.
Some of the causes are quite obvious, while others may surprise you.
I should also point out that the text that follows is more relevant to CPM campaigns.
Although I wrote it with CPM in mind, some of its components are also applicable to CPC bidding.
Cheers to reading!
1. It Tells you Something About your Creatives
It should be pretty clear that traffic costs decrease as CTR increases.
There are some boundaries you don’t want to cross, even though lower CTR banners often convert better than high CTR banners.
When the CTR is too low, CPM bidding is completely ineffective for making money.
Let’s look at a real-world example: a banner campaign with 30% CTR, a $0.3 CPM bid, a $3 offer payout, and a 10% realistic CVR from LP clicks.
Out of 100 clicks, 30 lead to the offer, which generates 3 leads and $9 in revenue.
I can purchase 30.000 banner impressions at a CPM of 0.30.
From these 30k impressions, I need 100 clicks, so the CTR must be at least 0.3%.
If it is lower, the funnel cannot be profitable, and you will need a better banner because the cost of the traffic is too high.
The same reasoning holds true regardless of the industry or type of traffic: once the cost per click or LP click exceeds a predetermined threshold, profitability is impossible.
2. It Tells you Something About your Competition
The first banner impressions typically have higher CTRs than the last ones, which is a known fact.
The first few banners that users see are more likely to be clicked.
Users begin to disregard the banners more and more after spending some time on a website.
Therefore, not only are the first few banner impressions more valuable due to the quality of the traffic, but they can also result in higher CTRs and a lower overall CPC.
I’m sure many of you have experienced a situation in which raising the bid caused the CTR to significantly increase; at that point, you had climbed high enough in the bidding chain to secure the first few impressions per user.
You must learn to recognise these breaking points in order to make the most of a traffic source. Whenever the bid is still within your comfort range, try to move past these points.
Once you do, the campaign becomes more stable and the CVR typically rises as a result of the higher quality.
3. It Tells you Something About the Spots/Placements
You can learn a lot about the placements you are buying traffic from by looking at the CTR of the creatives.
Is the CTR inadequate?
The ads are most likely hidden below the fold, or there might be a problem with the site (low organic traffic, irregular traffic distribution, etc.).
The CTR is it too high? Running a bot test on this placement would be a good idea because there might be a BOT issue.
The test did not reveal anything unusual?
This indicates that the banner is in a prominent location or that the placement has a tonne of traffic; in either case, head to a whitelist campaign with that spot and make the most of it.
Have you recently lost CTR on a spot that was performing exceptionally well?
Recheck point #2.
4. It Will Tell you Something About your Angles
When you split test different angles, why do some perform poorly on some placements while others give you a high CTR?
And how do different angles behave when reversed?
You don’t have many options for targeting by interest or niche when using a “blind” traffic network, but the CTR will show you which placements work best with which angle.
You can base whitelist campaigns on this data and target particular placements with a particular type of angle if the data speaks loudly enough.
When pursuing profit pockets with a high ROI, this can be very helpful.
It can be combined with the high CTR strategy in point #3 to achieve insane ROI.
Without a doubt, the volume will be lower, but the profits could be fantastic.
5. It Will Tell you Something About the Vertical you are Pushing
When testing a tonne of creatives and raising your bids to absurd levels, why can’t you achieve a respectable CTR?
Most likely, you’re attempting to promote a vertical that neither this source nor prominent placements are responsive to.
This frequently occurs with verticals that demand a particular audience.
The CTR will be low if you are unable to properly target it.
As a result, it would be inappropriate to push this offer on a large audience.
The most common offers with blind networks are those with a broad appeal, such as speed boosters, antivirus software, and general sweeps.
As you can see, the CTR can tell you a lot about your campaigns even though it isn’t the most crucial factor to watch when optimising campaigns.
Nothing in this world is truly black or white, as it always is.
You must develop the ability to interpret information from context and use this to your own advantage.
Gratitude for reading!
