Pay-per-click and Click-Through rates are crucial for online advertisings and building your online presence. The combination of these two tools can be a highly successful strategy in developing more web traffic for your business and in turn generating more leads and profit. Below we will discuss what pay-per-click and click-through rates are and just how much they can benefit businesses and companies through an integrated approach.
Pay-per-click (PPC) advertising is a form of online marketing that allows advertisers to control their budgets and be able to better target specific audiences. This means that you only pay for an advertisement when someone clicks on the ad. For example, if you had your company’s advertisement on Google, and then the ad was clicked on and your landing page popped up, that would be an advertisement you would pay for. On the other hand, if the person did not click on your ad and kept scrolling, you would not have to pay for anything. An ad that is using a PPC model could be triggered by scrolling while in a geofence, entering in keywords or phrasings, conducting a specific search, or through search engine optimization (SEO) and sponsored links.
The benefit of using this form of marketing is maintaining a highly cost-effective strategy. It also allows you to advertise to a more narrow and specific audience than traditional advertising. In addition, this type of advertising can be used by businesses of any size, because you can spend whatever you choose to. Finally, there is also a high return because paying a few dollars for a click could mean hundreds or thousands of dollars in profit from a new consumer.
Next, the click-through rate (CTR), refers to when a user sees your advertisement and clicks on it to end up on your landing page. This is a way to measure the difference between the CTR and an impression, which is when someone sees your ad but is not interested enough and chooses to keep on scrolling through their feed. The CTR can be calculated by the total number of clicks divided by the total number of times the advertisement was shown. In turn, this number shows how relevant the ad was for those who saw it and thought it was what they were looking for. The higher the CTR is, the more it means people were interested in the content or advertisement that was put out. CTR’s are important to identify if you are targeting the correct audience as well as analyzing whether or not your advertisements are relevant and interesting enough for what searchers are looking for. Finally, the CTR can help with SEO and higher placings on search results such as Google, Yelp, Firefox, or other places where your advertisements may be placed.
In conclusion, the CTR is one of the best rates to analyze when operating with the PPC strategy. It allows your business or company to ensure that people who are clicking are viable leads and worth the money being spent on the PPC advertising. In focusing on both of these strategies, a company is best set up to build its online traffic and increase leads, interactions, and overall profit.