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Arthesh Gobari

The Mystery of PPC, CTR and Quality Score

Arthesh Gobari
The Mystery of PPC, CTR and Quality Score

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The expansion of ad space at the top page of websites has given new dimensions to businesses. This phenomenon has made terms like PPC, CTR and Quality Score look like Mona Lisa's smile — like a mystery waiting to be solved.

A lot is going on in ad space. Marketing Land reported that CPCs are on the rise, and as such, you should adopt a more improved technique that doesn't break the bank.

The need of the hour? To improve your conversion rate by deciphering the many terms we have only heard of, but not studied.

The Enigma of PPC, CTR and Quality Score

PPC is one the finest marketing tools; however, it is important you use it effectively.

There have been times when online marketers were shadowed under the clouds of PPC and CTR myths. One reason for this is there is so much literature available that, rather than educating, it only confuses the reader. This has resulted in creating an aura of mystery, and many people then fail to understand this vital online marketing tool.

Let's begin with understanding the terms in the most simple of ways:

  • What is PPC - Also known as cost per click, it is a model for Internet advertising that helps businesses drive and direct traffic to their websites. Advertisers pay the owners when a specific ad is clicked. One can simply define it as the amount spent on advertisements clicked.

Look at these statistics for the impact of PPC in modern advertisements.

  1. There is an increase of around 3.1 million (from 2013-2014 in total revenues from advertisements)
  2. Pages visited per visit by a standard user is around 5.2
  3. GroupM reported that search and social media increased CTR by 94%
  • What is CTR - It can be termed as a way of measuring the success of an advertising campaign for a particular website and the effectiveness of an email campaign by calculating and analyzing the number of users that clicked on a specific link.

Look at the following statistics to know the impact of CTR in today's campaigns:

  1. The average CTR for Facebook mobile ads is 1.32% compared with 0.086% for non-mobile ads
  2. The average CTR for ads on LinkedIn is about 0.025%
  3. E-mail retargeting CTRs and conversion rates are anywhere from 3% to 5% higher with upsells, as compared to standard site retargeting

Let's Move Ahead

Now that we know what these three terms mean and how they affect each other, let's go ahead and look at some well-known mysteries surrounding them.

  1. ROI is the Key - In campaigns like these, money comes before anything else. You may come across business emotions such as budget managing, sensible use of money, affordability of keywords along with expensive keywords etc., while on the journey of Internet marketing. PPCs and CTRs are all about getting maximum returns on your investments. The ROI, hence, play a crucial role in knowing the direction of your PPC campaign and whether the direction will lead to a better end or not.
  2. Content is King - The prime thing in these campaigns are, of course, keyword selection. However, what many people forget in this endeavor is that it's equally important to construct the ad in accordance to latest format and user-friendly content. Henna Ray, a blogger and designer at Designhill.com, reveals how users click on banners with fewer words but more humanized graphic elements such as like button, heart button, etc. These elements determine the credibility and efficiency of the ad. A call-to-action placed neatly in the context is also useful. Also, don't miss an opportunity to include local flavor in campaigns targeted at users within an appropriate geographical area.
  3. The Unification of All the Elements - PPC, in a broader term, is about taking the whole picture into consideration at once. When a user is able to see the whole picture, it gets easier for you to develop a highly successful campaign. Things like bidding strategy, selection of keywords, consideration of demographics and local keywords harvesting are all supposed to be taken into the grand picture before making ads live. Calculate your campaign expectations by quantifiable results.
  4. Have Patience - Let's put it this way: you need some time in order to judge few things. Your PPC campaign isn't going anywhere, your CTR is being calculated, your Quality Score is under the lens; so, instead of losing nights sleep over these things, invest time in understanding the various factors responsible for PPC campaigns. Nothing works better than time to debunk any mystery on the Internet.

Conclusion

After you've gone through this post, I hope these terms are no longer mysterious. Take some time out and understand their importance, which are vital for today's dynamic scenario.

Image credit: Designhill & Canva

Arthesh Gobari is a graphic designer who works with www.designhill.com. He has published several articles, blogs and columns on topics related to graphic design, social media, startups, SEO techniques and e-commerce. His last article for SEMrush was "10 SEO Rules for Your Company Blog."

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