From the current global market, Google Ads has many promotion channels such as Google Search, Google Play, and YouTube. With Google’s massive search data and strong insights into overseas user consumption habits, Google Ads can provide brands with behavioral analysis of user search preferences, consumer interest preferences, etc., making marketing promotion more accurate and efficient. Social application developers especially prefer Google Ads channels when promoting overseas.
In promotion, there are a lot of data reports and indicators in the account background. The two indicators that are really worth paying attention to are click-through rate (CTR) and conversion rate (CVR). When optimizing advertising performance, it is crucial to adopt a logically clear and step-by-step strategy.
Click-Through Rate (CTR)
First, check the click-through rate. Click-through rate is an important indicator to measure whether an ad attracts the attention of the target audience and prompts them to take action (i.e. click). For B2B ads, if the click-through rate is stable at more than 1%, or even around 10%, it usually means that the ad is accurately positioned and the material design is attractive, so the click-through rate is good and there is no need to worry too much.
01｜The meaning of click-through rate
Click-through rate, or CTR for short, is one of the important indicators for measuring the effectiveness of online advertising. It reflects the ratio of the number of times an ad is displayed to the number of times it is clicked.
02｜Calculation formula
03｜The Importance of CTR
You may wonder if CTR optimization is really that critical? To answer you, there is no doubt!
First, CTR directly determines the effectiveness of advertising. Ads with higher CTR will attract a large number of clicks, effectively enhance the brand image, and increase users’ love for the product.
Secondly, CTR also affects advertising costs. In most advertising platforms, advertising rankings and costs are closely linked to CTR. The higher the CTR, the higher the ranking, and the cost may also be reduced accordingly. Finally, optimizing CTR can further increase advertising conversion rates, so that more clicks can be converted into actual sales or registrations, which is the ultimate goal of advertising.
When advertisers place ads. Low conversion rates may be affected by a variety of factors, such as advertising fatigue, inaccurate target audiences, etc. You can send a private message to LoveAd in the background to help you view and analyze advertising issues in detail.
04｜Conversion rate definition
Refers to the click-through conversion rate of an ad, that is, the percentage of ad conversions to the number of ad clicks.
05｜Calculation formula
For example, in the e-commerce industry, if a product is advertised, 1,000 people click on it to see the ad, and 50 people place an order, then CVR=(50/1000)*100%=5%
CVR is generally used as an important criterion to measure whether the advertiser’s users are real and high-quality.
In the optimization process, the order of click-through rate and conversion rate should be followed. Because click-through rate is the premise of conversion rate, if the ad itself fails to effectively attract users to click, then the conversion rate is naturally out of the question. At the same time, it is one-sided to conclude that the landing page is not good based on the low conversion rate alone, because the low conversion rate may be caused by a variety of factors, including but not limited to inaccurate ad positioning and insufficient attractiveness of the material.
Therefore, when facing a low conversion rate, it is recommended to review and optimize the ad itself first to ensure that the click-through rate remains at a healthy level. On this basis, further analyze and optimize the landing page, starting from multiple dimensions such as user experience, page design, and content quality to improve the conversion rate. Such a strategy helps to improve the advertising effect in a more systematic and comprehensive way.