Two core data about Google’s ads placements

From the current global market, Google Ads owns many promotion channels such as Google Search, Google Play, YouTube, etc. With Google’s massive search data and powerful insight into the consumption habits of overseas users, Google Ads can provide brands with behavioural analysis of users’ search preferences, consumption interest preferences, etc., and then make marketing promotion more and efficient marketing promotion. Social app developers especially favour Google Ads when promoting overseas.

In the promotion, there are many data reports and indicators in the background of the account. What is really worth paying attention to are the click rate (CTR) and conversion rate (CVR). It’s vital to adopt a logical, step-by-step strategy when optimising ad performance.

Firstly, look at click-through rates. Click-through rate is an important indicator of how well an advert attracts the attention of the target audience and motivates them to take action (i.e. click). For B2B adverts, if the click-through rate is stable at over 1%, or even around 10%, this usually means that the advert is more accurately targeted and the design of the material is more appealing, so there is no need to worry about click-through rates as they are performing well.

01｜Meaning of Hits

Click-through rate, or CTR for short, is one of the most important metrics for measuring the effectiveness of online advertising. It reflects the ratio of the number of times an advert is displayed to the number of times it is clicked on.

02｜Calculation formula

Click-through rate = (number of clicks on advert / number of times advert is displayed) x 100%

03｜Importance of CTR

You may be wondering if CTR optimisation is really so crucial? To answer you, there is no doubt!

First of all, CTR directly determines the effectiveness of ads. Advertisements with a high CTR will attract a lot of clicks, which will effectively enhance the brand image and increase the user’s favourite degree of the product.

Secondly, CTR also affects the cost of advertising. In most advertising platforms, the ranking and cost of ads are closely related to CTR, the higher the CTR, the higher the ranking and the lower the cost. Finally, optimising CTR can further increase conversion rates, so that more clicks turn into actual sales or sign-ups, which is the ultimate goal of advertising.

Advertisers when placing adverts. Low conversion rate may be affected by a variety of factors, such as ad fatigue, imprecise target audience and so on. You can send a private message to LoveAd in the background to help you specifically view and analyse the advertisement placement problems.

Conversion Rate (CVR)

01｜Conversion Rate Definition

Refers to the click conversion rate of an advert, i.e. the number of advert conversions as a percentage of the number of advert clicks.

02｜Calculation formula

Expressed by the formula CVR = (Conversions/Click) * 100%

Here the number of conversions can be the number of registrations, number of Leads, number of orders, etc.

Therefore 0 ≤ CVR ≤ 100 per cent

For example, in the e-commerce industry, a certain product is advertised, the number of people who clicked in to see the advertisement is 1,000, and the number of people who placed an order is 50, then CVR = (50/1000)*100% = 5%

CVR is generally used as an important standard to measure whether the advertiser’s users are real and of high quality.

In the optimisation process, the order of click-through rate followed by conversion rate should be followed. Because the click rate is the premise of conversion rate, if the advert itself fails to effectively attract users to click, then the conversion rate is naturally impossible to talk about. At the same time, it is one-sided to conclude that the landing page is not good just because of the low conversion rate, because the low conversion rate may be caused by a variety of factors, including, but not limited to, inaccurate positioning of the advertisement, the material is not attractive enough, and so on.

Therefore, when faced with a low conversion rate, it is advisable to first review and optimise the ad itself to ensure that the click-through rate remains at a healthy level. Based on this, the landing page can then be analysed and optimised in-depth, starting from multiple dimensions such as user experience, page design, content quality, etc., to improve the conversion rate. Such a strategy helps to improve advertising effectiveness in a more systematic and comprehensive way.