I’ve talked about the optimization of Google Display campaigns. You may or may not have read that, and you may or may have not actually taken the optimization steps I’ve talked about. I know that some of you were probably thinking: “Why would I need to do those things? I went through the trouble of creating the damn thing, and now I’ve got to constantly monitor and analyze because my CTR will rise if I do? Why is that CTR important anyway? Even with low CTR, I have a good number impressions and clicks.”
Well, you’ve got every right to feel that way, but give me a chance to change your mind. 😉
The first thing you should understand and take into consideration is this: Google is all about the user. What do I mean about that? Everything Google does is for the people. They want users to have a good experience online, and that means zero unrelated ads being shown to them. Think about it: every option you have in Google Ads is to help you with your advertising or to help you reach your target audience better.
With that in mind, why do you need to optimize your campaigns and work towards higher CTR?
Good campaigns mean better user experience, and that’s what Google wants. So if Google wants better campaigns, that means rewarding good advertisers.
And what would your reward as an advertiser be? Lower cost-per-click, of course!
Here’s what I mean.
Look at the screenshot below:
These are the results of Display campaigns for one of our latest clients. We started working in March 2018, so these results are throughout 7 months.
The blue line is the CTR and the avg. CPC is the red line. The budget was always the same, and we were always advertising the same products.
In the beginning, we went for the more exact targeted audience to see how much we can get out of them. That resulted in high CTR, and low CPC. After we started doing some broadening and finding new audiences, our CTR dropped, and this resulted in rising of the CPC. After that, we learned a lot about our audiences and implemented new ideas into our campaigns (optimized). As the CTR was growing, the CPC was dropping.
Just so you can better understand, here’s another screenshot:
This one also shows avg. CPC (the red line), but this time in correlation with the number of clicks. See? High CPC means the low number of clicks and low CPC means the high number of clicks.
I chose this example because of the following parameters:
– same monthly budget over the course of 7 months
– same target audience over the course of 7 months
– same banner design over the course of 7 months
Other examples have different budgets and different banner designs every month, so that would not be comparable.