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10:14 PM

Reality Check for CTR

Posted by Miss. Melissa |

I have recently just finished conducting a Google Adwords campaign. This was my first experience with Google Adwords and I had no real knowledge or instruction on how to use it. Through the duration of the campaign I was constantly concerned about the campaign's extremely low CTR (it started out at 0.23% and ended with a CTR of 0.54%). I honestly believed that the campaign was a failure however after seeing an article on eMarketer I see that the campaign didn't do that bad at all.

eMarketer reports that according to ADTECH the average CTR varies from 0.11% to 0.19% during the year (with a tendency for higher clicks towards the end of year because of holiday shopping). In addition the article also states that CTR has been declining steadily since 2004.

Why are CTR so low and why are they declining?
CTR's may be low because there are just so many ads that are on the Internet and a large majority of them are be garbage. The ads may also not be properly targeted or it may not be in view of the online user. (Google Eye Tracking Map demonstrates how eyes' of the online viewer travel across the page.)
The declining CTR's may be attributed to many factors however I believe that the following reasons are the most prominent reason why I believe ads are no longer being clicked as much.

  • People are hesitant to click on pop-op-ads, banner ads, or any type of ad because of the fear that they will be lead to an inappropriate site
  • People may be hesitant about clicking on ads because they are afraid that their computer will be infected by a virus.
  • Pop-up software being developed to block several ads
  • Sites like Google may be selling too many ad spaces. As seen in the above diagram only the sponsored ads that receive the the top 6 spots will most likely be viewed by the user. With this in mind is there really a point to sell ad space below the halfway page mark?
A current trend for online ads is the use of video ads. At the moment video ads recieve a higher average CTR. Video ads are much more expensive to produce and to place than display ads therefore there is a larger barrier for companies to utilize video ads. However eMarketer warns that once the novelty of video ads has worn off video ads may recieved the same fate as display ads.

Link to eMarketer article http://www.emarketer.com/Article.aspx?id=1006969

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