Optimizing CTR With Limited Daily Ad Spend

The relative CTR is a solid measure of ad copy and keyword relevancy. When the click through rate is increasing in conjunction with bids and ad position remaining static its a good indicator that either an ad edit/addition is attracting more users or that more relevant  keywords have been identified and employed. Not to mention a rising click through rate is a positive sign for achieving that click count you were hoping for. That is given you are not currently meeting your projected ad spend.

Its all about the budget

There are times however that a lower CTR may be more desirable.  WHAT! ! ?  Its all about the budget – your allotted daily ad spend.

In the case that a campaign is either not reaching the allotted daily spend or a strong ROI has inspired a budget increase maybe targeting opportunities to capitalize on, then yes a rising click through is a worthy objective.

Now consider this scenario :

1. your campaign has matured displaying good ad copy targeted with high quality keywords landing on pages returning an acceptable conversion rate.
2. ROI has been steady and you are in your – Comfort Budget Zone.
3. the budget is limited. the metric “searches lost to budget”  is cutting into “impression share”.

In this circumstance, though your ads may be ranking in top positions, the campaign is losing potential clicks to an exhausted budget.  If you compete in a market with 1000’s of daily searches for your primary keywords chances are that you will still receive those clicks in a lower position on the first page. Those clicks just won’t happen at the same, you guessed it  CTR.

By lowering your bids to a range where ads still participate in enough auctions you will likely generate the number of clicks within your budget. And as these clicks are hitting at a lower average cost/click there is more fuel in the tank to wrangle in a few more clicks.  The landing page hasn’t changed and a visitor to your site that searches with a term that triggers your ad whether in position one or three will still exhibit the same behaviors upon landing on your pages.

Studies suggest that ads in lower positions sometimes reach more discerning users who may already have greater intent related to your product or service. Not to mention however, there is no doubt that higher ranking ads get more clicks. But for the budget constrained, you’ll probably get all the clicks you need at a better price in a lower ad position generating, you guessed it  A  Lower   CTR.

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