Digital Prosperity Blog

Traffic Prices Too High? It Could Be This...

If you're seeing high traffic prices in your PPC campaigns (Facebook Ads, Google AdWords, Bing Ads, etc), then it may be down to one small statistic...

Your click-through rate ("CTR").

Let me explain...

When your ads are shown on a PPC network, they take up a limited number of advertising "slots".

If you're paying per click and your ads are being shown to thousands of people but aren't getting clicked, the PPC network is basically showing your ads to a bunch of people for free.

This means they penalize you for it by charging high CPC prices when your ads DO get clicked, so they can make a profit from your ads.

However, if your ad gets a high CTR, then it proves your ad is relevant to your target audience, and the PPC network gets paid more frequently.

So when you get a high CTR, you pay less per click.

This allows you to acquire new leads/subscribers for a cheaper price, which increases your sales and also your profit margin.

After all, how many new leads do you think would make the most sales? 117 or 312?

Of course it's the highest number, as it increases the chances of people seeing your offers and buying from you.

Here's a screenshot from my own campaign to show this in action...

0.16% CTR - $0.76 CPC, 0.81% CTR - $0.46 CPC

See how the ad with the higher CTR gets a lower CPC price?

Pretty cool!

This is why the first thing I focus on improving within my PPC campaign is the CTR. Then once our CTR is pretty high, we focus on everything else.

But how do you improve your ad's CTR?

For text ads, it's all down to the ad copy. It needs to be written to match what your audience wants, in a compelling and persuasive way.

Remember that your prospects have usually seen a LOT of ads in your niche, so your ads need to stand out and be unique enough to grab their attention.

The traditional copywriting rules come into play here too, such as stating the benefits (what it'll do for them) and creating curiosity in your ads - instead of just talking about the features, e.g. 23 page e-book.

Plus, if your PPC ad includes an image below your ad copy (such as with Facebook Ads, Twitter Ads and more), use either:

  1. An image of yourself looking at the camera.
  2. A photo of your prospects' ideal end goal.

Note: Some so-called "experts" say to use shocking photos and weird images, but that is often a sure-fire way to get your account banned for providing a poor user experience.

It's also important to remember that you should disregard an ad with a higher CTR if you're earning more from a different ad. After all, it's the Return On Investment ("ROI") which matters most.

So if your traffic costs are "too high" - the issue isn't the traffic source, but is instead because of your ads having a low CTR.

Always test different ads to increase your CTR, then you'll pay less for your traffic AND be able to make more sales.

Have a great day!
- James Francis.

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One Response

  1. Hey James, I wasn't aware of any of this but then again, I haven't really done much with Facebook Ads yet.

    I still got a lot out of this so thanks for the detailed explanation on what to focus and what to avoid as well, pretty sure with these things in mind I won't get banned (too soon) either in case I mess something up! 😉

    Sergio

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