For Nova Scotian small businesses, navigating online ads can be extra tough. We’re a small market on the coast and a lot of the rules don’t apply here. Knowing the local market is essential but by understanding the implications of advertising stats, you can learn as much about the local market as any other.
The Click-Through Rate (CTR) is a metric vital to evaluating the effectiveness of your digital ad campaigns, helping you make informed decisions that can drive your business forward. What drives a click may be different Halifax than in other places, even other places nearby, but knowing what drives a click here is what matters here.
What is CTR?
The Click-Through Rate, is a metric that measures the share of people who click on your ad after seeing it. It’s calculated by dividing the number of clicks by the number of impressions (the number of times your ad is shown) and then multiplying by 100 to get a percentage. For example, if your ad is shown 1,000 times and receives 50 clicks, your CTR would be 5%.
CTR is used across various types of digital ads, including social media ads on platforms like Facebook and Instagram, search ads on Google or Bing, display ads on websites, and video ads on platforms like YouTube. Each type of ad can yield different CTRs, depending on factors such as ad placement, targeting, and the quality of the ad creative.
Why is CTR important for small business advertisers?
This is key for small businesses because it provides direct feedback on how well your ads are engaging your target audience. A higher number indicates that more people are finding your ad relevant and interesting enough to click on it. This is so very important, it is the first step towards conversion (contact form submission, booking, sale, subscriber, or new lead).
For small businesses in the Maritimes, where the local market might be smaller and more targeted compared to larger cities, maximizing the effectiveness of each ad impression is essential. A high CTR can lead to lower costs per click (CPC) (it can even compensate for a high CPM in times of high competition) and higher conversion rates, ultimately making your advertising budget more efficient.
CTR by ad type
- Social media ads: Social media platforms often boast higher click throughs due to their targeted nature and the interactive, engaging content they promote. For instance, the Blue Olive on Quinpool advertising a new menu item on Facebook might achieve a higher CTR compared to a generic display ad due to precise targeting options and engaging visuals.
- Search ads: Search ads generally have higher click throughs because they are shown to users actively looking for the information. Our new print shop, Quinprint, bids on keywords like “local print shop” and “wedding invitations” and therefore will see a higher CTR compared to broader, less targeted ads.
- Display ads: Display ads typically have lower click throughs since they are shown to a broader audience. Display ads are often an essential piece of a brand awareness campaign because the ads is often seen in many placements and more frequently. For a local private tour company like Picture Perfect Tours, display ads on tourism websites would be effective, even if the CTR is lower, because they help keep the brand top-of-mind.
- Video ads: Video ads often see varying CTRs based on the content’s engagement level. A compelling video showcasing an all-electric, ultra-quiet harbour cruise with Halifax Harbour Tours on YouTube can attract a high CTR, driving potential customers to learn more or make a convenient online booking.
Improving your click throughs
To improve your click-through rate, focus on creating compelling, relevant ads that resonate with your target audience. Here are some strategies:
- Ad relevance: Ensure your ads are highly relevant to the audience you are targeting. Harness the power of precise targeting options available on platforms like Facebook and Google to reach the right people.
- Compelling creatives: Invest in high-quality visuals and engaging copy that captures attention and entices clicks. For instance, a well-designed ad for a local café featuring mouth-watering images of freshly baked goods can drive a high CTR. Just see how hard it is to avoid stopping by Dilly Dally after they’ve posted a photo of one of their homemade pop tarts.
- Clear call to action: Include a strong, clear call to action that tells viewers exactly what you want them to do next, such as “Book Now” or “Get a Free Quote.”
Monitoring and designing effective ad campaigns
Understanding click-through rates is essential for planning, monitoring, and designing ad campaigns. By regularly reviewing this and other key metrics, you can identify which ads are performing well and which need adjustment.
In our little market, this means being able to fine-tune campaigns to better reach and engage the local community, whether through targeted social media ads promoting events on the waterfront or search ads driving traffic to your online store.
Here in Atlantic Canada, a deep understanding of click-through rates empowers small business owners to create more effective ad campaigns. By continuously monitoring and optimizing, you can be sure that your ads are engaging your audience and driving meaningful real-world business results like an increase in revenue or a jump in new subscribers.