For years, “get more clicks” has been the digital advertiser’s mindset. Since more traffic means potential sales opportunities, this isn’t surprising. Here’s what is:
On average, there’s a very low chance these clicks become sales. Industry click-through rates are low, and conversion rates are lower. Despite this proof, some businesses maintain their clicks-first mindset with the idea that “average” is acceptable. It’s a mistake that’s costing them a large portion of their budget.
Why the “get more clicks” advertising mindset needs to change
Advertisers have always focused on filling the top of the funnel with as many people as possible. This starts with clicks. The problem is, for many businesses, it ends there.
Today, the click is what separates the two halves of a digital advertising campaign:
- The pre-click stage, where the prospect experiences your ad on the platform they’re using, and
- The post-click stage, where the prospect clicks through to your landing page.
Front-loading resources in the pre-click stage means prioritizing traffic. Back-loading resources means prioritizing conversion. But for a campaign to be as effective as possible, both stages need to be treated with equal attention.
As research shows, this isn’t happening. Average click-through rates are low, but conversion rates are even lower. Costs per click remain high:
On 10,000 clicks, the average business can expect to pay $24,100. Of those, only 440 will become conversions. But if an advertiser can earn the click-through of interested prospects, conversions should be much higher. And they can be.
Data has shown that just because “average” is low doesn’t mean that conversion rates as high as 10 and 20% are unachievable. Top advertisers are reaching these numbers. With a conversion rate of 10%, an advertiser doesn’t have to spend $24,100 to earn 440 conversions. They can spend just $10,700– a difference of $13,400, and less than half the cost. Only a small bump in conversion rate can save a company significant ad spend that can be reinvested.
But reaching this point requires your team to internalize the message that conversions drive growth. Remember–clicks don’t equal conversions.
Conversions reign supreme
With many advertising metrics available (CVR, cost-per-conversion, cost-per-acquisition, etc.), campaign success relies heavily on conversions. There is no more important metric in digital advertising and direct response ads specifically. Without knowing your total conversions, you can’t calculate cost-per-conversion or CPA, for example.
Shifting your team’s advertising mindset
Most executive teams are already focused on growth. However, for the conversion mindset to take hold, it has to permeate all organization levels. Balancing the digital ad campaign needs to become a priority. And even when it does, this is just the beginning.
Where it starts
Organizational buy-in starts with a proof of concept, but a change in mindset alone does not result in maximum conversions and ROAS. Teams need support systems. They need:
- Strategies: Strategies for the post-click stage need to look similar to ones in the pre-click stage. Personalization needs to be a focus. Like you would create a unique ad for every audience segment, so too should you create a post-click landing page. Every audience needs its own unique post-click experience.
- Platforms: Personalization at scale can’t be done manually. It requires too much staff, time, and budget. And though landing page builders make creating pages easier, with countless audience segments and frequent campaigns, it’s still too slow. Post-Click Automation, an emerging class of software, allows its users to create hundreds and even thousands of pages to ensure every audience has its own unique experience.
- Staff: Like advertising teams consist of PPC managers, copywriters, strategists, and designers, so too must a conversion team. Each stage’s ownership is necessary to keep the organization focused on the ultimate goal of generating more conversions by balancing the ad campaign. Like advertising teams operate demand-side platforms, the conversion team will operate Post-Click Automation to extend personalization throughout the campaign.
Shifting the focus of “get more clicks” starts at the top. The mindset needs to be the first thing to change, and then staff, strategies, and platforms need to evolve to support that mindset. Without any one of these things, an organization will struggle to balance the ad campaign by focusing on conversions.
Support your conversion-focused organization
Postclick is a tech-enabled service whose business it is to support your conversion mindset.
We would like to offer you a complimentary analysis of your ad campaigns including competitive insights against your top 5 competitors and the top sites in your industry. Our team will share insights on how we can increase your conversion rates, in addition to a comprehensive competitive analysis.
We will review your campaigns to analyze your post-click health, compare your site against industry and competitive benchmarks, and identify the most effective opportunities to increase your ROAS. Request your analysis here.