How to Achieve a 10x Better Cost Per Click
See industry benchmarks and explore best practices for getting more from your digital ad spend.
The average cost per click (CPC) on Facebook for finance and insurance is $3.77, higher than any other industry, according to Wordstream. In comparison, the average CPC of ads powered by the Denim platform is $0.33 — 10x lower than the industry average.
Why the better CPC?
Like the higher click-through rate (CTR) achieved by Denim-powered ads, there are two primary drivers behind the lower CPC: the fact that our customers’ ads are 1) localized and 2) micro-targeted. However, there are several other best practices we’ve learned as we’ve helped our customers achieve better results through mobile advertising.
What are best practices for lowering CPC?
Be specific in your audience targeting.
The last thing you want is to be paying for clicks by people who aren’t even in your target audience. No matter what you’re paying per click, that’s a waste of money. By narrowing your targeting criteria, you can reduce the competition for your audience. Remember, you are in a bidding war with other brands. Narrowing your target audience enables you to put your best foot forward for consumers you really want to reach.
The Denim platform’s intuitive, easy-to-use Audiences product enables corporate marketers to build a variety of audience types and target consumers most likely to engage. When building a Target audience, for example, the marketer uses demographics, interests, and behaviors to define who ads will be delivered to. A real-time Audience Health gauge dynamically updates as the audience is built. The gauge uses a proprietary Denim algorithm to predict the number of people who could see an ad and lets the marketer know if the audience targeting criteria is optimal, too specific, or too broad.
Test and refresh creative.
The creative elements of your ad (text, images, videos, etc.) will have a strong impact on the results of your campaign, including CPC. By testing different combinations of text and visuals, you’ll be able to spot trends in ad performance. Take the best elements from the best performing ads and drop the worst.
For example, from now until Denim Summit 2018 on Oct. 24 and 25, we will be running an ad campaign to drive registrations. While the campaign will run on an ongoing basis to a similar audience, our plan is to rotate ad creatives every week to see what performs the best.
Take advantage of video.
Because mobile and social media platforms like Facebook value video content, they tend to give video ads higher impressions and therefore lower CPCs. We know producing videos takes time and resources. However, with new tools available, like Facebook’s new process for converting still images to video, creating quality videos is easier than you might think.
There are also many online video creation tools that are affordable and easy to use. For example, we used Powtoon for a recent video we made for an ad to drive Denim platform demos.
Find the right budget and schedule mix.
You may not want to start off your campaign with a massive budget. Instead, consider starting small and increase your budget over time as you test and figure out what gives you the best results. Also, keep track of ad performance on different days of the week, as you may find ads consistently perform better on certain days.
Since the budget you set will be used to bid against other advertisers, you will want to increase your budget over time as you determine which audiences, creative elements, and schedules perform best. A higher bid will increase the likelihood that your ad will win the auction, thus improving CTR and CPC.
To learn more best practices for improving your mobile advertising results, register for our August 28 webinar, 6 Ways to Build Better Mobile Ads.