Click-through rate (CTR) is often used to measure the success of a native ad campaign. This can vary significantly depending on the industry — and this must be considered when setting the CPC value (cost per click). In this article, we explain what to consider when planning campaigns and which CPC makes sense for different industries.
In recent years, native advertising has become increasingly popular and for good reason: Native ads seamlessly adapt in terms of content and appearance to the website on which they are displayed and thus guarantee, among other things, a first-class user experience, optimal visibility and maximum brand safety. The click-through rate (CTR) has become established as one of the most important metrics for determining the success of native ad advertising campaigns. It shows the percentage of people who have clicked on an ad after they have seen it and is therefore an accurate indicator of how attractively it is perceived by the target group and how well the native ad fits into the surrounding content.
In native advertising, the average CTR is usually around 0.3% and 0.5%. However, factors such as the industry, the ad format and the target group play a decisive role.
CTR calculation formula:
Number of clicks: number of impressions x 100
Advertisements from the watches/jewelry, fashion/sports/leisure, culture/entertainment/gastronomy or tourism industries have a significantly higher CTR on average than, for example, ads from advertisers from the IT, energy or insurance industries.
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It is not surprising that ads from dating platforms, online fashion stores or events are clicked better than those from IT companies, solar panel providers or insurers. The former not only appeal to a wider target group, but also offer more “eye-catcher potential” in terms of design. These industry differences must be considered not only when evaluating, but also when strategically planning native advertising campaigns. For example, when you, as an advertiser, set the CPC or the click price for a campaign.
There are various approaches to making a native ad campaign a success. In addition to the design of the ad and the environment in which it should be embedded in a targeted manner, the CPC that you choose as an advertiser also counts. CPC, sometimes known as pay-per-click (PPC), is the amount that you want to pay per click as an advertiser. The whole thing works like an auction: The more you are willing to invest per click, the greater the chance that the ad will be displayed and therefore clicked. To make a campaign successful, it is therefore crucial to choose a reasonable and competitive click price. Especially during advertising-intensive months (between October and December), advertisers should set a higher CPC to ultimately generate the desired number of clicks. But it is not only seasonality that plays a role, but also the industry. Advertisers from industries that generally experience lower click-through rates are recommended to choose a higher CPC.
In the Yaleo Native Advertising Network, the lowest click price is CHF 1.50.- for D-CH (CHF 1.80 for F-CH/I-CH) and the average CPC is CHF 2.50.-. In the autumn months, when the competition is bigger, it even rises to an average of CHF 3.-.
The following overview shows which CPC we recommend for each sector.
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Finally, it is also important to always review ongoing campaigns and, if necessary, to optimize them — for example by adjusting the CPC. This is what Yaleo customers stand for Realtime dashboard in the Adconsole available. In this way, the performance of the currently running native ads can be viewed at any time.
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