Ad Frequency capping can be an extremely powerful tool to manage and improve your CTR and average CPC. It is also often ignored very much.
Adwords provides data around Frequency and Reach. This can be accessed by logging into the Google AdWords panel and using the dimensions tab.
- The highest CTR response is almost always on the first impression.
- CTR response declines as the number of impressions increase with the decline factor increasing with every subsequent impression.
Both of the above are intuitive & expected. Consistent exposure to the same creative should obviously reduce the overall response rates.
Two basic optimizations can help improve CPCs –
- Run multiple different creatives for the same audience; use frequency per ad & keep it low – highly likely that it will result in improved CTR & hence lower Avg. CPC. Also, it gives the user more choices & highlights multiple features of the offering.
- Run only the same creative, but lower the frequency – if you have low budgets you will only acquire extremely interested users; improving the overall efficiency of the campaign. In this case, you should be using frequency per campaign mode.