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CHALLENGE: "We grew from about $2.2 million to about $6.8 million in a year, through pop-unders," says John Howard, Founder and CEO of Carrot Ink.
For a while, he says, "We were making 50% ROI in a month, it was insane. And these were ugly pop-unders. I was doing the creative myself." But in the past 18 months, getting a decent ROI got harder:
o When Carrot Ink launched in 1998, it didn't have a lot of competition, but now there are 130+ sellers of ink cartridges online.
o Although the site sells ink at discount, the prices are slightly higher than some of the other discount vendors. This means Howard's target demographic, the "Harvard professor kind of guy", is narrow, so the number of sites on which he can successfully advertise is smaller.
o 20% of all pop-under ads are now blocked, while ad rates are rising. The cost of getting visitors to the Carrot Ink site increased 100% in two years.
However, 72% of people who clicked through from ads were leaving Carrot Ink's home page in a matter of seconds, without even clicking on the navigation or searching to find the right ink for their printer. "You can't evaluate my proposition until you get to a page that has prices," Howard says.
In order to stay profitable, Howard needed a higher percent of visitors to actively shop for and purchase ink. How could he reduce his clickthrough abandonment rate?