CTR stands for Click-Through Rate, which has high importance to an advertiser. It is the metric that measures the number of clicks received on the advertisement. Having a Good Click-Through Rate (CTR) is always a sign of PPC success that directly affects Google’s Quality Score.
Quality Score is Google’s method of rating the quality of your keywords and PPC ads. Also, it is utilized to decide your cost per click (CPC) and increased by your most extreme offer to decide your advertisement rank in the promotion sell-off procedure.
In this article, you’ll learn about the following topics:
- Why is Click-Through Rate (CTR) important for PPC marketing?
- Benefits of high CTR
- How is CTR calculated properly?
- What’s a Good Click-Through Rate?
- Ways to increase CTR for your PPC ads
Before going on depth about the Click-Through Rate (CTR), have some surface information on CTR.
You can also read: Top 12 Paid Search Marketing Tips For Beginners
What exactly is Click-Through Rate?
Simply, Click-Through Rate is the rate of an impression which converts into a click. It is the number of people who viewed your advertisement and then actually clicked into the ad. CTR is commonly used to measure the success of an advertisement for a particular website.
Here is how PPC click-through rate is measured:
(Total Clicks on Ad) / (Total Impression) * 100% = Click-Through Rate
You can view your CTR rate at your Google’s Search Console and where the total clicks and impressions are also displayed.
Here is an example image of CTR, total clicks, total impressions, and the average position of a website. You can see the average CTR rate, which is 1.8%. Generally, CTR rate between 1% to 2% is considered the best rating. If your PPC advertising has a total of 5000 impressions and 50 clicks, then your CTR rate is 5 percent.
You can calculate the above CTR and get exactly 1.8% applying the above-given formula. So, this is how we calculate CTR.
Why is Click-Through Rate (CTR) important for PPC marketing?
Surely, CTR is essential for PPC marketing; the higher your CTR, the higher will be the Quality Score and improves your Ad rank. Also, having high CTR decreases the cost per click on your advertisement.
Your CTR not only indicates the relevance of your ads to the searchers but also contributes to your ad rank in search engines. Here ad rank determines the exact positioning of your ad on Google Search Engine Result Page.
You might encounter a situation where even though your keyword bidding is highest, your ad doesn’t display at the top of the search engine. It is because of Ad ranking where CTR plays a big role. If your CTR is low then no matter how high do you bid, your ad position won’t get top position on Google search result page.
Having a high CTR is a good indication that the users are satisfied with your ads. You can also use CTR to find out which of the keyword is best for you and which one has to be modified and requires improvement.
Here are some benefits of having high CTR on your website:
- Higher Quality Score
- Low Cost-Per-Click (CPC)
- Improves Ad Rank
- Increase in Conversion Rates
- Free Clicks from social ads
What’s a Good Click-Through Rate?
Well, to indicate any CTR as a Good CTR, the rating percentage has to fall under 1% to 2%. But actually, it depends on the type of industry, business, goals, and many other factors. CTR is not the same for everyone. It depends upon factors like industry, keywords, and completion of the keyword.
Also, the CTR rate varies on Google Display ads and Google Search ads, where display ads have an average CTR of 3.17% and display ads on 0.46%.
Here are some lists of industry and favorable CTR data you need to know.
- Advocacy = Search Ads (4.41%), Display Ads (0.59%)
- Auto = Search Ads (4%), Display Ads (0.60%)
- B2B = Search Ads (2.41%), Display Ads (0.46)
- Consumer Services = Search Ads (2.41%), Display Ads (0.51%)
- Ecommerce = Search Ads (2.69%), Display Ads (0.51%)
- Dating & Personals = Search Ads (6.05%), Display Ads (0.72%)
- Finance & Insurance = Search Ads (2.91%), Display Ads (0.52%)
- Technology = Search Ads (2.09%), Display Ads (0.39%)
- Travel & Hospitality = Search Ads (4.68%), Display Ads (0.47%)
Looking at the about data, know your field and appropriate CTR rates. If the rate doesn’t match with your site’s CTR then you have to work to improve the CTR.
Ways to improve CTR for your PPC Ads
As you know, the huge impact of CTR on your website, you better focus on improvements of the CTR. Here are few tips to improve the CTR Rate for your PPC Ads:
Include Ad Extensions
Ad Extension is a very useful technique that improves your CTR. For that, you have to include every type of Ad Extensions like:
- Sitelink ad extensions
- Call extensions
- Structured snippet extensions
- Callout extensions
- Review extensions
This is an advertisement of Google Ads where the extensions are included that increase the Click-Through Rates of ads. Ad extension adds the value and relevant content on your advertisement and also allows you to place additional links on your site which draws people and increase your click-through rates.
Include target keywords in your adverts
You must include your targeted keywords on your adverts else your keyword bidding will go in vain. Similarly, the lack of keyword in your advert decreases the CTR rank and increases the cost-per-click to the advertisement.
Add up the target key at the title of the ad and let it display at your permalink as well. Also, your ad title and landing page must be relevant to each other.
Use Negative Keywords
Negative Keywords helps to remove the unwanted traffic to your ads, which will only cost you for the clicks. Sooner or later, every advertiser realizes the importance of negative keywords to their ads. It automatically targets your ads to the right audience as it eliminates unwanted visitors.
If your ads are displayed to the irrelevant users, then you will probably get fewer clicks and get yourself ranked lower. Lower ad position means lower CTR, so negative keyword helps in improving your CTR rates.
Increase keyword bidding
It is one of the effective and quick methods to improve your click-through rates because of high bidding results to high ad positions. And high ad position results in high CTR. Your advertisement gets more clicks, views, and impressions due to the top ranking.
Top ranking receives never-ending traffic, which will automatically increase the clicks and CTR. Also, you have to be careful during keyword bidding because none of the keywords shall be underbid and overbid.
Finally, after reading this article on click-through rates (CTR) might enhance your knowledge of Google ads. CTR rate is hugely important to increase the quality and potential of advertisements. So, always double-check the percentage of CTR and improve it in case the rate is above 2 percent. And apply the above points while improving your Google ad’s click-through rate.