In Internet marketing, CTR stands for click-through rate: a metric that measures the number of clicks advertisers receive on their ads per number of impressions.
Achieving a high click-through rate is essential to your PPC success, because it directly affects both your Quality Score and how much you pay every time someone clicks your search ad. Are your click-through rates holding you back, or are they high enough?
In this CTR tutorial, you’ll learn:
PPC click-through rate is the rate at which your PPC ads are clicked. This number is the percentage of people who view your ad (impressions) and then actually go on to click the ad (clicks). The formula for CTR looks like this:
(Total Clicks on Ad) / (Total Impressions) = Click-Through Rate
Generally, you can view your click-thru rate within the dashboard of your PPC account. A high CTR means that a high percentage of people who see your ad click it.
Click-through rate is important to your account because it directly affects your Quality Score.
Google Ads and other search marketing platforms offer pricing discounts for ads that offer high relevance (read: make searchers happy). One means for doing this is to offer higher Quality Scores to ads with high Google Ads click-through rates:
Additionally, if you are advertising on relevant queries, achieving a high click-through rate means that you are driving the highest possible number of people to your offering.
This is a hotly debated topic: what is a good click-through rate?
From a purely statistical standpoint, it depends. Take a look at Yahoo’s answer to the “what’s a good click-through rate” question:
The honest answer to the question is, “It depends.” Click-through rates are naturally going to vary from campaign to campaign, and even from keyword to keyword. Everything involved in the way your ad is displayed plays a part, from your ad copy to the ad’s ranking on the results page.
So while you want to have a “high” click-through rate, there’s really no magic number. Average click-through rate will vary by industry, and your expected CTR depends on your ad’s position, among other factors.
Below you’ll find benchmarks for average click-through rate in Google Ads across 20 common industries.
The average CTR in Google Ads is 1.91% for search and 0.35% for display. But average is just that: average. So, as a rule of thumb, a good Google Ads click-through rate is 4-5%+ on the search network or 0.5-1%+ on the display network.
If a keyword isn’t pertinent to your business or isn’t going to generate sales, leads, branding gains, etc. then a high click-through rate for that term is actually bad for business. The reasoning for this is fairly clear:
So you don’t always want higher click-through rates: what you want are high CTRs on keywords that are:
So, in a nutshell, a good CTR means first targeting the right words, then getting as many people as you can to click on those ads.
Achieving strong click-through rates in PPC, then, depends on:
Remember, the higher your click-through rate, the better your Quality Scores will likely be, and high Quality Scores are one of the single best predictors of success in PPC.
Want to learn how to increase your click-through rates in a few simple steps? Download our Guide to Super-High Click-Through Rates to learn how!