Defining Click-Through Rates

 

You may be wondering what a click-through rate (CTR) is and why it’s  important when it comes to your marketing efforts. A CTR is the ratio of clicks on a link compared to impressions in your campaign. A vast array of factors can influence it and unfortunately, some are out of your hands. However, there are some things you can do to strategize for improving your CTRs.

How do I know if my CTR is good?

A low ad CTR is problematic, as it can drag down your quality scores and affect future ad placement. Low CTRs signal a lack of relevance for your ad viewers. It means they aren’t inspired to click on your ad, visit your landing page to learn more about your offer or take the desired action you’d want them to.

On the other hand, a high average CTR across your campaign or for a specific keyword doesn’t always mean success. It is simply one indicator that, when combined with other key performance indicators (KPIs) can lead to the success of your campaign. However, high average CTRs with low conversions might actually mean that you’re wasting ad spend by attracting people who are less likely to convert. This can be caused by targeting that is too broad, ad copy that is irrelevant, or a combination of both.

Average CTRs can also affect future ad performance, since  Google uses your historical data to calculate their own expected CTR, essentially how likely your ads will get clicks when shown for specific keywords. Better keyword targeting and negative keyword discovery can help you improve your CTRs, thereby reducing wasted spend, and improving your quality scores.

What is the average CTR?

According to Google’s AdWords, the average click-through-rate is 2%, so anything over 2% is considered above average. However, it’s important to note that the average CTR, as well as other key metrics, like conversion rate, can vary widely by industry because some industries are more competitive than others. The best way to know if your CTR is higher or lower than average is to look at industry-specific benchmarks.

What factors matter in CTR?

There are several factors that can contribute to your CTR: how well your ad copy is written, how targeted your keywords are, and where your ad is placed.

Competition is also one of the biggest factors. If you are an Invisalign provider and you use the keyword Invisalign in (your city), you’re going to have a lot of competition. You may get a lot of impressions, but there will be so much competition that you aren’t likely to get very many clicks. With that, if you focus on common words, it’s more than likely that you will have to pay much higher bids to have your ad placed somewhere it will be seen, like the first page of search results.

How do I improve my CTR?

1. Focus on your keywords: One way to improve your CTR is by avoiding common keywords that are highly competitive. Instead, use targeted keywords that actively describe your product or service. For example, with an iPhone case, you could try something like, “Pink Sparkly iPhone Case”. You may get fewer impressions, but your CTR will be higher because you are targeting people looking for a specific product and your bid for more specific keywords will be less, which means saving on costs.

2. Rewrite your ad: Make sure your ad is written clearly and includes a strong call to action. This can be done by using words and phrases like: save today, buy, sign up, order now, or book now, depending on what you want your customers to do. Using incentive-based words helps encourage people to go from passive viewers of an ad to active clickers.

3. Know your goals: Just like getting in shape, getting a higher CTR is easier if you keep your goals in sight. Take the time to define your PPC goals, evaluate the clarity of your landing pages, know your keyword strategies, and then be ready to track and test different variations of your ad.

For more tips on improving your CTRs, feel free to contact our Sesame SEO team!