In Click Through Rate Tips, Google AdWords Tips

There are many initialisms and elements to Google AdWords that can sometimes leave people more confused than they began. This article aims to clarify ‘Why CTR Is Important.’

What is Click Through Rate?

Click Through Rate (CTR) is the measurement in your AdWords campaign of how many impressions your ad receives compared with the amount of clicks you get from these impressions. For example, if your ad for “Cheap Shoes” shows 100 times and you get 10 clicks, that is a 10% Click Through Rate.

 CTR Equation

Why is Click Through Rate important?

Click Through Rate is important for a number of reasons.

  • Google rewards you with a good CTR if they see your ads as relevant and you are getting a good level of clicks per impressions. You will typically find your average cost per click will go down and you will appear in higher ad positions.
  • On the other hand a bad CTR works in the opposite way to a good CTR percentage. If you have a low Click Through Rate you will typically find your ads appear lower and you will pay more for your average cost per click (CPC).
  • Click Through Rate also plays an important role in the quality score (how relevant Google perceives your keyword to be) for your campaigns. If there are not many people clicking the ads, Google sees the keyword as not relevant enough, the result being your ads will appear in low positions and you will have to pay more per click.
  • CTR is also a very good measurement for you to see how well you have structured your ads/keywords. If you are getting a good Click Through Rate you can prove that your ad is relevant to your selected keyword and the ad appears relevant to the customer’s search, which is the most important thing.

What is a good CTR?

Google says a good Click Through Rate is anything above 1%, we typically aim for a minimum of 3% for a successful CTR in an AdWords campaign as we have seen campaigns with a 1% CTR being punished for low quality score. By raising the CTR percentage from 1% to 3% we improve the quality score and  in turn improve the success of clients campaigns.

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    • […] There’s a good chance that the CTR (Click Through Rate) will be much lower than the ads served by competitors. It isn’t what the searcher is looking for, so they’re less likely to click on the ad and more likely to click on those which relate to what they’re looking for. Google’s quality score algorithm penalises poor CTR and rewards high CTR. […]