What is the click-through rate (CTR)?
By definition, it a mathematical percentage that refers to the number of unique users who clicked on an ad divided by the number of times the ad appeared (impressions). For example, if a Google Adwords ad was delivered 100 times and 10 people clicked on it, the average click-through rate would be 10 percent (10/100 = 10%).
Important Distinctions
The click-thru rate measures the percentage of people who clicked on an ad to arrive on the desired site, not those who saw the ad but entered the site any other way. This may be considered a positive response to the ad, but not calculated into the CTR. Also, there is quite a difference between the number of unique users clicking on an ad versus the number of clicks on an ad, since one person can click on an ad multiple times.
What is the significance of the ad click-through rate?
For one thing, having a high click-through rate leads to a high Quality Score, which influences your ad position and costs.
However, having a lot of clicks doesn’t necessarily guarantee anything for your business. In fact, in some cases a high click-through rate can actually be bad. If your ad is based on keywords that aren’t relevant to your business but the visitor doesn’t know that until they arrive on your site, they’re going to bounce pretty quickly. You might have generated a lot of clicks, but if they don’t convert they end up costing you money. This is especially punishing if your keywords are pricey!
Bottom line – check your AdWords click-through rate and compare it to your conversion rate to see if those ads are working for you.
Is there a perfect click-through rate?
While you do want a high click-through rate, it’s important to remember that nobody can really tell you what that number should be. There are so many variables – the specific campaign, the keywords, the ad copy – but it’s safe to say (and obvious) that you want a high click-through rate if it’s coupled with a high conversion rate. To make it more confusing, it’s entirely possible and desirable to have a low click-through rate with a high conversion rate!
What are some ways to improve your Google AdWords click-through rate?
• Use targeted, highly relevant keywords
• Write compelling ad text
• Go for long-tail keywords for cost savings
• Group keywords
• Set specific goals and expectations
• Know your target audience
• Be specific in your web placements
• Keep track of your campaign – check reports
• Use dynamic keyword matching
• Make sure the customer’s search query is prominently reflected on the landing page text
