What Is Click Through Rate (CTR)?
Click Through Rate is a metric that measures how many people click on your ads. CTR is a valuable tool that can gauge how well your ads and keywords are performing.
(Total Clicks on Ad) / (Total Impressions = Click Through Rate
A high click-through rate is important to your pay per click success as it affects not only your Quality Score but also how much you pay every time someone clicks on your search ad. A high CTR is also a good indication that users are finding your ads relevant and helpful. It is also important to keep in mind that a good CTR is relative to which networks and what you’re advertising.
When Are Higher Click Through Rates Bad For Business?
While you do want a high click-through rate, click-through rates do vary from industry to industry and there is no magical number to aim for. However, high click-through rates can actually be bad for business if a keyword isn’t relevant to your business or isn’t going to generate sales, branding gains, leads, etc because of the following reasons:
- Generating clicks on keywords that are priced too high which won’t turn into profits even if the customer buys.
- Irrelevant terms and clicks are spending money that aren’t bringing in additional business.
- You are paying for every click
- A lot of clicks generate tons of ad spending.
High CTRs on keywords that are relevant and affordable is what businesses should aim for.
- Your keywords are linked to your landing page, what you’re offering, and your ad text.
- Your keywords are generating profit
How To Achieve Strong Click Through Rates?
Achieving strong click through rates depends on a variety of factors that include:
- Cost efficient clicks
- Ability to quickly and efficiently segment keyword groups
- Tools and methodology for closely integrating keywords with your landing pages and ad text
- Efficient keywords to bid on
The more likely your keywords are related to your product and/or service, the more likely a user will click on your ad after searching on your keyword phrase.