What is Click-Through Rate and Why Does It Matter?

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What is Click-Through Rate and Why Does It Matter?
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Search engines, such as Google, put a high
premium on a good click-through rate (CTR). After
all, in a PPC campaign, the more someone clicks
on an ad displayed in a search engine, the more
money that search engine stands to make.
However, CTR is equally important to
advertisers as well. When an internet user turns
to search engines, they have a question that they
want to be answered. They have already decided
that they need something and are trying to find
it. They tell the search platform exactly what
they are looking for. As an advertiser, it
provides you with the unique opportunity to
capitalize on this need and offer an internet
user the answer that they are looking for, in the
form of your services, products, and more. The
ideal way to do that is to create a relevant paid
search ad that boosts your click-through rate.
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But what is click-through rate, and why does it
matter? Read on to find out!
What Is Click-Through Rate (CTR)? Simply put,
click-through rate (CTR) is the percentage of
impressions that result in a click. For instance,
if your PPC ad had 1,000 impressions and one
click, it will have a 0.1 CTR. Click-through
rate is a metric that tells you how relevant
internet searchers find your ad. If you have a
high CTR, internet users are finding your ad to
be exceedingly relevant. However, if your ad has
a low CTR, users are not finding your ad to be
that relevant. The ultimate goal of any
pay-per-click campaign is to rope qualified users
into visiting your website and performing the
desired action, such as making a purchase,
filling out a contact form, etc. CTR is the first
step to ensuring the success of your PPC campaign
as it enables you to improve your ads relevancy,
which will eventually help you derive the desired
actions.
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What Is a Good CTR?
If youre wondering what a good click-through
rate is, the answer is that it depends on your
industry, the keywords you bid on, and the
individual campaigns within your PPC account. For
instance, branded keywords often generate
double-digit click-through rates. Meanwhile, it
isnt unusual for non-branded keywords to
generate less than 1 CTRs.
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Why Does Click-Through Rate Matter?
CTR isnt just an indicator of the relevancy of
your ads. It also contributes to your ad rank in
search engines, i.e., the position of your ad on
search result pages. The top position in PPC
campaigns doesnt automatically go to the highest
bidder. It goes to the advertiser with the
highest Ad Rank. Google calculates your rank by
measuring your CTR against an expected CTR for
your ad. It means that if youve run many ads
with low CTRs, Google will assume any new ads you
add to your campaign will have low CTRs as well
and might rank them lower. Its why you must
strive to improve the CTR of your ads as much as
possible.
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Your ads CTR also affects its quality score,
which is essentially a measure of its relevancy
calculated by search engines. Quality Score is
calculated based on your expected click-through
rate, landing page experience, and ad relevancy.
A higher CTR will naturally boost your quality
score. Theres no denying that CTR is an
essential metric to measures the success of PPC
campaigns. However, optimizing your CTR should
always go hand in hand with optimizing your
business metrics for your campaign to be
successful. Get in touch with Marketing Tiki to
run a successful PPC campaign!
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