Click-through rate (CTR) is a metric that measures the number of people that view your ad, the number of people that click on it, and then calculates a percentage.
It plays an important role in a number of marketing strategies such as email, social media and pay-per-click (PPC) campaigns.
There is no definite, solid percentage that is seen as the best CTR, as the average varies across industries: you can find the average CTR for your industry online. Across all marketing channels, the rates will vary because your specific industry influences almost all factors of your marketing strategy.
You would think that a higher percentage would mean better, but that is not always the case. If you are using irrelevant keywords for your business, then a high CTR will cost you a large amount of money but only for a small amount of conversions. You will not achieve any profit as you will be spending more money than you are receiving.
If you use relevant keywords that relate to your ad text, landing page and your USP’s, then you are more likely to generate more sales, leads and branding gains. This will save you money in the long-run, because if you have a high CTR for these relevant keywords, you will make a significant profit through conversions.
The higher your click-through rate, the better your Quality Score will be; Quality Score is where Google rates the quality and relevance of your keywords and your ad. If yours remains at an average level, or just below, try and improve it by updating your keywords and vocabulary choice throughout your website, such as CTA triggers and content areas.