What is click through rate? 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 – but we will be focusing on Google ads.
When measuring this metric, businesses may ask “what is a good click through rate?”
What is a Good Click Through Rate?
There is no definite, solid percentage that is seen as the best CTR. Across all marketing channels, the rates will vary because your specific industry influences almost all factors of your marketing strategy. Some industries are more competitive than other and every consumer acts differently within each industry too.
Industry-Specific Average Click-Through Rates
WordStream by LOCALiQ have collated the data from thousands of their customers’ advertising campaigns across Google and Bing to create search advertising benchmarks for each industry.
This data from last year shows the benchmarks you can compare your CTR against. By identifying whether you are higher or lower than the average CTR for your industry, you can gain a clearer idea of how your ads are performing.
I Have a Higher CTR – That’s Good, Right?
You would think that a higher percentage would mean a good click through rate, 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.
How Can I Improve My Conversion Rate?
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 design, such as CTA triggers and content areas.
Also, you should reassess your parameters and refine them where necessary. Is your target market correct? Are you reaching them at the right time? Are you leading them to where you want them to go? Make sure your CTAs are pushing your customers in the right direction – towards a conversion.
Maximise Your Click Through Rate with Logic Design
At Logic Design, we are digital marketing specialists than can help accelerate and boost your marketing efforts significantly.