Why does click-through rate (CTR) matter, and how do I improve it?

CTR (Clickthrough Rate) by Definition

CTR is a ratio showing how often people who see your ad end up clicking it. Click-through rate (CTR) can be used to gauge how well your keywords and ads are performing. CTR is the number of clicks that your ad receives divided by the number of times your ad is shown. Source: Google AdWords Help.

Why does CTR matter?

CTR is one of the many metrics in PPC (pay per click) that most of us accredit in our columns and deem as extremely important. Why is this so?

CTR gives us a number of insights about the architect of our campaigns, ad groups, segments and ad copy. Click-through rate gives us a general campaign health check that enables us to be able to see where we may be falling short in our campaign structure. This little percentage, whether it’s 2%, 5%, or 20%, says a lot about how you may be dominating the SERP (Search Engine Results Page) in relation to your competitors.

For instance, if you received 4 clicks per every 100 impressions, that would equate to a 4% clickthrough rate. With a CTR at 4%, that would tell us that you are probably doing a pretty decent job of including all of the elements that tailor to a successful campaign. With this single metric, you are able to get a scope of how much Google truly wants to reward the particular advertiser and how well the advertiser is doing to stay on top of the campaign’s daily optimizations.

So, if you are not paying attention to this small but important metric in your daily PPC optimizations, now is the time!

How do I improve my PPC campaign’s CTR?

So now that we understand the importance of having a healthy CTR and what it can imply about your campaign health, how do we improve that percentage? What are the key elements that determine if Google wants to show your ads?

Well, there are a number factors that come into play when answering these questions. From the very beginning of your campaign when you click “create a new campaign,” Google longs to see your (the advertiser’s) intent with that campaign. Google wants to determine why your structural buildout (keywords, ad extensions, descriptors, ad copy, locations, ad schedule and more) should be rewarded over your competitor. In many cases, you should see an improvement in your campaign’s CTR the more you segment and the more you are able to offer quality call to actions and descriptions that relate to the potential keyword or search query you are bidding on.

[bctt tweet=”You should see an improvement in your campaign’s CTR the more you segment and the more you’re able to offer quality CTAs and descriptions that relate to the keyword you’re bidding on. #PPC” username=”ThriveAgency”]

This could flesh out in a number of ways. Do you need to develop SKAGS (single keyword ad groups)? Is your ad scheduling coherent to the times customers are online and searching? Are you reviewing the opportunities tab for high-level campaign optimizations?

It’s time to improve your CTR

The worst thing you can do to NOT improve your CTR is not following Google’s recommendations and not being active in making daily account optimizations. Never miss another opportunity by ignoring CTR! Keep your accounts healthy and continue to look for ways to bring in the best possible traffic.

Ready to make big CTR improvements?

At Thrive, our PPC team makes daily updates to every campaign to optimize each aspect, including click-through rate. To talk to an accredited PPC professional today, reach out to Thrive!