Why It’s Important To Have A High CTR in AdWords

May 13, 2018
By: Mike
Comments: 0

Why It's Important To Have A High CTR in AdWords

 

A high CTR is always desirable. It’s a measure of the effectiveness of your Ads with your target audience and anything above 10% is often great.

 

However, that varies for different sectors and keywords. Brand searches usually have higher searches and that can be over 50% and generic searches will often have CTRs below 1%.

 

High CTRs are easier to achieve when Ads are in the top positions. When your Ads occupy one of the top 4 positions above the Organic search results, you’ll achieve high CTRs.

 

If on the other hand, you have a low average position, with your Ads below the Organic results, you’ll have lower CTRs than competitors and therefore lower traffic volumes.

 

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However, higher CTRs sometimes lead to a high Average Cost Per Click (CPC). That’s because you often have to bid higher to occupy those positions.

 

Helps achieve good quality scores
Expected CTR is one of three factors that affect your Keyword Quality Scores. It’s a prediction of what the actual CTR will be based on factors such as past performance, user location, device used, search term used and others.

 

So it’s important that all Ads are relevant to searches you’re targeting. This helps to get high CTRs and therefore improves quality scores.

 

High quality scores lead to better performing campaigns. They’re a sign that your ads and keywords are well optimised and will achieve your advertising goals. They also help to reduce your Average cost per click and you achieve higher positions for less cost.

 

Increases website traffic
A high CTR means more traffic because many people who see your Ads click through to your website. If you get many impressions but a low Click Through Rate, then you’ll have few visitors.

 

There are many ways to increase CTR including:

⁃ add keywords in text ads
⁃ Use Dynamic Keyword Insertion in Text Ads
Bid higher to increase Ad position
⁃ Remove search terms with low CTRs

 

Improves conversions
A higher CTR means more clicks and usually more conversions. The more people you get to your website the more likely you’re to get more sales or leads. It’s a numbers game.

 

Of course this traffic should be targeted and from people who’re likely to be part of your target market.

 

Usually if CTR is good, conversions also tend to be good as visitors are highly qualified. People who see your Ad and click will have found your ad relevant to their needs so you are likely to see more conversions.

 

Achieves higher rankings
If your Ads have high CTRs they’re generally perceived as relevant. So they get higher ad quality scores and are pushed up the rankings for less cost per click costs. So it’s a win-win situation for your campaigns.

 

And this increase in positions leads to higher CTRs. And it therefore becomes easier to reach CTRs of over 10% for your campaigns.

 

Conclusion
Click Through Rate is one of the most important metrics for,your business. It’s the first metric to look at when you setup and launch AdWords campaigns and it’s one of the easiest to understand. Improving CTR will improve your campaigns and this will help you achieve your targets.

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Mike

Google AdWords Expert
I'm a Certified Google Adwords Expert and Marketing Author and in this blog I share my latest tips and secrets on how to promote your business successfully on the web and increase customer loyalty, retention and advocacy on Google Adwords. Mike Ncube

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