What Is Ctr and Why Is It Important

Adsbot Growth Team
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WHAT IS CTR?

In PPC (Pay-Per-Click) marketing, the key action is to show the product or service at the right place and time to the user who is looking for a particular product or service. It would not be wrong to say that the most important feature that distinguishes PPC marketing from traditional marketing is that it offers a data-driven system making it possible to bring the product or service in front of more people who are looking for it. For this reason, business owners and advertisers should understand the metrics well to analyze the results correctly after publishing ads. One of the most important of these metrics is CTR (Click-through rate).

CTR is an indispensable part of a successful digital marketing strategy because, as a key performance indicator (KPI), it provides important clues about the ads, whether they are working well or not with the target audience, keywords and also ad texts.

You will learn the basics of CTR in this article:

  •    What Is CTR and Why Is It Important?
  •   What Is a Good CTR Rate and What Does It Mean?
  •  How Can I Improve My CTR?

WHAT IS CTR AND WHY IS IT IMPORTANT?

CTR (Click-through rate) is a metric used to measure how often people clicked the ads when they viewed them. This metric is an indication for the ads’ quality, its impact on people and whether it is an eyes-catcher.

CTR is the ratio of people who click on ads to people who view the ads. If your ad has 100 impressions and 10 clicks on it, your CTR value would be %10.

Quick info Difference between click and impression

Impression: the number of times your ad is seen by users.

Click: the number of times someone clicked on your ads

Measuring how frequently your ad was clicked provides important messages about your ad campaign’s performance which is helpful while (re)considering your digital marketing strategy. CTR is important not only for ads campaign performance in the short term but also for your whole digital marketing plan and business objectives. It helps to understand whether you are targeting the right audience, relevant keywords and whether you have creative assets that convince them to click or not. At this point, you may be targeting the right audience but not speaking their language. Since CTR will help you notice that, you can get to know your customers (also potential customers) better and build a long-term relationship with them. Thus, you will reach your long-term business goals by analyzing the metrics correctly. It also helps to save both money and time because it is getting easier to realize where the problem is and which arrangements are needed to run a successful campaign.

WHAT IS A GOOD CTR RATE AND WHAT DOES IT MEAN?

Similar to other metrics, it is difficult to say a clear range of numbers is “good” when it comes to CTR. Because these numbers vary according to the industry and the networks where the ads are shown. Likewise, Google Ads Campaign Types also have different CTR ranges.

Even so, it can be said that the average CTR for search advertising is about %6-7%. You can find the CTR that is good for your advertising campaign by considering your business type and ad network. At this point, it is important to see the competition in the business field and to analyze the market well. These researches are just as critical for the entire process of Campaign Creation in Google Ads as they are to determine the CTR rate you will try to reach.

If you have a high CTR rate, it may mean that:

  • You are targeting the right audience
  • Your keywords are relevant
  • Your ad and ad network have a good match
  • People who see your ad find it helpful and interesting

These indications can also be applied to the opposite scenario which is a low CTR case. As you see, when CTR is high or low, it is in a cause-and-effect relationship with the most important assets of an advertising campaign. For this reason, if an ad campaign has a low CTR based on business type and ad type benchmarks, the entire Google Ads Optimization process starts.

HOW CAN I IMPROVE MY CTR?

Whatever your business type and the ad network you are in, you will want a high CTR to achieve your digital marketing goals. Here is what you can do:

  • Target right and specific audience
  • Know and understand well your audience
  • Target relevant keywords. Besides, you can try different types of keywords, such as broad, phrase, and exact match, to understand which type will work with your advertisement assets. Note that phrase match is the preferred type because it usually works better.
  • After publishing, eliminate irrelevant keywords by adding them to negative keywords in Google Ads. You can find irrelevant searches, which show your ad when the users typed in the search box, that you probably will want to add to negative keywords in the Google Search Term Report. Note that it is also budget-friendly.
  • Use call-to-action buttons
  • Use Google Ad Extensions like Sitelink, or Callout texts or Structured Snippet
  • Use A/B testing

Ultimately, improving the CTR rate is closely related to optimizing all digital marketing campaign assets and analyzing other metrics correctly. One of the main ways to run a successful digital advertising campaign is to test and learn. For this reason, it may be necessary to create different combinations by changing your different ad assets, such as headlines, descriptions, images, budget, target audience, or keywords, in line with the entire Campaign Performance Analysis.

Important to remember, there are various CTR benchmarks and also different ways to improve CTR rates for search, display, and video ads. In addition, CTR can also vary with industry averages. For this reason, when trying to improve your CTR rate, you should consider not only your own advertising content but also the platform where your ads are shown. 

 


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