Click Through Rate for Google Ads

Increase your Click Through Rate for Google Ads

google ads ctr Nov 02, 2022

Improving your CTR is one of the most important metrics that you can focus on to improve the overall performance of your Google Ads campaign. 

This is because Google Ads is built a Cost per click payment model where Google only gets paid when someone clicks on your ad.

Always remember that Google’s algorithm rewards campaigns that have a high CTR, this is great news for smaller businesses because unlike other forms of advertising where you need a large budget to complete with large companies you can have success with Google Ads even on a small budget by focussing on metrics like your CTR.

Think of it this way, if your campaign is going up against a competitor which a budget which is 3 times higher that your, BUT your CTR is 15% vs your large competitor who only has a CTR of 5%

Your ads will win the auction because while your competitors budget is 3 times bigger having a CTR that is 3 times better is more important because the algorithm will favour your ads because it knows it is 3 times more likely to generate a click & revenue for Google. 

So in this video we are going to discuss what is CTR and its related metrics, what the current benchmarks are your your industry and then most importantly how you can increase your CTR.

CTR is simply the percentage of times your ads are clicked on vs the number of times they are shown. 

For example if your ads are clicked on 10 times after being shown 100 times your CTR would be 10%.

BUT that’s not the full story as Google built in other important metrics that you also need to focus on to avoid click bait ads - as they know that the success of their platform is reliant on users clicking on relevant ads. 

So when you are reviewing your CTR you need to also review your: Keyword quality score, ad relevance & landing page experience

A common question I get asked is what is a good CTR and the simple answer is anything that is higher than your competitors. 

The reason for that is because you are not competing against every single competitor in Google you are only competing against other competitors that are:

  •  Bidding on the same keywords
  •  In the same location
  •  To the same audiences & demographics

A great tool I use to help is Wordstream’s annual benchmark report. Now I want to stress that I do not have any affiliation with Wordstream and I am recommending this annual report because I have used it since about 2014 and find the information very valuable.

You can see it here: https://www.wordstream.com/blog/ws/2016/02/29/google-adwords-industry-benchmarks