Let's say you are running a PPC campaign on Google AdWords and you are wondering what CTR is good...
What is a CTR?
The Click-Through-Rate (CTR) shows what percentage of the people who see your ad actually click on it.
The CTR is an average and can be found on different levels, Account level, Campaign level, Adgroup level and Keyword level. It is a good indicator of how relevant your ads are to your keyword.
Why should I optimise my Google AdWords Campaigns for CTR?
The CTR is an important factor in the Google Quality Score. Google rewards relevant ads by giving them a higher Quality Score. A higher Quality Score might mean that you pay less per click for your ads, or alternatively your ads get a higher ranking for the same cost per click.
Search CTR vs Display CTR
First of all one should distinguish between GDN (Google Display Network-formerly called Google Content Network), and Search. In Google a Search CTR of about 2% and above is regarded as good and for the GDN, 0.10% is regarded as normal. Anything less than these values should be investigated further.
Brand CTR vs Generic CTR
It is also important to distinguish between brand terms (e.g. Adidas) and generic terms (e.g. runners). A brand campaign might have typically 20%-30% CTR. Non-Brand campaigns (Generic) should have 2% at least as stated above. And by the way, if you haven't separated brand vs generic keywords into different campaigns then please do. It is not easy to assess and manage a mixed campaign.
CTR and Traffic
When I was working in Google, one inexperienced industry sales manager said: "I don't regard any CTR less than 4% successful!"
Hmm, ok... let's analyse this further.
Through optimisations you can influence the CTR. The CTR is in negative correlation with traffic. Below you see a very simple graph showing this correlation.
The more specific you become, the higher the CTR, but you will sacrifice traffic on the other hand.
Well, through optimisations you could even achieve an average CTR of 15% on generic terms, but traffic would suffer. So it is not advisable to set rigid CTR goals. Striving for a too high CTR is not advisable.
Google AdWords Account-Campaign Level Screenshot
The Click-Through-Rate (CTR) shows what percentage of the people who see your ad actually click on it.
The CTR is an average and can be found on different levels, Account level, Campaign level, Adgroup level and Keyword level. It is a good indicator of how relevant your ads are to your keyword.
Why should I optimise my Google AdWords Campaigns for CTR?
The CTR is an important factor in the Google Quality Score. Google rewards relevant ads by giving them a higher Quality Score. A higher Quality Score might mean that you pay less per click for your ads, or alternatively your ads get a higher ranking for the same cost per click.
Search CTR vs Display CTR
First of all one should distinguish between GDN (Google Display Network-formerly called Google Content Network), and Search. In Google a Search CTR of about 2% and above is regarded as good and for the GDN, 0.10% is regarded as normal. Anything less than these values should be investigated further.
Brand CTR vs Generic CTR
It is also important to distinguish between brand terms (e.g. Adidas) and generic terms (e.g. runners). A brand campaign might have typically 20%-30% CTR. Non-Brand campaigns (Generic) should have 2% at least as stated above. And by the way, if you haven't separated brand vs generic keywords into different campaigns then please do. It is not easy to assess and manage a mixed campaign.
CTR and Traffic
When I was working in Google, one inexperienced industry sales manager said: "I don't regard any CTR less than 4% successful!"
Hmm, ok... let's analyse this further.
Through optimisations you can influence the CTR. The CTR is in negative correlation with traffic. Below you see a very simple graph showing this correlation.
The more specific you become, the higher the CTR, but you will sacrifice traffic on the other hand.
Well, through optimisations you could even achieve an average CTR of 15% on generic terms, but traffic would suffer. So it is not advisable to set rigid CTR goals. Striving for a too high CTR is not advisable.
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