The average CTR (click through rate) is the ratio to impressions in your AdWords campaigns. CTR measures the rate of clicks on each ad and is calculated by impressions divided by the umber of clicks you received on that particular ad.
A low CTR is problematic as it can drag down your quality score and affect future ad placement. A low CTR is a signal of lack of relevance for your ad viewers and potential customers who aren’t persuaded to click on your ad and visit your landing page and see the service or products you offer.
In comparison, a high average CTR on your ads or across your campaign doesn’t necessarily mean success. A high CTR with low conversions may say that you’re wasting spend by attracting people less likely to convert. This can be done by targeting an audience too broad, irrelevant ad text, landing pages are not very appealing or a mixture of all three.
Google uses your historical data to calculate the expected CTR, how likely they think it is that your ads will get clicks when shown for specific keywords. Improving the keywords you have in your account and adding negative keywords on a daily basis can improve your CTRs, thereby reducing wasted spend and improving your quality score.
What is the average CTR for a PPC ad?
The average click-through rate that is considered to be good is 2%. Anything above 2% can be regarded as an above average CTR.
However, it’s critical to remember that the average CTR, as well as other metrics, such as conversion rate, can widely vary by industry. This is because some industries will be more competitive than others. The best way to know if your CTR is higher or lower than average is to look at industry-specific benchmarks. Remember, average click-through rate isn’t the only thing that affects Quality Score, but it’s one of the largest factors and deserves some serious attention.