CTR or click-through rate is the ratio of ad clicks to impressions.
For example, if you had 1000 impressions and 32 ad clicks, your CTR would be 3.2%.
Why Is My CTR Important?
A low CTR will negatively impact your Quality Score, in turn negatively affecting your ad position and costing you more on your CPC.
Does this mean that a high CTR is always good? Definitely not.
It’s one of many KPI’s (key performance indicators) you can use to measure how well a campaign is performing.
Consider this – a high CTR combined with a low conversion rate could point to an issue with targeting, ad copy, or both.
In other words, you are getting traffic that is less likely to convert.
This could be due to bad keywords or ad copy (the text of your ad) that needs work, or a combination of them both.
What’s A Solid CTR?
The following question naturally arises: what is a good CTR to aim after?
Well, it depends on your industry.
Some industries are more competitive and therefore have a lower average CTR.
How does your CTR match up to your industries´ benchmark?
The kind folks at Word Stream generated a useful chart including the average CTR’s for 20 industries.
Your CTR vs. Your Competitors CTR?
Knowing where you stand against the competition is extremely useful.