Understanding the click-through rate for PPC

 In the world of internet marketing, CTR stands for click-through rate. It is a metric that measures the number of click your ads have received against the number of impressions.

Higher the CTR, better is the quality score, and lesser is your expense every time someone clicks on your ad.

What is the click-through rate?

 It is a rate at which your PPC ads are clicked. The ratio of the percentage of people who view your ad and the percentage of people who click on the ad.

Click Through Rate = (Total number of clicks on Ad) / (Total Impressions)

Why do CTRs matter?

The click-through rate is essential because it affects your quality score directly. Search engines like Google AdWords offer a price discount for ads that have high relevance for the audience. To do that you need to provide higher quality scores to ads. Sites like www.nycapitalleads.com tell you better.

What is a good click-through rate?

 This is the most debated topic right now: the best click-through rate.

Click through rates naturally vary from campaign to campaign and from keyword to keyword. Among many other factors, your ad copy and your ranking on the SERP page are the factors that affect the rates.

You want to a high click-through rate, but there is no limit to how high it can get. The rate varies with industry, and the expected CTR depends on the position of your ad among various other factors.

When high click-through rates are bad for business

If a keyword that you are targeting is not relevant to your business, and if it is not going to generate any leads sales or branding for you then a high click-through rate is considered bad for business.

 And the reasoning is apparent:

  •  you pay for every click
  •  a lot of click means a lot of ad spend
  •  sometimes you generate Clicks on keywords that are priced too high and would not turn into profit even if they convert

 So you should want a high click-through rate on the keywords that are:

  •  relevant to your business: should be synchronised with your ad text, landing page, and you are offering
  •  they should be affordable: they should not restrict your profit

To summarise, a good CTR means targeting the right keywords then getting as many clicks as you can.

Strong click-through rate for your ads

If you want to achieve a strong click-through rate in PPC, then you must focus on:

  •  targeted keywords
  •  cost-effective clicks
  •  integration of keywords with landing page
  •  segmenting keyword group to generate closer targeting