What is CTR
CTR is the percentage of viewers
that actually click on your ad. CTR is
different from impressions, which is the number of people who view your ad,
whether they click through or not.By improving your CTR with AdWords, you achieve the following:
- Increase your traffic.
- Lower your CPC
(thanks to the Rank =
CPC * CTR
equation).
What Is a Good CTR
A good CTR is certainly above the
0.05% rate that AdWords asks you to maintain in order to keep your ad running
for each keyword. If your CTR gets
lower than that, your ad is disabled after it receives a thousand impressions.
Certainly, 0.05% is not enough. But it’s hard to tell what is good and what is
bad CTR beyond that.CTR depends on the following:
Keyword popularity
Suppose your CTR for a keyword like
“shoes” is 1.5 %. Is that good or bad?Usually, a general keyword like that is
also very popular. These kinds of words generate a lot of impressions, but the
percent of people that actually click on ads is low. In this circumstances,
your 1.5% CTR is good. If you choose
“repair jogging shoes” instead, you’ll probably get fewer impressions on this
one, and fewer clicks, but still, a much better click through rate. This second
keyword is not so popular, but it is much more targeted.When comparing two
similar keywords — a general and a specific one, you should see a big
difference in the CTR they get as well
as in their conversion rates. A keyword that has both low popularity and low CTR
is actually low value.
Your competition
To follow the same example, we expect a popular keyword like “shoes” to have
a tough competition. This means higher CPC
, and fewer chances for you to get clicks. But it’s very possible that few
people are bidding on “repair jogging shoes” — if any — and in this case you
have all the viewers of your ad to yourself.There’s no low, high or average CTR. You have to take into account the circumstances mentioned above. And beyond that, consider the quality of your ad, your bids and your daily budget, because these too can influence your CTR.
How Keywords Strategies Influence CTR
General keywords generate a lot of impressions but few click-throughs and
even fewer conversions, because they can’t really filter the potential
customers. Specific keywords on the other hand are more focused, therefore they
have more power to select potential clients.Ways to use keywords for increasing your CTR:
- Avoid using very general
keywords (shoes).
- Focus on using targeted
keywords which describe your actual products or service in a rather
specific way (repair jogging shoes).
- Collect all related keywords
in targeted Ad Groups.
- Create ads that are highly
targeted to the keywords in that Ad Group.
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