What Is A Good Click-Through Rate?
Click-through rates are a metric that many people in the advertising world use to measure how effective their ad campaigns are.
It is a number that indicates the percentage of people who saw your ad and clicked on it.
Your Click-through rate can be used to gauge how well you’re doing with phone keywords and ads, as well as free listings, but what is the standard you should be trying to reach?
What Influences Your CTR?
Click-through rate is the number of times your advertisement was clicked on (clicks) divided by the number of times it was shown to people (impressions): clicks ÷ impressions = CTR.
For example, if you had 5 clicks and 100 impressions, then your click-through rate would be 5%.
You can see your CTR for individual ads, keywords, and ads by clicking on the performance data.
Higher click-through rates are indicative of ads that are relevant to the receivers, and therefore the ad rank is increased.
The higher your CTR is, the better.
You can use your click-through rates to determine which ads, listings, and keywords are best for you.
Ads or results that relate to one another or your business are more likely to attract a user.
What is the Standard CTR?
In general, CTRs typically fall between .1% and 10% but they can vary by industry.
The team at WordStream produced some excellent research on Click-through rates by industry for both search and display ads.
The industries they looked at were: Advocacy, Auto, B2B, Consumer Services, Dating & Personals, E-Commerce, Education, Employment Services, Finance & Insurance, Health & Medical, Home Goods, Industrial Services, Legal, Real Estate, Technology, and Travel & Hospitality.
They found that the average across all these industries is 3.17% for search and 0.46% for display.
That said, the highest of the CTRs was in the Dating and Personals industry at 3.40%
PPC ads for dating and personal service providers are the most effective because they can carry strong emotional ad copy.
Other industries with high CTRs include Advocacy, Autos, and Travel.
The lowest CTR was in the Technology industry at 2.09%.
How Do I Get Better?
So now that you have a ballpark number of what average is for your industry, how do you get better?
If you have CTRs that are lower than the industry average, then start by looking at your ads.
• Are they clear?
• Do they include relevant keywords and phrases?
• Does your landing page match the ad copy on it?
The other thing to look at is your keywords.
If you find a keyword that has low CTR, try to understand why and then adjust your ad copy or landing page accordingly.
For example, if lots of people are clicking on your ads but not converting on the site when they arrive–a common reason is that the ad doesn’t match up with what was promised.
If you are looking for some additional resources on Click-through rates, here are a few.