November 21, 2022

What is Click Through Rate in PPC?

The world of marketing can sometimes leave you feeling a little lost – dont worry you’re not alone! Even the most experienced marketers come across multiple problems on a daily basis but it’s all about how we overcome these struggles and the tools at our disposal. One lifesaver that we commonly use in the world of PPC is click-through rate. In this article, we talk you through exactly what click-through is, why it’s important, and how to use it to your advantage.

So, what is click through rate in PPC? Click-through rate (CTR) is a crucial and integral part of any form of Pay-Per Click marketing. CTR allows us to measure how well our keywords, ad copy and campaigns are performing, and is determined by the number of clicks your ad receives then divided by the number of times the ad has been shown.

Read on to learn more about CTR in PPC and why it’s an integral part of any campaign. 

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What is Click Through Rate in PPC?

The world of PPC relies heavily on CTR – the better the CTR, the better the campaign!

Click-through rate (CTR) is the best way a Pay-Per Click (PPC) marketer can identify if their campaigns are reaching the intended audience. CTR is determined by the number of clicks your ads receive then divided by the number of times your ad is shown. As an example, if you had returned 500 impressions with 50 clicks you would have a 10% click-through rate.

PPC Marketers use CTR to help their campaigns stay on track; they use CTR as an indication for what is doing well and what isn’t – they use this important information to make adjustments to their campaigns, such as ad copy and keywords, which over time will help the improve the quality of their account and will, hopefully, lead to an increase in conversions.

Why is CTR Important?

Click-through rate (CTR) is what makes the world of Pay-per-click (PPC) tick; it is what is used to provide you with the ability to understand your customers needs and routines. In short, PPC marketers use this data to guide their campaigns down the path to PPC success. 

As such, If PPC marketers didn’t have access to CTR, they would not be able to identify a good campaign from a bad one and opportunities and crucial campaign adjustments would all be missed which, in turn, would result in very poor overall campaign performance.

What is a Good CTR?

A good click-through rate can be a tough statistic to measure – there are many different contributing factors before a ‘good’ CTR percentage is returned. The current average CTR for search ads stands at around 1.9% with display ads reaching around 0.35%. Each industry is very different to the next; this is what will ultimately affect the returned CTR figure.

Is High CTR Good or Bad

The higher the click-through rate (CTR), the better! When you see an increase in CTR,  this provides an indication that the current ads are reaching their intended target audience. There are an array of benefits that come along with returning a higher CTR, you will receive an increase in overall conversion rate whilst also helping generate higher quality traffic to the site. We have listed the benefits of a higher CTR below.

Increased Conversion Rate

As previously discussed, to obtain a CTR figure, you simply divide the cost by the amount of conversions you have returned – the higher the returned conversions, the higher your CTR will be. The reason for this is because you have been reaching more of your intended target audience via your campaigns which in turn will improve overall account performance.

Higher Ad Impression Share

Higher Ad Impression Share can be one of the biggest bonuses of having a higher CTR. You will experience a lower cost-per-click, which in the long run when the clicks start to increase will really add up. Also, the higher the Ad Impression Share, the higher your ads will show which in turn can only benefit your campaigns even more.

Provides The Marketer With A Better Understanding

As previously mentioned, a PPC marketer can use the overall CTR to help them know whether their campaigns are performing well or not. The main benefit of this is that the marketer is made aware of any campaign adjustments that may need to be made, which in turn will allow the ads to benefit in the long term.

Improves Your Quality Score & Ad Rank

One of the most important benefits of a higher CTR is an increase in both quality score and ad rank. These increases will have a huge effect on your ads – this will allow the marketer to see whether your ads are reaching their intended target audience in the correct manner. When an increase in Ad Rank is seen, this indicates that you’re currently appearing higher up within better quality searches, this in-turn enables you to help the campaign both grow and develop in a positive way.

How Do You Calculate CTR for PPC?

Click-through rate is determined by the number of clicks your ads receive divided by the number of times your ad is shown. As an example, if you had returned 500 impressions with 50 clicks you would have a 10% click-through rate.

50 Clicks / 500 Impressions = 10% CTR

Wildcat Digital – PPC Agency in Sheffield

PPC is a crucial part of any marketing strategy and without it you may get left in the dust and that’s why Wildcat Digital are here to help. One main aspect of any good PPC campaign is a good click-through rate, and this can be a difficult thing to achieve but with the right help, you will be on the route to PPC success.

There are many various methods we use when it comes to PPC Marketing. Click-through rate is one of the main statistics that we focus on – the reason? It allows us to ensure that we’re doing a great job.

At Wildcat Digital we’re committed to helping businesses punch above their weight online. We offer SEO, PPC, Paid Social and Website services for a fraction of the cost of some better-known agencies. 

Post by

Braden Godley

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