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What is Click Through Rate & Why it is Important?

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Click-Through Rate, or CTR, is one of the essential metrics for internet marketers. Its purpose is to measure and evaluate the number of clicks received by an advertiser on their ads, as per the number of impressions.

Having a high click-through rate is an essential resource for any business operating on a Pay Per Click (PPC) model, as it directly influences the quality score of your website, and how much amount you are paying for each click on an ad.

So, what exactly is CTR, and how is it relevant to your business? Let’s explore.

What Exactly is Click-Through Rate?

CTR is a metric that is calculated by determining the ratio of the number of clicks on an ad. It can also be a defined link or a call to action to the number of times users were exposed to these resources (also called impressions).

For instance, if 100 people are exposed to an ad, and eight people click on it, the CTR is – (8/100)*100, which equals to 8%.

Click through rates are majorly used to determine the success of a pay per click ad hyperlink or call to action or search result. 

One question that arises here is what is PPC? It is a model of operation in internet marketing, where the advertisers have to pay a fee for each click on their ads or links.

Why is CTR important?

CTR’s importance comes from its ability to give businesses and advertisers valuable insights into the customer’s searching patterns. It helps in determining which ads or links are working and which aren’t. This further helps the marketing teams in determining the effectiveness of their marketing approach and refining it based on the CTR.

Let’s take an example. If you have put two advertisements out for your services, and one of them has a very low CTR compared to the other one, then you know which type of advertising is attracting the potential customers to your website.

How to Improve CTR?

Now that we have covered what is click-through rate, let’s take a look at the various ways in which you can improve it to grow your customer base.

  • Focus on Quality Score

Quality score is another metric, which is tracked by Google Ads. It gives you an individual score from 0 to 10 on each keyword used in your account. The metric is a holistic assessment carried out by Google to determine the experience a user will have if they click on your ad or link. It ascertains the quality, the likelihood of clicks, and content of your advertisements.

An ad with a high-quality score achieves higher rankings on Google and also costs the advertiser a lower amount on each click. Hence, it is likely that an ad with a high-quality score will have high click-through rates.

  • Optimize Headlines and Copy

A user will not be clicking on any ads or links if they don’t find the headline of the ad alluring, with keywords. Moreover, highlighting your unique selling points (USP) in your ads can boost not only your CTR but also your conversions, as you’re presenting the users with compelling details that might end up converting them into your customer.

  • Use Extension, depending upon your business

Ad extensions are beneficial in carrying out elaborative advertising or marketing campaigns. Systematic implementation of the various ad extensions not only increases the size of ads but also makes the ads appear more consistent. This further helps in attracting more clicks on the ads and improves the CTR. Here are a few types of extensions you can use for improving your CTR:

  1. Sitelink Extension
  2. Call Extension
  3. Price Extension
  • Target Relevant Keywords

Google Ads encourage advertisers to use a multitude of keywords under many domains in AdGroup. However, having a collection of keywords on AdGroup can affect the relationship between the keywords in ad groups in your account and the advert text.

When anyone is searching for a keyword that is present in your ad group with many keywords, it is incredibly likely that the advertisement that appears doesn’t contain the searched keyword. This can affect the Quality Scores and CTR of your ads negatively.

Hence, the keywords must be tightly grouped into themes with separate ad groups rather than being coupled up in a single ad group. This can also ensure that the keywords are present more than once in an advert, and this can help in improving your ad’s rankings!

  • Write a Compelling Ad Copy

Having your USP highlighted in the ad, which sets you apart from the competitors can be a good start for writing a compelling ad copy.

Also, offering the users with convenient access to the services/products via links in the ad copy, can also enhance the Quality Score of the ads, which results in a better CTR.

  • Test with Different Ads

Running different types of ads can be a beneficial thing for improving CTR. Responsive text ads have proven to help increase CTR. Moreover, you can pay extra attention to the previews in the ads where you can even shift the headline positions if they don’t look good.

You can also get suggestions from the ad strength box on how to improve your ad, which are updated every time you change or modify your ad.

  • Use Remarketing

Remarketing campaigns are very beneficial in capturing the attention of a specific audience. For example, you can display a specific ad to a user who is searching for a specific thing, that aligns with the user’s search. This is more effective if the user is already a former customer or at the least, familiar with your brand. 

Conclusion

Now that you know the importance of click-through rates, you can begin your journey into improving the quality of your ads and bringing in more customers. In this journey, a PPC services provider like Infidigit can assist your campaign further, and also help you in discovering various insights on how to improve CTR

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