What’s a good CTR (click-through rate) for Adwords?
You won’t find a definitive answer on this, as it varies greatly depending on the market and keyword. There are many campaigns with very low CTR’s (<1%) that still manage to deliver profits, but a high CTR is vital for several reasons:
Google rewards a high CTR with a lower CPC (cost per clickthrough). As a rule, Google will always reward content that is more relevant to searchers, and an Adword that delivers a high CTR, must by definition be delivering content that searchers want. It helps of course, that a higher CTR also delivers more profit to Google’s bottom line. Aiming for a high CTR is a great way to beat your competitors in the cost of customer acquisition.
SEO specialists spend a lot of time optimising your page, so that good content is rewarded (good tags, good inbound links), but as always in Adwords and Organics, relevant content is the key.
Seth Godin would like this, if you’ve got something worth saying, and customers want to hear it, Google will reward you.
If you’re delivering a high CTR you are consistently reaching the right audience for your product, so unless your Ad is a blatant lie, you should have a high conversion rate. Watch for a high bounce rate on your site generally. If you’re suffering from a high bounce rate, something’s wrong with your landing page.
Google will also reward you with a lower CPC if you achieve a high CTR, and a low bounce. Its algorithm will also look at the keywords and copy of your Adwords to ensure they cohere with the target landing page.
Finally, a higher CTR maintained over a period of time you will achieve a lower CPC as Google also rewards persistent advertisers - that’s why you shouldn’t plan your entire online strategy around 24 hours of testing.
As always the way to achieve all of this is lots and lots of testing.
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