CTR as an Analytic Metric

First of all, let’s define what CTR is. The definition of Clickthrough Rate ( CTR ) is the ratio of the number of times an ad is clicked, divided by the number of times an ad is viewed ( or impressions).

CTR can be used as an analytic metric in PPC in several ways.
1) It can be used to measure delivery.
2) It can be indictive of a lower position in the SERP’s.
3) It can alert you that your creative needs to be refreshed.
4) It can be a sign that your keywords are too broad (not targeted enough).

In a branding campaign, a low CTR can be a signal that your bids are too low ( low position). By simply raising your bids, you can achieve a higher position and higher CTR.

But, what if you have to manage to an Avg CPC?

Some tips to increase CTR:
1) Use targeted, relevant keywords to your audience.
2) Bucket your keywords into highly relevant adgroups.
3) Create a highly targeted ad within your adgroups.
4) Use negative keywords
5) Use Keyword Matching options
6) Use the keyword in your ad text, or dynamic keyword insertion.
7) Use a strong call-to-action in your ad text.
Test multiple ads in each adgroup.
9) Raise your CPC ( if you can).
10) Opt into the Content Network.

So, what is a good CTR?
1) Under 1% … it’s safe to say is bad.
2) 1%-2% is mediocore. There is room for improvement.
3) 2%-4% is good. IMHO, 2% CTR should be the benchmark to shoot for.
4) Anything over 4% is terrific.

Optimizing CTR is especially important if you do PPC Arbitrage.

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