What Is CTR and How Important It Is for Online Sales?

Your website pages are already on the first page of Google search results for various keywords. However, your business has not yet reached the expected amount of sales. This is a sign if your website has a weak CTR. What is CTR?

Then, how important is CTR to your online sales? Here is the CTR explanation for you.

What Is Click-Through Rate

What is CTR? CTR is an abbreviation for Click-Through Rate, which is a measure of the number of clicks an advertiser receives for an ad per impression. 

PPC CTR is the percentage of clicks on PPC ads. This number is the percentage of people who saw your ad (impressions) and actually clicked on it (clicks). The formula for calculating CTR is as follows: 

(total clicks on your ad) / (total impressions) = CTR 

Generally, CTR can be viewed on the dashboard of your PPC account. A high CTR means that a high percentage of people who see your ad click on it.

For example, if your company runs a CTR in advertising campaign that generates 10,000 impressions and 500 clicks on your app store, your CTR is 5%. If your CTR is high, people will think your ad is very relevant. 

What is CTR in marketing? Due to its low CTR in digital marketing, users feel that their ads are less relevant. The ultimate goal of the PPC campaign is to allow qualified users to access the website and perform the required actions (purchase, lead or contact form, download datasheets, etc).

The CTR is the first step in the process of improving ad relevance and generating the desired action.

Why Do Click-Through Rates Matter?

CTR is a valuable way to understand the performance of mobile advertising. You can compare campaign performance by placing your campaign’s CTR in the context of other campaigns. 

This can be done in a variety of ways. You can use CTR to compare the equivalent performance of your advertising media in A / B testing to determine if a particular creative feature increases interaction.

You can use the CTR to compare the performance of different ad channels. By comparing the CTR of banners, interstitial, video, and other types of campaigns, advertisers can determine their effectiveness and where to invest most of their mobile ads. 

The CTR can also be used within the wider veterinary quality attribution funnel. By linking campaign performance to in-app behavior, advertisers can determine if high CTR does not necessarily correspond to increased user value. 

This will check if the advertiser being tested on your CTR channel is delivering quality traffic, or just a large number of users, and adjust your ad investment accordingly. 

CTR is important for your account as it directly affects your Quality Score. The higher your CTR, the higher your Quality Score. With the High Quality Score, you can improve or maintain your ad’s position at a low cost. 

When you place your ad in a related search query, achieving a high CTR means attracting as many people as possible to your offer. Keep in mind that in some cases, a high CTR does not always match your conversion rate. 

CTR Impact on Ad Rank 

CTR does more than just show how relevant your ad is to your searchers. CTR also contributes to search engine rankings. The ad rank determines the position of your ad on the search results page. 

Top position does not go to the highest bidder. It will be sent to the advertiser with the highest ad rank. Rate CTR definition is also a big factor in the formula for calculating ad rank. 

But ad ranks are even more complicated. What is CTR in Google Ads? Google measures your actual CTR with your expected CTR. 

Therefore, if you serve a large number of low CTR ads, Google considers that new ads you add to your Google Ads account also have low CTR and may rank them lower on the page. 

That’s why it’s so important to understand your CTR and improve it as much as possible. A low CTR can result in low ad placement regardless of bid, so there is no bid estimate definition.

Read also: Super Simple Ways on How to Improve Expected CTR 2021

CTR Impact on Quality Score 

Quality Score is a measure of an advertiser’s relevance to keywords, ad copies, and landing pages. The more relevant the ad is to the landing page user, the more likely it is that your Quality Score will be high. 

Your Quality Score is calculated based on your CTR, ad relevance, and landing page experience as measured by search engines. A good CTR helps you achieve a higher quality score.

What’s A “”Good”” Click-Through Rate?

From a purely statistical point of view, it depends. Check out Yahoo’s answer to “What is a good CTR?”:

“The honest answer to the question is, “It depends.” Click-through rates are naturally going to vary from campaign to campaign, and even from keyword to keyword. Everything involved in the way your ad is displayed plays a part, from your ad copy to the ad’s ranking on the results page.” 

Therefore, even if you need a “high” CTR, there really isn’t a magic number. Average CTR varies by industry, the set of keywords you are bidding on, individual campaigns in your PPC account, and expected CTR depends on your ad’s position, among other things.

Read also: What Is the PPC Campaign Objective and Why Is It important?

The average CTR for Google Ads is 1.91% for search and 0.35% for display. But that’s just the average. As a rule of thumb, a good CTR for Google Ads is over 4-5%+ on the search network and over 0.5-1%+ on the display network.

Conclusion

CTR is an abbreviation for Click-Through Rate, which is a measure of the number of clicks an advertiser receives for an ad per impression. 

PPC CTR is the percentage of clicks on PPC ads. This number is the percentage of people who saw your ad and actually clicked on it. 

CTR has an impact on your ad rank and Quality Score. With the High Quality Score, you can improve or maintain your ad’s position at a low cost. When you place your ad in a related search query, achieving a high CTR means attracting as many people as possible to your offer. 

Ginee Malaysia

So, have you understood what CTR is? Now, move on to the next step, that is to improve your online sales and get money fast. For this, Ginee can help you manage multiple things such as handling ads campaigns and marketplace stores only in a single dashboard. Ginee has several features such as product management, stock, order, promotion, and more. Register to Ginee Malaysia now, enjoy all Ginee features for free forever!