Does CTR Matter?
When Google Adwords performance is discussed, the CTR (click through rate) is often deemed to be one of the most important factors. The common target is 2% or more. So does CTR really prove that your Google Adwords campaigns are performing well?
In short, no! If your Google ad gets 1000 impressions and you have a whopping 10% CTR, you’ve had 100 people visit your website from your ad. Great! But what if they don’t then buy anything or it doesn’t result in any leads. What if they bounce straight off your site. If your average CPC (cost per click) was £1, that would mean you’ve just lost £100.
It’s much more important to get the RIGHT traffic to your website. You want people who ARE going to convert to a sale or lead. So how do you gauge your Adwords’ results?
The obvious answer is conversions. If you’re selling more and can track conversions via campaign, you know you’ve got it right. You can put more budget into the campaigns which perform the best. If you’re not selling online and can’t track conversions, then look at the amount of time spent on your website and the number of pages viewed.
Make sure your text ads are accurate. If you’re selling high cost goods for a popular search term, make it clear on your ad that they are not the cheap version. Every wasted click costs you money, so make sure they know exactly what you are selling BEFORE they click. By doing this, the CTR will be low, but the conversion rate will be high.
Our Google Adwords’ clients CTR can range from 1.39% to 9.67%. The impressive 9.67% CTR is for a client in a niche area with less competition, so the high CTR does result in conversions. The lower 1.39% is for a client selling high quality clothing. The lower CTR is due to avoiding wasted clicks from viewers after cheaper products. The conversion rate for this client is high.
However, if you do have a low CTR and you feel you should be getting more traffic, look at the ad. Is it enticing viewers? Whilst you need to be accurate and avoid wasted clicks, you still need to entice relevant users. Try creating more ads and monitor their performance.