The clickthrough rate (CTR) is extremely important to advertisers. On most PPC platforms, including Google Ads (formerly Google AdWords) and Bing Ads, your CTR helps determine both the ad rank and the cost per click. What is a good CTR for AdWords?
The clickthrough rate is the percentage of all ad impressions that cause clicks, and is one of the key factors in the Google Quality Score formula. Google uses Quality Score to determine the position of the ad and the actual cost per click
So what’s a good clickthrough rate?
What is the good clickthrough rate for Google Ads? It depends on the industry, type of business, goals and other factors.
But for starters, you can use our free benchmarking tools to see if your current Google Ads clickthrough rate is higher or lower than your industry average.
Average clickthrough rate (CTR)
The clickthrough rate shows how often people who view your ad actually click on it. CTR can be used to help you determine the quality of photos, positioning and keywords. The average CTR for search ads in all industries is 1.91% and 0.35% for display ads.
Average cost-per-click (CPC)
The cost-per-click is the amount you pay each time a user clicks on your ad. Although the highest cost-per-click is reflected in the maximum cost-per-click, a lower fee is often charged. According to AdWords, “Actual CPC is often lower than the maximum CPC, because thanks to the AdWords auction you will pay the most for what is minimally required to maintain your ad position and any ad formats displayed with the ad, such as sitelinks. ” The average CPC across all industries is $ 2.32 for search ads and $ 0.58 for display ads.
What else should I know about AdWords CTR?
Using CTR as the primary KPI may set the target to incorrect data. If you run a split test that has two ads and one has a higher CTR but the other has a higher conversion rate, which ad would you declare to be the winner? Since we assume that both are in the same ad group and both target mobile or landline devices (the same for both), a higher conversion rate also probably means a lower cost per conversion.
You probably prefer to run the one that converts faster and at a lower cost, right? It not only converts visitors more efficiently, but also saves the cost of clicks that would be converted with a lower rate. This is a key example of why optimizing your AdWords account to get the best clickthrough rate can often be the wrong approach (depending on your goals, of course).
Understanding your account’s relationship between clickthrough rate, conversion rate and cost per conversion leads to a much more holistic picture, allowing you to optimize for the purpose, not just one of these indicators. High volume without conversion is a loss model. Effective conversion without volume is a marginal gain model. And the great AdWords clickthrough rate provides nothing without conversion and performance.