What Is Clickthrough Rate and Why Is It Important?

Click-through rate in PPC(pay-per-click) is something that is obviously important for search engines. As most of their revenue comes from each click made, it behooves them to help advertisers increase the effectiveness of their ads. But why should you care? The amount of impressions you make is unlimited, so why does it matter what percentage of them get clicked? Well as you will soon find out, it matters more than you know. Here is why clickthrough rates are important.

What Is Clickthrough Rate?

Before we get into why click-through rate is important, we should first establish what it is. Clickthrough rate is the percentage of browsers that click on your ad after viewing it. This means that if 1000 people see your ads and if 10 people click on it, then your clickthrough rate is 1%.

This makes clickthrough rate a good way to determine the relevancy of your ad. After all, people are going onto search engines to find something, and are more likely to click on things that are relevant to what they find. So if you have a high clickthrough rate, then your ad is well-written and on-par with what people are searching, and if it’s lower, then you will likely need to revise it or rethink your selected keywords.

What Is Good CTR?

What constitutes high clickthrough rates really depends, however. For instance, a branded campaign that targets the name of your business or the kind of business you are in can regularly have double-digit figures, whereas a non-branded, broad keyword can have clickthrough rates of less than one percent. Therefore it usually fares best to work on more specific keywords where you will have more of a chance.

Why Does It Matter?

Now that you have a good understanding of what CTR is, the question still remains as to why it matters. After all, you are only being charged for the clicks, so isn’t that all there really is to it?

The answer is no, as your clickthrough rank does more than just tell you if you are relevant, it informs the search engine about it too, and based on that information, along with other data, it will decide your placement within the search results. This is known as Ad Rank, and it is important for it to be high, as the higher your ad rank is, the more favorable its placement will be. Having a low rank will push your ad further into obscurity, making you lose potential traffic from the keywords you are bidding on.

Furthermore, Google uses CTR on your current ads to predict the rank of newer ones. So if you have a lot of ads with low CTR, then future ads that come from that account will also have low ad rank. Needless to say, it is important to keep your ads relevant and well-targeted, as it will help you find continued success with your advertising ventures in the future.

As you can now see, clickthrough rate is more important than you probably realize and is something that every online advertiser should prioritize. If you feel like you could benefit from higher clickthroughs, our PPC experts over at Boston Web Marketing specialize in creating and managing effective campaigns designed to increase traffic to your website. We have over 10 years of experience in optimizing the online presence of your business and are confident in our ability to deliver top quality advertising on your behalf. If you feel like this is something that can help you, contact us at 857-526-0096, or request a free consultation. We’d love to work with you!

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