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Click-through Rate (CTR) Explained: Your Quickstart Guide to Google Ads

Are you tired of low-performing Google Ads campaigns? Boost your return on investment by understanding your Click-through Rate (CTR). In this episode, you'll learn the following:

- What CTR is and why it's crucial for successful Google Ads campaigns

- The key factors that influence your CTR

- How to calculate and track your CTR

- The ideal CTR benchmarks

- Other important metrics to monitor alongside your CTR

- Advanced tools and strategies for improving your CTR and overall Google Ads performance

- The downside of having a high CTR and how to avoid it

Don't let poor CTR hold you back from reaching your advertising goals. Listen to this episode as our Client Manager, Mel, shares insider tips and tricks for maximizing your CTR and driving more qualified traffic to your website.

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Transcript

Ana: 00:00:11

And we're gonna go over a topic that is on the more basic

Ana: 00:00:13

side of Google ads, but something that is still very important.

Ana: 00:00:15

So we can kind of dive right in.

Ana: 00:00:17

We're gonna be talking about clickthrough rate today.

Ana: 00:00:19

Another thing that's important to consider is having a high

Ana: 00:00:22

clickthrough rate is not always great.

Ana: 00:00:24

And when I say that I look at another metric as well.

Ana: 00:00:32

Hello everyone, it's Mel here from Gads Girls.

Ana: 00:00:34

I am back after a little bit of a hiatus from YouTube . Um, But

Ana: 00:00:38

I'm gonna do a solo video today.

Ana: 00:00:39

And we're gonna go over a topic that is on the more basic side

Ana: 00:00:42

of Google Ads, but it's something that is still very important.

Ana: 00:00:44

So we can kind of dive right in.

Ana: 00:00:45

We're gonna be talking about click through rate today.

Ana: 00:00:47

What is click through rate?

Ana: 00:00:48

Why is it important?

Ana: 00:00:50

Where can you find it?

Ana: 00:00:51

And then also what is a good click through rate?

Ana: 00:00:53

And another metric that I like to look at along with click through rate.

Ana: 00:00:56

We can get started.

Ana: 00:00:58

I've got a article up from Google, so you can take it straight from the horse's

Ana: 00:01:03

mouth, not from me so CTR is a number of clicks that your ad receives divided

Ana: 00:01:08

by the number of times your ad is shown.

Ana: 00:01:10

So clicks received divided by number of times it's shown, which is impressions.

Ana: 00:01:15

So clicks divided by impressions equals ctr.

Ana: 00:01:17

For example, if you had five clicks and a hundred impressions,

Ana: 00:01:20

then your CTR would be five.

Ana: 00:01:23

Click through rate can be used to gauge how well your keywords and ads.

Ana: 00:01:26

And free listings are performing.

Ana: 00:01:28

It can also tell you the relevance of your ads.

Ana: 00:01:31

So if you're getting, a lot of impressions and your click through rate is low,

Ana: 00:01:35

that means that your ads are being shown, but they're not being clicked on.

Ana: 00:01:38

So reviewing your ad copy, rewriting it, trying to test different strategies there.

Ana: 00:01:45

And then also looking at, keyword insertions, something like

Ana: 00:01:47

that to kind of boost the overall relevance of your ads is very, I.

Ana: 00:01:51

So that is what a click through rate is and where to find it.

Ana: 00:01:55

We'll have a look here.

Ana: 00:01:56

You can find your click through rate at the campaign level, which

Ana: 00:02:00

we're gonna look at right here.

Ana: 00:02:01

So we've got it at the campaign level here.

Ana: 00:02:04

We can also look at it at an ad group level.

Ana: 00:02:08

I've just got one ad group, but if we had multiple ad groups, you'd be

Ana: 00:02:10

able to see it there across the ad.

Ana: 00:02:13

And then you can also look at it at the keyword level.

Ana: 00:02:15

So it depends on how granular you wanna get, but obviously keywords will

Ana: 00:02:19

tell you what keywords are performing well in terms of click through rate.

Ana: 00:02:23

same with your different ad groups.

Ana: 00:02:25

You can kinda see which ad group's performing better based

Ana: 00:02:27

on the click through rates.

Ana: 00:02:28

So let's where to find it.

Ana: 00:02:30

And I guess why is click through rate important?

Ana: 00:02:31

So again click through rate will tell you whether or not people

Ana: 00:02:35

are finding your ads relevant.

Ana: 00:02:37

If you have a low click through rate and a high amount of impressions, like

Ana: 00:02:40

you said, that'll tell you that people are not clicking through on your ads.

Ana: 00:02:43

And then you would have to review your ad copy and so on.

Ana: 00:02:46

It could also lead a low clicker rate.

Ana: 00:02:48

It can lead to a low quality score, which can overall impact your app

Ana: 00:02:51

position and potentially your cost.

Ana: 00:02:53

You pay per click as well, so it if you have a good quality score,

Ana: 00:02:57

it can lead to better ad placement and potentially cheaper clicks.

Ana: 00:03:00

So, It's important to look at your click through rate to be aware what your click

Ana: 00:03:04

through rate is, and also to know what your benchmarks are for your industry.

Ana: 00:03:08

I won't go over every industry today.

Ana: 00:03:09

I'm not gonna waste too much time there, but if you're interested in.

Ana: 00:03:13

And learning more about that, you can do a quick Google search and that

Ana: 00:03:16

information's all available online.

Ana: 00:03:17

But overall, the average clickthrough rates vote for E-com is about four

Ana: 00:03:22

to 6%, and anything over that is considered a good clickthrough rate

Ana: 00:03:26

or an excellent click through rate.

Ana: 00:03:27

So in the account that I have open right now, we've got about a 13%

Ana: 00:03:32

click through, which is a very good click through rate for this industry.

Ana: 00:03:37

So we went over what is click through rate.

Ana: 00:03:39

Why is it important, where to find it.

Ana: 00:03:41

Another thing that's important to consider is having a high click

Ana: 00:03:44

through rate is not always great.

Ana: 00:03:46

And when I say that I look at another metric as well.

Ana: 00:03:49

So I look at your conversion rate.

Ana: 00:03:51

If you have a high click through rate, but a low conversion rate, that means

Ana: 00:03:56

that a high amount of people are clicking through on your ads, they're getting to

Ana: 00:03:59

your website, but they're not convert.

Ana: 00:04:01

So you have to do a bit more detective work if that's happening for you.

Ana: 00:04:05

So why aren't people converting?

Ana: 00:04:07

You can use a tool like Lucky Orange.

Ana: 00:04:09

Kind of watch the user experience on the website to better

Ana: 00:04:11

understand what's happening.

Ana: 00:04:12

Kind of where are they dropping off, you know, is the pricing.

Ana: 00:04:15

Not competitive.

Ana: 00:04:16

Were they expecting free shipping?

Ana: 00:04:17

Things like that that you'd look at to try to boost your conversion rates.

Ana: 00:04:21

So having a high click through rate coupled with a low

Ana: 00:04:24

conversion rate is bad news.

Ana: 00:04:26

So it would lead you down a road of trying to figure out what's happening there.

Ana: 00:04:31

So it's important to look at, I think, both of them to better

Ana: 00:04:34

understand the full picture.

Ana: 00:04:35

And if that is happening to you, then definitely look at getting a tool

Ana: 00:04:39

like Lucky Orange testing different methods to boost conversion rate.

Ana: 00:04:43

test free shipping if you can.

Ana: 00:04:45

Play with product prices.

Ana: 00:04:46

There's lots of ways you can boost conversion rates, so we're not

Ana: 00:04:49

gonna get into it today, but that is something that I also look at.

Ana: 00:04:52

So overall your CTR is something that you should be aware of and it is

Ana: 00:04:55

something that you should be looking at.

Ana: 00:04:57

Look up your benchmarks for your industry, but again, The

Ana: 00:05:00

kind of average clickthrough rates are between four and six.

Ana: 00:05:03

Anything over that's considered good?

Ana: 00:05:04

Conversion rates, so about 2% would be considered a good conversion rate, but

Ana: 00:05:09

again, it does vary industry to industry.

Ana: 00:05:10

So have a look at your specific industry, if that's something that interests you.

Ana: 00:05:15

And I think that's pretty well the end of it, I mean, , your C

Ana: 00:05:18

T r is pretty straightforward.

Ana: 00:05:20

It's important to know what it is.

Ana: 00:05:21

It's important to know what your benchmarks are and what you can

Ana: 00:05:25

do to improve it if it's low.

Ana: 00:05:27

So that is it for today.

Ana: 00:05:29

Thank you very much.

Ana: 00:05:31

Very short and sweet one.

Ana: 00:05:32

But I hope that helps and gives you another metric to look

Ana: 00:05:35

at within your Google ads.

Ana: 00:05:37

Thanks very much and if you like this video, remember to like click share.

Ana: 00:05:41

Tell the grandma do all the things.

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Click-through Rate (CTR) Explained: Your Quickstart Guide to Google Ads

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