What is CTR and how to increase your keyword’s Click Through Rate – WAU

CTR is one of the most important indicators to be monitored in a Digital Marketing strategy. In addition to directly impacting the cost and efficiency of your campaigns, it also influences the performance of your pages in ranking in organic searches. A high click-through rate benefits your entire planning.

It doesn’t matter if you are applying SEO techniques or investing in sponsored links, certain metrics are fundamental for improving the performance and consequent success of your Digital Marketing actions.

One of them is the CTR (Click Through Rate), also known as the click rate, a very important indicator for any strategy.

The higher an ad’s CTR, the greater the benefits for your business: from the lowest cost in Google Ads to a better ranking in organic searches.

But how to expand this metric efficiently? Continue reading this article to understand more about this indicator and how to increase it in your campaigns. Check out!

  • What is CTR?
  • How to calculate CTR?
  • What is CTR for?
  • What is the relationship between CTR, CPC and CPM?
  • Why track this metric?
  • How do I know if CTR is high or low?
  • How do I increase the CTR for keywords and ads?

What is CTR?

CTR is one of the main indicators of Digital Marketing, which shows the clickthrough rate, that is, the relationship between the number of clicks and the number of views for an ad.

In practice, this metric indicates the effectiveness of a campaign: the percentage of users who clicked on your link after viewing it.

Therefore, CTR is an important metric for evaluating the performance of an ad, whether in Google Ads or in the so-called social ads of social networks. In addition, the click-through rate ends up impacting the cost of your campaigns and also the ranking of your pages in organic searches.

How to calculate CTR?

Although the CTR is an extremely important metric, its calculation is not at all complex and can be done quickly. The account is made through the division between the number of times the ad was clicked and the views received, also known as impressions. Therefore:

Number of clicks ÷ number of views = CTR.

How to calculate CTR?

For example:

If your keyword has 60 clicks and 6,000 impressions, your CTR will be 1%.

What is CTR for?

In the midst of growing competition for consumer attention and resources, it is essential to know the real efficiency of your Marketing plan, that is, the strategies and actions adopted to impact the user. The CTR is just for that: evaluate the quality of your keywords and therefore your adverts.

So if you are looking for better invest the available resources and be able to perform more precise actions, even with little investment, the clickthrough rate should be your primary ally. Through it, you can identify the campaigns that are most efficient, that most catch the user’s attention and make them click on the link.

This metric is for you to understand the real efficiency of your strategies, the most correct way to assess if the work is being done correctly.

Thus, it becomes much simpler to apply actions that generate a greater impact on the user. You start to identify the campaigns that work the most and those that need to be improved.

What is the relationship between CTR, CPC and CPM?

Before delving into the importance of closely monitoring this metric, it is also necessary to understand the relationship between CTR and other important acronyms for the success of your Digital Marketing strategies. Like it or not, the click-through rate ends up directly related to CPC and CPM.

CPC (Cost Per Click) is one of the most common types of ad pricing on the market. In this format, you only paid for clicks received on your campaigns, that is, views (impressions) are not included in the account. In practice, only users who enter your pages – when clicking on ads – will be charged.

CPM (Cost per Thousand Impressions), on the other hand, is a format that prices the cost of a campaign by the number of views (impressions). In other words, for every thousand users impacted by your ad – without the need for a click -, you will pay the stipulated amount, regardless of the campaign’s efficiency.

But what is the relationship between these two acronyms and the CTR? Both pricing models end up being directly influenced by the click-through rate. When we talk about CPM, this metric doesn’t end up being so relevant, after all, it doesn’t matter how many people actually clicked on your ad.

However, CTR is essential for those who choose the CPC model for pricing. After all, the higher the clickthrough rate, the greater the efficiency of your ads, that is, they are useful for users. Consequently, CPC becomes cheaper, with the search engine understanding that your link offers what is being sought.

Why track this metric?

The reasons for following the CTR are diverse and, therefore, we separate the main ones so that you do not waste time and start investing in ways to raise this metric as soon as possible, guaranteeing the best results for your business. Check out!

Quality Score (IQ) improvement

The CTR is one of the factors that make up the Google Ads Quality Score (IQ), a calculation made by the platform to determine the ranking of each ad.

In this account, other topics are also taken into account, such as the user experience on the landing page (landing page) and the relevance of the content.

IQ components

However, the most important component of IQ is, without a doubt, the CTR of a campaign. Google realizes that a high click-through rate is a strong indication that the content of the ad is actually being relevant to users. A higher CTR, therefore, impacts IQ and, consequently, your ad placement.

Cost reduction

A high CTR means that your ad needed to appear less often to receive a high number of clicks and the good news is that Google values ​​that.

After all, the your campaign is proving relevant, appearing to the exact target audience, so users can find exactly what they’re really looking for.

Thus, your ad gains a more relevant position in the ranking and, as a result, the campaign’s average CPC is also reduced.

Better organic ranking

To achieve a higher position in an organic search, the main tactic is to apply SEO (Search Engine Optimization) techniques, right?

High CTR, however, it also represents a better ranking, since clicks generate traffic to your pages, which tells Google that that destination is, in fact, relevant to the user.

Greater visibility (free) on social networks

When it comes to social media ads, a high CTR represents a high engagement with users. However, in addition to reducing campaign costs, these platforms offer another benefit: free advertising. More people sharing and clicking on your posts can generate free clicks.

If someone shares a publication driven by your business on Facebook, for example, other people will be impacted and, best of all, if there is any interaction, you are not charged for it. The same goes for Twitter.

Conversion rate hike

Another benefit of keeping a close eye on CTR and making sure it is at a satisfactory level is the conversion rate of your ads.

The chart below, for example, shows a direct relationship between the two indicators. Thus, a two-fold increase in your click-through rate may result in a 50% higher conversion rate.

How do I know if CTR is high or low?

In practice, the higher the CTR, the better for your business. Generally, a click rate of 3% or more is considered satisfactory. To assess whether the metric is high or low, however, it is necessary to take into account, in addition to your experience with ads, your business segment and the performance of competitors.

The main comparison should be with the CTR of those who dispute with you for a particular keyword. After all, a lower clickthrough rate than the competitor means that Google sees your page as less relevant than other companies and you are falling behind in this dispute.

Therefore, a CTR of 3% – which can be considered good in certain situations – is useless if, in practice, your direct competitor has a click-through rate of around 5%. Setting a satisfactory value, therefore, directly goes through the performance of your campaign in relation to competitors’ ads.

In addition, when examining it, do not forget to separate the campaign models, since the performance of an advertisement on the search network will not be the same as that obtained on the display network. That’s because, in the second case, the goal is usually to get more views than clicks.

How do I increase the CTR for keywords and ads?

In order for you to increase your CTR as quickly as possible and to improve the efficiency of your Marketing actions, we have separated some important practices that will optimize the clickthrough rate of keywords and ads. Check out!

Insert the main keyword in your ad

Choose your ad group’s primary keyword and insert it naturally in your text and headline.

You can also use the {keyword: default word} code to have your advertising updated automatically with your group’s keywords.

Thus, the experience of the Internet user will be more positive, since he will visualize the exact search term he wants.

Negate irrelevant terms

It is very difficult to have an optimized campaign without negating the terms that are irrelevant to your business.

That’s because it makes no sense to spend money on advertising for those who will never buy them. Do you agree?

So, prepare a list of negative words based on the way they type in searches to find your services / products.

Capriche at CTA

Call-to-action (CTA) ads neat are indispensable to improve your CTR. So make it very clear what you expect your user to do.

How about investing in expressions like “sign up now” and “call us”? And, of course, have a landing page that allows you to complete the action.

Take advantage of ad extensions

Did you know that there is a range of extensions on Google Ads that can be used according to the purpose of your campaign? With them you gain an extra space to include your phone, link or address.

One tip is to never include the contact directly in the text. Instead, invest in mental triggers to make your content more attractive.

Adjust the URL

Internet users tend to pay close attention to the URL in order to find out if the address to which they are being redirected has to do with the search term they searched for. If she’s a little weird, they run! So, choose site + keyword and do tests to measure your audience’s acceptance.

Invest in seasonal dates

Taking advantage of seasonal dates that move commerce a lot – such as Children’s Day, Black Friday and Christmas – is an excellent way to focus your business segment and increase your CTR. Schedule your ads to run well during those times.

Also, avoid making changes to your campaign settings on a daily basis. Give them about 3 days to observe them in more depth.

Develop an efficient strategy

When you develop an efficient strategy, the results are naturally better. This makes it easier to achieve good ad placement.

The truth is that, more than robust funds, it is good planning that increases your company’s Return on Investment (ROI), be it small or large. To do so, put it on paper and see if it is not worth hiring a digital agency with trained professionals to increase your conversion percentage.

In Digital Marketing, it is evident how closely monitoring the different metrics is beneficial for the success of your planning. In addition to indicating when a campaign is not working as expected, the CTR, when elevated, ends up benefiting other strategies of your team, further optimizing the performance of your actions.

Now that you know how CTR directly impacts the success of your Marketing actions and strategies, how about finding out how to make your paid campaigns even more efficient? Check out our article and understand how to optimize your Google Ads campaigns to increase your conversion rate considerably!

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