click through rate

Why is CTR so important?

Click-through rate One of the most common metrics used for advertising on Google is "Click-trought rate", nicely abbreviated CTR. The clickthrough rate and is exactly what it sounds like, an average of how many of those who have seen an ad and then chosen to click on it. CTR is usually referred to as a percentage, an ad with 100 impressions and 10 clicks thus has a CTR of 10%.
Why is CTR so important?
Firstly, the goal of advertising is to drive as much traffic as possible to the site, a higher CTR of course gives more clicks which in the long run can mean more sales or more leads. Does this mean that one should strive for as high a CTR as possible and take optimization measures to achieve it? Not necessarily! Google Ads is based on a bidding model where we as advertisers pay per click. A higher CTR not only means more clicks, it also means a higher cost. We can therefore agree that this is an incredibly important metric, especially if the search volumes are also high. However, a high CTR does not mean that everything is peace and joy. To determine if it is positive, we must of course validate the traffic with other metrics, such as conversions and average cost per conversion. In other words, find out if the traffic is profitable or not. If it is, we can assume that visitors will find what they are looking for and we can safely run the campaign. Does it turn out that the visitors who click on the ad do not do what we want, for example make purchases, but instead choose to leave? Then a high CTR is suddenly a leak in profitability and should be sealed as quickly as possible to avoid unnecessary costs and dissatisfied visitors. but instead choose to leave? Then a high CTR is suddenly a leak in profitability and should be sealed as quickly as possible to avoid unnecessary costs and dissatisfied visitors. but instead choose to leave? Then a high CTR is suddenly a leak in profitability and should be sealed as quickly as possible to avoid unnecessary costs and dissatisfied visitors.