A question I often hear when reviewing a Google AdWords account with a prospect or client is ‘what is a good click through rate for keywords and ads”. Unfortunately, there is no single answer to this as it varies dramatically from industry to industry and market to market. It can also vary greatly on devices. What is a good click through rate on laptop most likely would be horrible on mobile devices for some and just the opposite for others.
Overall the average click through on Google for ads rate is 3.16%. But for your particular industry this could be a very good CTR, while for other it would be horrendous.
The key to finding out what is a good click through rate for your pay per click campaign is to look at data over time. There should be improvement and if there isn’t then there could be problem. And you need to dig deep into the data and understand what is happening.
Click through rate or CTR for those that don’t know, is the number of people who clicked on your ad out of the number who were exposed to your ad. There are two categories of click through rate you want to examine. The first is on an individual keyword basis, and the other is with the ads.
CTR is particularly important for search ads. It's a factor on shopping campaigns, but it's much harder to improve. And on display one can expect really low click through rate as your audience is seldom as motivated as they are with search. Generally your CTR will be lower on the display network due to higher volume and lower relevancy.
It is the ads which really determines the CTR of both categories, however. If you’re ad isn’t relevant to what the searcher is looking for they won’t click on it.
Why is click through rate important? It is one of the elements Google AdWords uses to display ads. If you’re ad or keywords have a much better click through rate than your competitors, your ad will show more often even if they bid more. You’ll also know if you’re competitors CTR is better if your ads start to show less and less.
For all your work you may find your click through rate is as low as 3-5 percent. Unfortunately. for some accounts this might be a good number. For those businesses in the service industry, particularly those that service a specific community, however, the number should be over 10. And depending on the device they’re on, it should be even greater. If you offer emergency services and your click through rate is in the single digits, something is seriously wrong and your ad won’t appear in the top 2 positions very long, which on mobile is crucial.
One thing to remember is that there are a significant number of people who won’t click on an ad no matter how relevant it might be. They simply have more confidence in the organic listings. This number ranges from 70-80 percent depending on which study you read. So don’t be hurt if you do a lot of work and the majority of people ignore your ad. As long as you’re doing better than your competitors and most importantly, generating revenue than that is what matters.
Ultimately what is a good click through rate for your AdWords account is what phrases or ads is what gets you the most amount of business for the lowest possible price. A pay per click specialist will help you to improve your click through rate, while finding other ways to generate business for your company. There is a cost to hiring them, but having a professional run your account can eliminate a lot of waste, which alone can help to justify their costs. They can also help you to extend the reach of your business in your specific market.
Read my next blog If you have a low CTR and want to learn how to improve your click through rate.