We understand as CTR in PPC campaigns, the percentage of people who clicked on our ad after viewing it. It consists of a fairly simple calculation, dividing the clicks we get from our PPC campaign by the impressions and multiplying it by 100. Where the CTR is always expressed as a percentage.
To understand it better, let’s take an example.
Let’s imagine that we get 1000 impressions and we have 20 clicks.
How do we determine the CTR in PPC campaigns?
To determine whether we have a high or low click-through rate, there are two main issues we need to take into account:
The higher the relevance of the keywords we are targeting, the higher our click-through rate will be. On the contrary, the lower the relevance of these keywords, the lower our click rate will be.
This variable is used to determine the coexistence of our products with the rest of the competition. Since if customers search for a specific search term, they compare it with that of the competition and find our product listing more attractive than the rest. The probability that they will click on our listing will be higher and our click-through rate will be higher.
Therefore, if after applying the formula we find that our click-through rate is lower than normal, we should look at these two factors.
How do we increase the CTR or click-through rate?
Normally, we want our click-through rate to be as high as possible, because the higher it is, the more people will reach our product listing. In addition, the further down the sales funnel they are, the closer they are to making a purchase of our products. The higher the click-through rate, the higher the amount of sales.
We will have to modify the product page, make it as attractive as possible in order not to have a very low conversion rate. If it is too low, we will be spending a lot of clicks on the PPC campaign, for people who are not actually buying our product.
To find the conversion rate we should multiply the impressions by the click-through rate (CTR) and we will get the conversion rate (CVR).
Don’t miss the following article on conversion rate (CVR).
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