Ad Click-Through Rate

Ad click-through rate (CTR) is an essential metric to track to ensure that your paid traffic is performing to increase your eCommerce conversion rate. We will explore how it works, what it is, and the best practices to follow when landing a high ctr.


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What is an ad click-through rate?

Ad click-through rate measures the number of clicks your ad receives from all the customers who see it. This is a standard metric measured for ad campaigns in Google ads and indicates if your campaign needs better optimization, performs well in the algorithm, and appeals to the right target audience. Google ads with a high click-through rate receive high-quality scores, and with a high-quality score, you can get a better ad position with better pricing.

It is an essential metric because, ultimately, you are paying for each ad, and if they don’t have a high click-through rate, your marketing campaign will not reach your digital marketing benchmarks. It is a measure of the success of your ad campaign for a particular webpage (or email marketing campaign).

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How to calculate the ad click-through rate

This metric can be measured as a ratio of the number of clicks to the number of impressions and is a number that will be available for you to see in your ad manager or analytics dashboard.

Ad click-through rate formula

CTR = (number of clicks / number of impressions)*100

What is a good ad click-through rate?

There is no objectively reasonable ad click-through rate, a good ctr versus a low ctr are all dependent on ad rank, industry positioning, and more. For example, according to WordStream, the average ctr is 2.38% in the technology industry. In contrast, the dating and personals industry has a higher ctr at 3.40%. The legal sector has a much lower ctr at 1.35%, showing the range of results in online advertising depending on the industry.

Combining all industries, a good average Google Ads click-through rate is anything above 4-5% on the search network and above 0.5-1% on a display ad.

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What is a bad ad click-through rate?

Overall, factoring in all industries, the average ctr in Google ads is 1.91% for search. If you find your metrics below that mark, it may show that you are not performing well on the results page. But, again, look at your industry averages to ensure that you are comparing yourself to the correct benchmarks.

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Ad click-through rate KPI examples & templates

Add your ad click-through rate to these reports for a good view of all your online marketing strategy metrics and overall online performance.

See this KPI in action here!

PPC report template PPC report template

Check your metrics from all your marketing channels and social media platforms from instagram ads, Facebook advertising, google search ads, bing ads, or Linkedin ads. You can also track this data alongside your business metrics and industry benchmark.

See this template live

Ecommerce report template Ecommerce report template

A report with all the most important metrics for your ecommerce site, like shopping cart abandonment, click-through rate, ad costs, and revenue.

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Executive report template Executive report template

This template is filled with business metrics perfect for small business owners and bigger companies executives. Showcase your revenue, new customers, churn rate, and more.

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Ad click-through rate best practices

If your car is lagging, follow these best practices to boost your performance and find what works.

Advertising cost best practices

step 1 icon Keyword optimization

Make sure your ad copy is optimized for your audience and that all of your content uses SEO principles to ensure it performs well on the search engine. By optimizing your Adwords and changing the content, you have the opportunity to appear on the landing page of more members of your target audience. Try a/b testing to see what performs best and learn from your findings.

step 2 icon Ad extensions

Ad extensions allow you to show additional information in your search ads to increase average clicks. Searchers will be more likely to engage with your ad if it offers relevant information that they are looking for.

step 3 icon Increase your bid

Better ad positions cost more money, but if you want to increase the number of times your ad gets in front of an audience, you may need to increase your spending.

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