One of the key performance indicators in AdWords is the CTR or Click Through Rate. CTR is a good indication of ad relevancy – the more relevant your ads, the higher the percentage of people who click on it. This ultimately results in higher rank. It’s likely CTR is also heavily weighted in the Google’s organic search algorithms.
In AdWords, Google will reward you with lower Cost Per Click rates if your CTR is at a healthy rate. So how do you improve CTR?
The key is relevancy. Sounds simple, but it’s not. You have to look at your ad and your landing page from the point of view of your potential customer, i.e. the person searching for your product or service. In most cases it’s a problem they have, a need or a want. Time is of the essence as most people don’t have enough of it, so the search is at a fast pace. For example, they have a leaking pipe at night; they pull out their phone and search “leaking pipe”, they see “leaking pipe… 24 hr emergency service”; they click on it; they look for the number on the landing page and click on that to dial it. The whole process should not take more than 10 seconds.
In AdWords, there are numerous ways to build relevancy, like market segmentation using ad groups. Once you start translating your customers’ specific needs and wants into relevant ads you’ll be on your way to earning high CTR rates.
If your AdWords is being managed for you, ask to see all your CTR rates. CTR rate of less than 1% for a search campaign is considered low. You should seek to know what’s being done to improve them or change to a better AdWords manager.