Click-through rate (CTR) is an incredibly important concept in search engine marketing. The simplest definition is that click-through rate is the percentage of people who click on your ad after seeing your ad. (In mathematical terms: CTR = Clicks/Impressions.)
Click-through rate is the percentage of impressions that resulted in a click.
If your PPC ad had 1,000 impressions and 1 click, that’s a 0.1 percent CTR.
If you have a: High CTR, users are finding your ad to be highly relevant. Low CTR, users are finding your ad to be less relevant.
High CTR, users are finding your ad to be highly relevant. Low CTR, users are finding your ad to be less relevant.
How CTR Impacts Ad Rank CTR is not just an indication of how relevant your ads are to searchers. CTR also contributes to your Ad Rank in search engines. Ad rank determines the position of your ad on the search results page. That’s right – PPC isn’t a pure auction.
The top position doesn’t go to the highest bidder. It goes to the advertiser with the highest Ad Rank. And CTR is a huge factor in the Ad Rank formula. But Ad Rank is even more complicated than that. Google measures your actual CTR against an expected CTR.
This is why it’s so important to understand the CTR on your ads and to try to improve it as much as possible. A poor CTR can lead to low ad positions, no matter how much you bid.