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S1E11 #SMBAdvertising: What is a good CTR?

Can you simply explain what CTR stands for?

  • CTR stands for Click-Through Rate… Basically, it means how well your ad is converting eyeballs, impressions or viewers to clicks and traffic.
  • It’s kind of the same thing as conversion rate where you measure how many visitors convert to leads or customers. CTR measures how many impressions convert to clicks.
  • In other words, the higher CTR the more traffic you get, and the higher conversion rate you have more of that traffic will convert.

Where should an SMB start?

  • I think it is wise to compare your CTR with the industry benchmark in your industry or niche, because then you have an indication of how well you are actually doing if you’re first getting started with ads.
  • Here’s a few examples of industry benchmarks on Google Search; B2B (2,4%), Ecommerce (2.69%), Finance Services (2.91%), Health (3.27%), Industrial (2.61%) etc. etc.
  • Now, you should focus on creating Google search ads that beat these benchmarks. 

How do you improve your CTR?

  • Relevant keywords
  • Relevant and compelling headlines
  • Relevant and compelling descriptions.
  • Always test test test new copy. 
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