Saturday, January 21, 2012

How to increase your CTR (Click through Rate)

What is CTR :

CTR is the % of viewers that actually click on your ad. CTR is different from impressions, which is the number of people who view your ad, whether they click through or not.
By improving your CTR with Ad-words, you achieve the following:
  1. Increase your traffic.
  2. Lower your CPC (Thanks to the Rank = CPC * CTR equation).
 You should always try to improve CTR.

What Is a Good CTR:

A good CTR is certainly above the 0.06% rate that Ad-words asks you to maintain in order to keep your ad running for each keyword. If your CTR gets lower than that, your ad is disabled after it receives a thousand impressions. Certainly, 0.06% is not enough. But it’s hard to tell what is good and what is bad CTR.

CTR depends on the following things:

Keyword popularity:

Suppose your CTR for a keyword like “shoes” is 1.5 %. Is that good or bad? 
Usually, a general keyword like that is also popular. These kinds of words generate a lot of impressions, but the percent of people that click on ads is very low. In this way, your 1.5% CTR is good. If you choose “repair school shoes” instead, you’ll probably get fewer impressions on this one, and fewer clicks, but still, a much better click through rate (CTR). This second keyword is not so popular, but it is much more targeted.When comparing two similar keywords a general and a specific one, you should see a big difference in the CTR they get as well as in their conversion rates. A keyword that has both low popularity and low CTR is actually low value.

Your competition:

To follow Same example, we expect a popular keyword like “shoes” to have a hard competition. This means higher CPC , and fewer chances for you to get clicks. But it’s very possible that few people are bidding on “repair school shoes”  and in this case you have all the viewers of your ad to yourself.
There’s no low, high or average CTR. You have to take into account the circumstances mentioned above.

How Keywords Strategies Influence CTR:

General keywords generate a lot of impressions but few click-through and even fewer conversions, because they can’t really filter the potential customers. Specific keywords on the other hand are more focused, therefore they have more power to select potential clients.
Use of keywords for increasing your CTR:
  • Avoid using very general key-words (shoes).
  • Focus on using targeted keywords which describe your actual products or service in a rather specific way (repair school shoes).
  • Collect all related keywords in targeted Ad-Groups.
  • Create ads that are highly targeted to the keywords in that Ad-Group.

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