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Why is a high CTR is important?
Yes, better ad copy results in higher CTR, so more people click on the ad which means more potential customers.
But google doesn’t charge for impressions so even with a lower CTR you’ll still pay the same amount for each click, so if you work with a small budget the numbers should sort of stay at an equilibrium, no? So does the CTR affect the CPA in any way?
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14 Replies
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[CTR affects quality score](https://support.google.com/google-ads/answer/6167118), and higher Quality Score decreases CPC and in turn, [according to some relevant studies, tends to decrease CPA](https://www.wordstream.com/quality-score).
So… yeah, more money for Google is supposedly beneficial for you. Supposedly.
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1. If a search term is working well, you want to get as many clicks as possible. Higher ctr > more clicks > more conversions
2. High Ctr = higher quality score = cheaper clicks and/or a higher ad position
3. In the same vein: Ctr too low = your ads might not show at all, or show very littleIt’s also a signal people like what they see.
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If your budget needs to be limited then adjust that. Don’t artificially try to get a lower CTR just to get less clicks to keep the budget low.
In lower impression situations (keywords etc…) you’d want as many targeted clicks too.
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There’s only so much traffic to go around. If there are, say, 10k people searching for a product daily and you have a CTR of 0.1% then you’re limited to a maximum of 10 clicks a day regardless of your budget. There just isn’t any more traffic.
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If you have great ad copy with great CTR, Google recognizes that people like the ad, thus you are rewarded with better position and ad rank.
Other than that, CTR isn’t a metric that you should have as your end goal, though.
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It’s math from googles stand point. They have limited inventory and want the highest CPM they can get.
CPC = CPM * CTR
If you keep your CPC the same and your CTR goes up, Google is able to get a higher CPM and more for their inventory, while keeping your CPC the same. It’s genius and never talked about because people don’t think of it like this.
Same thing is seen for tROAS and tCPA. If your conversion rate goes up, Google doesn’t reward you with additional conversions. They keep your tROAS the same and just increase CPM.
We’re battling this constantly over the last 6 months.
Frustrating. Evil maybe. But genius.
Notice how they barely even show your CPM any more? Don’t allow you to graph it even. That’s why.
Limited inventory and Google wants to charge as much as they can for it. Once you understand that, all of their “advice” makes a lot more sense.
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In my view, CTR does help but in the era of Automation I don’t give too much weightage to CTR KPI as this is something Google make changes according to your Bidding strategy.
And For Manual Google won’t give priority as it delivers first to Automated bidding strategy because the handling is on their part not ours. -
CTR probably the single biggest factor in quality score and thus directly dictates what you’ll pay for the ads.
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For some search terms it’s not that important to have a high CTR. For keywords with different meanings, for instance.
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There are **two main reasons:**
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1. **Quality** – the higher your CTR, the more relevant your ad is in Google’s eyes, and it will reward you with better positions on the SERP as well as cheaper clicks.
2. **Volume** – most people tend to forget that search volume is finite. What happens once you are getting all 200,000 monthly impressions on a hypothetical keyword? Well, having a 2% vs. a 1% CTR means you get 4,000 rather than 2,000 clicks. That goes for all campaign types, but it is even more important for Shopping and Search, where inventory is comparably scarce and valuable. -
It’s not.. it’s conversions coming from those clicks.
My ctr is terrible however converting from 1 in 20 clicks
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Let’s put aside what Google says and look realistically. Google is business that is supposed to make money. What’s their product? Ad placement. In search it’s finite number and limited by the amount of searches. Take a look at these two scenarios: 1) you’ve got 100 impressions and 5 clicks for a bid of $4; 2) 100 impr., 15 clicks, bid is $2. In which scenario Google makes more money for the same amount of ‘product’ sold? ($20 vs $30). See, twice as high bid isn’t as profitable as high CTR for ad platform
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CPC is more important than CTR. If you are paying $10 a click, it will take forever to see a conversion.
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Thansk for the explanation, I didn’t know it.
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