KPI Library
Ads Click-through Rate
Percentage of the people who see your ad that actually click on it.
Percentage of the people seeing your ad that actually click on it.
This is a useful KPI, especially for the marketing department, because it shows the engagement they are able to generate in the audience through paid advertising. This can also bring to the team a more realistic understanding of the brand’s positioning. Furthermore, the Click-Through Rate (CTR) is very useful to measure the adequacy and profitability of the keywords selecting, allowing the team to test them and change them if necessary. Although every company aims for a high rate - because it can end up in a high conversion to client, notice that the average CTR is around 1,91% for a search ad and around 0,35% for display ones. Depending on your preferences, you can choose to display this metric as a chart line to see your CTR evolution throughout the past months. Usually useful to have a better insight on the performance of your different marketing decisions in regards to ads. However, you can also show this KPI as a number for your team to have a quick daily overview.
KPI Example
What is Ads Click-through Rate?
The Ads Click-Through Rate (CTR) measures the number of people who click on your ad as a percentage of the ad’s total viewership.
It’s only natural that your company will aim for the highest CTR possible. Keep in mind, however, that the average CTR on Google Ads is about 1.91% for search ads and 0.35% for display ads. Bear in mind, however, that these are general averages and these numbers can vary significantly by industry.
That said, despite these low percentages, these CTRs can result in a high customer conversion rate. In other words, a large number of this small percentage has a good likelihood of becoming a customer.
This KPI is a relevant metric for your marketing team to follow.
Why is the Ads Click-Through Rate important?
Ads Click-Through Rate is important because it shows the engagement your company is able to generate in its audience via paid advertising. This metric can also bring your marketing team a more realistic understanding of your brand’s position in the advertising ecosystem.
Furthermore, CTR is very useful for measuring the adequacy and profitability of selected keywords, allowing your team to test and change them if necessary.
Calculating your Click-Through Rate
How to visualize your Click-Through Rate
Depending on your preferences, you can choose to display the Ads Click-Through Rate on a line chart to see your CTR evolution over the past months. However, you can also show this KPI in a number box for your team to have a quick daily overview.
Other, related KPIs to Ads Click-Through Rate include: