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PPC Basics: What is Click-Through-Rate (CTR)?

Click-Through-Rate (CTR) is a percentage calculated by dividing by the number of clicks by the number of impressions. This percentage is used by PPC platforms to determine how relevant your ad is to your keywords. The more relevant your ad is to the keyword that triggered the ad, typically the higher the CTR that keyword will have. High CTRs are important because they’re a factor in determining your Quality Score. Higher CTRs can also help lower click prices over time and boost your ad placement in search results.

Quick Tips for Improving CTR

– Use lots of negative keywords: this helps cut down on irrelevant traffic.
– Make sure your adgroups are organized with tightly themed keywords: don’t skimp on the number of adgroups you create.
– Split test your ads to find the most relevant ad text possible for your set of keywords.
– Pause keywords that are causing your campaign to “bleed”: consider pausing keywords that reach 100 impressions without any clicks.

CTR is one of those metrics you’re going to want to pay close attention to as you work to optimize your campaign. We’ll go into more detail on the topic in the coming weeks. Until then, work on improving that percentage with small changes that can wind up having a large impact on your campaigns.