Many advertisers settle for an average click-through rate (CTR) for their Google Ads and stop there. If that’s good enough for you, check out our search ad benchmarks chart below and you can stop reading.

However, if you’re looking to maximize your Google Ads performance and get the most out of your advertising budget (or your client’s), keep reading. This post will explain when and why you should aim for an above-average CTR in Google Ads, and provide a roadmap to achieve that.

Contents

• What does click-through rate mean?
• Why is a high CTR important?
• What constitutes a good CTR in Google Ads?
• Strategies for enhancing your Google Ads click-through rate

What is click-through rate in Google Ads?

Click-through rate is essentially the proportion of clicks to impressions. In Google Ads, an impression happens when your ad is displayed on the search engine results page (SERP), while a click happens when someone clicks on your ad. Thus, CTR is the percentage of people who, upon seeing your ad, click on it and are redirected to your intended destination (be it a landing page, app store, or lead form).

Why does CTR matter in Google Ads?

Click-through rate is a tricky PPC metric. A high click-through rate improves your Quality Score, but you are paying for each of those clicks. Let’s break it down:

Why a high CTR is a good thing

A high click-through rate in Google Ads is positive. It indicates that your ad copy resonates with your target audience. Furthermore, the way Google Ads functions provides an even bigger advantage. The Google Ads algorithm prioritizes high-quality ads by awarding them higher positions and charging lower costs per click. Why? Google doesn’t profit if nobody clicks on its ads. Therefore, it prioritizes ads that are most likely to be successful. How does Google assess ad quality? While the Quality Score formula is not public, we do know its three main factors:

• How relevant the ad and landing page are to the keyword.
• The user experience of the landing page.
• Your anticipated CTR. That’s it. Expected CTR is Google’s prediction of an ad’s performance, irrespective of its position or other elements, based on your historical data for that keyword. According to Google, you can earn an average, above-average, or below-average expected CTR for each keyword. Therefore, a higher CTR translates to a higher expected CTR, which in turn leads to a higher Quality Score. A higher Quality Score leads to a higher Ad Rank, which means more clicks at a lower cost and ultimately, a lower cost per action.

So how can you secure an above-average click-through rate? We’ll delve into that shortly. But first, a note of caution regarding high CTRs.

When high CTR isn’t necessarily a good thing

It’s crucial to remember that this is pay-per-click advertising. You’re paying for every single click on your ad, and not every click will result in a conversion. A high CTR paired with a low conversion rate means you’re spending money on clicks that won’t generate a return on your investment.

Therefore, your aim should be to achieve the highest qualified click-through rate achievable, not just the highest overall CTR. But wait, there’s one more point. The keywords you’re bidding on play a significant role. Some keywords come with a high price tag. Even if those clicks are converting, you might not see a return on investment for your ad spend. Therefore, the ideal scenario is a high CTR on keywords that are not only relevant, but also cost-effective.

What constitutes a good CTR in Google Ads?

Assuming we are focusing on relevant and affordable keywords, what qualifies as a good CTR in Google Ads? What does it take to achieve an “above average” expected click-through rate? Let’s revisit the chart from the introduction, which displays industry averages:

Access our latest Google Ads benchmarks [here](link to benchmarks). An average click-through rate falls between 4-6% for a significant number of industries. Therefore, a good or above-average CTR in Google Ads would be in the range of 7-9%. However, if you’re in industries like travel, automotive sales, or real estate, where the average CTR is already 7-9%, your target should be 10-12%. On the other hand, in the arts and entertainment sector, where the average CTR hovers around 11%, you should aim for 13% or higher.

How to boost click-through rate in Google Ads

Now that we’ve covered what click-through rate is, how it affects your Google Ads performance, and what constitutes a good CTR, let’s discuss how to achieve one. There are several strategies. We’ll start with targeting.

1. Focus on the right keywords

First and foremost, ensure you’re targeting the right keywords. Here are three keyword categories to prioritize for increased CTRs:

• Commercial intent keywords: These are keywords people use when they’re ready to make a purchase (like “best CRM” or “stainless steel dishwasher”). Steer clear of informational keywords such as “what is a CRM,” as these will result in a lower CTR or wasted ad spend.
• Branded keywords: These keywords are a fantastic opportunity, and not just those related to your own brand. Target partner brands, competitor brands, or other brands your target audience might search for when they are in buying mode.
• Local keywords: Local keywords (such as “san diego personal trainer”) often have high CTRs because people searching locally are usually ready to buy.

2. Implement negative keywords

This is a non-negotiable for maintaining healthy CTRs. Negative keywords are those you don’t want Google to display your ad for. For instance, if you sell new cell phones, you’d mark “refurbished” or “used” as negative keywords. This prevents your ad from appearing to individuals who are unlikely to click on it.

3. Refine your audience targeting

If you’re not utilizing search or keyword-targeted ads (or even if you are, but are adding audiences on top), you might want to reassess your audience targeting. By narrowing your audience based on more specific criteria, you can customize your ad copy and boost your CTR, even if it means getting fewer clicks overall.

Ways to enhance Google Ads CTR with ad copy

Low click-through rates might point to bidding on the wrong keywords. However, in many instances, simply creating more compelling ad copy can dramatically increase your CTR (and conversion volume…and ROI). Here’s how:

4. Prioritize simplicity and readability

It’s safe to say that hardly anyone reads ads in their entirety – particularly online ads (unless we are talking about a billboard on a road with a long traffic light). Keep your ads concise and straightforward so they can convey an effective message at a glance. How?

• Incorporate the keyword in both the headline and description, but avoid repetition.
• Don’t feel obligated to utilize the entire character limit if it’s not necessary.
• Refrain from using abbreviations that are not self-explanatory in your ad.
• Use simple, easy-to-understand language. **

**Find more Google Ads examples [here](link to examples).

5. Make sure to include a CTA

Telling users you have what they need or that your product surpasses the competition’s isn’t enough - you need a call to action. You have to explicitly encourage viewers of your ad to take action. And to do it now. Buy now. Download today. Even though it’s only a word or two, this small nudge can make a significant difference. Even more effective: reinforce a feature or benefit within your CTA. Think along the lines of “Start saving now” or “Speak to an expert today.”

6. Include a special offer in the headline

Special offers and promotions such as discounts and free shipping are universally appealing. Instead of just mentioning them in the description, feature them directly in your PPC headlines. Firstly, the headline is often the first (and sometimes only) part searchers read. Secondly, numbers in headlines generally tend to perform well and words like “free” attract attention.

7. Integrate your primary keyword in your display path

Google Ads display paths show up after the slash in your destination URL. While these are optional, using them is highly recommended. Treat them as part of your ad copy and make sure to include your keyword. In the following examples, one stands out. Display paths can be utilized to emphasize value or reassure the viewer that you have what they’re seeking.

8. Craft ads that evoke emotions

Emotionally resonant ad copy is key to increasing your CTR. However, the trick is to be subtle. There’s no need for all caps, exaggerated language, or excessive exclamation points. Let’s take a look at these two ads for public speaking coaches, both of which have strong ad copy. The first ad uses terms like “best public speaking coach,” “level up your public speaking skills,” and “tailored.” These are all positive, but the second ad incorporates more emotion-based words and phrases such as “Speak with more confidence,” “Boost your career,” “live your best life,” and “unlock your potential.”

Not only is this more benefit-oriented copy, but it’s also more emotionally charged. It doesn’t have to be extravagant, it just needs to resonate on an emotional level.

Additional strategies for enhancing your Google Ads CTR

The following techniques come from a study we conducted using data from our Google Ads Performance Grader. We examined accounts that rank in the top 15%, 5%, and 1% in terms of click-through rate. Here’s what we discovered.

9. Utilize dynamic keyword insertion strategically

With dynamic keyword insertion (DKI), Google will automatically incorporate the keyword that triggered your ad directly into your ad copy or headline. While beneficial, this is only advantageous up to a point, as evidenced by one of our studies below:

The data illustrates that ads using DKI appear more frequently compared to those that don’t, but only for the top 15% of accounts. As you progress to the top 5% and 1%, notice how the red curve dips below the blue. This suggests that while DKI can be a valuable tool and tends to produce slightly better early returns, it shouldn’t be the only strategy you rely on.

10. Utilize ad extensions without over-reliance

Google Ads extensions can help your ad occupy a larger space on the SERP, making it visually more appealing and clickable. Our study also revealed that accounts implementing sitelink extensions performed marginally better than those that didn’t, which isn’t surprising.

It’s a modest improvement, but it won’t double or triple your CTR, and it certainly can’t compensate for unengaging ad copy. Similar to DKI, incorporate extensions, but don’t depend on them entirely.

11. Engage in extensive ad testing

Our research included an analysis of the relative abundance of ads with above-average CTRs. Here are the results:

• Top 15%: Comprising ads with double the CTR, these make up one in every six to seven ads.
• Top 5%: These ads, boasting triple the CTR, appear once in every 20 ads.
• Top 1%: With a CTR six times higher, these appear once in every 100 ads. That’s correct, 100 ads. No, testing 100 ads isn’t necessary, but you do need to test a significant number. While responsive search ads automate some ad copy testing by combining headlines and descriptions, it doesn’t mean you can skip A/B testing altogether. PPC expert Michelle Morgan, in her [article on Google Ads mistakes](link to article), advises always having 2-4 active ad variations within each ad group. To achieve above-average CTRs, consider increasing that number. The good news is, our findings show that the top 5% of ads within an advertiser’s account account for 85% of their impressions. Therefore, focus on your top two or three ad groups and prioritize extensive testing within those.

12. Deactivate the lower-performing third of your account

Let’s quickly recap.

• High CTR = excellent.
• Low CTR = not so excellent. So why not remove the bottom third of your account and redirect that budget towards remarketing? These are your low-performing ads with low CTR and low impression share - essentially dead weight holding you back. The Display Network offers a much lower cost per click, and if you utilize display for remarketing, you can achieve similar and, in some instances, even higher conversion rates than Search ads. Eliminating the bottom third of your pricier search ads and allocating that budget towards average-performing display and remarketing ads can be a strategic approach to scaling your Google Ads efforts more effectively.

Enhance your Google Ads CTR

To sum it up: Average CTR is…well, just average. Strive for above-average CTR, especially for keywords that are both relevant and affordable. This will result in higher impression shares, improved ad positions, reduced costs per click, and ultimately, lower costs per conversion.
Here’s a recap of strategies to improve your CTR in Google Ads:

1. Target the right keywords
2. Use negative keywords
3. Refine your audience targeting
4. Keep it simple and readable
5. Always include a CTA
6. Incorporate a special offer in your headline
7. Include your primary keyword in your display path
8. Craft ads that evoke emotions
9. Utilize dynamic keyword insertion strategically
10. Utilize ad extensions without over-reliance
11. Engage in extensive ad testing
12. Deactivate the bottom third of your account You can begin with a complimentary, instant audit of your account using our Google Ads Performance Grader. This is an essential first step in assessing the health of your Google Ads account and pinpointing optimization opportunities. If you require assistance with your search ads, explore how our comprehensive range of digital marketing solutions can be beneficial.