What is a Good Click-Through Rate (CTR) for Google Ads?

Everyone knows the age old saying, “If a tree falls in a forest and no one is around to hear it, does it make a sound?” – Well, the same can be said for Google Ads. It’s all very well having a great Google ad, but without achieving a good click-through rate, how will it effectively generate those precious leads?

While Google Ads are easy to set up, getting a good CTR is easier said than done. But don’t be mistaken—a great Google Ads campaign with a good click-through rate can pay off big time.

So, if you’re wondering what is a good CTR for Google Ads, you are in luck. This article will explain all things CTR: how CTR is calculated, why it’s important and how to improve your Google Ads CTR.

What is Click-Through Rate (CTR)?

Click-through rate (CTR) measures how many people click on your ad after seeing it and can be used to evaluate how effective your keywords and headlines have beenin your online marketing campaigns.

High CTR and PPC success go hand in hand because CTR influences both your quality score and how much you pay every time someone clicks your search ad.

Understanding your click-through rate will help you improve your ads’ relevance to increase conversion rates and generate those sought after leads.

When you achieve a high CTR, you’ll be making the most out of your paid ads budget and getting a high ROI.

How to Calculate Click-Through Rate (CTR)

The CTR formula is pretty simple. All you have to do is divide the number of times your ad has been shown by the number of clicks it has received:

Clicks ÷ Impressions = CTR

For example, if your ad got 10 clicks from 100 impressions, then the CTR would be 10%. If your ad got only 1 click, then the CTR would be 0.1%.

A high CTR means that your ads are hitting the right target audience with relevant content. A low CTR indicates users are less engaged with your ad – if this is the case, you might want to make some changes to attract more clicks.

What is a Good Click-Through Rate for Google Ads?

A good CTR for Google Ads is typically any number between 3-5%. In most industries, a Google Ads CTR that falls in this range will achieve satisfactory results and will hit objectives.

That being said, this range doesn’t apply to all industries. While the average CTR in Google Ads across all industries is 3.17%, this is an average across all industries. It’s all very well having a 3% CTR, but if your industry average is 8%, you probably could be doing better to keep up with your competitors. (And, of course, the higher the CTR, the better.)

On top of that, you should consider the following factors when evaluating your CTR: the keywords you’re targeting, the campaign you’re running, and the overall objective of your ad. These will help you better understand the performance of your Google Ads campaigns.

Average Click-Through Rate for Google Ads by Industry

As said, the average CTR varies from one industry to another; for example: industries such as dating & personals have an average CTR of 6.05% (pretty high, right?) whereas the B2B industry ranks far lower in its average at 2.41%.

Moreover, the average CTR by industry fluctuates from year to year, but there has been an increase across industries in general.

If you are trying to figure out what a good CTR would be for your company, it’s best to research your industry’s average and go from there.

Let’s have a look at the average CTR for Google Ads by industry:

IndustryAverage CTR (Search)
Consumer Services2.41%
Dating & Personals6.05%
Employment Services2.42%
Finance & Insurance2.91%
Health & Medical3.27%
Home Goods2.44%
Industrial Services2.61%
Real Estate3.71%
Travel & Hospitality4.68%

Source: Wordstream

How to Improve Click-Through Rate in Google Ads in 2023

So, you want to boost your ad relevance and generate valuable leads? The secret is in aiming for a good CTR. Here are 5 tips to improve your Google Ads CTR in 2023:

#1. Improve Your Quality Score in Google Ads

Quality score is Google’s rating of how useful and relevant your ads and landing pages are to your consumers keyword search in comparison to your competitors. Basically, the higher your quality score, the higher your CTR will be. You can enhance it by fine tuning your ad relevance (the keyword matches the message in your ad), improving the landing page experience and grouping your keywords.

#2. Optimise Your Ad Headlines and Copy

Ad headlines are often the first thing people see, so if they clearly identify a key benefit and resonate with viewers, they will drive clicks. Including 1 keyword in your headline and a couple in your copy can go a long way in generating more clicks.

#3. Use Attention-grabbing Ad Creatives

With eye-catching visuals and great copy, you can use Ad creatives on various sites, such as Facebook and Instagram, to drive visitors back to your site and increase your Google Ads CTR.

#4. Add Negative Keywords in Your Ad Campaigns

It might sound odd, but adding negative keywords to your ad campaign settings is a great way to boost your Google Ads CTR. This is because they prevent your ad from appearing in searches that are unrelated to your target audience. Negative keywords ensure your ad is only shown to your target audience (who are more likely to click).

For example, refurbished phone sellers could include “new phones” as a negative word. As a result, the ad will not appear in searches for brand new phones because customers looking for new phones would not be interested in buying refurbished ones. This will ultimately lead to better conversions and a higher CTR for Google Ads.

#5. Use Ad Extensions

Ad extensions help you gain more clicks and can take up more space on the SERP (no kidding, ad extensions can almost double the size of your ad). There are a variety of extensions out there, such as: structured snippets, sitelinks, callouts and customer review extensions. You can even use ad extensions that pop up on Google Maps to entice local customers!

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Improve Your Google Ads Strategy With Automation

The process of setting up Google Ads for a strong CTR can seem intimidating and complex, but it doesn’t have to be.

At Acuto, we build smart solutions designed specifically for your company, so you can focus on what matters most. Our automation scripts can help optimise your ad campaigns while saving you time, effort, and money.

Acuto can help you take your Google Ads campaign to a whole new level: we build ad customisation that updates your ad copies regularly, reactive bidding scripts to automate ad bidding and avoid overspending, as well as scripts to customise ads based on external factors like competitor ad copy, traffic or even the weather!

Get in touch today to discover how we can help your marketing campaigns reach their full potential.

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Key Takeaways

By now, you should feel confident in all things Google Ads CTR, but let’s recap:

  • A Click-Through rate (CTR) shows you how frequently people who see your advert end up clicking on it.
  • The formula to calculate CTR is: CTR = Clicks ÷ Impressions
  • To work out what a good CTR for Google Ads is, you should consider the average CTR specific to your industry.
  • You can improve your CTR with the following tips: boosting your quality score; optimising ad headlines and copy; using attention-grabbing ad creatives; adding negative keywords; and using ad extensions.
  • With Acuto’s services, you can improve your Google Ads CTR by using our custom scripts such as reactive bidding, ad customisation and more.

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