In this day and age, digital marketing is all the rage, and for a good reason!
Nearly everyone has access to the internet these days, so it makes sense to adopt a digital marketing strategy to make your brand visible in cyberspace. However, simply adopting a digital strategy will get you nowhere - you need to consider the different aspects of such a marketing tactic.
This is where benchmarks like click-through rate (CTR) come in. They help you determine the marketing strategy’s effectiveness so that you can maximise the profits.
But what exactly are they, and how do they work? That’s what this guide is all about, for it discusses everything you need to know about CTR and other associated Google Ads benchmarks. We have focused on Google Ads, the largest digital advertising platform for your convenience.
So, let’s get started!
What Is CTR On Google Ads?
Click-through rate is the high fidelity ratio of the number of users who click on an ad to the number of users who see the ad. It is a key success metric for a brand or website advertisement campaign.
If you are having trouble understanding, let us illustrate this with an example. Suppose you have a website and decide to advertise it through Google Ads. Once everything is finalised, Google puts your ads on the search engine results pages and the ad banners on different websites.
Let’s assume the total number of people who see these ads is 100 and the total number of people who click on these ads is 20. So, the CTR ratio comes out to be 0.2 or 20% (when expressed in percentage).
Therefore, if your ad campaign has a good CTR, your marketing strategy works successfully, and vice versa.
What Is A Good CTR For Google Ads?
Now, you might be wondering –what is a good Google Ads CTR? Well, the answer depends on various things, such as the industry and the channel on which the ad is shown. But considering the overall industry average click-through rate, the optimal CTR lies between 3% and 5%. According to the latest research, the average CTR for Google Ads is 1.91% for search ads and 0.35% for display ads.
We know you might review the design process, as that sounds too low for a successful marketing campaign. But that is actually a healthy CTR for an online business. You don’t have to take our word for it, though - ask any expert marketer, and they will tell you the same.
A CTR of 10% or 20% is extremely difficult for small or medium-sized businesses, regardless of their marketing budgets. Also, it would be best if you didn’t forget that many competing businesses are out there, making it even more difficult to reach that target.
Then again, it is not impossible to reach a higher CTR for your search ads. If your ads are of exceptional quality, you can achieve that and boost your average conversion rates. And that will definitely give your business a considerable boost over your competitors.
That said, we should look into the two aspects that influence the industry average click-through rate - the platforms on which the ads are shown and the industry. We have discussed each of them below, so keep on reading!
1. The Ad Platforms
There are two platforms for Google Ads — the Google Search Network and the Google Display Network.
A. Google Search Network
The Search Network is Google’s ad platform, focusing primarily on text-based ads. In other words, these are the ads you see on Google’s search engine results pages (SERPs) when you search for something. They have a small “Ad” icon beside them to distinguish them from the organic search results.
These Google search ads are mostly displayed at the top of the results pages or on the sides. Regardless, they have a high CTR since they are easily visible to users. There is also the fact that these ads are relevant to how the user interacts with what they are searching for, which further helps to improve CTR.
On that note, you should focus on making the content by using start wireframing with to engage and meaningful, for you are not the only one who wants to improve the CTR. Google prioritises highly relevant ads to the search terms. If your content is based on a rough sketch without crucial information, it will be placed below other ads, impacting your CTR.
Because of this reason, it is essential to have relevant keywords in your ad copy. For example, if a user searches for the best plumbing services in their locality, the ads with those particular keywords will be ranked higher on the results pages. If it has a good ranking in the SERPs, the likelihood of users clicking the ad increases considerably, ultimately improving the CTR.
B. Google Display Network
The Display Network, on the other hand, is Google’s ad platform focused more on image-based ads. Google display ads are typically displayed as banners on different websites.
In that context, the type of banner ads a user sees on a website can be optimised using wireframe software and depends on many factors, such as ad relevance and browsing habits. Banner ads tools are used mainly by businesses to retarget users from another website to their website.
For example, if your business provides financial services, your display ads may be shown on similar sites. So, if a user reads an article about financial accounting on such a website, they may get banner ads that lead to your website. And if they click on that, it will improve your CTR.
Similarly, display ads may be customised according to one’s browsing habits. For instance, a person who is an artist or is interested in art may get more ads about art products.
Again, using wireframe templates ensures the content of your website needs to be engaging and relevant, or else the ads will not be shown in the Display Network as frequently. And if people see fewer of your ads, they will be more unlikely to click on them.
On that note, Google display ads have a relatively lower CTR than Google search ads. That’s because, in the search network, people are actively looking for a particular product or service through their searches, thanks to collaborative effort from team members, which makes the ads more relevant.
In contrast, the users might not always be interested in the products or services promoted through banner ads, resulting from their lower CTR. Such banners, if used too much, may become annoying to users, which will negatively impact CTR.
2. The Industry
The industry also plays an important role in determining the overall CTR of Google Ads campaigns. Some industries, such as dating or travel, have a higher CTR in search and display networks than others. In other words, the average CTR for ads by industry may vary considerably, so you need to keep that aspect in mind when planning an advertisement campaign.
However, the industry average CTR does not remain fixed and changes over time-based on the market and consumer demands. So, you must factor in these trends before you start serving ads on Google.
How Can You Improve Your Google Ads CTR?
There are several strategies you can use to improve the CTR of your ads on Google, as we have discussed below.
1. Make A Highly Relevant Ad Copy
The best method to improve your CTR is to make an ad copy that is relevant and engaging. For this purpose, you must add all the appropriate keywords and create a wireframe for your detailed website and power words.
Some examples of power words are “best,” “new,” “you,” or any other words that might entice and engage the users to click on the links. Conversely, swap out any negative keywords from the content with positive keywords.
Likewise, you should add a strong call-to-action in your ad copy to help improve conversion rates. In the case of banners, you can use appealing images and vital design elements to attract people’s attention.
2. Use Ad Extensions
Ad extensions allow you to provide additional information on your ads. For instance, you can add the customer reviews, location, and contact details of your business in your ads with the help of ad extensions.
As such, it will make your ad more detailed, almost like interactive wireframes for your website, and increase the size of your ads on the search results pages. That will attract users’ attention, much like effective UI design, more than simple text ads, ultimately improving the CTR metric.
3. Link Your Ads To Relevant Landing Pages
This is a strategy you can use to improve the click-through and conversion rates through effective project management of your display and search ads. If your ad links lead to relevant landing pages, users will quickly get the information they are looking for, improving their likelihood of conversion.
4. Optimise The Headlines, Meta Descriptions, And URLs
In addition to the content corresponding to the final wireframe of your web pages, you need to pay attention to the website design, the URLs, meta descriptions, and headlines. Ensure they contain relevant keywords to get a better position on SERPs than your competitors. Similarly, you can include deals and offers in the headlines to lure users to your site.
Other Google Ads Benchmarks To Consider
Besides Click-Through Rate, some other crucial Google Ads industry benchmarks can help your Google Ads campaign. These have been discussed briefly in this section.
1. Conversion Rate (CVR)
We have mentioned conversion rates several times in previous discussions. Simply put, it measures how many visitors have been converted into paying customers. This metric is also expressed in percentages, just like CTR.
The CVR is calculated as the low fidelity ratio of the total number of conversions generated by an ad to the number of clicks on the ad. For example, if 100 people click on your ad, and ten people purchase the product you are advertising, then the CVR is 0.1 or 10%
In this regard, the average conversion rate varies by industry and the ad platform, similar to CTR. However, conventional wisdom suggests an optimal CVR is between 2% and 5% on your existing website.
Generating relevant and quality content is the best way to improve your CVR. Visitors will be much more likely to purchase your products or services if they can easily find all the important information on your websites.
2. Cost-per-click (CPC)
Cost-per-click is another advertising benchmark that needs to be considered when planning an advertisement campaign on Google Ads, like website wireframing. It is the amount of money you are paying the search engine companies (Google, in this case) for every click on your ad.
The average CPC is generally calculated by dividing the total advertising costs by the number of clicks on the ads. Determining the average CPC will help you optimise your advertising budget. In other words, it will let you know if you are overspending or underspending on the ads. That will eventually allow you to adjust your advertising costs accordingly.
Most Marketing experts recommend using wireframing tools along with having a lower CPC since that will allow you to get the most number of clicks for your budget. However, The average CPC may vary depending on the industry, much like the detail in low-fidelity wireframes varies.
3. Cost-Per-Action (CPA)
The cost-per-action or CPA is the amount of money you have to pay for each action taken by a visitor. This “action” usually refers to a sale but may also refer to other things, such as a visitor signing up for your newsletter or opting for a trial. It is a core performance indicator that helps advertisers analyse the effectiveness of their ad campaign.
Simply put, it is the money you spend to get a new customer. So, the lower your average CPA, the better your profits and revenues will be. That said, some industries, such as those involved with providing legal services, have a fairly high CPA.
This is not at all surprising, considering the complexity of such businesses and the high barrier to entry in such industries. But most businesses don’t mind the higher CPA, as the returns on each customer are relatively high.
Google Ads’ CTR
That is all we have to say about CTR and other associated advertising benchmarks for Google Ads. As you can see, there is a recurring trend in most of these benchmarks: the focus on producing high-quality content that matches the clarity of a fidelity wireframe with crucial wireframe elements.
If your content, developed with quality wireframe tools, has a high enough quality score, your CTR, CVR, CPC, and CPA will all be within optimal ranges, however, like optimising the user flow, improving your quality score is not easy, requiring significant content marketing and management expertise.
This is where sitecentre® comes into the picture, just as free wireframe tools come into play for designers, for our information architecture expertise can help make your Google Ads campaign as successful as a well-executed wireframing process.
We can manage your content so that your ad positions are better than the competitors, enhancing the overall user interface and user experience. Also, we can advise you on how much money to spend on ads to get the best results. So, contact us if you want to make the most of your advertising budget!