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.

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Calculating your Click-Through Rate

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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:

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