CTR is important for effective paid search marketing, but why?

You hear about CTR (click through rate) and know it matters across all areas of digital marketing, especially paid search. But why? How can CTR have such an impact on your paid search marketing efforts? Many people may have a general understanding of CTR, but fail to see how it fits into the bigger paid search puzzle.

What it really comes down to is how impressions affect your paid search marketing efforts. CTR is used to judge how users respond to ads in relation to their searches. The more relevant your ad is (or, the higher your CTR), the higher your quality score will be. Which is good, because having a higher quality score means you’re driving a higher number of qualified visitors to your site.

But why else is this important?

First and foremost, money. Having a high CTR equates to a lower cost per click, making your PPC efforts a lot more cost effective as clicks accumulate. This is also important for ad impression share, which is the number of impressions you’ve received divided by the estimated number of impressions you were eligible to receive. This directly relates to how often you’re ads show up to users in the first place. And, according to WordStream research, if you can increase your Quality Score but even just one point, your ad impression share on average will increase 6% on a desktop and 12% on a mobile device.

But the importance of a high CTR doesn’t stop there.

One of the single most important things you need to know is that having a high CTR means higher conversion rates. Think about it: a user is browsing online and comes across your ad for a product and gets interested and excited about it. What you’re banking on is that the excitement he or she experiences will carry them through to a purchase.

While CTR does is not necessarily the single most important factor in AdWords or digital marketing in general, it does indicate how well you’re making impressions among users.

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