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What is a good CTR?

What dies Goggle consider to be a "pretty good" CTR?

         

ATipsy

1:29 pm on Feb 27, 2005 (gmt 0)

10+ Year Member



I'm running an adwords account for one of my clients and they are getting CTR of between 5% and 6% for each of their ads. The terms that we are bidding on are really industry specific and only receive about 100 searches a day.

Is this a "pretty good", respectable ROI?

dave741

1:37 pm on Feb 27, 2005 (gmt 0)

10+ Year Member



If you want to know anything about ROI, you have to measure conversions. CTR says nothing about your Return Of Investment.

ATipsy

2:30 pm on Feb 27, 2005 (gmt 0)

10+ Year Member



Sorry, I wrote my initial post soon after I woke up. I did not mean to mention ROI.

Is between 5% and 6% a respectable CTR?

dave741

2:51 pm on Feb 27, 2005 (gmt 0)

10+ Year Member



The problem is: What is respectable CTR?

You will have troubles if you are under 0.5%.

Anything over is good. The higher you go, the less you are paying.

5-6% is nice, but the main thing is, if that particular word (or phrase) is making profit to you?

Do you sell anything? Are the users, who clicked, converted to the customers?

So, I would say, that very good question was asked after you woke up :-)

Wlauzon

5:06 pm on Feb 27, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



We found out that CTR is pretty meaningless taken alone. ROI is what counts.

There are some semi-generic keywords that get a lot of hits, but no conversions.

We have some with a 1% CTR but 50% conversion. We have some with 5% CTR but almost zero conversion (which we are gradually weeding out or adding negative keywords to).

We have a couple of KW that get like 5 hits a week, but nearly 100% conversion. Wish I could think of about 100 more like those.

AdWordsAdvisor

8:05 pm on Feb 28, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Welcome to WebmasterWorld Atipsy!

We found out that CTR is pretty meaningless taken alone. ROI is what counts.

Agreed, in many ways at least. Still, a high CTR can contribute to better positioning at lower cost - which may have it's own positive affect on ROI. ;)

Is between 5% and 6% a respectable CTR?

Atipsy, I'd say that average runs around 2%. So 5% to 6% is very respectable indeed - but not extremely high. I've seen lots of advertiser's routinely push into the double digits, with work and attention.

AWA