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Click-through Rate (CTR): Why your SEO and PPC needs it?

CTRClick-through Rate (CTR) is a term that is commonly used by marketers and proposed as a tool for judging the success of a campaign. Although, CTR is self-explanatory many business owners are not aware of its exact definition and functioning. Before proceeding further, let’s understand its role in depth in regard to SEO and PPC. Primarily, CTR is the calculation of the count of clicks on a particular ad as a percentage of the total number of times it is displayed in the search engine results.

In simple words, the advertising CTR helps you to understand –

  • Which ads enjoy the highest number of clicks?
  • Which ads have the maximum conversions?
  • Is the SEO for your ads effective and moving in the right direction?
  • Is your campaign destined for success?

To put it succinctly, CTR has the ability to ‘make or break’ a business and scale up ROI. But, this does not mean businesses should eye the highest CTR possible because every click matters and costs money. When the conversions do not match with the click costs, you will end up losing money.

It is important to understand that search engine results are not the only ones which display the ad click through rates. At times, the CTR of banner ads is not higher than 1%, which negatively impacts the effectiveness.

Now, let us take a close look at the relevance of CTR for both SEO and PPC.

Why CTR assumes relevance for SEO

When the ads are displayed in the search engine results, it means that you have successfully created an impression. From the theoretical perspective, CTR for SEO is measured by dividing the number of clicks by the number of impressions.

Here, we have cited a few of the reasons why CTR is crucial for SEO.

  • Justify the rankingJustify the ranking

For specifically chosen keywords, every marketer wants their website to be displayed on the first page of the search results. Despite being displayed on the first page, Google can push down your position if your website fails to bag sufficient number of clicks. It has been noticed that websites displayed on the second and third page of the search results reach the first page by having robust CTR. If your website falls from the first page, it automatically hampers the SEO.

  • Searcher votes are important

Inbound links are the deciding factor for any website’s Google ranking for a specific keyword. But one must realise that the search engine giant reviews the searcher votes when someone clicks on the website in the search engine results. It is believed that a mix of external votes and searcher votes lead a website to the top of the rankings for any specific keyword. This has proved to be immensely helpful for SEO.

  • User behaviour 

The behaviour of the users who click on the ads in the search engine results through the CTR should be analysed.  It is possible to find which ads have the highest number of clicks and which keywords are able to produce the desired results. This power of judgement allows the business owners to change their SEO campaign in accordance with the ads and keywords which are attracting the highest number of clicks.

Also Read: Why businesses should invest in SEO 

Why CTR is important for PPC

In regard to pay-per-click (PPC) campaign, ad CTR plays a significant role. Although, the same formula is used for judging CTR, its relevance for PPC follows a different approach as compared to SEO. If you are eyeing to improve the return on investment (ROI) for a PPC campaign, higher CTR is necessary.

Some of the reasons that display the relevance of CTR for PPC are mentioned below –

  • Lower the cost per click

When the CTR is higher for any specific keyword, Google will make your cost per click cheaper. This will help ensure that you don’t pay as much as you used to every time a visitor clicks on your links. This can significantly lower the expenditure on any PPC campaign. Profitability helps to lower costs and at the same time, you are able to attain higher ROI.

  • Purchase the keywords at low price

It is possible to save money by bringing improvement in the CTR of the website for any specific keyword. When you rank higher on the keyword, it becomes possible to buy it at a low cost. This is a crucial point to be remembered when bidding for keywords.

Hence, as a business owner, you must understand that achieving high ranking keywords for your PPC campaign doesn’t mean you have to spend a lot. We suggest improving your CTR as necessary if you want your campaigns to be successful.

Conclusion

There’s no doubt that CTR is an essential and useful metric. Improving your CTR has the ability to raise the organic traffic considerably as it increases the chances of more people visiting your website. So, spare time to understand the functioning of CTR as it will help you adopt the right approach to save money and resources. Every business owner should strive to attain higher CTR as it will improve the business visibility considerably.

Got questions related to CTR? Drop in your queries and our SEO expert will answer them.

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