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Click-Through Rate (CTR): Importance for SEO and PPC

SEMrush Blog
Click-Through Rate (CTR): Importance for SEO and PPC

Clickthrough rate (CTR) is a term commonly used by marketers and suggested as a tool for measuring the success of a campaign. But what is CTR exactly? The name itself is quite self-explanatory but most people aren’t familiar with the right click through rate definition. This is why it is important to define click through before going over its importance for SEO and PPC. Basically, CTR is a calculation of the number of clicks on an ad as a percentage of the number of times it shows up on search engine results.

In a nutshell, the advertising click through rate enables you to assess:

  • Which ad is being clicked on the most,
  • Which ad leads to the most conversions,
  • How effective the SEO for your ads is, and
  • The overall success of your campaign

Ad click through rates aren’t exclusive to the ones which appear on search engine results. Banner ads also have CTR measured but generally, their CTR is not higher than 1% which reduces the effectiveness for using them. Hence, most marketers have avoided using banner ads for SEO and PPC altogether.

Now that you know what is CTR, let’s take a look at its importance for both SEO and PPC.

Why CTR is Important for SEO

When your ads show up in the search engine results, it is said to have made an impression. So, in theory, the CTR for SEO is calculated by dividing the number of clicks by the number of impressions as a percentage. Previously, it was quite difficult to calculate the CTR for SEO. However, Google stepped in and provided the tool required to keep an eye on the clickthrough rates. This has made it possible for you to check the advertising click through rates for your SEO campaigns.

Here are some of the reasons why CTR is important for SEO.

Searcher Votes

Your website’s ranking for a particular keyword on Google depends hugely on the number of inbound links. Yet, you should not forget the fact that Google also checks the searcher votes you get when someone clicks on your website in the search engine results to get through to your website. A combination of external votes and searcher votes would lead your website to the top of the rankings for a particular keyword. This would help you a great deal with its SEO.

Justify Your Ranking

Every marketer wants his/her website to appear on the first page of the search results for the main keywords. However, even if your website is on the first page but not getting clicked on enough, Google has every reason to push you down the ladder. Sometimes, websites from the second and even third page of the search results manages to make it to the first page simply by having a higher clickthrough rate. Falling off the first page isn’t exactly ideal for your SEO.

User Intent

You can analyze the behavior of the people clicking your ads in the search engine results through the CTR. You can see which of the ads are being clicked on the most and which keywords are producing the best results. That way, you can change your SEO campaign to work towards making the most of the ads and keywords which are attracting the most clicks.

Why CTR Is Important for PPC

Coming to PPC, ad click through rates play an important role for it as well. The formula for calculating CTR is the same but the importance it holds for PPC is quite different than that for SEO. Basically, a higher CTR can improve the return on investment (ROI) for your PPC campaign. Here are some of the reasons that show the importance of CTR for PPC.

Reduce the Cost per Click

The higher your CTR is for a particular keyword, the cheaper Google will make your cost per click. That way, you don’t have to pay as much as you used to each time a visitor does click on your links. This could drastically reduce the money you have to spend on your PPC campaign. Lower costs improve your profitability and you can enjoy a higher ROI.

Buy the Keywords Cheaply

You can further save money by improving the CTR of your website for a particular keyword. The higher you rank on the keyword, the cheaper you can buy it for. You should keep this point in mind the next time you are bidding for keywords. There is actually a way for you to reduce the money you would have to pay Google for it.

As you can see, the cost of your PPC campaign will come down substantially if you simply improve your clickthrough rate. Getting a high ranking keyword for your PPC campaign doesn’t necessarily mean you have to pay through the roof for it. So, you can see that CTR holds considerable importance for both SEO and PPC. If you want your campaigns to be successful, improving the CTR could be the first step towards achieving it.

How SEMrush Can Help You

If you need help for improving your clickthrough rates, look no further than SEMrush. The tool would help you in improving your search engine rankings while also making it easier to find the best keywords for your campaign and keeping a track of it. Using the best available resources can go a long way in ensuring your PPC and SEO campaigns are successful.

SEMrush Blog

SEMrush employee.

This profile is specifically designed for our old blog posts.
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