What Is a Good CTR for Google Ads?

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Last Updated on: 15th February 2024, 05:10 pm

If you came here for the short answer, the average click-through rate across all industries stood between 3-5% in 2023. However, what you truly want is the long answer. And what a “good” CTR looks like will depend on your industry, the platforms you’re advertising on, seasonality, and several other factors.  

One of the most recurring questions I get from my clients is: “Is our click-through rate decent?”

While I wish I could answer that with the utmost certainty, there are multiple variables at play. Yes, there are “universal” benchmarks out there, such as that the average conversion rate is around 2-5%. But today, I’ll dive a bit deeper. 

In this guide, I’ll walk you through what may impact your CTR and how to make sure all of those factors are working in your favour. Plus, I’ll tell you why relying on industry benchmarks may be ineffectual in some cases. 

Which Factors Affect Your Google Ads CTR?

Next time you’re wondering why your CTR isn’t where expected, I’d like you to remember that performance can vary according to some of the following factors:

  • Does your ad copy align with user intent and is it relevant to your target audience?
  • How well are your ads targeting your specific audience’s interests?
  • Where are you advertising? Which campaigns are you running, and which goals are you setting?
  • How relevant are your target keywords?
  • How do the leads navigate your landing page after clicking the ad? (This is a big one!)
  • Do your leads change their behaviours depending on seasons and holidays?

Based on the above, I’ll offer you a rapid-fire list at the end of this guide with a few steps you can take to improve each of them – and subsequently, your CTR.

But first…

A Quick Note on Benchmarks

Yes, benchmarks are extremely helpful. They’re the high-quality pointers you need to guide your strategy if you’re not a Google Ads consultant with hundreds of campaigns to refer to for numbers. 

But hear me out: using benchmarks that are too general isn’t in your best interest. A generic “good” CTR might not accurately reflect what’s effective (or even achievable!) for you specifically.

Trust me, I know how tempting it can be to Google “What’s a good CTR for Google Ads” and hinge on the first number you see. Don’t! 

Instead, if you don’t have your own historical data, focus on industry benchmarks. 

Google Ads CTR by Industry

According to the latest study by LocaliQ, and as I mentioned at the beginning of this guide, the average click-through in 2023 was between 3-5%.

But don’t go jotting that down just yet! This data encompasses all industries, and it doesn’t just involve Google ads. The data includes Bing Ads, which may explain the higher CTRs. 

Business Category Avg. Click-Through Rate 
Arts & Entertainment 8.12% 
Animals & Pets 6.46% 
Apparel / Fashion & Jewelry 11.78% 
Attorneys & Legal Services 4.76% 
Automotive — For Sale 8.77% 
Automotive — Repair, Service & Parts 5.91% 
Beauty & Personal Care 6.87% 
Business Services 5.11% 
Career & Employment 6.67% 
Dentists & Dental Services 5.34% 
Education & Instruction 6.41% 
Finance & Insurance 6.18% 
Furniture 6.19% 
Health & Fitness 6.44% 
Home & Home Improvement 4.80% 
Industrial & Commercial 5.57% 
Personal Services (Weddings, Cleaners, etc.) 7.54% 
Physicians & Surgeons 6.73% 
Real Estate 9.09% 
Restaurants & Food 8.65% 
Shopping, Collectibles & Gifts (General) 6.39% 
Sports & Recreation 10.53% 
Travel 10.03% 

Source: LocaliQ

For example, suppose you’re in the real estate industry and are advertising on Google Ads While you could plan for a 9.09% CTR this quarter, you should still consider that the number isn’t for Google Ads alone. 

Your ideal could be higher or lower than that benchmark. 

This mindset will keep you from losing your hair over getting your numbers “just right.” 

The truth is, your CTR is deeply personal. Your specific audience segment for a given campaign has variations. The best way to approach CTR is to continuously optimise and enhance your campaigns, so you can say with absolute certainty that you are meeting your audience in all the right places – with the perfect offers. 

How to Improve Your CTR on Google Ads

Targeting and Ad Relevance – The Quickest Path to Improved Google Ads CTR

First, create ad copy and visuals that connect with your audience, matching their intent and motivating them to take the next step in your funnel. Good copy sets expectations right from the first glance and then follows through with the landing page experience. 

For example, if you offer 24/7 emergency services as a roofer, your ad copy should reflect that – and so should your landing page.

Don’t forget about ad extensions, either.

google ads locksmiths example
Use keywords your leads are interested in within your ad copy. For example, “no hidden charges” or “non-destructive.”

Then, fine-tune your targeting. 

Google Ads offers dozens of ways to reach your ideal audience, giving you many more options than I had when I first started advertising in 2008. Consider keyword targeting, customer match, retargeting, and every other option at your disposal. 

If you’re new to Google Ads, start with keywords and Search campaigns

The goal is to understand your audience’s keyword journey: what do they search for when they first become aware of the problem? What do they search for when they’re comparing services? And which searches will be the most profitable for you?

Think of keywords as signals – each search term is like a flag telling you what your lead wants to achieve.

Finally, your landing page is the third factor. When you combine keywords, ad copy, and landing pages, you get the Quality Score trio; the three factors that help Google determine how relevant your ad is. 

These plumbers do an excellent job at reinforcing their ad copy’s promise on their landing page, as well.

Make sure your landing page matches the offer in your ad and points leads to the highest-converting page. For example, if you’re advertising one specific service, don’t direct a lead to your homepage or a list of services. You want – and need – a dedicated landing page.

Can Your Budget Affect Your CTR?

Depending on your bidding strategy, yes, your budget can indirectly affect your CTR  by controlling how many people see your ads. 

In cases of more advanced strategies like Target CPA or conversion targeting, improper setup can also lead to your ads being displayed to the wrong people.

So before you start running your campaign, set up your conversion tracking so Google can find profitable leads for you (instead of casting a broad net).

Finally, Measure Your Performance and Set Your Own Benchmarks

Staying up-to-date with industry benchmarks is vital. But it’s also vital to keep tabs on how well your ads are doing and set your own standards for Google Ads success

Pay attention to CTRs in the different campaigns you run. Spot patterns. Then, optimise your strategies and adapt to shifts in customer or competitor behaviour. 

Remember: benchmarks, even your own, aren’t set in stone. They’re an anchor, but improving your CTR is a continuous process.

However, achieving your revenue targets becomes easier when you create top-performing campaigns. If you need a hand in scaling your efforts, I’m here to help. With 15+ years of Google Ads experience, I’ll show you guaranteed methods to draw in the ideal leads.

Ready to get started right away? Get your copy of my best-selling Google Ads book to learn how to build an effective campaign in 7 rapid steps!

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