Click Through Rate (or CTR) is an ideal indicator of ad-campaign performance, but you should be aware; when the volume of impressions and clicks are too low, your CTR might skyrocket, but this doesn't necessarily mean that ads are doing great; On the contrary, a very high CTR might highlight volume issues.
If you want to improvise the quality of your Google Ads campaigns, there are several elements that you are supposed to take into insightful consideration.
“You may know your current CTR by the below formula Clickthrough Rate = (Total Clicks on Ad) / (Total Impressions)”
Click rates and conversions are not the same things in PPC advertising; In this process, CTR tells you the ratio of the audience/people who click (not the total number of people who convert); Ideal customers are those who not only click to your ads but also go and sign up for the service or offer your ad is providing.
In other words, an online ad can have a high click-through rate with a very downfall conversion rate, leaving you with a high cost per conversion (CPC).
Insight Acquisition | Online Advertising Platform
When you fail to structure your Google Advertisement account properly or manage it effectively, the click-through rates of your adverts could be low & you’re giving your competition a helping hand by increasing their ads CTR. You won’t get the traffic, inquiries, or sales that you expected & it will hurt your business goals while helping theirs.
On the other hand, in Pay Per Click Advertising, ad quality score can be a valuable medium in identifying ways to improve the implemented ads, keywords, landing pages, and so on. Quality Score (for an ad) is considered a quality indicator of which areas/parameters to focus on to improve ad quality rather than a score to be optimized.