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1. CTR or Click-through Rate
CTR is the ratio of the number of times your ad was clicked on to the number of times it was displayed. For example, if your ad was displayed 1,000 times and received 30 clicks, the CTR is 3%.
CTR is different for Search and Display. Even on the Search Network, it also depends on factors like the target audience, industry, keywords, etc. Typically, the average CTR on the Search Network is about 3%, while Display sees an average of 0.1% (the CTR for Remarketing is much higher).
Through better targeting, e.g. using tighter keywords, and by writing clever ads, you can improve your CTR significantly. Below is the CTR that we achieved for an SME in Singapore:
2. Conversion Rate
Like CTR, conversion rate depends on a lot of other factors in addition to the landing page. It also depends on the branding, product, pricing, etc. More importantly, it depends on what you define as a conversion, e.g. a sale, a sign-up, an online enquiry, a telephone call, etc.
A typical conversion rate is 2-3% and this has been the case for most of our e-commerce clients, which see a conversion rate of 2.5%. This means for every 1,000 visitors to their online store, 25 visitors end up making a purchase.
However, for another client of ours who defined a conversion as an enquiry, the conversion rate goes up to 30% or higher.
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