INTRODUCTION TO CLICK THROUGH RATE, AD RANK AND QUALITY SCORE:
If you want to master PPC, especially Google Ads, you’ll need to know about Click through rate (CTR), Ad rank and Quality Score. This is due to the fact that your Quality Scores, click through rate and ad rank have a significant impact on the cost and effectiveness of your sponsored search ads.
WHAT IS CLICK THROUGH RATE (CTR)?
The click through rate is a metric that measures how many times an advertiser’s ad is clicked out of a given amount of impressions. A high click-through rate is critical to your PPC success since it influences both your Quality Score and the amount you pay each time someone clicks on your search ad.
This number represents the percentage of people who see your ad (impressions) and subsequently click on it (clicks). In general, you can see your click-through rate in your PPC account’s dashboard. A high CTR indicates that a large proportion of individuals who see your ad will click on it.
In essence, click through rate = Clicks/Impressions * 100
WHAT IS AD RANK?
The position of an ad on a page is referred to as ad ranking in Internet marketing. The placement of your ad on the search engine results page, or SERP, is the ranking in paid search marketing, also known as pay-per-click (PPC) marketing. With an ad rank of 1, you’ll be at the top of the search results page. In Google Ads, ad ranking is determined by multiplying your maximum bid for the keyword or ad group by the Quality Score of the matching keyword.
Ad rank is calculated using your bid amount, quality score, (i.e. click through rate, landing page experience and ad relevance) and the expected impact of extensions and other ad formats.
In essence, ad rank = Quality score * CPC
WHAT IS QUALITY SCORE?
When visitors search for your keyword, Google assigns a Quality Score to your ads and landing pages based on the entire user experience they deliver. This is represented on a scale of one to ten, with one being the lowest and ten being the highest.
The Quality Score indicates whether or not your ads and landing pages are helpful to your customers. Expected click through rate, landing page experience, and ad relevance are three elements that influence your Score.
In essence, quality score = Click through rate + Ad relevance + Landing page experience
WRAPPING UP:
Now you know how all these works and the proven strategies to improve your ad position, all you need to do is get started! Remember, whether you try one or all the strategies, the best performing Google Ads campaigns come from continually optimizing, refining and tracking to improve your results. Need help to refine your PPC strategy? Feel free to contact us.
