Higher CPC gives higher CTR (click through rate)

This finding was reported by Optify in its digital marketing research project “Changing Face of SERPs : Organic Click Through Rate”.

It noted that “cheap CPC terms will likely yield over double the CTR on the first page than expensive CPC terms”.

With first page total (sum of rank 1 to 10) organic click through rate (CTR)

  • median : 61.1%
  • expensive keywords (US$1.50) : 37.3%
  • cheaper keywords (<US$0.25) : 87.5%

this implies that Google Adwords ads targeting expensive keywords will have much higher CTR.

Expensive keywords means they are valuable to advertisers hence bidding is already stiff.  This also means they would likely be target keywords for SEO (search engine optimization) campaigns.

A note that that there is no relation between “competition” and “local monthly searches”, which means bidding more to get higher CTR does not mean more traffic to your website, as seen in screenshot of Google Adwords Keyword tool below.

google adwords, no relation of competition to local monthly searches

Competition to Local monthly searches

 

 

 

 

 

 

 

 

 

 

What this means to advertisers

We can use the results to find undervalued keywords, meaning with

  • lower total organic CTR (using Alexa’s Search analytics) for the first page¬† e.g. 50 %
  • yet its current CPC is <US$0.25

These undervalued keywords have the potential to give you high CTR, based on the report findings mentioned above.