Is your click-through rate good, or good enough?
This is a really common question, but unfortunately the answer to "What is a good click-through rate" will vary depending on a number of factors, including your industry and keywords. Additionally, in many situations your CTR is not nearly as important as your conversion rate.
Still, it’s helpful to have some general guidelines as to what qualifies as a good click-through rate. Keeping in mind that your mileage may vary, here are some benchmarks depending on the platform you're using for marketing.
What is a Good CTR for...
What's a good CTR for a PPC ad in a Google AdWords campaign? Earlier this year, a Google employee said that beginner advertisers should shoot for a 2% click-through rate. This figure is not set in stone, but it's a reasonable starting point. According to this Googler, as you gain experience with managing a campaign, you should focus more on return on investment (ROI) than click-through rate.
Other PPC experts recommend a 2% to 5% click-through rate for competitive industries and a 5%+ click-through rate for non-competitive industries. The click-through rate is higher for non-competitive industries because customers with fewer choices are more likely to click on a pertinent ad. For example, someone looking for a pink vintage pinball machine is more likely to click on a relevant ad than someone looking for a printer.
The above figures are for the search network. Keep in mind that PPC ads on the content network will generally have a lower CTR (as well as a lower conversion rate).
Click-through rates on Facebook ads will be much lower than those on AdWords—advertisers have found that CTRs are higher on AdWords because people often go to Google specifically looking to buy something. However, people generally go to Facebook to socialize, so they're not in a commercial frame of mind.
On Facebook, anything above 0.05% to 0.1% is considered good. Facebook employees have stated that a click-through rate below 0.02% is considered poor-performing.
Average click-through rates for banner ads (like the one below) have been on the decline, but common wisdom is that a CTR above 2% is commendable. The average CTR is much lower (around 0.25%).
Here, click-through rates will vary depending on the type of newsletter, among other factors. B2B newsletters (such as the WordStream Performance Tips) tend to have higher CTR than B2C newsletters. In either case, a CTR between 10% and 20% is considered desirable. However, highly targeted emails (personalized messages, behavior-based campaigns, etc.) can often attain click-through rates above 20%.
Whatever type of campaign you're managing, remember to track your progress. Steady improvement is more important than beating some industry benchmark.