Being a business owner often means spending money on advertising, and the costs can be high, so it’s important to ensure it’s worthwhile.
So how can you tell if your advertisements are performing as well as they should?
CTR (click-through rate) is an important metric for assessing the performance of your Google Ads campaigns as a business owner.
So what is a good click-through rate, and what even is a click-through rate?
In the next sections, we will cover this and provide guidance on how to find this metric, along with additional tips.
What is CTR?
CTR is the percentage of people who click an ad after seeing it.
This is important for measuring which ad variations work and which changes improve your ad performance.
The higher your CTR is, the higher your Quality Score. Often, Google will position your ads higher and lower your ad cost when your Quality Score improves.
How to Calculate CTR
To calculate CTR, you divide the number of clicks an ad got by the number of impressions it had, and multiply the result by 100 to get the percent value.
[Interactions] / [Impressions] * 100 = Click-Through Rate
Why does CTR matter?
Click-through rate is especially important because you may think that, since your ads are being seen by a large number of people, they are performing well.
This is not always the case, though, and CTR shows the percentage of people who actually click the ad after seeing it.
Another important metric mentioned was Quality Score. You may be wondering, what is Quality Score?
What is Quality Score
Quality Score for Google Ads is a 1-10 metric that is determined by three factors:
- The expected CTR of your ad
- The relevance of the ad to the searcher
- How optimized is your landing page for user experience
Quality Score rates how relevant your ad is and how likely it is to be shown to users. A low score suggests that you may need to improve the quality or relevance of one or more of the factors.
A Quality Score of 7 is considered good, and 8-10 is considered very good.
What is a good CTR?
The definition of a good CTR changes depending on what platform you are on, the niche you are advertising to, and the type of ad that you are using.
According to WordStream’s 2025 analysis, the average CTR for Google Ads was 6.66%.
Generally, a 4-6% click-through rate is considered good for Google search Ads. For display ads, 2-5% and higher is good.
This value is hard to pinpoint exactly, though, as it varies between niches. For more data on each niche, take a look at WordStream’s 2025 report.
If you find your ads performing well below average, you may want to consider switching up your advertising techniques. You can contact me today if you’re looking for a reliable and high-performing Google Ads Manager.
Having a high ranking in the search engine helps as well, such as being #1 on Google, which will get your ads a much higher CTR.
However, other factors beyond CTR matter as well, such as Conversion Rate.
What is Conversion Rate
Conversion rate is the percentage of people who sign up for or buy your service or product on your website.
The 2025 average conversion rate was 7.52%
Again, this depends heavily on the niche, but a good conversion rate is around 2-5%.