Most advertisers think all they need to boost their average click-through rate is to add some keywords, throw in some hard-hitting calls to action, and the sales and inquiries will start to flow in.
Well, it takes a little more effort than that. It can be quite an uphill battle when it comes down to increasing your conversion and click-through rates by scaling your pay per click marketing.
Google keeps updating its algorithms, and businesses keep increasing their marketing budget to see what sticks and what no longer works. But that’s not the right way either.
If you don’t manage or improve Google Ads click through rate for your account using the right techniques, your click-through rates, along with your conversion rates, are bound to take a hit. You will end up spending huge amounts of money on your digital marketing campaigns without the traffic or sales to justify them.
So, how do you improve your Google click-through rates when everyone is bidding for the same keywords and utilizing highly specialized digital marketing tools?
Let us look at some of the techniques digital marketers can use to ensure/improve Google ads CTR attract the most traffic and generate the most leads:
Google Ads uses Quality Score to score keywords from a range of 0 to 10. It denotes the relevancy of advertisements from their keywords, which is based on the probability that someone will click on these Google ads.
If you haven’t heard of Quality Score, it’s best to start from this metric. Ads with higher quality score get high rankings and accumulate fewer costs per click. They’re also more likely to have a high click-through rate.
Many factors impact Quality Score, right from your ad copy ad and URL to how relevant your PPC landing page and whether you positioned your keyword in the headline for your ad. The average click through rate CTR for Google is 3.17%, and boosting your quality score can inch you towards a higher percentage.
Google Ads has revamped its bidding game, incorporating smart bidding strategies and automation for its auctions.
Utilise smart bidding strategies: this allows Google to utilize automation for ad bidding, boosting your likelihood of getting ad clicks and your conversion rates. For this, Google relies on past data and boosts your bids for Google ads that are likely to do well with the audiences.
This automatically censors out the bids for Google ads that do not perform well and allows you to focus your energies on auctions with higher CTR (click-through rates).
With Google’s optimized bidding strategies, you can enhance your ad performance greatly. Since each auction is different, it isn’t feasible to analyze the performance of each auction manually.
Automation allows you to adjust your bids according to the performance of the keywords and saves you time from trawling through each keyword bid manually.
While this technique might not apply to all advertisements, it surely does work for e-commerce ads. Listing the price of your product in your ad copy can boost your click-through rates, particularly if your prices are lower than your competitors.
While some ad extensions do this for you automatically, highlighting pricing in your ad copy can distinguish you from your competitors’ ads when audiences see these ads side by side.
It is a useful technique to boost the average click-through rate because it gives your audiences additional information about your products or services and entices them into following through on your ad.
The more informative and descriptive you make your Google ads, the more they’re likely to consider clicking on them.
A compelling, well-written, and customized ad copy can help distinguish you from he tons of Google ads that cater to your niche and allow you to stand out from your competition. If you don’t differentiate your ad copy from your competitors, you will see a fall in your very High click-through rate (CTR) .
Make sure to emphasize your unique selling points, brand value, and why audiences should click on your ad instead of your competitors. Do you offer something that they don’t? Highlight these USPs and make sure they are reflected in your ad copy.
Including an enticing and powerful call to action in your ad copy can go a long way in boosting your click-through rate.
Many marketers focus on selecting the right keywords and writing an informative description but miss out on their CTA, which ends up leaving their piece sounding like an article rather than an ad copy.
Google analytics tend to review and rate strong calls to action quite positively, leading to improved click-through rates. Many copywriters tend to adopt the wrong approach when it comes to CTAs.
Simply announcing the roll-out of new products or making the languages too flowery and verbose can both impact the efficacy of the CTA. Make your CTAs blunt and concise to push the audience to act on the command.
Instead of relying on paid ads, try to make your ads enticing and attract organic traffic to your site. 94% of the clicks generated on online ads are through organic search engine result.
Study keywords and their search volume to know how many people are searching for those specific phrases. It might be tempting to go for keywords that have the highest rankings.
However, keywords with low-to-medium clicks can often have high conversions. This allows you to avoid competition while also guaranteeing high conversion rates from your visitors.
Conversely, high-ranking keywords with low CTR or conversions can end up costing you more without much business generated your way.
Also, avoid inserting too many keywords into your ad copy as it can impact your ad text and keywords. Too many keywords can affect your quality scores and, eventually, your Good CTR (click-through rates). The key is to use tightly themed keywords in your ad text and ad group them into smaller ad group.
The key to a high conversion rate is to make your ads more relevant to your target audience rather than projecting them to a huge audience. For this, you can use negative keywords to weed out the audience you know will not follow through on your ads.
Get the most of your budget by using SEO techniques and data to pinpoint the most relevant keywords and utilize them in your ad copies. By acquiring more SERP space, you’re bound to improve your click-through rate and conversion rate.
Your Average CTR is around 30% if you’re ranked number 1 on Google. With just third place, your average click through rate (CTR) drops to 10%. Therefore, your rankings can have a huge impact on your click-through rates.
One of the most effective techniques to increase click-through rate, which many marketers tend to overlook, is to analyze their competition sufficiently. This includes identifying competitors, analyzing their keywords, and understanding their ad copy.
You can use analytic tools to identify better what makes their ad click for audiences, especially the keywords they’re using and the language they incorporate in their ads.
Likely, they have already performed A/B testing on different variations of the same ad, and what you’re seeing is the best-performing variant.
Skip out on the testing process and take their best performing ad to understand why it performs the best. Try and incorporate similar techniques for your ad, but do not copy their ad word for word, and make sure to present your unique selling points.
When it comes to determining the relevancy of your ads, testing is the best option since it can be hard to tell what the audiences will respond best to. The key to this is to test multiple search ads for the same product or service and allow Google or search engines to decide which one performs the best.
Testing is a continuous process and even involves testing out different ad types on other locations online. Many times, it’s not what is in the ad copy but rather where your ad is placed. If your ad is placed where you aren’t likely to find customers, your click-through rates will be lower naturally.
It is crucial to test different ad types and keep the testing in-process continuously. For example, if you’re running tests on three variations of an ad copy, keep the two top-performing Google ads and remove the losing ad.
Meanwhile, create another ad variation and add it into the mix in place of the lowest-performing ad to keep the process ongoing.
The most popular testing technique is the A/B testing method, which includes two variants, and allows you to use one variant as the control.
The key is always to test out different ad types and keep things in flux since audience demands keep changing. Test numerous parameters, such as headers, CTAs, images, and graphics to determine what works best for your audiences.
Marketers can use remarketing campaigns to deliver re-customized ads to specific users and visitors. This involves targeting particular ads to visitors who have already viewed your content and making it clearer for them.
You can tweak your ads to cater to specific visitors, narrow down on particular products, or create new ads to upsell your existing customers. If they know you, then they are more likely to click on your ad. This means excluding users you know aren’t likely to be interested in your products.
Utilizing ad extensions can be an excellent way to improve your click-through rate. Location extensions can aid small business owners and help them to match with nearby customers. In addition, site links and callouts can enhance the relevancy of your ads, boosting your conversions and click-through rates.
There are many kinds of ad extensions, but not all of them apply to every advertisement campaign. If you aren’t utilizing the complete mix of ad extensions, then you’re missing out from reaching your full potential on Google.
You can make your ads appear more relevant to Google, increase their reach, and improve your click-through rate by utilizing the full range of extensions.
The tips detailed above are simple enough to implement easily in your current Google ads campaign. But make sure to test what you’ve done several times over to ensure that your intended audiences respond to your ads the way you want them to.
It is also vital to get qualified traffic that’s right for you. This means don’t just attempt to increase your visitors for the sake of it but aim for more conversions. Curious about pricing? Take a look at our guide to the cost of PPC management services. Contact us for more info!
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When this apartment complex client partnered with PPC.co, their goal was clear: generate more qualified leads through Google Ads. In just 60 days—from January to March 2025—we transformed their paid acquisition performance. Total conversions more than tripled, jumping from 10 to 32, while the overall conversion rate soared by over 300%. At the same time, we drove down the cost per conversion by 44%, delivering significantly more leads at a much lower cost.
By strategically combining Performance Max and high-intent Search campaigns, we not only increased lead volume but improved overall efficiency and ROI. This rapid and measurable improvement underscores the value of data-driven optimization and expert campaign management.
This case study is a testament to what can happen when a well-structured campaign meets expert strategy and continuous optimization. Whether you're launching a new property or looking to boost occupancy in a competitive market, PPC.co delivers real results—fast.
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If you’re running an e-commerce or retail business, you already know that visibility is everything. The best product in the world won’t sell if no one sees it. That’s where paid ads for ecommerce comes in.
Done right, they drive traffic, conversions, and repeat customers.
Done wrong, they drain your budget and leave you wondering what went wrong.
Whether you’re spending $500 a month or $50,000, your goal is the same: profitability. Not just clicks, and certainly not just impressions. You want to turn ad dollars into real, predictable revenue.
So how do top-performing e-commerce and retail brands make their paid ads work?
What are they doing that you’re not?
This guide breaks it down step-by-step, so you can start running profitable ads with confidence.
Before you launch a single campaign, you need clarity on your audience and goals. Are you trying to boost first-time sales? Increase average order value? Each objective requires a different strategy and metrics for success.
Don’t fall into the trap of launching ads just to “see what happens.” Paid media works best when it’s part of a bigger strategy. So before you log in to Google Ads or Meta Ads Manager, get specific about what success looks like.
If you want to run profitable paid ads, knowing your numbers is the foundation of your entire strategy. Without a clear understanding of your margins, break-even points, and how much you can afford to spend to acquire a customer, you’re essentially gambling with your ad budget.
And in e-commerce, that can get expensive fast.
Let’s start with the most critical numbers you need to know:
Your break-even ROAS tells you the minimum return you need on your ad spend to not lose money. It’s calculated by dividing 1 by your gross profit margin.
So if your margin is 50 percent, your break-even ROAS is 2.0. That means for every $1 you spend on ads, you need to make $2 in sales just to break even.
For example, let’s say you’re running Facebook Ads and spending $1,000 on a campaign. If your break-even ROAS is 2.0, you need to generate at least $2,000 in revenue to avoid losing money. Anything above that is profit. Anything below that eats into your cash.
Once you know your numbers, you can reverse-engineer your ad strategy instead of throwing money into the void and hoping for results. For instance, if your AOV is low (say $25), you might struggle to profit from ads unless you have a very low COGS or high conversion rates. In that case, you might want to:
On the other hand, if your AOV is $150 and your margins are strong, you have more room to compete in ad auctions, bid more aggressively, and test multiple audiences and creatives without instantly wiping out your profit.
A lot of beginner advertisers focus entirely on immediate return from ads. That’s understandable – but short-sighted. If you’re breaking even or slightly losing on the first sale, that might still be a smart move if you’re building long-term customer relationships.
That’s where Customer Lifetime Value (LTV) comes in. If you know that your average customer places three orders a year, each worth $60, then their LTV is $180. If you spend $40 to acquire that customer with your first ad, but earn $140 more over the next 12 months, that ad was extremely profitable in the long run.
Top e-commerce brands build their paid strategies around LTV-to-CAC ratio – how much they earn over time compared to what they paid to acquire the customer.
A healthy ratio is usually 3:1 or higher. So if you’re spending $50 to acquire a customer, you want to earn at least $150 from that customer over time.
Once you understand your numbers, you can plan your ad spend with precision. You’ll know exactly:
Let’s say you want to make $5,000 in profit this month, and your product has a 50 percent gross margin. That means you need $10,000 in sales. If your target ROAS is 2.5, you can spend up to $4,000 in ad spend to hit that goal. With those numbers in hand, you now have a roadmap for campaign budgeting, not just a shot in the dark.
Every ad platform has strengths. But if you try to use them all at once, you’ll burn through your budget without learning much. Instead, pick one or two that align best with your business model and customer behavior.
If you’re selling visually appealing products like apparel, skincare, or home goods, platforms like Instagram and TikTok can deliver strong returns – especially with the right creative. If you’re focused on high-intent buyers, Google Search and Shopping Ads are goldmines. And if you’re targeting professionals or B2B retail buyers, LinkedIn may offer surprising results.
Test channels strategically. Start with the one that matches where your customers spend their time and scale from there. The best platform for you is the one where your ideal customers are already shopping, scrolling, or searching.
One of the biggest mistakes retailers make is casting too wide a net. You don’t want everyone to see your ad – you want the right people to see it.
On Google, this means targeting high-intent keywords that signal buying behavior. Focus on terms like “buy,” “best,” “free shipping,” or product-specific searches. On Facebook, Instagram, or TikTok, you’ll want to dial in your custom audiences using demographic data, lookalikes, interests, and behavior.
Don’t forget retargeting. Most people won’t buy the first time they visit your site, but retargeting brings them back when they’re ready. Set up ads that follow people who viewed a product, added to cart, or engaged with your brand but didn’t check out.
The more relevant your targeting, the more efficient your spend and the higher your return.
Creative is the make-or-break factor in most e-commerce ad campaigns. You can have perfect targeting and the right product, but if your ad doesn’t grab attention in the first two seconds, it won’t convert.
Your creative needs to do three things quickly:
Use high-quality product photos or videos. Show your product in action. Highlight a clear benefit or solve a specific problem. Incorporate customer reviews or user-generated content to build trust.
For paid social, test multiple creatives at once – video vs. image, UGC vs. branded, short-form vs. long-form – and let performance data guide your iterations. On search platforms like Google, focus on copy that’s compelling and packed with relevant keywords. Test different headlines and descriptions to see what gets the best click-through rate.
Sending paid traffic to your homepage is a rookie mistake. You want every click to land on a page that’s designed to convert. That means fast load times, mobile optimization, and a clear call-to-action.
If you’re promoting a specific product, send users to that product page and not your full catalog. If you’re offering a bundle or a seasonal deal, create a dedicated landing page with copy, visuals, and layout tailored to that offer.
Remove distractions. Reduce friction. Make it stupid-easy for people to buy. The less effort it takes, the more sales you’ll see. And don’t forget to A/B test. Sometimes a simple tweak to your headline or CTA can double your conversion rate overnight.
Once your ads are live, your job isn’t done. In fact, this is where it really begins. You need to monitor performance regularly, looking at more than just the surface-level metrics.
Click-through rate (CTR) tells you how well your ad is capturing attention. Conversion rate shows how well your landing page is sealing the deal. ROAS tells you how profitable your campaign is. And CPA helps you compare efficiency across different products or audiences.
Watch for early indicators of success – or failure.
Treat your campaigns like living systems. Tweak, test, and improve them continuously.
Once you find a winning combination – an ad, offer, and audience that works – it’s time to scale. Increase your budget gradually while keeping an eye on performance. Scaling too fast can tank your results, so go step by step.
Duplicate high-performing campaigns to test new audiences or creatives. Experiment with upsells, bundles, or time-limited offers to increase AOV. Layer in email or SMS marketing to retarget paid traffic and drive repeat sales.
And just as importantly, don’t be afraid to kill underperforming ads. If something isn’t working after a reasonable test period, cut it. Your budget should be flowing to what works – not what you hope will work.
One of the biggest mistakes in paid advertising is chasing one-off sales without thinking about the bigger picture. Winning e-commerce brands think in terms of customer lifetime value.
If your first sale breaks even, that’s fine. (As long as you have a plan to turn that customer into a repeat buyer. ) You can use post-purchase emails, loyalty programs, and retargeting ads to bring people back.
At the end of the day, when you view paid ads as the beginning of a customer relationship – not the end – you unlock real long-term profitability. And at PPC.co, that’s where we want to help you! We offer industry-leading PPC management services for ecommerce and retail brands who want to stop wasting ad spend and start generating real ROI.
Contact us today to learn more!
