Understanding Impressions, Clicks, and Click-Through Rate (CTR) in Google Ads

If you're a small business owner running Google Ads, you've probably come across metrics like Impressions, Clicks, and Click-Through Rate (CTR). But do you really know what they mean and why they matter? Understanding these metrics can significantly improve your ad performance and bring more customers to your business.

I speak to many small business owners who aren't quite sure how these metrics fit together or how they impact their Google Ads performance. While they're not the be-all and end-all of a campaign, they are key indicators of visibility, engagement, and traffic.

Think of a high street shop:

• Impressions are how many people walk past your store and see the sign.
• Clicks are the number of people who step inside.
• CTR tells you how attractive your shopfront is - how many of those who saw it were intrigued enough to enter.

But here's the catch - getting people through the door is just the start. If people come in and immediately leave without buying anything, you could be wasting ad spend on the wrong audience. In this post, we'll break it all down.

1. What Are Impressions, Clicks, and CTR?

Impressions = Visibility

• Impressions count how many times your ad appears in Google search results. Like a shop sign - how many people walk past and see it?
• Example: If 1,000 people search for "plumber near me" and your ad appears 500 times, you have 500 impressions.

Clicks = Traffic

• Clicks count how many people actually click on your ad and visit your website. How many people actually walk into your shop?
• Example: If 50 out of those 500 people click, you have 50 clicks.

CTR (Click-Through Rate) = engagement

• CTR is the percentage of people who see your ad and decide to click.
• Formula: (Clicks ÷ Impressions) × 100
• Example: If you have 500 impressions and 50 clicks, your CTR is 10%.
• If 10 out of every 100 people who see your shop sign come inside, you have a 10% CTR.

2. Why Are These Metrics Important?

Impressions show your ad's visibility.

• Low impressions? You might need to increase the budget or adjust keyword targeting to show up more often.
• But more impressions doesn't always mean better results - it's about quality, not just quantity.

Clicks tell you how many people are interested enough to visit your site.

• If you have high impressions but few clicks, your ad might not be compelling enough.

CTR indicates how engaging your ad is.

• A low CTR suggests that your ad isn't resonating with searchers.
• A high CTR is great - but only if those clicks convert into valuable actions.

3. Everyday Scenarios

Scenario 1: The Local Florist with High Impressions but Low Clicks

A florist runs Google Ads for "same-day flower delivery" and gets 10,000 impressions but only 50 clicks. The CTR = 0.5% (which is very low).

The potential issue is that the ad may not be appealing, or the keywords used might attract the wrong audience. A possible solution is to rewrite the ad to be more engaging, test different headlines, or adjust the keyword targeting.

Scenario 2: The Boutique Clothing Store with Low Impressions but High CTR

A boutique sells sustainable fashion and gets 500 impressions and 50 clicks (CTR = 10%).

The click-through rate is impressive, but impressions are too low to generate significant traffic. Potential issues include the ad being too niche or the budget being too limited. Possible solutions are to increase the budget, test broader keyword variations, or refine audience targeting.

4. Wasted Ad Spend: When Clicks Don't Convert

While impressions, clicks, and CTR are important, they aren't the full picture. A high CTR and lots of clicks may feel like success - but if those visitors aren't converting, you could be wasting budget on the wrong traffic. A 'conversion' is when a user takes a desired action on your site, such as making a purchase or signing up for a newsletter.

Signs You Might Be Wasting Ad Spend:

• High CTR but low conversions – Your ad is attracting interest, but something is off when users reach your site.
• Clicks from the wrong audience – Your targeting might be too broad, bringing in people who aren't actually interested in your product or service.
• Landing page issues – If users leave quickly, your page might not match what they expected.

How to Fix It:

• Review search terms to ensure your ads are showing for relevant queries.
• Improve your landing page so it aligns with your ad message.
• Use negative keywords to prevent showing up for irrelevant searches.

5. How to Improve Impressions, Clicks, and CTR

1. Increase Impressions (If Needed)

• Expand keyword targeting (but ensure relevance).
• Increase budget to compete in more auctions.
• Check if low Impression Share is due to budget or ad rank.

2. Boost Clicks by Making Ads More Engaging

• Write compelling headlines that speak directly to searcher intent.
• Use ad extensions (e.g., site links, callouts) to add more information.
• Test different ad variations to see what resonates best.

3. Improve CTR by Matching Searcher Intent

• Ensure the ad message aligns with the keyword intent.
• A/B test different calls to action (CTAs).
• Improve ad copy clarity and offer value upfront.

6. The Bigger Picture: Beyond Impressions, Clicks & CTR

• These metrics are useful indicators, but they don't tell the whole story.
• Next steps: Once someone clicks, look at conversion rate, engagement rate, and time on site.
• Teaser for a future post: What happens after the click? How do we ensure visitors convert?
• Quick recap: Impressions = visibility, Clicks = traffic, CTR =  - but without conversions, you could be wasting money.

Running a Google Ads campaign is like running a shop - getting people to walk by, convincing them to come in, and making sure they stay and buy. By understanding and using these metrics, you can take control of your advertising efforts and improve your campaigns.

If you need assistance with reviewing your campaign metrics or other aspects of your Google Ads strategy, why not book a power hour.