Posted by on | 5 Comments

The competitive measurement metric for landing page quality and success

Relative Click-Through-Rate (CTR) or (R-CTR) is a measurement of how your ads are performing on a display network in comparison to the other advertisers that are appearing on the same websites or targeted placements.

The Relative CTR value is obtained by dividing your CTR by the average CTR of all advertisers on the placements where your ads are shown. Because this is a competitive metric, it’s not static. It will change based on the websites where your ad appears and what other advertisers do.

Metric Definition

Relative CTR = (Your CTR / (Avg. CTR of all competitors))

Benchmark Relative CTR is 1 or 1x as it is displayed in Google Adwords.

Example:  if your CTR is .2%, the avg. competitor CTR is .3%. Your Relative CTR is .66x

This is one of the only competitive benchmark metrics available today in Google Adwords. However, it is not just for Google it can be used across every display network on the web.

The Metric Challenges beyond Google

  • Will the network give you Relative CTR transparency
  • Smaller networks will not have the resources to provide it
  • How accurate is the metric, where are they pulling their data from?

Why You Need to Measure Your Relative CTR

Relative CTR is a very good indicator of your quality score on the display network on Google or your landing page in general. This metric also serves as competitive landing page score. If you have a low score below 1x you can be certain you are paying more than your competitors. The R-CTR as I like to call it is not an end all to Display advertising metrics. Cost-Per-Acquisition (CPA) is  much more important than a R-CTR. A low R-CTR will suggest improvement to an already well performing placement. R-CTR should be measured on the Ad Group level if your campaigns are broken out optimally.

A good structure I would make sure you have for your Ad Groups

Campaign Name: Car Audio Wiring Kit
Ad Group: Car Parts
Ad Group: Car Accessories
Ad Group: Car Racing

Each ad group focuses on specific sites that fall under different categories. You will then want to measure your R-CTR for Car Parts, Car Accessories, and Car Racing ad groups. Anything below 1x can use some polishing. Anything above 1x still needs some polishing but less than below 1x. If your competitors are polishing you better keep your eye on them ;) .



  • http://twitter.com/alejandrognieto Alejandro G. Nieto

    Hi there. Good article, but I didn’t get one thing: How can the relative CTR be an indicator of the quality score of your landing page?

  • http://twitter.com/alejandrognieto Alejandro G. Nieto

    Hi there. Good article, but I didn’t get one thing: How can the relative CTR be an indicator of the quality score of your landing page?

  • http://twitter.com/alejandrognieto Alejandro G. Nieto

    Hi there. Good article, but I didn’t get one thing: How can the relative CTR be an indicator of the quality score of your landing page?

  • http://www.kenpendergast.com Ken Pendergast

    If you are paying more for a placement on the GDN than your competitors, the only driver is quality score. Google is not judging the quality of design they are grading the quality of the placement to the landing page. They are taking a few other behind the scenes metrics, but one way or another it is correlated to a quality score.

  • Pingback: PPC Chat Streamcap – Google AdWords Remarketing Campaigns | The PPC Blog by Matthew Umbro