Click-through rate (CTR) in Google Ads represents the percentage of people who see your ad and actually click on it, indicating how relevant and appealing your ads are to your target audience. As of early 2026, Google’s algorithms heavily favour ads with strong CTRs, impacting your Quality Score and ultimately, your cost per acquisition.
- Dynamic Search Ads (DSAs) now feature AI-powered headline optimisation, meaning Google automatically tests different headlines to maximise CTR based on user search queries.
- Performance Max campaigns utilise advanced audience signals and automated bidding strategies, with CTR being a key performance indicator influencing budget allocation.
- Current systems include enhanced location targeting, allowing for hyper-local ads that resonate with specific Australian regions and demographics.
A ‘good’ CTR in 2026 varies significantly by industry. Generally, a CTR above 3% is considered above average, while 5-8% is excellent. However, highly competitive industries like finance or legal may see average CTRs closer to 2%. It’s also crucial to consider Search vs. Display Network performance; Display typically has lower CTRs (around 0.35% is reasonable) due to its broader reach. Australian businesses must also be mindful of ACCC guidelines regarding ad transparency and accurate representation of services when optimising for CTR.
Rather than navigating these complex technical requirements yourself, you can simply reach out to our team. At ROI.com.au, we can take care of all this for you—visit our contact page to get started.
