Hello, We are currently having a debate in the office. A colleague of mine says that there is a correlation between CTR and Total spend and that they do relate. I disagree with this, does anyone else have an opinion on this I'd like to see if he is wrong or right? Many thanks in advance,
A bit bizarre to think CTR correlates to total spend. CTR can relate to the cost per click, but so does other things such as Max CPC and how competitive your keyword is. This can then effect the total amount you are spending. You could have a superb CTR and be paying 0.90 per click (as your competitors also have a good CTR and/or a high Max CPC) On the other hand you could have a superb CTR and be paying 0.01 per click!
You could say "as CTR increases total spend may decrease". But this is not an exclusive correlation. If I understand correctly I would disagree with your colleague. Poor guy, the internet disagrees with him too
It's true that as your ctr increases so does your total spend, which is what Google wants, but I'm not sure what your colleague is trying say.
Could it be that your colleague's assertion is that as your CTR increases, Google gives you more and better exposure resulting in a compounding effect of more clicks, increasing your total spend even though your cost per click could decrease? That's assuming his whole thesis is predicated on an increased spend, which wasn't specified, although it certainly will work in reverse as well.
only if all other factors remain equal. Its quite possible that CTR goes up but impressions, clicks and total spend goes down. In fact, that scenario is exactly what can happen when you stop bidding on some badly performing keywords. So yeah, ask your coworker whats in his cookies.