Limit Your Targeting to the Search Network Only: Oftentimes, advertisers experience low click-through rates for campaigns that are opted in to both the Search and Display Networks simultaneously. Since the Search Network targets an audience that is actively seeking a specific product, advertisers often see significantly higher CTRs than on the Display Network. It is a best practice to create separate campaigns by network. This will allow you to assess your CTR data more effectively and to make optimizations specifically based on performance within that network.
To adjust your network settings, head to your campaign level settings in the Manage PPC tab.
Use More Specific Keywords: Try bidding on mid-to-long tail keywords (ideally 3-4 words) that are targeted to your most qualified customers. Using a more general, highly competitive keyword may sound like a good idea at first, but you end up receiving a high number of impressions from unqualified searchers. For example, if you own a cake decorating business and you bid on the broad term “cake decorating,” your ad may end up displaying to searchers looking for cake decorating supplies. They'll see that your ad is irrelevant to their needs and won't click on it, lowering your click-through rate. Although long tail keywords match fewer searches, it's much more likely that each and every click is someone who is genuinely interested in specifically what you're offering. In addition, be mindful that your keyword match types can also impact your CTR. With broad match, you are likely to be eligible for a higher number of impressions from a wider audience than you would be if you utilized a more restrictive match type. This increases the likelihood receiving impressions that do not result in clicks.
You can utilize WordStream’s Keyword Research Tools, located in the Tools tab, to find new mid-to-long tail keyword opportunities.
Add Negative Keywords: An easy way to cut down on the number of impressions you receive from unqualified searchers is to implement negative keywords. By eliminating impressions from searchers whom you know will not click, you are reducing the ratio of impressions to clicks and therefore improving your CTR.
WordStream’s Add Negative Keywords Alert, QueryStream, and Negative Keyword Suggestion Tool will help you identify important negatives for your account.