Low click-through rate (CTR) can occur when your positioning is not high enough, when your ad is not relevant enough to the keywords associated with it, or a combination of both.  Making your PPC ads more relevant is an inexpensive way that may help improve your positioning in adCenter, which means less money spent on raising your position through boosting your bids. Think of it this way:

High CTR = Good Ranking + Low Cost Per Click (CPC)

Below are a few strategies for improving low CTR:

1. Single ad per ad group?

a. Test multiple ads, ideally 3 per adgroup.

b. Revise poor performing ads by adding call to action, highlighting unique selling points and emphasizing good deals.

c. Repeat ads that have high CTR.

A promotional offer will likely consist of products, a price point, an offer end date, restrictions, shipping details and so on. Try mixing and matching some of these elements into ad titles and descriptions and monitor the performance of each combination

2. Static Ads?

a. Capitalize the first letter in keywords and ad copy

b. Insert keywords into ad titles (learn more about using Dynamic Text)

c. Insert Keywords into ad copy

Example
Capitalize the first letter in keywords and ad copy

Example
Dynamic keywords: if your ads are built around selling brand watches, you may have an ad for Seiko and another ad for Citizen. You may have a different discount program for each type of watch. If you select "Seiko" and "Citizen" as two of your keywords, when a user queries either of those words, the appropriate discount will automatically be inserted into the ad.

When you build your ad, enter All {keyword} {param2} as the ad title. When a user queries "Seiko," the "All Seiko 5% Off" ad will appear.

3. Unfocused, general ad groups?

a. More detailed ad groups

b. More keyword coherence

· Replace poor performing keywords with more relevant ones. Keywords with high impressions and low or no clicks are usually the ones you should review for ROI and remove them if necessary.

c. Tightly targeted, specific ad copy

d. Demographic targeting increases ad relevance

Break up ad groups with many keywords and generalized ad copy into smaller, multiple ad groups. Each ad group should target specific demographics, products, offers or ad intent, such as brand building versus conversion.

Instead of supporting a "Great electronics for a low price" ad with keywords such as Best Buy, computers, cell phones, batteries and Sony, create separate ads targeted to each keyword and its related terms.

4. Poor ad position?

a. Increase base bids

b. Targeting by location bid

c. Demographic targeting bid

You should consider raising bids by as much as 50% on ads that do not show in the top five positions on average. Ads that are supported by keywords that mention specific geographic locations should be targeted specifically to those locations. Learn about setting incremental bids for location and time.

5. Unqualified traffic

a. Highly relevant ad copy qualifies clicks

b. Use negative keywords

c. Try longer keyword phrases

If you only sell certain brands, categories, or product conditions, such as new, used, or refurbished, make sure that you specify this in the ad title and description. Also make sure that you select keywords that specify these details, apply negative keywords to exclude searches that do not apply, or both.