Is a 1% CTR Good in Ads? (Insurance)

Click-through rate (CTR) is one of the most debated metrics in insurance advertising. Many agents see a 1% CTR and assume their ads are underperforming. The reality is more complex — in some cases, 1% is above average, while in others, it signals that your ads need improvement.

What does CTR really mean?

CTR measures the percentage of people who clicked your ad after seeing it. If 1,000 people saw your ad and 10 clicked, that is a 1% CTR. While CTR shows how effective your ad is at getting attention, it does not reveal whether those clicks are converting into leads or policy sales.

Industry benchmarks for insurance ads

In the insurance industry, CTR averages vary significantly by platform:

• Google Search Ads: Typically between 2% and 4% because users are actively searching for policies or quotes.
• Google Display Ads: Often between 0.35% and 0.8%, since these ads are shown to a broader audience browsing online content.
• Facebook Ads: Around 0.5% to 1% for insurance products, making a 1% CTR a strong result on this platform.

When 1% CTR is good for insurance ads

• If you are running Facebook or Display Ads, where 1% is at or above the average performance for insurance campaigns.
• If your cost per lead is profitable, even if CTR is not exceptionally high.
• If your campaign is designed for brand awareness and long-term nurturing rather than immediate conversions.

When 1% CTR is a warning sign

• If you are running Google Search Ads and your CTR is significantly below the 2% to 4% average.
• If your targeting is too broad and you are attracting clicks from unqualified prospects.
• If your ad creative fails to communicate trust, urgency, or the value of your policy offerings.

How to improve CTR for insurance ads

1. Speak to specific needs: Instead of “Affordable Insurance,” try “Get Auto Coverage That Fits Your Budget in 10 Minutes.”
2. Use credibility builders: Highlight years in business, claims paid, or customer satisfaction ratings.
3. Target high-intent keywords: Focus on searches like “compare life insurance quotes” or “local car insurance agent.”
4. Promote limited-time offers: Discounts for new customers or bundled policies can drive more clicks.

The bottom line for insurance businesses

A 1% CTR can be excellent for Facebook or Display Ads in the insurance space, but it may be below par for Google Search campaigns. Always pair CTR with metrics like cost per lead and policy conversions to measure true success. The goal is not just clicks — it is profitable policy sales.

Want to increase your insurance leads? Contact us for a free ad performance review.