In Online advertising, it’s important to capture people’s attention. In order to accomplish this your advertisement needs to be effective. You can measure how successful your advert is by measuring the number of people who clicked on your ad. Luckily there is a metric that can help you do that and it’s called Click-Trough Rate (CTR).
What is the click-through rate (CTR)?
Click-through rate (CTR) is a metric that measures the number of people who click on a specific advertisement, webpage, or email per the number of people who see it (impressions). This is expressed as a percentage.
What are Impressions?
An impression is when the user only sees the advert without clicking on it. It’s also known as view-through. The impression shows us the number of people who are seeing ads within a particular channel. Calculating this number of impressions that the campaign makes will help us to understand how far the advertising channel really reaches. And also helps us generate other marketing metrics such as click-through rate.
If you want to generate CTR you also need to know how to measure it.
How is CTR measured?
You can calculate the click-through rate with the formula – CTR is (clicks/impressions) x 100.
CTR can be measured depending on the different areas of practice. For example, if it’s an email CTR can be measured in a call-to-action link. On the website is the hyperlink on a landing page. It can be a PPC (pay-per-click) ad on the Google search results page or an ad on a social media site such as LinkedIn, Instagram, or Facebook.
PPC or pay-per-click as the name suggests is when you pay for every click the user makes on your ad. A higher click-through rate will generate better Quality Scores. In turn, the high-quality score predicts a successful PPC campaign. But apart from that CTR is important for other reasons as well.
Low CTR
As we mentioned above higher CTR leads to success in PPC ads. But also CTR will show you if there are any areas that need improvement.
For example, low CTR indicates that something is wrong and needs to be fixed. Because the users are finding your ad to be less relevant. Therefore you can improve it and increase the chance of getting a higher CTR.
High CTR
High CTR indicates that your ads effectively capture the interests of your target audience. But not always Higher CTR is good for the business. If your keyword is not suitable it will not generate sales, leads, etc. So it’s important to have high CTR on the relevant and affordable keywords for your business.
The first step for improving the relevance of your advert and getting those desired actions is good CTR.
What is a good CTR?
A good CTR depends on the industry. For arts and entertainment, a good CTR is between 11% and 12%. But most industries have a good Google Ads click-through rate is around 6 and 7%+. Then the average CTR is between 4 to 6%.
A good CTR also depends on the running campaign, the target keywords, and the channel. So there are a lot of factors.
