Product Strategy
Click-Through Rate (CTR)
What Is click-through rate (CTR)
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Definition of click-through rate
In digital marketing terms, click-through rate (CTR) is the percentage of user impressions that result in a click, i.e. the number of times a user sees an ad or listing and clicks through to the site.
CTR helps quantify how relevant, attractive, and effective your listing or advert is — as well as representing value for money versus placement costs.
After all, search engines tend to operate on a pay-per-click model. So, in order to be successful, listings and adverts need to encourage users to click on their link and enter their specific site.
A good click-through rate depends entirely on context. For brand names or trademarked products, the CTR rate could reach double digits, while broad keywords might well not even hit one percent.
General FAQ
What is a good click-through rate?
Research shows a good click-through rate is 2%. However, averages vary based on industry and mediums. For instance, display ads may be blocked by adblockers, while emails are targeted to customers directly in their personal inbox.
As an example, it’s believed marketing emails sent by restaurants have an average click-through rate of 1.25%, while the hobbies industry’s emails have a CTR of 5.13%.
What does CTR stand for?
CTR stands for click-through rate, which refers to the number of clicks an ad receives. This can be used to determine the success of an ad.
How to calculate CTR?
You can calculate an ad’s CTR by dividing the total clicks received by the number of total impressions (the number of times it’s shown). For example, if your ad received 10 clicks and 100 impressions, the CTR would be 10%.
How to improve CTR?
You can use several techniques to boost CTR.
One is to make sure all ads include punchy text targeted at your ideal customer. Try assessing your successful competitors’ approach for inspiration.
Another is to run A/B (or split) testing regularly. Create two versions of an ad, featuring different text, offers, etc., and show each to an equal amount of prospects. Go with the one that performs best over a set period (two weeks, two months, etc.).
Finally, do ongoing research to make sure your ads are relevant to your target audience. Keep studying analytics and try to identify why certain ads perform better than others.
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