Anyone even immersed in the world of performance marketing has heard of CTR. CTR, which stands for "click-through rate", is a calculation of the number of people who clicked on an ad (clicks) divided by the number of times the ad was viewed (impressions).
So, what is the click-through rate
Ad clicks ÷ ad impressions = click-through rate
As one of the classic performance marketing metrics, you'll run into a lot in CTR. But CTR is much more than a metric. In fact. Since advertisers usually pay publishers for each ad click, CTR affects the bottom line for both sides of the advertising partnership.
So, in light of the importance of CTR in daily PPC activities, we have summarized 7 things you should really know about CTR. Just by grasping these points, you will go a long way to understanding how CTR works, and what you can do about CTR to make it better than it is today.
Why is CTR a key metric
In general, a higher CTR has been shown to correlate with higher conversion rates. This is likely related to the fact that if people click on your ad, there is something interesting about it. In turn, they are more likely to be triggered by your offer and follow through with your call to action.
Also, if more people click through it, engagement rate is higher, Quality Score improves, CPC decreases, and ad impressions are also increased. A good CTR has a multiplier effect, which creates a whole chain of positive results.
But with other KPIs, it is more powerful
Remember, click-through rate is a measure of the number of people who clicked on your ad. It doesn't reflect the conversion rate on your landing page, like the number of people who completed a form, or contacted your salesperson .
CTR alone can tell you how attractive your ad is by the number of clicks it generates – but if you're aiming for conversions, not just viewers, CTR alone won't tell you much.
For example, if an ad has a very high click-through rate and a very low conversion rate, it is likely a sign that the audience you are reaching is too broad, or perhaps the ad message is not aligned correctly with the landing page. Use CTR with other metrics to give you a complete picture.
What is a "good" CTR? It depends…
A good CTR varies greatly and depends on the platform as well. For Google's paid search advertising program, a click-through rate of 2% is average, and anything above that number is considered good.
However, for Facebook ads, the average CTR is 0.9%. Another variable is the type of industry you serve. This page has some interesting graphics that show average CTRs for different categories. The three highest performing categories in terms of CTR are Dating & Personals, Finance & Insurance, and B2B.
Besides keeping track of your field average, remember that the hardest competitor you face is yourself. Try to beat your own record, and focus on achieving a higher CTR on your next campaign than your last.
Your ranking in search engines depends in part on how popular your website is, and its popularity is measured by page views. The more clicks your page gets – in other words, the higher your click-through rate (CTR) – the more valuable the search engine is. So your page will naturally rise higher. conclusion? Higher CTR equals SEO.
Better ad copy can go a long way to boosting your CTR
Unless someone accidentally clicks (!) 50% off, someone clicks on your ad because they find it interesting or interesting. High CTR ads succeed in “talking” to the target audience .
Conversely, if your ad's CTR is low, you may be able to improve it by working on ad copy, message, or design, to make it more attractive to your audience.
Take a look at your high-performance ads. What words or phrases do you use? What does a call to action look like? What stands out in the design? Try to repeat the things that make your ads work, so you can get better results. Word Count - Lots
Not just copy it has to be convincing. You should work on your keywords, too. The key is: be specific. Here's an example - let's say you're a baker aimed at people looking for event-specific cupcakes.
The keyword “cupcake” is very broad, but if you narrow your keyword to “special cupcake for catering,” you will reach a more targeted audience. By choosing a focused keyword, you may sacrifice impressions and clicks, but you are more likely to achieve a higher CTR. This is because your ad attracts more qualified traffic to get started.
In short, don't use crazy keywords - it's smarter with CTR to focus on one strong primary keyword or long tail keyword.