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What is Click-through rate?
Click-through rate, or CTR for short, is a key metric used in digital marketing to determine the percentage of people who clicked on a link, ad, or call-to-action (CTA) after seeing it. In other words, CTR tells you how effectively your advertising campaign drives people to take action. Digital marketers use this metric in display ads, search ads, email, and social media marketing. You'll find it in various digital advertising platforms such as Google Ads, Facebook Ads, LinkedIn Ads, and many others.
High CTR means more people engage with your content and potentially become customers. So, the higher your CTR is, the better.
How to calculate the average CTR?
All you need to calculate your CTR is to divide the number of clicks your ad received by the number of impressions multiplied by 100. You can also use the online CTR calculator at the top of this page.
The formula for calculating CTR is:
Let's say your ad was shown 1,000 times and received 70 clicks. To calculate your CTR, divide 70 by 1,000, giving you 0.07. Then multiply it by 100 to get a CTR of 7%.
What is a good CTR?
There's no universal answer when it comes to a good CTR. In fact, what's considered a good CTR can vary depending on the industry you're in and the goals of your campaign. For instance, your CTR may be lower if you operate in a highly competitive industry.
You may prioritize reach over clicks and pay per 1,000 ad impressions to increase brand awareness, resulting in a low CTR. On the other hand, if your goal is to drive traffic to a specific landing page or increase sales, you may prioritize user clicks, resulting in a higher CTR. In other words, if you're running a highly targeted campaign, you may achieve a higher CTR than if you were targeting a broad audience with a general message.
As a general rule of thumb, try to achieve a rate higher than your industry average click-through rate and aligns with your campaign objectives.
If you're looking to get the most out of your ad campaign, it's important to analyze all of its metrics. Don't just focus on CTR. Instead, also analyze your conversion rate, bounce rate, cost per click (CPC), cost per acquisition (CPA), and return on ad spend (ROAS). Each metric provides unique insights into your campaign performance over time. For example, if you have a high CTR but a low conversion rate, you may need to focus on improving your landing page or call-to-action.
Keep in mind that analyzing metrics is not just about the numbers. It's about understanding how your target audience interacts with your ads and making data-driven decisions.