In Internet marketing, CTR stands for click-through rate: a metric that calculates the number of clicks that marketers earn per number of impressions on their advertisements.

Achieving a high click-through rate is important to your PPC performance, since it directly affects both your quality score and how much you pay each time someone clicks on your search ad. Are the click-through rates holding you back, or are they strong enough?

What is Click-Through Rate?

PPC click-through rate is the rate at which your PPC advertisements are being clicked. This number is the percentage of people who see your ad (prints) and then actually click on the ad (clicks). The CTR formula looks like this:

(Total Clicks on Ad)/(Total Impressions) = click via the mouse.

Generally, you can display your click-through rate in the dashboard of your PPC account. High CTR means that a high number of people who see your ad click on it.

 

CTR is an important metric because it helps you understand your customers—it tells you what works (and what doesn’t work) when trying to reach your target audience. A low CTR could indicate that you’re targeting the wrong audience or that you’re not speaking their language persuasively enough to convince them to click.

Let’s take the example of a paid search ad campaign that directs people to your website, e-commerce store, or landing page. An online advertisement’s CTR lets you know how effective the ad is at drawing in potential customers; you can then compare ad copy, ad position, and CTAs to see which has the highest CTR.

CTR varies between industries. To determine what a good click-through rate would look like for your business, you could start by researching your industry’s average click-through rates. Once you have an understanding of existing benchmarks and industry averages, you can begin taking steps to get a higher CTR and reach your business’s goals.

 

Why is Click-Through Rate Matter?

Click-through rate is critical to your account because it directly affects your quality score.

Google AdWords and other search marketing channels offer price cuts on high-performance advertising (read: make searchers happy). One way to do this is to give higher quality scores to AdWords with high click-through rates:

  • High click-through rates result in high content ratings.
  • High quality scores allow you to boost or retain your ad position at lower cost.

In addition, if you are advertising on the related questions, achieving a high click-through rate means that you are attracting as many customers as possible to your product.

What is the “Healthy” Click-Through Rate?

 

This is a hotly debated issue: what is a good click-through rate?

The honest response to the question is, “It depends.” Click-through rates would inevitably differ from campaign to campaign, and even from keyword to keyword. Anything involved in the way your ad is shown plays a role, from your copy of the ad to the ranking on the results page.

But while you want to have a high click-through rate, there really isn’t a magic number. The average click-through rate varies by sector, and your predicted CTR depends on the location of your ad, among other factors.

The average CTR for AdWords is 1.91 percent for search and 0.35 percent for show. But the average is just that: the average. Thus, as a rule of thumb, a strong click-through rate for AdWords is 4-5 per cent + on the search network or 0.5-1 per cent + on the show network.

When Higher Click-Through Rate is actually bad for company

If a keyword is not applicable to your company or does not produce sales, leads, branding gains, etc., then a high click-through rate for that phrase is actually bad for business. The justification for this is very clear:

You pay for every click.

A lot of clicks produce a lot of ad spending. Often you make clicks on keywords that are priced too high, and you won’t make a profit even though you convert them. Irrelevant words and clicks are only wasting money without making additional company. But you don’t really want higher click-through rates: what you want are high keyword CTRs that are:

  • Relevant-Take a look at your ad text, your landing page, and your bid.
  • Affordable-keywords that are not going to be profit-prohibitive.

So, in a nut shell, a successful CTR means first targeting the right words, then making as many people as you can click on those ads.

CTR is an important metric because it helps you understand your customers—it tells you what works (and what doesn’t work) when trying to reach your target audience. A low CTR could indicate that you’re targeting the wrong audience or that you’re not speaking their language persuasively enough to convince them to click.

Let’s take the example of a paid search ad campaign that directs people to your website, e-commerce store, or landing page. An online advertisement’s CTR lets you know how effective the ad is at drawing in potential customers; you can then compare ad copy, ad position, and CTAs to see which has the highest CTR.

What is a good CTR?

CTR varies between industries. To determine what a good click-through rate would look like for your business, you could start by researching your industry’s average click-through rates. Once you have an understanding of existing benchmarks and industry averages, you can begin taking steps to get a higher CTR and reach your business’s goals.

Having a High Click-Through Rate for Your Ads

Achieving high click-through rates in the PPC depends on:

When an individual opens an email, they do so because of two primary factors. 1) They recognized the recipient 2) The email’s subject line reeled them in; and most probably both.

Once inside the email, the information had better be targeted and relevant, or else most won’t read to the very bottom. And the bottom of the email is typically where the link resides.

At any rate, a great email not only attracts readers, but it also entices the click.

More click-throughs simply means that your email marketing efforts are paying off.

Of course and once again, email CTRs are only part of the story. Your readers could click through your emails only to bounce from your landing page. That’s why your entire marketing message has to be consistent and cohesive.

But excellent CTRs for your emails is definitely an excellent start to an effective digital marketing campaign.

How to Boost Organic Click-Through Rates

search engine optimization campaign has the ultimate goal of jumping to the top of the search engine results pages (SERPs). Getting to the top of Google’s first page for your primary keywords is quite a feat, but only if your click-through rates rise along with your rankings.

What good is an organic listing if few leads click on it? Instead, you’ll want to work on improving your organic click-through rates to keep the leads flowing in from Google and other search sources.

Advanced Web Ranking has created a chart that shows the average Google click-through rates according to the use of both mobile and desktop devices.

Targeted keywords for the bid.

Cost-effective taps.

Resources and methods for the close integration of keywords with ad text and landing pages.

Ability to rapidly and easily segment keyword classes in order to generate closer targeting.

Note, the higher your click-through rate, the lower your quality scores are likely to be, and high quality scores are one of the single best predictors of PPC performance.

As we covered earlier, measuring CTRs for emails is the same as it is for advertisements, you’ll merely switch “Impressions” with “Number of Emails Delivered.”

For instance, if you send an email to 250 subscribers and 20 clicks on a link contained within the email, your CTR would be:

CTR = 20 / 1000 x 100 = 2%.

The more people who click on the email’s links, the more successful the email is said to be.

In fact, CTR is seen by email marketers as one of the most critical KPIs for measuring email marketing success, second only to open rates and delivery rates.

Need help with improving the click through rates for your marketing campaigns? Get in touch today.