CTR stands for Click-Through Rate and is one of the essential metrics for digital marketing and lead generation. Together with the conversion rate, bounce rate, and time on site, CTR orients marketers as to how audiences respond to paid ads they see online. Although the average click-through rate differs from industry to industry, a low CTR typically suggests that an ad completely misses a target audience. At the same time, a high CTR is not a universally good sign. Keep reading, and you will find out why.
Click-through rate definition
Click-through rate (CTR) is defined as the percentage of people who got interested in your ad and clicked on it as compared to those who only viewed it and made no action (impressions). The metric is important for pay-per-click marketing.
Although the click-through rate definition refers mainly to paid ads, there are many other areas where CTR is applicable. Lead generation efforts are of little use without such metrics as open rate, email click-through rate, read rate, or bounce rate.
Belkins experts navigate lead generation metrics and analytics with ease and always know how to optimize for clicks. From a Sign-Up button on a landing page to advertising copy, any link marketers want their target audience to click and use CTR as a metric of success.
What is a click-through rate telling you?
CTR tells marketers many things. For instance, when you analyze the metrics of your paid search ad campaign, you get CTRs from several spots on your landing page and website and see which working, call-to-action, and ad position bring you the best numbers.
CTR is important not only because it can be translated into a good conversion rate but also because many clicks signal to search engine algorithms that your ad is popular, promotion-worthy content. As a result, your Google Ad Quality Score is boosted, and your ad rank is high.
Is there a universally good click-through rate?
Universally, there is no such thing as “good CTR” because it is contextual. Each industry has its own benchmarks and average metrics. According to Google Ads, the highest CTR for search advertising (3.4%) is in the Dating and Relationships Industry and the lowest in the Legal Industry. For display advertising, the highest CTR is for Technology and the lowest for Employment Services. Overall, search advertisements average around CTR of 1.91% and display advertising CTR of 0.35%.
When top management and marketers analyze the CTR of their new marketing campaigns, they already know the average numbers in the industry and then compare their current numbers to the results of their previous campaigns.
Can a high click-through rate be bad news?
There are tricks to increase CTRs, but before using them, you need to make sure that the high click-through rate is what you really need. For example, by using a trending keyword, you can get your CTR through the roof, but conversions are low because those clicks were not your target audience. As a result, you pay for clicks that cannot be converted into high-quality business leads. Therefore, you should aim to have high CTRs not just for the sake of impressive numbers. It is essential to increase your CTRs by using relevant keywords and paying affordable prices.
Know the click-through rate formula?
The click-through rate formula is simple: Get the number of clicks, divide it by the number of impressions, and find out the percentage by multiplying by 100.
For instance, if you have 100 clicks and 20,000 impressions, that ad copy or paid search has a CTR of 0.5%:
(100/20,000) x 100 = 0.5%.
How to calculate click-through rate in email marketing?
Calculating a click-through rate isn’t as difficult as it seems. Emails can also make use of CTR because it is important how many prospects actually open an email and click on the links and buttons inside. In email marketing, click-through rates can be coupled with other email-related metrics to get a more comprehensive idea of B2B leads’ response.
Keep in mind that it is not only important how to calculate click-through rate but also how to compare and contrast it to other business metrics. On their own, click rates are rather meaningless if they are not paired with conversion rates and deal rates. If still in doubt, you can also read an article [what is ctr] to find more data online.
Managing your clicks
Can you say “What is CTR” now? What is the click-through rate telling you? If you struggle to interpret the murmurs and shouts of your CTR and other PPC tools, we at Belkins know how to make metrics talk. We know all kinds of analytics inside-out since we are a well-established lead generator. Click to book a consultation with our experts and get quality advice for your business - we’ll make sure that you have only good click-through rates.