what is click through rate

What is Good Click-Through Rate (CTR)? How To Measure Online Marketing Performance With Calculating CTR metrics

Do you run any Ad campaign? How do you really know what’s happening with your PPC ads? Do you have a low conversion rate? Want to make more money with SEO? We will help you with how to measure Google Adwords conversion using CTR metrics.

Modern google analytical tools help you track and analyse ad traffic data. But numbers and graphs cannot help you alone for a winning strategy.

Well, we did research on PCC ads for 6 months before making this guide to CTR. We asked several PPC campaign managers there tips and tricks and summed up for you in this post.

What is Click-Through-Rate?

CTR full form Click-through rate has been in debate for the past many years. CTR is the most commonly used online advertising performance metric. Typically, web publishers generate revenue from Google Adwords each time a visitor clicks on one of the advertisements. CTR is a benchmark study on average ad performance for digital marketers. Therefore, publishers, constantly monitor page view results in click ads.

CTR Definition

Let’s check out the CTR definition:

Click-through rate (CTR) is the ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement. It is commonly used to measure the success of an online advertising campaign for a particular website as well as the effectiveness of email campaigns.

Wikipedia

We all know running a successful marketing campaign takes a lot of efforts, time, and money. Did you know the effectiveness of an online marketing campaign depends on several factors like audience, content, details, competition, reach, and approach. But how you can measure if you’re doing the right thing?

Before we get into ‘how’, let’s understand why it is imperative for a marketer to measure campaign effectiveness.

Why Do You Need CTR?

Any small to large size business spent a large portion of hard-earn money on marketing. After all, if you do not invest in the things to create a powerful customer base. Then your company is not going to grow in business size and revenue. We do not want to scare you off with a long list of benefits. So we build a small list of 6 reasons you need to measure online marketing campaign effectiveness.

  1. Monitor return on investment (ROI) to measure the quality of leads a campaign generates.
  2. Analyse Cost Per Sales (CPS) to compare between campaign
  3. Cost Per Leads (CPL) measure the cost-effectiveness of the campaign.
  4. Campaign analysis offers insight into the quality of traffic on a website.
  5. Measurement or employees performance
  6. Benchmarking against other businesses

Moving to the next step, how to measure the success rate of a business. Now you’re sold on the importance of CTR metric is a perfect complement to measure online campaign success let’s explore the topic further.

How To Calculate CTR Metric?

Want to learn ‘how to calculate CTR metric?’ CTR is the number of clicks that your ad receives divided by the number of times your ad is shown. Here is CTR Formula

  • CTR = Number of clicks / Number of exposures.
  • CTR% = Number of clicks * 100 / # of exposures

For example, if you site ad has 1,000 impressions and 200 click, your ad will have 2% CTR. Do you know CTR is an important metric?

Types of CTR

CTR is a primary step to improve ads relevancy and generate actions. Now you may be wondering what does low or high CTR means?

  • High CTR: is more effective to bring people at a website.
  • Low CTR: when a user finds your ads less relevant.

An ultimate goal of any ad campaign is to get qualified users on a website to achieve the desired goal. The goal can be to make a purchase, fill out leads, browse for information, fill a contact form, or to download specs.

CTR For Different Platforms

It’s not just Google Adwords to facilaite CTR metrics. Every advertisement platform offers insight into click-through-rate to measure performance. We asked 10 different digital marketers about common platforms to use CTR. Here is a list we found:

CTR in Google AdWords / Google PPC ads

What is click through rate in Google AdWords? Every marketer thinks about optimizing ads to target potential customers. Google AdWords is a great way to reach a mass audience without search engine optimization. Click through rate in Google Adwords is a ratio shog how many people who view Ad end up clicking.

The ration signifies how well Ads keywords are performing in Ads. For example, if you had 10 clicks and 200 impressions then your site CTR is 10%. Each keyword has its own CTR which is visible in the Google AdWords account.

What is high CTR in Google AdWords? High click-through-rate in Google AdWords indicate that user finds your ad relevant and useful.

  • Google Adsense
  • Amazon PPC
  • Facebook ads
  • Email marketing

What Affects a Click Through Rate?

Many people ask us what’s a good CTR? With every other metric used to measure the success of a campaign, there are few factors click-through-rate. Here are

  • Relevance: Depends on the message ad copy is sending
  • Niche: The industry you are targeting
  • Keywords: The set of keywords you are bidding
  • Quality of imagery: Quality of graphics to attract the audience
  • Ad rank: Position on which ad copy will show on the page
  • Ad positioning: Placement of ads on the page
  • Device: Smartphone or device on which customer view ad

6 Proven Ways to Improve Google Adwords CTR Metric Smartly

Benchmarks help to determine if your campaigns have good CTR. If you are afraid to lose customers then determine baseline performance in comparison to your competitors. However, they do not offer any guarantee. Although, none other performance metrics does. 
Comparing CTR is complicated as it is a highly customizable nature of PPC ads.

A small change in your campaign audience could make or break performance. Adding to this, there are still scopes fo improves in your CTR. Those who are striving to bring back the positive effects of CTR here are 6 proven methods to improve CTR today:

Targeting Audience is the Key

There is no doubt to the key to run an engaging PPC campaign is targeting the audience. For sure, there are several other factors you host on the pages. Like call-to-action, message match, images, and content that come into play But if your audience is not interesting in what you’re offering, they won’t convert. 

Limit your focus on the reach to only those who are likely to buy. Once you get that done, you can start to optimize the content within your ads to boost performance. Trying to do neglect the audience targeting will cost high advertisement and waste of time.

Long-Tail Keywords To Rank in Search Engines

We all know the importance of long-tail keywords in SEO. But how many of us utilize the SEO strategy? Did you know less than 40% of marketers use long-tail keywords in SEO? Long-tail keywords are as much essential for Ads as for blog posts. You can research for a long-tail keyword with popular SERP tools like SEMrush and Ahref.

By integrating long-tail keywords to your SEO strategy, you’ll greatly increase the volume of organic traffic. It is the smartest way to rank in search engines.

Customize Creative Ads

Do you know an average CTR of a display ad is around 0.1%? This rate is significantly lower than the average. If you do not want to settle for average then it’s time to experiment with few tweaks.

Begin with choosing an effective ad size. Do not set yourself up for success. The next step is to ensure, to follow that your site is optimized for both web and mobile. Next, let’s come to real talk! Trial and error is the key. Keep testing your ads until you achieve a real solution. 

Are you short of ideas? Monitor and analyse your competitor’s marketing strategy. Search competitors by industry, placement, goals, and attributes with similar objectives. Determine the type of content they use in display ads corresponding to a number of shares, likes, and comments. To create better Facebook ad campaign research more and improve better. 

Create Micro-Niche Ads

There will be a point when you’ll sabotage with a situation micro-niche ads. Especially, when it comes in a search network. The path to call-to-action should be clear. You should learn what end user is looking for. If you don’t give them exactly that, your CTR will increase. 

On the other corner, keyword searches should be very specific. For instance, if someone searches for ‘Green Pants’ they want to see green pants and not your homepage. Moreover, no one is any more interested in a generic tennis ad. They do not even the gree shirt you sell.

How to resolve the issue? The best way to ensure that you are giving search share user wants is to use a single group of ads. They will help you fight against the error in your average Adwords account. 

Use Site Linking Extension

None of your customers wants to see a boring ad. Additionally, standard ads without an extension learn you with 80 characters for description and 30 for the headline. If you’ve ever written multiple AdWords ads at once, you know the struggle. But it doesn’t have to be that way. 

They are extra links that you can add that relate to your general offer on any given ad. They help you add even more specificity to your ad with different sections in order to someone’s interest. Google recommends having at least six sitelinks for desktop ads and four for mobile ads.

Optimize For Higher Conversion

CTR is typically generated with an action to convert into leads. But should not be confused with the conversion rate. However, as one of the major step to leading conversion is to optimize to maximize the number of people who can convert. An authentic way to increase to improve the performance of elements it tracks such as copy, subject line, title, description, image, and keywords.

To accomplish the best results, you need to consider each element individually. employ industry best practice to raise the standard. For example, pack your ad copy with power words such as ‘released’, ‘exclusive’, ‘hidden’ etc. This is a surefire approach to incite action and tempt the user to click. To increase email CTR, avoid using phrases that are generic. Such as ‘click here’. it tells your subscribers nothing about what’s waiting for them on the other side of the link.    

Spend time to learn the most powerful optimization techniques. Study more about Google AdWords and Facebook marketing. If you really want to nail the online marketing strategy and drive more sales.

Conclusion

Your CTR will tell your PPC campaign performance. It may seem simple in the definition. CTR means what percentage of users who view your ad are clicking. But it has a broad reach and implications in digital marketing. Thus, it is an important metric to measure and optimize. To conclude, CTR will facilitate you to diagnose potential challenges within your campaigns. While you may struggle to identify ad issues without CTR metric.

Learn More: Click through Rate (CTR): Definition

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