Here’s Everything You Need To Know About Click-Through Rate

What Is A CTR?

Click-through rate (CTR) is a digital advertising term that refers to the percentage/ratio of clicks on an advertisement to the number of views on the ad posted by a marketer on a website. CTR is important because it measures the success of an advertising campaign.

How To Calculate CTR?

Here’s the formula to calculate CTR:

CRT = (clicks / impressions) x 100

Why Is CTR Important?

CTR is important for D2C brands because it measures the success and the failure of a brand’s advertisement. CTR tells the brands how relevant their ads are to the target audience. Improving the CTR raises the chances of improving conversion rates, which ultimately helps in increasing the revenue of the brands. 

How To Improve CTR?

• A brand can start by analysing its past marketing campaigns by reviewing the performance of previous emails to identify areas for improvement.
• When sending out emails, focus on one call to action (CTA) and keep the CTA very clear. This will help the target audience focus on a single task and theme, which may result in higher CTR.
• It is a good idea to address the recipients by their names or reference past interactions for personalisation.
• Tailor content for the target audience by creating content specific to the interests of the intended recipients.
• Marketers should write engaging copies. The content must be concise and have compelling text to maintain reader interest and include images to visually enhance the content. 
• Optimise the content for mobile, ensuring that emails display properly and are easy to read on mobile devices.
• The content must have a conversational tone as if speaking to a friend by using approachable language.
• If possible, incorporate social proof like customer testimonials or success stories to build credibility and gain customers’ trust.
• Use time-sensitive language to create urgency to prompt immediate action from the customers.
• Brands should schedule emails when recipients are likely to engage with them.

What Is A Good CTR?

A “good” CTR depends on factors like campaign, keywords, and ad purpose. Industry benchmarks and ad position impact CTR expectations. Benchmarks reveal diverse industry averages. For instance, legal services brands aim for 5-6% CTR, while those in arts/entertainment target 11-12% CTR. Generally, a CTR of over 6-7% is considered solid.

How To Improve CTR For Facebook Ads?

• Consider narrowing your audience by segmenting them into specific groups rather than a broad one, enabling more tailored messaging that resonates and drives higher engagement. For instance, an online fitness equipment store could target ads specifically to individuals who have shown interest in home workouts, rather than a generic fitness audience.
• Run retargeting campaigns by reconnecting with users who have previously engaged with your brand but haven’t converted. Brands can show relevant ads and increase their chances of them clicking and converting. For example, an online clothing store could retarget users who added items to their cart but didn’t complete the purchase.
• Employ engaging visuals by using videos, GIFs, and infographics to catch the user’s attention to halt their scrolling session to interact with the ad. For example, an electronics retailer can use a short video showcasing the features of a new smartphone.
• Try creating content that is relatable and addresses the audience’s pain points or needs along with a clear CTA. 
• Include positive reviews, testimonials or user-generated content in your ads to build trust and credibility. For example, a restaurant ad could include a quote from a satisfied customer.
• Before making the ad live, split test everything via A/B testing. Create variations of different ad elements to see which combinations resonate best. For instance, an ecommerce store could test two different headlines, one focusing on discounts and the other on product features. Analyse the results and modify the strategy.

How To Improve CTR For Google Ads?

According to Google, the following are effective practices to improve CTR for Google ads:

• Marketing campaigns must ensure that the ad details match the intent of the keywords. This ensures that users who click on the ad find exactly what they’re expecting on the landing page.
• Consider highlighting the unique benefits of the product/service like free shipping, and explain the USP of the product or service offer which could encourage users to click.
• Experiment with different CTAs for the landing page that will directly relate to the action users will take on the landing page. This will improve the UX, which will lead to higher CTR. Play around with words and phrases like “buy, sell, order, browse, find, sign up, try, get a quote”. Use verbs that resonate with their intent.