What is Click-through Rate? Why is it Important?

Syed Balkhi

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Are you wondering what a Click-through rate(CTR) is?

If yes, you’re at the right place. In this article, we’ll talk about what a CTR is and why it is important for your business.

So let’s get started.

You must have seen online businesses using ad campaigns on their websites or YouTube channels. It’s a tactic most digital marketers use to make extra money from their sites.

Advertisers, on the other hand, use it to promote their product or service by boosting their visibility and increasing brand recognition.

So if you have a product or service, you too might want to run an ad campaign to promote your product. But simply placing the ad isn’t enough.

You also need to be closely monitoring how well your ad campaign is performing. By doing that, you can tweak your campaign if things aren’t working as expected.

That’s where CTR comes in. So let’s understand what a CTR is.

What is Click-through Rate?

In digital marketing, CTR or Click-through rate is a metric that measures the number of clicks advertisers receive on their ads per number of impressions.

In other words, it is the number of clicks you get on your ads divided by the number of times the ads were viewed by users.

Monitoring the CTR is important because it helps you understand your customers better. It tells you whether your strategy in reaching your target audience is working or not.

When you have a higher click-through rate, you know that your campaigns are going in the right direction and you’re targeting the right audience.

But if your CTR is low, you need to work on improving your campaign. Having a low CTR might mean that you’re targeting the wrong set of audiences who are not really interested in your business.

Now the question is, what is a good CTR?

What is a Good CTR?

There is no clear answer about what a good CTR is. The reason for this is simple. There are too many benchmarks to consider before determining whether your CTR is good or not.

Also, how good the CTR depends on the campaign you’re running, what strategies you’re using, what your goals are, etc. However, according to different sources, a good CTR can vary from industry to industry.

For example, according to Wordstream, the average click-through rate on the AdWords search network is 1.91% on the search and 0.35% on display.

But Acquisio conducted a study and found this rate to vary vastly across industries. For example, they found that the average CTR for legal services is 4.45%, and for real estate to be 7.58%.

So based on your industry, a good CTR can really vary. However, if we look at the average CTR across industries, it has been found that the average is around 1.91% for search and 0.35% for display.

Now since a good CTR plays an important role, you should always try to improve it for your ads. But how do you do that?

Let’s find out.

How to Improve your CTR

There are various ways to help you improve your CTR. Here are some of the most effective ways to get started.

1. Target the Right Audience

One of the most important ways to boost your CTR is to focus on targeting the right audience. Unless the person who sees the ad is interested in your business, they wouldn’t want to click on the ad.

But they would more likely be clicking on the ads if they are already interested in your product or service. So by targeting the right audience, you can easily make that happen. If you want to promote your physical store, it can be a good idea to use geo-targeting to target people in your locality.

2. Be Specific about Your Ads

Another important point to consider when trying to boost your CTR is to be specific about what you’re offering. Don’t try to trick your audience by promising something and then offering something else.

This will make people ignore your ads. This will automatically decrease your CTR. And that’s not something you want to happen.

3. Use site Link Extensions

Instead of writing a single line to promote your product or service, try using site link extensions. Using them has its own advantage.

Firstly, when you use site links, you no longer have to depend on 80 characters to write your ad. You can now add more details about your business.

Secondly, adding site links makes your ad stand out, attracting more people to it. And thirdly, as Google says, it can instantly increase your CTR by 10% - 20% on average.

So that’s about CTR and how you can improve them.

But remember that just like a low CTR rate is bad for your business, a high CTR can also be dangerous because you end up paying for every click.

This can create additional expenses for your business which is not something you would want.

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Syed Balkhi is on a mission to level the playing field for small businesses. 19+ million websites use his software to grow and compete with the big guys. 100+ million people read his blogs every year to grow their website traffic, sales, & conversion

West Palm Beach, FL

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