What is CTR? Click-Through-Rate

Have you heard about CTR or Click-Through-Rate but you’re not quite sure what it is? Well don’t worry! because we’ve got you covered!

In this video post we explain all about CTR (Click-Through-Rate) how it is calculated and why it is important.

Watch here

Have you ever wondered with CTR is? or Click-Through-Rate?
I’m going to tell you in this video.
I’m also going to explain why it’s important, why you need to care about it
and what CTR to aim for.
All of this coming right up…
Hi I’m Maggie at Vixen Digital, certified PPC specialists.
We help you to get the right clicks.
So let’s talk about CTR. CTR stands for click-through rate.
It’s the number of clicks your ad receives divided by the number of times your ad is shown.
For example if you have 100 impressions and 2 clicks your ad will
have a click-through rate of 2%.
CTR is a very important metric to keep an eye on
because it gives you an idea of how well your keywords and ads are actually
performing. You can always check on your click-through rate in your AdWords
account. A high click-through rate is an indication that users find your ads
helpful and relevant. To give you an example, let’s say that Mark wants to buy
fresh flowers for his girlfriend’s birthday. He’s typing in fresh flowers,
he’s seeing two ads. The first ad says fresh flowers buy locally, the second ad
says red roses, buy online. Although both of these ads are relevant, Mark is more
likely to click on the ad that mentions his original search term of “fresh flowers”
So why should you care about click-through-rate at all?
Click-through-rate is important because it directly affects quality score. Google cares about the
user’s overall experience and rewards advertisers showing the most relevant
ads. A high click-through rate means a high quality score, which means higher ad
positions and lower cost per clicks. So what is a good click-through rate to aim for?
You should be aiming for at least 2%. However, a good CTR will differ for each
keyword. In your account Google gives you estimates of whether your CTR’s are
good, bad or average, so monitor these closely.
There are various ways of improving your CTR. We’ll be sharing our top tips
very soon. Make sure to subscribe and don’t miss out! If you liked this video,
hit the like button and let us know in the comments if you’ve got any questions
or suggestions. Thanks for watching and I’ll see you soon!

What is CTR? Click-Through-Rate

CTR is a percentage calculation used to determine how well your ads or content is performing. It is calculated by dividing the amount of clicks your ad or piece of content receives, by the number of times your ad or content was shown (impressions).

How do you calculate CTR?

The CTR formula is:

Clicks ÷ Impressions x 100 = CTR %

2 Clicks

100 Impressions

x 100

=

2%

A high CTR is a good sign that people are finding your ads or piece of content helpful and or relevant to what they were searching for. 

A low CTR is a sign that people are not responding well to your ad or content. This can help you highlight what needs your attention and what you need to improve. Low CTR can indicate that people are finding your ad or content irrelevant to their search query or it is simply not enticing enough. 

What is a good CTR?

The average CTR on Google ads is about 2%. So anything above 2% CTR is considered above average. However, CTR can change drastically by industry and by campaign type so it’s important to bear this in mind when analysing your CTR performance.

You can read more about industry CTR averages here.

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