Anyone who’s ever even dipped a toe in the performance marketing ocean has heard of CTR. CTR, which stands for “Click-Through Rate”, is a calculation of how many people clicked on an ad (clicks) divided by the number of times the ad was shown (impressions).

So, what is CTR?

Ad Clicks ÷ Ad Impressions = Click-Through Rate

As one of the classic performance marketing metrics, you’re going to be bumping into CTR a lot. But CTR is much more than only a metric. Because advertisers typically pay publishers for every single ad click, CTR impacts the bottom line for the two sides in the advertising venture.

So, in light of the importance of CTR in your everyday PPC activities, we as Dallas SEO services provider outlined 7 things you really should know about your CTR. By simply internalizing these things, you’ll go a long way to knowing how CTR works, and what you could do on your CTR to allow it to be simpler than it is now.

7 Things you should know about your CTR:

  • Why is CTR a Key Metric?
  • What is “good” CTR?
  • Does CTR Affect Your SEO?
  • Better ad copy can go a long way to boosting your CTR
  • Keywords count — a lot
  • Testing is your way to success
  • Know your audience

Why is CTR a Key Metric?

Generally speaking, higher CTR has been revealed to correlate with higher conversion rates. This is probably connected to the fact that if people are clicking on your advertisement, then there’s something engaging in it. In turn, they’re more likely to be excited by your offering and follow through on your Call to Action. Also, if more people are clicking through, then the engagement rate is higher, the Quality score enhances, the cost per click is lower, and the impression reveals increases too. Good CTR has a ripple effect, creating a whole series of favorable results.

But taken together with your other KPIs, it’s even more potent

Remember, CTR is a measure of how many people clicked on your ad. It does not reflect the conversion rate on your landing page, like the number of people who completed a form or contacted your sales rep. Taken by itself, the CTR can tell you how attractive your advertisement is by how many clicks it generates — but if you’re aiming for conversions, not just audiences, then the CTR alone won’t tell you a lot.

For instance, if an advertisement has a very high CTR yet low conversion rate, it is probably a sign that the audience you are reaching is overly broad, or perhaps the advertisement message isn’t properly aligned with the landing page. Use your CTR together with different metrics to give you a whole picture.

What is “good” CTR? It depends…

What is considered to be a good CTR changes greatly, and is determined by the platform too? For AdWords paid search, 2 percent CTR is typical and anything above that amount is considered good.

However, for Facebook advertisements, the average CTR another factor is the kind of industry you’re serving. This page has some interesting graphics showing the CTR averages for various categories. The best 3 CTR performers? Dating & Personals, Finance & Insurance, and B2B.

Besides keeping tabs on your business’s average, remember — the toughest competition you face is yourself. Try to beat your record, and focus on attaining a higher CTR in your next campaign than in your past.

Does CTR Affect Your SEO?

Your rank on search engines is partially based on how popular your website is, and popularity is measured by page views. The more clicks your page gets — or, in other words, the higher your CTR — the more valuable the search engine deems it to be. So your webpage will rank higher. Conclusion? Higher CTR equals better SEO.

It’s all about quality and value. Search engine research engagement to find out which webpages will be suitable for the search query. So make your site the ‘party that everyone wants to attend’, and enhance your CTR to enhance your SEO.

Better ad copy can go a long way to fostering your CTR

Unless it’s one of the 50% (!) Of accidental clicks, a person clicks on your ad because they find it engaging or interesting. High CTR advertisements succeed in ‘talking’ to the target audience. Conversely, if your ad has a low CTR, you may be able to improve it by working on the ad copy, message, or design, to make it more appealing to your audience. Take a peek at your higher-performing ads. What words or phrases do you use? What does the call to action sound like? What stands out about the design? Try to replicate the things that make your ads work, so it is possible to get even better results.

Keywords count — a lot

It’s not just a copy that has to be convincing. You’ve got to work on your keywords too. Along with the key is this: be specific. Here is an example — suppose you are a baker targeting people looking for cupcake catering to events. The keyword ‘cupcake’ is quite broad, but should you narrow your keyword to ‘special cupcakes catering’, you’ll reach a far more targeted audience. By choosing a focused keyword, you may be sacrificing the number of impressions and clicks, but you’ll probably achieve a higher CTR. This is because your ad is bringing more qualified traffic, to begin with. In brief, don’t go keyword crazy — it’s much more CTR-smart to center on a single powerful primary keyword or long-tail keyword.

Testing is the best way to success

Since ioVista Inc in-house PPC experts have pointed out before, PPC is all about testing what works and what does not. It is really important to utilize A/B testing on your ads so you can figure out how to increase your CTR. Check out this fantastic list to get some thoughts about how you can test and tune-up your ads. It might be something as seemingly small as tweaking punctuation, using numbers instead of words, or the way you’ve phrased your call to action. Or perhaps you need an emotionally resonant image. Whatever it is, when your test results are conclusive, make certain that you implement the required changes to your advertisements. Then begin the cycle of publishing and testing them again. With a little bit of sweat and lots of perseverance, you can optimize your campaigns and ship your CTR soaring.

But before we sign off, we would like to present a final bonus tip on how to boost your CTR:

Know your audience

“If you would like to improve your CTR, start by truly knowing your audience. Get inside their minds. Think about the way they would describe the product or service they’re looking for. Learn their language and utilize their jargon. Dismiss the things that may seem significant to you, but just are not to them. This is not as simple as it seems! It involves deep comprehension of your business, complex number crunching, and analysis — but most importantly, it means talking to your clients. Each interaction you have with your clients is a chance to discover more about them. Do not leave this very important information untapped! Get to understand exactly what your ideal customer profile seems like, and be certain you are implementing it at every opportunity.”

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