CTR ("click-through rate") technically shows the ratio of the number of users who clicked on an advertisement to the number of users who saw the ad.
What Does CTR Tell Me?
The click-through rate (CTR) measures the relevance of ads to users and helps evaluate the effectiveness of a campaign. A higher CTR indicates that a banner or ad is more engaging, leading to more clicks for the company.
How to Calculate CTR? - Formula
The calculation of CTR is pretty easy:
CTR = total number of clicks on the ad / total number of ad impressions * 100%
You can find out the number of ad impressions and website conversions in the advertising cabinet of TrafficStars.
Example: a webcam platform ad had 400 views, but only 14 users clicked on it. So, the CTR will be = 14 / 400 * 100% = 3.5%.
What Are the Differences Between CTR and CR?
CTR (Click-Through Rate) is a specific metric that provides information only about the number of clicks an ad receives. In contrast, CR (Conversion Rate) offers data on any targeted action, such as filling out an application form, making a call, placing an order, or subscribing to a newsletter.
How to calculate the indicator:
CR = number of users who made a targeted action / number of site visitors * 100%
Example: an adult website was visited by 4,000 people for a month, of which only 100 people subscribed. CR = 100 / 4 000 * 100% = 2.5%.
CR can only be equal to CTR if the goal of the advertising campaign is to get more clicks to the site or its specific page.
What Is a Good CTR?
A good CTR may vary for different types of advertising:
CTR in contextual advertising. Contextual advertising typically has the highest CTR. In Google Ads, a normal CTR is considered to be between 7-11%. A CTR above 11% is an excellent indicator, while a CTR below 6% suggests that the ad may need revisions.
The key phrase used in an ad significantly impacts the clickability of contextual advertising. These phrases can be categorized as commercial, informational, or geo-dependent, each influencing the ad's effectiveness in different ways.
Informational phrases are those entered by users into the search box to find specific information. With these queries, users are more likely to skip the suggested ads and choose a site themselves. A good CTR for informational phrases ranges from 4% to 9%, with an average of 5%.
Commercial phrases are typed by users to purchase a product and often include words like "price", "reviews", "order", or "buy". The CTR for these queries depends on the relevance of the ad and can range from 1% to 6% or from 9% to 21%.
Geo-dependent phrases consider the user's location, such as "Webcam Artist London" or "Gentlemen’s Club New York". Since the user is interested in services within a specific region, the CTR for such queries is typically higher, around 20%.
CTR in targeted advertising. The audience that is shown targeted advertising is not directly looking for information about the company, product or service. Therefore, a good clickability rate for targeted advertising is lower than for contextual advertising. For example, the CTR on adult platforms is around 0.2-0.5%.
How to Increase the CTR?
The higher the CTR, the better. A high clickability rate means that a company is hitting the pains and interests of its audience. Here are some ideas on how you can increase clickability:
Carefully select key phrases for ads, adding them to the title and description;
Remember the call to action (CTA), which motivates the audience to visit the site. A strong call to action can increase CTR by 10-25%;
Use negative keywords to prevent ads from being shown for irrelevant queries. For example, avoid showing ads for “18+ toys” when the query is "toys for children.";
Utilize the "prohibited sites" feature to prevent ads from appearing on specific sites and in search results for those sites;
Use quick links in the ad to help the target audience navigate directly to the appropriate page on the site;
Create individual advertising campaigns;
Group search queries into categories: commercial, informational, and others;
Conduct A/B tests on ads and adjust them based on the results;
Customize the advertising campaign to target a specific audience.
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