CTR is an acronym for “Click Through Rate” and defines the ratio of unique clicks to total number of ad impressions. So much for the theory – but how to use it in practice? How to measure and analyse CTR? Why exactly should we do that?
What is CTR? The precise definition
CTR is calculated as shown in the equation:
As you can see, the result is expressed in percentages. If we assume that an ad will be shown 100 times and 10 users will click on it, the CTR is 10%.
CTR is one of the most important marketing campaign efficiency metrics, next to conversion rate. It should be monitored during display, e-mail marketing and product campaigns. However, it is hard to average it – everything depends on the industry we operate in and the channel that we use to publish the ad. Of course it is in the advertiser’s interest to have the CTR as high as possible.
Why CTR is important?
CTR is an important metric for marketers, because it helps to understand some of the customers’ behaviours. It shows which actions are truly effective and which need improvement. If an ad content is confusing to clients, the CTR will definitely be low. Choosing an inaccurate target group can also lead to similar effects.
CTRs can be used to compare campaigns to increase their efficiency in order to search for optimal ways to communicate with clients.
How to analyse CTR?
We already mentioned that it is very hard to average CTRs, because each industry and channel achieve different results. To evaluate whether CTR is acceptable, we should compare it with effects achieved by the direct competitors in the same marketing channel.
It is also worth taking a closer look at campaign business goals. If the result is not satisfactory, the CTR probably needs improvement.
How to improve CTR?
Many methods can help you improve your CTR, however many depend on the channel that you use for advertising – mailings and Google shopping campaigns require completely different actions.
However, there are some universal methods to improve CTR. Below, you find 5 of them.
#1: Work on ad’s content and CTA
The common cause of low CTR is bad CTA, i.e. the slogan that encourages to click on an ad. It should be engaging, but not invasive.
It is also worth working on other texts of the ad – if you don’t have enough experience to do that – ask a copywriter for help.
#2: Improve the quality of photos
Internet users expect ever higher quality of photos. It would be ideal if your photos would tell a story or stand out from others with some details – simple packshots maybe not enough.
Before you start the campaign, make or order high-quality photos that fit your brand’s image.
#3: Optimize your campaign and use A/B testing
If the campaign is to be successful, you should constantly monitor it and react immediately when something goes wrong. You can also use A/B testing – it will help you compare different versions for an ad, and choose the most effective one.
CTR and properly optimized product feed
Of course we did not cover all of the methods for improving CTR, however as we mentioned, many depend on the channel which we use for advertising.
For example, in the product ads case, the optimized product feed is the key. It should be regularly updated – otherwise, the prices and other information in ads may become incorrect and misleading to consumers.
It is also necessary to consider which product category to focus on, because less popular products can undercut the statistics.
Feedink can help you with this. Our tool is able to create a product feed automatically within seconds. In addition, your product feed will be automatically updated based on data in your store’s page. This saves a lot of time and energy. We encourage all of you, who want to improve their CTRs to reach out to us.