What is click-through rate (CTR) and why it is important ?
The ratio of the number of clicks on a certain link or call to action (also known as CTA, such as the ‘Learn More’ text at the bottom of an email marketing campaign) to the number of times individuals were exposed to the link is known as the click-through rate (CTR) (aka the number of impressions).
Here’s a simple click-through rate formula:
CTR = (click-throughs / impressions) x 100
For example, if 100 people see an online ad and 5 people click to learn more about the product, that ad has a CTR of 5%.
CTR can be used to examine the performance of pay-per-click (PPC) search results (e.g., Google AdWords or other search engines), CTAs on landing pages, and hyperlinks in blog posts and email campaigns.
Why CTR is important
CTR is an essential measure because it allows you to better understand your consumers by revealing what works (and what doesn’t) while trying to reach your core audience. A low CTR might suggest that you’re targeting the incorrect audience or that you’re not using compelling language to inspire them to click.
Consider a paid search ad campaign that drives traffic to your website, e-commerce store, or landing page. The CTR of internet advertising indicates how effective it is at attracting potential buyers; you can then compare ad copy, ad location, and CTAs to see which has the highest CTR.
4 tips to improve CTR
When it comes to increasing CTR across various digital marketing channels, there are several factors to consider. CTR can be increased in a variety of ways, depending on your goals.
Consider which hashtags might help expand your reach to your target audience if you have a low CTR on a social media channel like Facebook or Twitter; and when trying to increase CTR on a PPC ad, pay close attention to your headline and copy.
Here are four tips to consider when you’re trying to improve CTR:
1) Optimize your headline and copy:
In your headline and copy, use one or two focus keywords. Solve a problem for your audience to appeal to their emotions and needs.
2) Include CTAs:
Make a strong and direct call to action. Your call to action (CTA) should be inviting and encourage your audience to click.
3) Use images:
Using visuals is a great way to increase CTR. Different types of images may perform better than others depending on the marketing channel. Run A/B tests with various image types to see what works best for your business.
4) Try using hashtags:
Hashtags work across multiple platforms, like Facebook, Twitter, and LinkedIn. To increase your chances of being seen by your target audience, do some research on trending or popular hashtags in your industry and use hashtags that relate to the rest of your copy.
CTR is an important metric for Digital marketing managers to understand and continuously monitor. PPC campaigns that optimize for CTR while also optimizing for business metrics will be successful.