What is Click Through Rate (CTR)?

What is CTR (Click-through rate)?

CTR or click through rate is the ratio of the number of clicks on a particular link or call-to-action (CTA) to the total number of times people see that link/CTA button (also known as impressions).

Here’s a simple CTR formula:

CTR = (click-conversions / impressions) x 100

For example, if 100 people see an ad and 5 people click the See More button to view the product, that ad has a CTA of 5%.

CTR can be used to measure the success of PPC (pay-per-click) search results such as Google ads, CTA buttons on landing pages or links in articles and email campaigns.

Why is CTR important?

CTR is an important metric because it helps you understand your customers – it tells you what works (and what doesn’t) when trying to reach your target audience.

A low CTR could indicate that you’re targeting the wrong audience or that you’re not speaking their language enough to convince them to click.

Take the example of a paid search campaign that directs people to your website, ecommerce store, or landing page.

An online ad’s CTR tells you how effective your ad is at capturing the attention of potential customers, you can compare your ad copy, ad position, and CTA to see what’s best. the one with the highest CTR.

So what is a good CTR?

CTR varies across industries. To determine what a good CTR will look like for your business, you can start by researching the average CTR in your industry.

Once you have an understanding of current benchmarks and daily averages, you can begin the process of improving CTR and achieving your business goals.

4 Ways to Improve CTR

There are different factors to consider when trying to boost CTR across different digital marketing channels. How you increase your CTR depends on where you want to increase your CTR.

For example, if you have a low CTR on a social media channel like Facebook, consider which hashtags can help expand your reach to your target audience and when you try to CTR on a PPC ad you need Pay close attention to the title and content.

Here are four tips to consider when you want to improve CTR:

1) Optimize title and content

Use one or two focus keywords in your title and content. Engage your target audience’s emotions and needs: solve their problems.

2) Include in CTA

A direct and engaging call to action. Your CTA should invite and motivate people to click.

3) Use images

Using visuals is a great way to increase CTA. Depending on the marketing channel, different types of images can be more effective than another. Run A/B tests to see which works best for you.

4) Try using hashtags

Hashtags work on many platforms such as Facebook, Twitter, Linkedin.

Do some research on trends or popular hashtags in your industry, and use hashtags in relation to the rest of your content to increase your chances of being seen by your target audience.

Market to your ideal customers for better conversions (not just high CTR)

Click-throughs and conversions aren’t the same thing: CTR for the percentage of people who clicked, not the total number of people who convert (for example, making a purchase or signing up for a newsletter).

In other words, an online ad can have a high CTR but a low conversion rate, making your cost per conversion high.

So how do you make sure the people who click on your ad continue their customer journey to the point of conversion? Focus on your ideal customer.

Your ideal customers are the ones who get the most value from what your business offers.

They are likely to return if you treat them well, forming the backbone of your customer base, so that you can then target them with advertising.

The way you find out who those people are and what they want from a company like you is by doing some research and building customer personas.

Build customer personas based on data

A customer persona is a hypothetical semi-character based on demographic and behavioral data of people buying a product.

A customer portrait answers the following questions:

  • Who are your customers?
  • What is their main goal?
  • What stops them from getting what they want?

The following tools will help you answer these questions so you can tailor your message to their needs, help overcome obstacles, and lead to real conversions.

Survey on site

On-site surveys can help you find out who your customers are and what problems they need you to solve.

You are looking for details like “office manager who manages paperwork and invoices for more than 100 employees“, which says a lot about the worldview of your target customers when it comes to choosing and using your products.

Tip: try voting with customers who have converted, with special attention to those who barely convert. This will help clear up the obstacles that are preventing similar customers from converting.

Interviewing customers

Talk to paying customers (or by calling) and get inside their minds.

Ask them to tell you about the first time they decided to find a solution your product or service solved – and let them do the talking.

Interviewing customers doesn’t give you hundreds of data points like polls do, but tells you needs and motivations you never knew existed.

Once you have a clear understanding of who your customers are, what they want, and what’s stopping them from achieving it, you can create advertising that captures the attention of your potential customers and convinces them to convert.

Synthetic: Hotjar

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Categorized as Tips

By Nguyen Manh Cuong

Nguyen Manh Cuong is the author and founder of the nguyendiep blog. With over 14 years of experience in Online Marketing, he now runs a number of successful websites, and occasionally shares his experience & knowledge on this blog.

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