What is click-through rate (CTR)?
The click-through rate (CTR) measures how many people click on a particular link or call to action (also known as CTA) relative to how many times they were exposed to the link (aka the number of impressions).
An easy click-through rate calculation is shown below:
CTR = (click-throughs / impressions) x 100
For instance, if 100 individuals view an online advertisement and 5 of them click to find out more about the product, the advertisement’s CTR is 5%.
CTR is a useful metric for evaluating the performance of pay-per-click (PPC) search results, such as those from Google AdWords or other search engines, CTAs on landing pages, and hyperlinks in blog posts and email campaigns.
Why CTR is essential?
CTR is a useful measurement since it gives your insight into your clients and reveals what approaches to take to reach your target market are effective. A low CTR can mean you’re aiming for the wrong demographic or that you’re not persuading them to click through with your use of their language.
Consider a paid search ad campaign that sends visitors to your website, online store, or landing page. The click-through rate (CTR) of an online advertisement indicates how successful the ad is at luring potential customers; you can then contrast ad language, ad position, and CTAs to see which has the greatest CTR.
If the CTR is around .9- 1, then your Ad is running good. If it is more than 2, then your Ad is doing great. Using this, you can validate your Ad.