Why Click-Through Rate is important for your business

December 27, 2018  |   Business Analysis, Digital Analytics, Digital Marketing

Click-through rate (CTR) is an important metric for any online marketer. CTR is a part of pay-per-click (PPC) ads that can tell you how effective your ads are, both in social media ads or search engine ads.

Essentially, the click-through rate tells a business the percentage of people who click on the ad after seeing it. This percentage is obtained by dividing the number of people who clicked on the ad by the total number of impressions your ad received.

Click-Through Rate A Number to Know

What does Click-Through Rate ( CTR ) tell you about a campaign?

As said, CTR is a part of Pay Per Click (PPC) ads. Therefore it says a lot about the PPC campaign.

As an example, if you have high click-through rate, it is a good indication that the ad copy and/ or visual is relevant with the target audience.

If you target people with Social Media Ads and the CTR is high, that means that you targeted the right people with engaging copy and visuals. Or if you have a good CTR in Search Engine Marketing, that means that the people finding your Ads are relevant, that’s why they click on it.

But, you should also pay attention on your Bounce Rate, this is the number that measures how many people visit your page but leave without any engagement (ie they “bounce” right off of your page without clicking further or engaging with your website).

CTR measures how close you are getting to the determined goals of more leads and more sales. Conversely, a low CTR often means that the ads are not a good match for the target audience.

Click-Through Rate ( CTR ) and Quality Score ( QS )

PPC platforms like Google Ads and Facebook use the click-through rate to measure your Search Engine Ads and Social Media ads’ quality.

In social media, a quality score ( or also referred as Relevancy Score ) is given to ads based on the engagement, or in other words, the click-through rate of your ads.

In Google Ads, a quality score is given based on the expected CTR that you will get ( compared to your competitors ), landing page relevance and ad relevance.  

Click-through Rate : A Number to Know

Click-Through Rate ( CTR ) is important

A low CTR will highly affect the number of visits to your website. Creating a compelling and enticing ad is highly important to achieve high click-through rates.

You should target your audience correctly. In addition, also focus on creating a good creative that appeals to your target audience.

High CTR means that your Ads is relevant to your target audience and it will increase the likelihood for people to convert on your website.

Increasing the CTR in PPC is a big part of digital marketing. That is why digital marketing agencies like Island Media Management are specialized in doing just that. We offer you high quality services that surely meet your business goals. See why what we do works.

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