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What is a Good Click-Through Rate?

CTR or Click-Through Rate is a performance metric that shows how many times users clicked on an ad or a link. Marketers and advertising professionals typically use it to measure the success of search, display, and email marketing campaigns.

CTR measures the ratio of clicks to impressions of an ad or a campaign. Since most campaigns today are interactive and made to encourage meaningful engagement (signing up for a course, reading content, buying a book, etc.), CTR is good indicator of success with that goal. It matters a lot while differentiating Programmatic Advertising Pros and Cons. 

Click-Through Rate is a good way to measure the quality of the ad for the audience segment, and can as such be used to measure the effectiveness of headlines, ad copy, meta descriptions, and other advertisement segments. If the ad creative resonated with the target audience, it is presumed (as is the truth in most cases) that the CTR will be higher.

CTR can also be compared to the conversion rate for further optimization of the sales funnel. If the CTR is high, but the number of conversions isn’t proportionate, marketers can presume that their product offer should be improved. Vice versa, if the number of conversions is extremely high as compared with the CTR, the ad copy would have to be optimized.

The formula for calculating CTR is;

CTR =  (Number of click-throughs/Number of impressions) X 100

 

Related Articles:
Related Glossary Terms:
  • Audience Segmentation
    Audience segmentation refers to the practice of breaking a large consumer base into smaller individual demographics. The act of separating a big audience into smaller groups with comparable characteristics is known as audience segmentation.
  • Click Through Rate
    CTR or Click-Through Rate is a performance metric that shows how many times users clicked on an ad or a link with display, and email marketing campaigns. It is calculated by dividing the number of clicks on your advertisement by the number of times it is displayed. 
  • Cost Per Mille
    Cost Per Mille is an advertising term that is short for CPM (thousand impressions). Cost Per Mille is best used for brand awareness campaigns. CPM is a pricing mechanism in which you pay a fixed price per 1,000 impressions, or how many times your ad appears.
  • Cost Per Thousand
    Cost Per Thousand is an advertising term referred based on CPM or Cost Per Mille impressions. If a website publisher charges $2.00 CPM, an advertiser will be required to pay $2.00 for each 1,000 impressions of their advertisement.
  • CPA
    CPA is an e-commerce advertising term that stands for Cost per Acquisition. It has different significance depending on the actions that are meant to be tracked.


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