Click Through Rate
Click-through rate (CTR) is a calculation that defines the percentage of users that clicked on a link.
It is calculated by dividing the number of clicks the link received by the number of people who were shown the link, and multiplying the result by 100.
It is a metric usually applied to pay per click (PPC) advertising, but can also be used in search engine optimisation (SEO) and to more generally measure the effectiveness of a website or resource.
In the context of PPC, a high CTR suggests users find the ad engaging, helpful and relevant to them.
PPC ads can be created in Google Ads to be displayed across the Google Search or Display networks. Ads can be targeted in a variety of ways. This includes through specifying the keywords you want to appear for, the types of websites you want to appear on, or the interests of users you would like to reach.
A good CTR varies depending on the industry, content, offering and context in which the ad or link is viewed.
The most clicked adverts are for dating ads; with the least being technology and B2B ads. The average rate is around 3.17% on the Google Search Network and 0.46% on the Google Display Network.
The industry of online ads faces several issues. One example is banner blindness, which suggests up to 60% of consumers do not recall the last ad that was displayed to them. This oversaturation has caused marketers to be increasingly inventive and creative in capturing relevant user attention.
In addition, not all clicks on ads are deliberate. The user can click them accidentally, especially when the ad suddenly appears on the page or in front of content the user intended to view. Click fraud is also a factor that can impact CTR, whereby bots or people aim to inflate CTR by repeatedly clicking on ads to increase revenue that is tied to the number of clicks.
CTRs are a key performance indicator (KPI), so are also useful in the measurement of a company’s SEO activity. It can also give a great indication of how well a company’s PPC advertising is performing. An expectedly low CTR for example, may reveal an issue with some ads that can be fixed.