Anyone who moves in online marketing circles has certainly heard of the term CTR, or click-through rate.
A high CTR is good for your website or webshop -. but how is CTR defined and what factors are behind it?
Simply put: The click-through rate (CTR) describes the relationship between the number of impressions and the number of clicks on your ad or link. So, if your CTR is high, it means that many users have clicked on your link or ad after seeing it. Accordingly, the CTR is relevant in the online marketing field to determine the Measure successbut also in the SEO area this key figure plays an important role.
To calculate the CTR, the number of clicks on the ads (e.g.: button, link, call-to-action,...) is divided by the number of impressions (page views) and this value is again multiplied by 100.
To help you understand, we'll give you a quick example:
2000 users have accessed and read your performance page, but only 20 of these 2000 users have clicked on the "Contact Us" button located on this page. The CTR is accordingly:
|20 (clicks) / 2000 (impressions) = 0.001 * 100 = 1 percent (click-through rate)|
The values you need to calculate the CTR can be found in different tools. In online marketing, the analysis of campaigns and website performance is particularly importantin order to carry out appropriate optimizations in the future. This will not only improve your website, but you will also benefit from a higher visibility and accordingly more customers and more sales.
Tools to capture the CTR
Depending on the online marketing area, different tools are used to measure impressions and clicks. Both values can be read out in Google Analytics as well as in Matomo. But also the Google Search Console (GSC) is ideally suited for reading out the CTR of your SERPs, for example.
Which click-through rate is good and which is bad?
It would be nice to have such a blanket answer to this question. However, CTR can vary greatly in different areas of online marketing.
While the click-through rate in newsletter campaigns (email marketing) or on SERPs in the search engine can be higher, the CTR for advertising placements of various kinds (Facebook, Instagram, Google Ads) is often below 1 percent.
But the CTR also differs enormously from industry to industry. That's why we recommend monthly analyses of your click-through rate, as well as a comparison with your competitors. This way, you create an overview and can constantly improve through targeted optimization.
CTR in relation to conversion
Perhaps you have already heard of the term Conversion It describes the conversion of an interested user into a customer after clicking on the link or ad. Especially in the area of paid advertising (e.g.: Google Ads or social media ads), conversion therefore plays an even greater role than CTR.
|We'll give you an example again for a better understanding:
Let's assume that you place an ad on Google via Google Ads and you pay 1 euro per click. Out of 1000 ad placements, 50 users click on it, which means that your CTR is 5 percent - an above-average click-through rate in Google Adwords.
Of the 50 people who clicked on your ad, 5 people buy a product for 5 euros each. So you make a profit of 25 euros - but you spend 50 euros for the 50 clicks.
Conclusion: While the click-through rate of your ads is fantastic, your conversion rate is not.
Especially in the Adwords area, but also in many other online marketing areas, not only the CTR therefore plays an essential role - the relationship between CTR and conversion is relevant. This ratio is described in the online marketing circle as Return of Investment (ROI).
CTR in search engine optimization
How search engine optimization (SEO) is defined, and what is relevant for optimization, you can find in a variety of our blogarticle. The CTR can be measured in the SEO area at different points. The CTR (click-through rate) in the SERPs (search results pages on Google) is often important. This gives SEO information about how often the search result was seen and also clicked.
A high CTR in the SERPs means that the SERP Snippet has been designed to be appealing to the user. If the user then clicks on the result in the organic search results and a conversion takes place, then you know that your website is appealing to the SEO web design and what the searcher expects for the keyword entered.
On the other hand, if your CTR in the SERPs is low, it's time to adjust your Title and Meta description. This is very easy with our SERP Snippet Generator. If there are no conversions, you should revise your website and make it clearer for the user.
Optimizing CTR and conversions is a complex process and usually requires the help of a professional. As Online marketing agency we are here to help you generate more visibility and more revenue for your business - both in Google Ads and in search engine optimization.