What is the click-through rate?

‍

‍

The click-through rate (CTR) is the ratio between the number of clicks and the number of impressions of an ad, a link, or any other piece of content. The number of impressions indicates how many times the ad, link, or banner was seen by the user.  

‍

CTR is therefore a very important performance indicator (KPI) for advertisers focused on performance. This is especially true in paid search (SEA, Search Engine Advertising), where the ads that perform best in terms of clicks are favored by Google Ads algorithms (formerly Google AdWords). The share of users who saw the ad and then clicked on it makes it possible to gauge the relevance and strong performance of an ad and a campaign.

‍

How do you calculate CTR?

‍

‍

Click-through rate formula :

Click-through rate = (Total number of clicks) / (Total number of impressions) * 100

For example, if your ad is shown 1,000 times and you get 20 clicks, your CTR will be 0.02, or 2%.

‍

What is a good CTR?

‍

‍

A high CTR indicates that the advertiser's ad campaign is highly relevant to the expectations of the user being exposed to it. In display (graphic advertising on websites), it means that ad targeting was done well, because you are focusing on an audience that has already shown interest in the product or service it is being shown.

In paid search, achieving high CTRs for ads means that the choice of associated keywords is sound, the ads are relevant, and the bids are high enough. A Google Search (paid search) specialist will work on keyword selection, ad copywriting, and the related bidding strategy based on the CTRs obtained.

The idea of a good CTR is therefore very relative, because the advertiser's level of expectation varies according to many parameters, such as the type of ad format, the channel, and the device it is displayed on (paid search, display, retargeting, mobile, desktop, etc.), its position in the conversion funnel, and the cost of the ad. A CTR generally ranges from 0.05% to 5%. According to Wordstream, the average CTR of a Google Ads campaign is 3.17%. Wordstream has also created a tool that lets you compare your average CTR with those in your industry. In our view, a good CTR in paid search starts at around 2.5% on generic terms, and 1% in display (excluding retargeting).

Studying CTR therefore allows a digital strategy consultant to optimize the delivery of their campaign. It obviously varies a lot depending on the sector, the campaigns, and the keywords.

‍

‍

Would you like support with Google Ads, or more broadly with your digital marketing strategy? Feel free to get in touch!

‍