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What is CTR (Click-through Rate): An Overview

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Click-through rate which is better known as CTR is considered an essential campaign metric for a long time. What is CTR? As per its definition on  Google, CTR is the number of clicks received by your ads divided by the number of times your ad is shown.

It can also be referred to as the number of times your target audience has responded to your CTA or call to action such as ‘Learn More’ or ‘Click Here’ to the number of times your ad is shown, also known as the number of impressions.

What is CTR formula?

It can also be calculated by using  a simple click-through rate formula:

CTR = (Click Throughs / Impressions) x 100

For example, if 200 people have seen your online ad and 10 people clicked on the CTA or the ‘learn more’ button, then the CTR of the ad would be 5%.

The CTR is actively used to measure the success of your PPC campaign or Pay-per-click search results such as with Google Adwords or other search engines, hyperlinks in blog posts and email campaigns, and CTAs on a landing page.

Why CTR is Important for Websites?

CTR is considered an important metric for Google search engines as well as businesses because it is crucial to understand your customers and their behavior. It helps you understand what works for your website and what doesn’t when you are making efforts to reach your target audience. A low CTR indicates that you need to modify your PPC strategy and target another group. It is also crucial in understanding if you are able to get the right message around to persuade the audience to click on your ad.

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For example, if an ad campaign is directing people to their e-commerce store, landing page, and website, then by collecting the data through CTR you can analyze how much your target audience is able to interact with your campaign and how effective it is at drawing your potential customers.

What is Good CTR

Determining what a good CTR will seem for your business depends entirely on your industry types as it varies for each business. You can start researching the average click-through rates for your industry and after gaining the basic understanding of existing benchmarks and industry averages, you can take the necessary measures to get a higher CTR and reach your business goals quickly and effectively.

4 Tips To Improve CTR

Different factors play a role when it comes to improving your CTR across different digital marketing channels. It also depends on which platform you are trying to increase the CTR such as the strategy would be different for social media channels and PPC ads.

What is CTR (Click-through Rate)

Here are four tips provided by Edkent Digital Marketing that you must keep in mind while trying to improve CTR:

1. Include CTAs

CTAs play an important role when it comes to running an ad campaign. You will want to direct people to your page or website where they can make a purchase. It is a way of inviting and prompting your audience to click.

2. Optimize Headline and Copy

Using at least one or two keywords in your headline and ad copy is highly important to appeal to your audience and transfer their emotions and needs. It helps them understand if the ad they are seeing is solving a problem for them.

3. Try Using Hashtags

Hashtags are highly important for social media platforms such as Twitter, Facebook, and LinkedIn. You should always do the necessary research to find trending and popular hashtags in your industry. They make you more relatable to your target audience and help you increase the visibility of your ad campaign.

4. Use Images

Images are a great way to attract potential buyers and increase their visual appeal. Depending on the platform where you are running your campaign you can use different types of images. You can also run these ads with A/B testing with various images to see what works best for your business.

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