A good click-through rate (CTR) is one of the fundamental metrics that will help you track your ad performance. It depends on the industry and advertising platform, so there’s no one-size-fits-all formula. Find out what is a good CTR for your business and how you can improve it!
Table of contents:
- What Is a Click-Through Rate?
- What Is a Good Click-Through Rate?
- How to Improve Your CTR?
- What Is a Good Click-Through Rate – The Takeaway
What Is a Click-Through Rate?
Click-Through Rate, or CTR, is a metric that measures the number of clicks that advertisers receive on any given ad per number of impressions received. In other words, CTR measures how often your ads get clicked on.
Calculating CTR is actually very easy. By taking the total clicks the ad has received and dividing it by total impressions, we can come up with the rate at which your ads are clicked (the CTR). Specifically speaking, it looks like this:
Total Clicks on Ad ÷ Total Impressions = Click-Through Rate
If you’re wondering what is a good CTR, it’s important to think in terms of numbers. In this case, the more the better: the more people clicking on ads means the more traffic to your website!
Why Does CTR Matter?
CTR matters, simply, because it is an extremely potent indicator of how well your business is advertising. In short, CTR determines how effective your marketing is and how effective your ads are performing.
Being able to isolate specific ads for performance allows you to further cater to the needs of your visitors, giving great feedback and responsiveness to anyone that visits your site. If, for instance, you notice that people aren’t clicking on a certain type of ad (or even a certain brand), you can rectify this to give your audience something they will find more appropriate!
This means that CTR plays a fundamental role in determining a wide variety of decisions for your ad strategy. If the CTR for any particular ad, or ads, is low then that is a signal for a change.
Conversely, if your ads are seeing high CTR and engagement, you can use them as a template to work from for future strategies!
What Is a Good Click-Through Rate?
Click-Through Rate, as a ratio, is ultimately dependent on your needs and your expectations. CTR is a value that can and will fluctuate and determining what you consider success and failure is an essential aspect of using CTR to your benefit.
1. CTR will change depending on the type of ad you are looking at.
Whether it is a Google ad, a Facebook ad, or various other styles of advertising, you may well see that each gets its own CTR. This means that you will have to judge these types of ads in relation to themselves instead of each other – if Google ads, in general, outperform Facebook ads on your site, you need to take this into consideration!
2. CTR is also dependent on the industry you operate in.
The clicks you should expect to see on ads for computer hardware on a tech-savvy site are going to be vastly different from a clothing store selling designer goods. Try to find out as much information about your specific industry as possible before deciding whether or not an ad is underperforming!
3. CTR is ultimately an estimate.
It is not the absolute truth of how visitors to your site interact with your ads and should be used as a guide – not the final word! It’s always important to check and double-check your information with as many sources as you can before deciding the fate of an advertising campaign.
There are many things to consider when optimizing your domain, and ultimately any consideration of CTR must be looked at holistically with the rest of your site. Analyzing CTR to see if the data aligns with your expectations is key to success moving forward!
What Is a Good Click-Through Rate for Google Ads?
On average, a good Google Ads click-through rate is:
- approximately 4-5% on the search network,
- 0.5-1% on the display network.
Typically, the average CTR for most ads is:
- 1.91% for search,
- 0.35% for display.
For industry-specific data, personal and dating services see the largest engagement at a whopping 6.05% for search networks and 0.72 for display networks, whereas more technical industries, like B2B or tech, see a much smaller showing at 2-2.4%.
This could be for many reasons, but it simply goes to show that your industry does in fact affect the likelihood of your visitors clicking on your ads.
What Is a Good Click-Through Rate for Social Media?
Social media has always been an industry unto itself and must be taken in its own context.
The click-through rates for social media are somewhat lower than the industry averages shown above, but this could be for a variety of different reasons. Regardless, social media is a vehicle that drives much of the e-commerce scene and needs to be optimized to get the best CTR results!
Let’s look at specific social media platforms and what it means to have a good CTR for each of them.
- highest CTR is around 1.61%,
- average CTR of 0.9%.
- average CTR of 0.88%.
- average CTR of 1.55%.
Is a High Click-Through Rate Always Good?
The short answer is: yes and no.
Of course, everyone wants their ads and website engaged with as much as possible. Getting information back that shows that your ads are being clicked on an extraordinary number of times is great news to hear, but there can be unseen downsides that may result in problems arising in the future.
Specifically, high CTRs are good except when they don’t directly translate to more conversions with the interaction in particular.
In other words, if an exceptional number of people are clicking on a specific ad on your site, but none of them are actually buying a product, signing up for a service, adding their email to a mailer, etc, then your high CTR is doing you nothing.
In fact, it could be doing worse: costing you money!
It’s great to have people interact with your site and your ads, but ultimately ads are there for a reason. You want visitors to your site to click on ads and perform the intended function of the ad itself. Whether that be making a purchase or providing information, it’s crucial to see how CTR is actually operating with your ads specifically!
How to Improve Your CTR? 6 Practical Tips to Get Better CTR
CTR, like any element of website creation and management, has a variety of ways to improve performance.
By selectively managing and maintaining these systems, you can achieve desired outcomes! A high CTR is possible if you follow these tips, or even evolve unique ways of tackling your specific problems.
- Improve your Quality Score – use the metric provided by Google Ads to assess the quality of your ads and try to improve them. It measures the quality and relevance of your ad to predict how likely it is that someone will click on it. Find out more in Google’s Quality Score Guide.
- Use proper ad extensions – there are a few ad extensions you can choose from when designing your ad. For example, promotion extension, price extension, sitelink extension, and so on. Choose the one that is the most appropriate for your ad.
- Try different ad types – again, you can choose from a variety of ad types, so test them to find the right for you. You don’t have to stick to the same type all the time, experiment!
- Optimize your copy & headline – remember you’re writing for humans, include keywords, but also appeal to their emotions and problems.
- Experiment with your CTA – a call to action is a very important part of any ad. It has to encourage users to click and go to your website, so it has to be good. Try different CTAs to find out which one is more appealing to your audience.
- Use quality & relevant images – try using different images to see which one is liked by your audience the most.
The key to success is monitoring your CTR for every ad you’re running and making necessary changes if one of them is not performing too well. You can try different approaches, changing the copy, and images, improving the quality score, etc. There is no one-size-fits-all formula, so experiment!
What Is a Good Click-Through Rate – The Takeaway
CTR shows you how good, or worse, are ads you’re running. It’s an important metric that you should pay attention to if you want your campaigns to succeed.
Good Click-Through Rate will vary depending on the industry you operate in, and the platform you’re advertising on. So, it’s important to adjust your expectations accordingly. You may think that your ads are performing badly because your CTR seems low, but actually, it might be fine when you consider all the factors.
Before you implement any changes or stop running certain ads, collect all the necessary information, including CTR, to make an informative decision. If you need help with optimizing your ads, contact us! We will help you achieve success in the advertising world!