Click Through Rate: Definition, Formula and Calculation

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Click-Through Rate

What Is Click through Rate?

Definition of Click Through Rate

A click through rate refers to the ratio of individuals who come to a web page and click on the advertisement. A higher click through rate will show how well you could capture your audience’s attention, keywords, promotions, and the other listings.

In internet marketing, click through rate (CTR) describes the percentage of users who clicked on any link (or an ad) to the total number of users who saw that link. Companies use these metrics to measure the reach amongst people of any website.

For example, if your link had ten clicks and 100 impressions, your CTR would be 10%.

CTR can be an adequate metric to measure how effective and appealing your ad campaign is among users.

CTR is not just a measure of the relevance of your ads but also contributes to your Ad rank in various search engines. Google Ads and other search engines even offer a discount on placing the ads with a high Click through rate. 

A low CTR on your existing ads could also lead to Google ranking all your future ranks lower as it would expect them to have a low CTR.

Having a good CTR depends entirely on the relevance of your ads

, the keywords it contains, and how appealing it looks to the visitors. 

For keywords such as a brand name or a trademark, the click through rate could go as high as double digits. However, for other broad context non-branded keywords, the CTR may not even hit the 1 percent mark.

How To Calculate Click Through Rate?

The click through rate percentage will change depending on the channel, content, and medium, but the formula remains the same.

Click through rate formula:

CTR=(Total measured Clicks/Total Measured Impressions) X 100

Keep the following two things in mind when you begin to calculate using the click through rate formula.

Two types of clicks

There are two types of clicks that you can consider. Before calculating the click through rate, determine which clicks you want to consider. 

Unique clicks

When an individual clicks on your link, it is known as the unique click. No matter how many times they might have clicked on the link, you have to consider it only once. 

Overall clicks

Overall clicks are the type of click wherein you consider the number of times an individual has clicked on the link. For example, if an individual clicks on your link 12 times, you will consider 12 clicks. 

Consider email bounces

It is necessary to consider the email bounces from the total number of emails you sent. 

To do this, you can subtract the total number of emails from the emails that bounced.

Once you have the clicks you want to consider and the number of impressions, you can put the data in the click through rate formula.

What Is the Difference Between Clicks and Click Through Rates?

Both the terms are valuable in showing the organization how their ads are working and the results.

The click through rate shows you if people found your ads interesting enough to click on them. In contrast, the click rate will depict if they took any action once they clicked through your offer page. 

For example, let’s say you sent across an email with a link attached to it. This email had some essential links that would be helpful for your business. 

In such a case, 

Click rate refers to the percentage of people who clicked on the link in the email you sent them from all the others who received your email.

Click through rate refers to the percentage of people who clicked on the link in the mail you sent them from all the people who could open your email.

For example,

Total emails delivered: 700

Total email opened: 400

Total links clicked: 300

Then the click rate will be: 300/700*100= 42.86%

Click through rate will be: 300/400*100= 75%

Here, pay attention to the point that the people who got the email opened it in both cases. But the critical difference between the two terms of click and click through rate is what measurements you consider against them.

In click rate, you can derive the percentage from the delivered emails. On the other hand, you can measure the click through rate against the number of emails opened.


How to calculate CTR?

You can calculate the click through rate by dividing the number of clicks by the total number of impressions.

Click through rate formula:

CTR=(Total measured Clicks/Total Measured Impressions) X 100

What is a good click through rate?

A good CTR is anything between 2-3%; however, a good click through rate can differ from one industry to another. For reference, an average click through rate across all industries is 1.91% on the search network and 0.35% on the display network.

How can you improve CTR?

Your team can ensure the company gets a good click through rate by placing your ad at relevant places. The ad’s content must be dynamic and targeted specifically to your ideal customer.

You could also test different types of content and analyze the response from the users against each ad. You can then follow this up by placing the content you feel could garner the most positive response.

What is one common cause of low click through rates?

You will get a low click through rate for your web page when you are trying to capture, educate and convince a lot of things at once to your audience.

The audience might feel frustrated and end up shutting down the web page.

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