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What is Click-Through Rate?
In internet marketing, Click-Through Rate(CTR) describes the percentage of the number of users who clicked on any link (or an ad) to the total number of users who saw that link. It is generally used to measure the reach amongst people of any website.
For example, if your link had 10 clicks and 100 impressions, then 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, which have 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 as well.
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 CTR could go as high as double digits, but for other broad context non-branded keywords, the CTR may not even hit the 1 percent mark.
Q: How to calculate CTR?
A: The formula for calculating CTR is:
CTR=(Total measured Clicks/Total Measured Impressions) X 100
Q: What is a Good Click-Through Rate?
A: A good CTR can be considered to be anything between 2-3%. However, Good CTR can differ from one industry to another. For reference, an average CTR across all industries is 1.91% on the search network and 0.35% on the display network.
Q: How can you improve CTR?
A: A good CTR can be ensured by the placement of your ad at relevant places. The content of the ad must be dynamic and targeted specifically for your ideal customer. You could also test different types of tests and analyze the response from the users against each ad and then place the one which you feel could garner the most positive response.