There have been some talking about click-through rates recently in and around the marketing business. People often use the term click-through rate when they are talking about a performance of a particular campaign or something. It might make you feel missed out as you might not be much aware of click-through and have no idea what it is. Let’s get you a brief understanding of what click-through rate is all about and how important it is for your marketing campaigns.
What is it?
CTR or Click-through rate is a figure. This figure is determined by the ratio of users who engaged or the number of times a particular ad or email has been clicked on to the number of times the same ad or email has been viewed. The success rate of the paid search, email marketing campaigns and display are commonly measured with CTR. This can also indicate the operation of the subject lines, met description and ad copy. CTR is measured in the following cases:
- A link on a landing page.
- A PPC ad
- A Facebook display ad
- A call-to-action button or even a link in an email
How is it calculated?
To calculate the Click-Through Rate of a particular campaign one needs to divide the number of overall views by the total number of clicks and multiply it by 100. For example,
If an advertisement has 200 clicks and 8000 views then-
CTR = 8000/200 x 100
CTR = 0.4%
Importance of CTR:
In simple words, CTR reveals the success of your marketing campaigns. When you calculate how many clicks your campaign got after the ad was seen by people, the strength or weakness of that ad is revealed. Along with this, the quality of the ad copy, positioning, keywords, and imagery is also revealed. To increase sales it is important to increase the CTR. You should start comparing your CTR with your industry averages if you want to figure out whether your campaign is bringing out the required results.