What exactly should you look for in a Click-Through Rate

In internet marketing Click Through Rate (CTR) matters a lot. An advertisement is to be created and placed in such a way that it should have high CTR. A low CTR indicates that the ad is irrelevant to the audience.

What is Click Through Rate?
Click through rate is the number of clicks that your ad receives divided by the number of times your ad is shown: clicks ÷ impressions = CTR. For example, if you had 5 clicks and 100 impressions, then your CTR would be 5%. Clickthrough rate is a metric that measures the number of clicks an ad receives per number of an impression.  It reveals how often does a viewer click your ad when the ad is displayed.  It also helps to determine your positioning and quality of keywords. It is essential to achieve high click through rate because it directly affects your traffic.

One pays for when an ad is clicked by a viewer. So how do CTR matters so much? Actually, it reveals the health of your campaign which is directly proportional to the amount you pay for your ad. If your CTR is high then it means that you are on the right track. It indicates that audience clicked on your ads as they found it relevant.

CTR helps you to compete against other advertisers. The ads with hight CTRs are placed over the ones with low CTR. Because high CTR indicates the relevancy of your ad, so the ad is less of a nuisance.

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But what is the factor that decides whether your CTR is high or low? Actually, the best way to check it is to compare it with your other campaigns. Like, if your previous ad campaign CTR was 0.9% and this time it is 1.5% then the later one considered to be a good CTR. Across all industries, the average CTR for a search ad is 1.91% and 0.35% for a display ad.

Concentrating on the CTR will allow advertisers to have a far better understanding of how their ads are performing, and the potential number of consumers that have been influenced.


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