Your click-through rate, abbreviated CTR, tells you what percentage of people who saw your online advertisement, email, or sales website actually clicked on the link to view your offer. CTR tells you a lot about the quality of your ads, emails, and sales pages, specifically whether they’re eye-catching enough, well-written, and relevant to your target audience. Ad sellers pay attention to your CTR, too, to find out how people respond to your ads. This lets them know how often to show your ads and whether to offer you any discounts. So if you’re on a limited online advertising budget, it’s vital to pay attention to your CTR.
To determine the CTR percentage, divide the total clicks by the number of views. For example, if your online ad has 1,000 impressions and five clicks, your CTR is 0.5 percent.
Your CTR is important several reasons:
- It affects your Google Adwords quality score, which affects how much you pay for ads
- It tells you the percentage of people on your email list who open your emails
- Tracking email CTRs tells you which type of email makes your subscribers take action
- CTRs for specific links on your sales pages give you a good idea of how far down the page people read before they click
Tracking your CTRs for your Facebook ads is extremely important because Facebook allows you to use pixels to retarget ad traffic. When you retarget traffic, the people who clicked on or interacted with your original ad but didn’t convert see your new ad. Retargeted users are 70 percent more likely to convert, so you want to choose ads with high CTRs when retargeting new ads.
While you can use CTR to get the most out of your advertising budget and a greater return on investment, the statistic helps you understand something deeper. It helps you track the behaviours of people you interact with online, which tells you what’s working and what’s not.