What is CTR in Marketing and Advertising?

CTR stands for Click-Through-Rate. When you are running a Marketing campaign, CTR measures the number of clicks per impression. A high CTR generally means that your ads are being viewed and you are using relevant targeting. A low CTR means your ads may not be viewable on every page and/or your targeting is not relevant. However, it all comes down to campaign performance as far as Return on Ad Spend (ROAS).

CTR Video Explanation

 


 

How to Calculate CTR:

CTR = (Clicks/Impressions)*100

In order to calculate CTR, you need to first take your total clicks and divide that number by your total impressions. Then, you need to multiply by 100 to get your final Click-Through-Rate as a percentage. For example, if I have 10,000 impressions and 100 clicks, then my CTR will be 1%.

You can see sample data below from a campaign, which shows the impressions, clicks, and Avg. CTR.

ctr example


 

What is a Good CTR in Advertising?

A good CTR for Google Ads is generally 2% or higher depending on your competition. For Facebook Ads, you generally want a CTR higher than 1%. I generally try to keep my CTR above 0.50% for Display Ads, above 1% for Facebook and Social Ads, and above 2% for Search Ads.

Do I Need a High Click-Through-Rate?

A high CTR usually signifies good advertisements, a strong offer, and relevant targeting for an advertising campaign. A High CTR is vital for your Google Ads search campaigns because it improves your quality score. In addition, a higher CTR will lower your costs for Facebook Ads and LinkedIn Ads.

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