Click-Through Rate (CTR)
Definition of CTR
Click-through rate (CTR) is a ratio that shows the percentage of clicks on advertisement out of total impressions.
CTR = Total Clicks / Total Impression * 100
To understand Click-Through Rate (CTR) first we have to understand the difference between impressions and clicks?
An impression is the total number of times the ad got triggered and shown to the users.
When a user interacts with advertisement and presses any link in the advertisement that will be considered as clicks. In short, clicks mean the interaction of a user with the advertisement.
|Advertisement – 1||500||21|
|Advertisement – 2||700||7|
The above table’s data shows that Advertisement – 1 has 500 impressions and 21 clicks on the ad out of 500 impressions and in the case of Advertisement – 2, it has 700 impressions and only 7 clicks on the ad out of 700 impressions. So now let’s calculate CTR of the above two advertisements using CTR formula.
CTR = Total Clicks / total Impression * 100 (CTR equals to total clicks divided by total impression into 100)
Advertisement – 1 :- 21 Clicks & 500 Impressions
CTR = 21 / 500 * 100 = 4.2% CTR
Advertisement – 2 :- 7 Clicks & 700 Impressions
CTR = 7 / 700 * 100 = 1% CTR
The above calculation of CTR of two advertisement shows that Advertisement – 1 has 4.2% CTR and in case of the Advertisement – 2, it has only 1% CTR, that means Advertisement – 1 is performing better than Advertisement – 2 because higher the CTR means better the performance because a high percentage of CTR shows that your advertisement is performing best and users getting attracted to your advertisement and clicking on your advertisement which is a good thing because that’s what we want right.
Average CTR Rates As per Ads Types.
Every advertisement type has different average best CTR rates which are as below.
|Ad Type||Average CTR|
|Search Ads||4 – 4.5%|
|Display Ads||0.5% – 1%|
Different industries will have a different rate of average CTR, above is the average of all industries average CTR which is 4.5% for search ads and 1% for display ads. And if you want to see your industry’s average ctr then visit Wordstream.com and check your industry’s average CTR.
Be cautious if your ads are getting very high CTR percentage in a short time because some times your competitor can mess with your advertisement and keep searching for a keyword that you have set for the ad and keep clicking on your advertisement multiple time from a different device and from a different account to manipulate the data of your Ad. so be aware and be cautious and whenever this happens immediately stop your ad for some time and restart after some time.