First: What is a Click-Through Rate? This is a term used to represent the percentage of clicks your ad receives (clicks) compared to the number of times your ad is displayed (impressions). You will often see this represented as “CTR”. The simplest calculation is to divide the number of clicks your ad receives for every 100 times your ad is shown (Clicks / Impressions = CTR).
As an example, if your ad is shown 100 times (impressions) and your ad gets clicked 1 time, your have a CTR of 100:1 or 1%.
Quite often, I’m asked by new advertisers to tell them what a “good CTR” is. Or they want to know what my CTR is.
The truth of the matter is: There is no way for me to know what a good CTR is for you and it really doesn’t matter for your business what my own CTR is. Some of my ads get great CTR’s and some of my ads get horrible CTR’s.
Here is the ONLY question that matters: What Is YOUR CTR and How Can You Improve it?
And the only way to find out is to run your ads, test the results, make changes, and test some more.
Run Your Ads. This will help you establish a baseline for your own CTR.
Make and TRACK changes in your subject lines, copy, call to action, etc…
Did your CTR improve or decline? Make changes accordingly.
In addition to the standard elements like your subject line, ad copy, call to action, etc… remember that your CTR can also be affected by where your ad is being run, where it appears on a web site or magazine page, how large or small it is compared to other ads on that same page, etc…
To really get in to the fine-tuning, you also need to be aware of your ad costs. CTR for a free ad may not be as critical as getting a good CTR for an ad you paid $500 to run.
Beyond CTR, you also need to track conversion. It’s great that somebody clicked your ad. But once they got to your web site, capture page, blog, offer page, etc… did they take the desired action?
Once you’ve got a strong CTR for your landing page, make sure you work on conversion next. Getting a visitor is great. Getting a visitor to take the desired action such as filling out a form, placing an order, subscribing to your blog, etc… is the real goal.
Don’t worry about of focus on the CTR someone else is getting.
Focus on finding and then improving your own CTR for your ads to get the best results possible in your business.