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What is Clickthrough Rate (CTR)? How is it calculated?

Click Through Rate

What is Click Through Rate (CTR)?

One of the most important metrics of digital marketing, CTR, or Clickthrough Rate, is the ratio of users who clicked on an ad to users who viewed the ad. To calculate Clickthrough Rate, you need to divide the number of clicks by the number of impressions.

Clickthrough Rate = (Clicks / Impressions)*100

For example, if the published ad made 10,000 impressions and 970 clicks on this ad; CTR= (970/10.000)*100, ie 9.7%.

Why Click-through Rate Matters?

Click-through Rate is a metric to watch out for in the digital world because CTR shows the quality of the ad in general. It is used to measure the performance of an advertising campaign. If you have a high clickthrough rate, you may think your ad is relevant and interesting to customers. However, high CTR brings with it a high quality score in Google search ads. Organizing ad campaigns that attract the attention of the target audience will mean raising your Quality Score and being charged less for ad rank.

What Is a “Good” Click-through Rate?

Actually, there is no definitive answer to this question because it is a metric that can vary from campaign to campaign. Generally, a high clickthrough rate is desired, but unfortunately there is no magic number that can answer this question. CTR;

  • to your industry
  • The keyword you are bidding on
  • According to the posted image
  • By targeting
  • And it’s about individual campaigns in your account.

Because the average across industries varies, comparing the click-through rate with the industry average can help you determine a “good” clickthrough rate.

In the image below, you can find the average click-through rates in Google Ads for the 20 most common industries. 

Clickthrough Rate

Effects of Click-through Rate

Effect of CTR on Quality Score

Quality score, an advertiser’s ad copy, keywords, and landing pages . It is a measure of its relevance. So in order to achieve a high quality score, your ads and landing pages must be relevant to the user. At this point, having a good click through rate will contribute to a high quality score. 

Effect of CTR on Ad Rank

CTR is an indicator of the ad relevance of your ads to searchers, as well as contributing to their ranking in search engines. 

Ad rank determines the ad’s position on the search results page, and the system used here is slightly different from auction. It is not always enough to make the highest bid to occupy the highest position. To have this position, it is necessary to have the highest ad rank. And CTR is a crucial factor in this ad rank formula. 

Google has a system that takes historical data into account when measuring the click-through rate. If you run too many ads with low click-through rates, Google Ads assumes that new ads you add from your account will also have low click-through rates. As a result, your ads may rank lower.

Can High Click-through Rate Be Bad?

Our answer is yes. Another factor that can cause a high click-through rate may be the advertisement itself. For example, a large advertisement that appears in front of the user when entering a site may cause accidental clicks. This has a negative effect because it increases the bounce rate . As a result, you will not get a positive response from the advertisement you have given and you will have wasted your budget.

How to Achieve a Strong CTR?

We can talk about many components to achieve a strong clickthrough rate. Let’s examine these components together.

  1. Visual: You can attract the attention of customers by supporting your advertisement with an appropriate visual. 
  2. Targeting: You should analyze when the target audience is most active in which marketing channel, and which keywords and phrases should be addressed to them. If you optimize your ad by reviewing this data and historical reports, you can increase the click-through rate.
  3. Text: The language to be used in the advertisement should be attractive as well as targeting the target audience. Using short and concise texts that will arouse curiosity and interest in customers, instead  of Call-to- Actions that are far from advertising content and appealing to the general public, such as “Click Here” will increase the click-through rate.
  4. A low clickthrough rate may indicate that you are using the wrong keywords. By changing the keywords you use, you can increase ad relevance and reach the target audience more easily.

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