You have already launched your first campaigns and now want to find out how effectively you are using your budget? Then you should look at the click-through rate as an important indicator of campaign success.
Basis CTR / Definition
The CTR provides information about how often your ad was clicked. For this purpose, the ratio of the page impressions to the number of clicks is put into perspective. If you need 100 impressions for 10 clicks on your ad, the CTR is 10%. In online marketing, such figures are usually utopian - CTRs of around 0.2% are often more realistic. This article explains what the click-through rate depends on and how you can optimise it.
Meaning (performance measurement): Comparison of ads
Advertisers can use the CTR to find out how the ads are received by the users. If certain ads click less well than others, they should be optimised.
Especially in the area of performance marketing, the click-through rate is an important instrument for measuring the success of ads, since the CPC model (cost per click) is usually used for billing. If several campaigns are placed at the same time, it is advisable to reallocate the budgets to the campaign(s) with the best CTR after a certain period of time.
What is a good CTR? (depending on the industry)
It is difficult to find a general answer to this question. Because whether a CTR is "good" depends mostly on the respective industry. The narrower the target group of your product, the lower the CTR will normally be (unless you use very precise targeting in the playout). For example, a supermarket - whose target group comprises a large number of people - is more likely to have a good CTR with its products than a sports goods manufacturer.
Nevertheless, in this article we want to give you an approximate guideline. Many formats like banner ads on websites have click-through rates of 0.5% or less. Of course, there are exceptions, but you usually can't expect much more. Even a single click on 1000 impressions is not uncommon in online marketing. If advertisers achieve CTRs of over 1% with their ads, the champagne bottle corks are usually popped.
Improve CTR: Match the content of the ads to the content of the website. Insert a CTA instead of a link
When playing out your ad:
For your campaign launch, try to identify websites whose content overlaps with the content of your ads. This will ensure that you reach your target group and that the relevance of your ad is high for the users. In performance marketing, algorithms help you to automatically find these websites in order to generate high click numbers. Your ad is first played out in a large pool of websites before your campaign budget is directed to the pages that have good click numbers.
When designing your ad: call-to-action
Call-to-actions are a request to the user to perform a specific action, such as a "buy now" or "learn more now". For purely psychological reasons, this will lead to your ad generating more clicks. To do this, you can place a button in the banner ad area that is as present as possible. In the native area, the provider usually gives you the option to place a CTA instead of a link to the landing page.