Digital Marketing today is fundamental for every online business. Responsible for burning 6.5%-8.5% of companies’ annual revenue, the benefits it brings are the difference between night and day in sales, customer acquisition, or brand awareness. But how do you measure if your marketing efforts are bringing that so-desired success? – Every Digital Marketing Campaign that you run consists of different metrics you should always keep track of to improve or drastically change the campaign flow.

Take, for example, the Cost Per Click (CPC) metric – it will show you what cost you are paying to make a customer click on your ad. To reduce it in Google Adwords, for example, you will often tweak the keywords you are bidding on.

While CPC is undoubtedly an important metric, the one that dictates whether a campaign is booming is the Clickthrough rate, better known as CTR. Today we will explain CTR and how you can improve it, so let’s dive deep into it!

What is CTR?

To understand what CTR is and why it is so essential for your business, you first need to understand the natural flow of any marketing communication. Here are the 5 marketing phases of the customer’s journey:

1. Message – The message is a visual item that represents your marketing effort. Being an Image, Banner, Text, Video, or Audio, it is distributed to the chosen audience via a media channel.
2. Impression – The moment when a consumer of a media channel is presented with your Message.
3. Click (Action)– If the consumer is interested in your message, they will click on the link (button) so they can be redirected to your website.
4. Lead – If the customer leaves your website maybe they need just a bit more convincing.
5. Conversion – The consumer finishes a predetermined action you want them to do (buy a product, call you, subscribe, or come to your store).

So, where is the CTR in all of this, you may ask? – It’s right between the Impression and the Click phases. It is determined by the number of clicks divided by the number of impressions. Or in other words, CTR is the percentage of people that see your message and click on it to learn more about your offer.

For example, if you have 500 impressions and 20 clicks, you divide

20/500=0.04×100=4% CTR

Why should you care about your CTR?

As already mentioned, CTR is genuinely a fundamental metric in any marketing campaign. It can give you crucial information about almost all aspects of your strategy. Here are a few of the most important.

CTR can help you find weak points in your marketing campaign

There are hundreds of ways you can mess up a marketing campaign. It can target the wrong audience, relay a bad (or poorly written) message, use improper channels, or offer a product with no potential. Either way, the first point of finding out there is a problem is when people are not interested in your message. This can be determined only through the CTR.

For example, if you created a Facebook ad with 10,000 impressions but only 30 clicks. This means you have only 0.3% CTR, which is a good indicator of something wrong. However, if you relay the same message to 1000 people through your email, and 300 of them open it, it’s clear that your messaging and products are good. In that case, the targeted audience and/or the channel are the problem. This being said, it’s not a very good idea to use the same messaging for different media, but that’s a topic for another time.

CTR can help you optimize your marketing campaign

Naturally, when you have the means to determine what your audience likes and illustrate it with numbers, it’s pretty easy to start optimizing your campaign. Depending on the channel you use, you can A/B test several messages, target audiences, keywords, images and almost every aspect of your campaign. This will improve your results and, of course, will increase your profits immensely.

CTR affects your Google Score

No matter your business, you must work with Google if you want to succeed. You will need to invest in some excellent SEO for organic traffic and if you have the budget, starting with Google Ads is a good idea. Both of them, however, will benefit significantly if you have a good CTR, especially if you create a Pay Per Click (PPC) campaign. With 94% of all Google users skipping the ads and going straight to the organic results, you need a high score to beat all others to the top.

A good quality score may lower your cost per click by up to 50%, while a lousy quality score will increase the price of every click by up to 400%. This is quite normal for Google, as their primary task is to show users the most relevant content available and not to sell your product by any means. Naturally, this means that good CTR will help you get a higher position on Google Search Results, which in term will grant you even better CTR, more leads, and ultimately a higher conversion rate.

Higher CTR improves Return on Investment (ROI)

This shouldn’t be a surprise, as it’s pretty logical. The more people click on your message, the more they will finish the predetermined action and become conversions. In most cases, this will increase your ROI immensely. On Facebook, for example, you pay for impressions. So the more people click on your website, the better CPC you get, meaning you’ve spent less to get more conversions. This means that a good CTR makes marketing campaigns much more cost-efficient.

What is considered a good CTR?

You’ve already heard several times the term “good CTR”. But what is a good CTR? What are the benchmarks? – Naturally, every business has different values that will be considered good. Nonetheless, each marketing channel has an average CTR you should be striving to achieve.

Organic Traffic

The CTR on search engines heavily depends on your position in the search results. For Google, the number 1 spot has 39.6% CTR. The second spot gives you less than half of that – 18.4%, and the third will provide you with 10.1% CTR.

PPC ads

Here the average CTR varies depending on the used platform. For example, on Google, the average CTR for the first ad is about 2.1%, while the second place gets 1.6%. Although the CTR here is lower, the user’s intent is much higher, so PPC campaigns usually have higher conversion rates.

Facebook

Facebook is one of the platforms with the lowest average CTR. The reason is mainly due to some targeting incapabilities, the general vibe of the platform, and, most importantly, the vast number of users. So you get your message in front of a massive audience which, however, gets you just a few clicks. This makes the ads there effective but more expensive. The average CTR is roughly 0.9%, with some industries like Legal going as high as 1.6%, while jobs and employment have an average 0.47% CTR.

Emails

Emails are one of the most efficient channels for the middle part of the marketing funnel, as it’s primarily used for retargeting. This makes emails highly efficient if you know how to use them. Despite this, the average CTR is around 2.3%, with industries like retail going as low as 0.9% and education going above 4%.

Is high CTR always good?

As you can see, low CTR doesn’t always mean bad results. The same goes for high CTR. High CTR simply means that your message is convincing enough for people to want to learn more. It means your images, message, targeting, and platform are well-chosen, and people are inclined to click. However, even if you have 100% CTR, if you are not persuasive enough to transform your leads into conversions, it’s all for nothing. This being said, high CTR does not guarantee you success, although bad CTR certainly guarantees you a failure.

Ways to increase your CTR

Although high CTR doesn’t guarantee you will have high profits and revenue, it most definitely won’t harm your business. So, naturally, you’d want to increase your CTR at any opportunity.

Your CTR is dependent on several factors:

• Accurate targeting – If your message is not targeted at a specific audience, it may be shown to people with little to no interest, which will bring your CTR down (as they won’t click on the link)
• Quality of the delivery – sometimes words are your enemy. How you represent your product and how much information you give can massively affect your CTR.
• Appearance – Pictures, colors, layout, and size all greatly impact the visibility and, naturally, the CTR.
• The Channel – This is very much in line with the targeting, as different channels are better for specific audiences. For example, an employment ad will get a much higher CTR on LinkedIn than on Facebook.

Here are some easy ways to boost your click-through rate with little investment and effort.

Target the right people

This should be a no-brainer. Presenting your product in front of people that are interested increases the chances of them clicking on the link. So make sure to create your business persona based on data, not feelings. Make sure you don’t target outside of your areas of interest. For example, if you sell flip-flops in Georgia, you don’t need to show your products to people in Virginia. Also, make sure to take into consideration factors like sex, age, lifestyle and even customer behaviour. Knowing your ideal customer will skyrocket your CTR.

Use the correct keywords

Keywords are behind every search, and if you want to be visible to the correct audience, you need to know which keywords will work for you and which ones won’t. Make a good mix between short-tail and long-tail keywords, so you will get both volume and high CTR. The shorter the keyword, the lower the CTR and the higher the volume. Naturally, the longer the keyword, the higher the CTR and the lower the volume. Use tools like Google Search Console and Keyword Planner to determine the best keywords for your product.

Include a CTA

CTA’s are instrumental to your success. Writing a CTA is a true form of art. You need to relay urgency, scarcity, quality, and benefits in one brief sentence. Make it short, sweet, direct, imperative and compelling.

Optimize your copy and headline according to the channel

Each channel has its own regulations regarding headlines and copy. Make sure when you post something that it sticks to the best practices. This way, you won’t get your headline cut off, and you will be able to translate all crucial information into the visible part of your copy. Make sure to add at least two focus keywords in the description and at least one in the headline.

Use high-quality images

Images capture the attention of the ever-scrolling user, especially on social media like Facebook, Tiktok, Instagram and others. So using a high-quality picture with the correct dimensions will instantly improve your CTR.

Optimize your marketing campaign based on the data you receive

When you start a campaign, be it paid or free, ensure you won’t leave it without supervision. After all, among other things, you are paying for data. Use that data to learn more about your audience, where the problems are in your campaign, and what are its strong points. Once you have the right amount of information, optimize your campaign accordingly.

Things to remember

CTR is, without a doubt, the most fundamental metric any business owner or marketer should follow. It’s both a tool to measure the success of your marketing campaign and point out flaws in it.

Good CTR can significantly impact your conversion rate, revenue, and ROI. However, optimizing your messaging in the different channels won’t be enough. You will need a fast, secure and well-maintained website, which means you need the best hosting provider on the market. HostArmada is precisely what you need. With our fast, reliable, and secure hosting solutions, you will never lose a click because of a slow website load, and you will never lose a lead because of a crash. So call us and let us help you choose the best plan for your needs.