Click-through rate (CTR) helps to understand how effective ads are. It shows how often people who saw the ad end up clicking on it.
Why does CTR matter?
A higher CTR helps to improve revenue and ROI, as it helps to get more traffic which initially leads to more conversions. It also helps to understand how well ads are doing and what users tend to react to. CTR also affects the quality score, which impacts ad visibility.
How to improve CTR on pay-per-click?
Optimise ad copy - be relevant for audience's needs and use focus keywords. Include call to action - be clear and appealing for customers to click. Target ideal customers that would likely purchase and return instead of targeting all.
Calculation:
CTR = (clicks / impressions) x 100%
Example:
Smythson ads drove 3,000 clicks and 200,000 impressions yesterday. This means that the click through rate was 1.5% ((3,000/200,000)x100%=1.5%)
