The best part about digital marketing is that these methods have measurable results. You can see all kinds of statistics related to your campaigns. Each type of method will show you pertinent numbers that will help you better understand your campaign.
With methods like pay per click (PPC) advertising, email marketing, and social media, you can see measurable results. One of the most important metrics is the click-through rate (CTR). Your CTR is an important metric because it indicates how many people are interested in your products and click on your ads to learn more.
In this post, we’ll give you an overview of your industry’s CTR and steps you can take to improve your CTR.
If you need help improving your CTR, you can give us a call at 888-601-5359 or contact us online.
What is click-through rate (CTR) and why is it important?
CTR is the number of clicks received per number of impressions. These are tailored to PPC ads, social media ads, and emails in an email marketing campaign.
PPC and social media advertising
PPC advertisements and social media ads are two methods that measure CTR. When you run an advertising campaign with these methods, these ads appear in front of people in your target market.
The people who see this ad make up your number of impressions. These are people who see your advertisements but don’t act on them. The members of your target market that click on your advertisements make up the number of clicks.
To figure out your click-through rate, you’ll divide the total number of clicks by the total impressions. If you have 5 clicks on an ad and 2000 impressions, it would look like this: 5/2000=0.0025. Your CTR would be 0.25%.
There are two types of advertisements you will encounter with these methods. The type of method you use will affect your CTR.
Search ads are used for PPC campaigns. These are advertisements that appear at the top of the search results. These advertisements appear above the organic listing and are tagged with the word “ad.”
These advertisements operate on keywords. When a user types in certain keywords, it triggers the advertisement. In this case, by typing in “electricians near Harrisburg, PA,” there were numerous PPC ads that appeared in the search results.
Search ads are very common because 93% of all online experiences begin with a search engine. If people are starting their online experience by conducting a search, you want to be able to reach them first. You will see this quite often when you are trying to find a business, product, or service.
This method is used more commonly by businesses because they produce a higher CTR for your business. PPC ads tend to blend into the search results, so many people are unaware that they are advertisements. In fact, 46% of people can’t identify PPC ads in the search results.
Search ads are a great option for your business to garner a higher CTR. Aside from search ads, there is another type of advertisement you can use.
These two methods also utilize display ads. These are visual advertisements that appear on different sites than the advertiser’s site or in a social media newsfeed.
These advertisements are related to searches you conduct. You’ll often see the advertisements containing products or services you were recently searching.
Many businesses utilize this method to create visually appealing advertisements to tempt you to click on them. It is important to note that these types of advertisements do not have a CTR as high as search ads. This is because these are noticeable advertisements, which people will sometimes avoid.
It doesn’t mean that display ads aren’t a good option for your business. Retargeted advertisements, which are typically display ads, have a high CTR because they market products you know people are interested in buying. You can increase your CTR by using display ads to remarket products to leads.
Email marketing also measures CTR. When you run an email marketing campaign, you want people to open your emails and read your ad.
The number of people who open your email make up the impressions group. These are people who see your email but choose not to act on the information in the email.
You earn clicks by getting people to click on your advertisement in the email. These emails typically include a call to action (CTA) that entices people to click on the email. It may say “Check it out,” “Buy now,” or “Shop now!”
This is how you get your CTR for email marketing.
Your CTR has a huge impact on the performance of your campaign. In the case of PPC and social advertisements, when you have a high CTR, you can improve your quality score and lower the cost you pay each time someone clicks on your advertisement.
When you have a higher quality score, you can obtain a better position for your advertisement. This enables more people to see your advertisement. Then, when more people click on your advertisement, you’ll lower the CPC because Google will see your ad as pertinent, which enables you to get more clicks for your budget.
Your CTR shows you how effective your campaign is with your audience. If your email CTR is high, you’ll know that a certain type of email is effective for your target market. CTR plays an important role in helping you see which ads work best for your target audience.
What’s a good CTR for your industry?
Now that you know the different methods that monitor CTR, you’re probably wondering what a good CTR is for each of them. To see your industry’s average CTR, check out this helpful resource!
So, what’s a good CTR? While there is no set number that determines a great CTR, you’ll want it to be high. A higher CTR means more clicks for your business and the ability to reach more potential leads.
A good rule of thumb is to maintain a CTR that is equal to or slightly higher than the average for your industry. If you’re running a search ad for your real estate business, you’ll want your display ad to perform equal to or better than 0.24%.
Tips for improving your CTR
If you are running marketing campaigns, you want to maximize your potential for gaining new leads and conversions. Here are a few tips you can take to improve your campaign.
1. Conduct keyword research
A critical part of running a campaign that focuses on CTR is conducting keyword research. If you haven’t conducted keyword research for your campaign, you’ll want to do it.
Keyword research helps you figure out the right keywords for your type of advertisement. There are numerous tools you can use to figure out the best keywords for your campaign. These tools will help you determine the value of your keyword and how many searches are conducted utilizing that keyword.
You don’t want to just pick random keywords you think will work. It is important to conduct keyword research to see the value of your keywords. You may think a certain keyword will perform well, but it may turn out that it won’t.
Keyword research is valuable for creating advertisements that are effective. By selecting the right keywords, you will be able to reach more qualified leads.
2. Try different types of ads
If you try running a campaign and don’t see the success you desire, don’t throw in the towel. There’s a good chance that your advertisement just doesn’t resonate with your audience or catch their attention. This isn’t a time to throw in the towel, but rather, change your strategy.
You may need to try different advertisements to see which ones work better. There may be elements missing or photos that aren’t interesting to your audience. It is important to evaluate your advertisement to see where you can improve.
3. Create relevant CTAs
The most important thing you can do to create effective advertisements is including CTA. CTAs are important because they tell your target audience what to do next.
It is important that you include relevant CTAs in your listings. A good CTA will lead people to click on your advertisement. This will increase your CTR.
You can use phrases such as “Find out how,” “Check it out,” or “Shop now.” These are all CTAs that tell people what to do next or how they can get more information.
Your CTAs need to be relevant to your advertisement. If you want to get someone to make a purchase, a CTA such as “Shop now” is effective. On the other hand, if you want someone to contact your business, “Call now” is a better option.
By using relevant CTAs, you can entice more people to click on your advertisements. This will help you increase your CTR and drive in more credible leads for your business.
4. Refine your parameters
As you are running your campaign, you may find that you can’t seem to click with your audience. You may have tried different advertisements, but you aren’t seeing the results you want to see. This may be a time to refine your parameters.
So, what are your parameters? One thing you can check is your target market. Are you reaching out to the right people who will buy your product? Are there people who may like your product better?
If your target market is set, try changing the time you show your advertisements. It may just be that you are missing your target audience when they are online. By adjusting the time of day, you may find yourself reaching more people in your target market.
If the time of day isn’t helping, you can try optimizing for different keywords. The keywords you are using in your advertisement may not bring in the right traffic. By altering your keywords, you can reach more qualified leads.
When you analyze your perimeters, you can see if you are making the most of your campaign.
WebFX can help you improve your CTR
Improving your CTR can be a challenge, especially if you don’t know where to start. WebFX is here to help!
Our team of 150+ experts will help you create pertinent advertisements that resonate with your target audience. We can help you earn new leads and conversions for your business.
Contact us today to learn more about how we can help you improve your CTR!