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Calculating the CTR is especially important in online marketing. This is because the click-through rate provides information about the success of ads
Calculate the CTR with this simple formula
CTR stands for click-through rate. It indicates the ratio between impressions and clicks on an online ad. This is how you calculate the CTR:
- Values: You need the number of clicks on an ad and the number of times the ad was viewed (number of impressions).
- Formula: Now you can calculate the CTR with this formula: (number of clicks : number of impressions) x 100 = CTR (in percent)
- Example calculation: There is an advertising banner on a website that has been displayed 2500 times. 50 people have clicked on the ad. Calculation: (50:2500) x 100 = 2 %. The CTR is two percent.
Meaning of CTR in online marketing
In online marketing, the CTR is one of the key figures for the success of an advertisement. For example, if a company has placed an advertising banner, the click rate shows how well this motif is received by users.
- Click-through rates differ depending on the platform. For Google AdWords ads, the average CTR is 3.17 per cent, according to an analysis by the company Wordsteam, and for Facebook ads it is 0.9 per cent, according to Wordsteam research. For campaign newsletters in email marketing, about three per cent is considered a good average.
- However, the click rate alone is not enough to make sales. A company only earns money when this interest turns into a purchase or an order. Actions like this are called conversion rate.
- The click rate also plays a major role in search engine optimisation. In Google searches, for example, small text excerpts called snippets are displayed. The higher the CTR value, the better the snippet text is written and the more users it attracts to the website. If, on the other hand, the CTR value is low, it can help to optimise this text.
