What Is CTR?Why CTR Is More Important? Formula To Calculate CTR?

This is not the first time you’ve heard that everything can be measured in digital marketing. CTR is the most important in the digital world. But, do you know exactly what CTR is? How is it calculated? What is its formula? & why it is so important? Let me tell you.

What Is CTR?

In Digital Marketing, the CTR (Click Through Rate) or percentage of clicks is the number of clicks obtained on a link or an advertisement with respect to the number of impressions.

The CTR is a KPI( key performance indicator) that is used to measure the effectiveness of a digital ad or campaign and is always expressed as a percentage.

How Is The CTR Calculated?

To calculate it we have to use its formula, as I have previously mentioned we have to divide the number of clicks by the number of impressions (times it has been shown) and multiply it by 100. Below you can see the formula to calculate it:

CTR formula:
CTR = [ Clicks / Impression ]100

If you have launched a campaign on Google ADS and the ad has been shown 1000 times of which the link has been clicked 40 times. If we apply the formula, the CTR of this announcement would be (40/1000) x 100 = 4%. In the same way, we can calculate it in SEO, in Display or Banners campaigns, in Social Paid Media campaigns (Facebook ADS, Instagram ADS, Linkedin ADS, or Twitter ADS), etc.

When Does A CTR Consider Optimal?

It is a difficult answer to answer in a general way since it depends on the medium where we carry out the campaign. The same CTRs are not obtained in Google ADS search campaigns with sponsored text links, as in Instagram campaigns with visual creatives.

For example, 0.6% in a Display banner campaign may be normal, while 1.2% in a Google ADS text link campaign may be poor. Therefore it is always recommended to compare it within the same context.

According to WordStream: the average CTR for text ads from the Google ADS search network is 2%, while in banner ads on the Google Display network it is around 0.35%, and in the Ads on Facebook is 0.90%.

Importance Of Measuring CTR

Let me tell you why it is more important to measure and work on it.

• To get more traffic. Without a doubt, it is the main benefit. Both in SEO and in paid campaigns, the higher this KPI, the greater number of visits we will obtain and this becomes more possibilities to achieve our objectives.
• It measures the effectiveness of our campaigns. As a good indicator, it allows us to see if our ads are being effective or not. As we mentioned before, this digital KPI is the result between the times an ad is displayed and the times they have clicked on it, therefore it is an indication to detect those that are not working or, on the contrary, those that work better.

The higher this KPI, the more effective the ad is, and conversely when it is low, it means that the ad is not being effective. When we are faced with a low click-through rate we will have to review the design of the ad, the copy, or its correct display on all devices.

• To make our campaigns more profitable. If you have an ad with a good CTR in a paid campaign, the algorithms of the different platforms (Google, Facebook, Instagram …) reward you with greater visibility and cheaper clicks because they consider that your ads are of interest to their users.

It is logical if we think that they also think about the user experience. So having this Kpi well-optimized allows you to monetize your marketing budget