The toughest part of digital marketing is to figure out what works best and how to keep on getting the metrics right. Gaining (and implementing) this knowledge is no child's play.
One such tricky part of digital marketing is the click-through rate -- in fact, many experts believe figuring out what's a good click-through rate is half the work done for digital marketers interested in optimising their strategy.
First, the basics
Click-through rate is the number of people who visit your website through your advertisements. It is the key that unlocks your ‘quality score’; it is through CTR that you get to know how many people are viewing your ad and how many of those who viewed it have come to check out what you are offering them. It is through this quality score that your future ad placement is determined.
But it is important to note here that mere counting of the clicks will not give you the full picture. You have to look at the number of clicks along with the number of impressions the ad has managed to generate.
Factors that affect click-through rates
Every metric that measures the success of your ads is affected by a host of factors. Here are some that affects CTR.
- Ad rank: Everybody knows ad rank is important but sometimes even if your ad is relevant, its ranking might be low because of your quality score. This is unfortunately a sort of cycle -- the lower your clicks, the lower your quality score and thus lower the ranking. And if your ranking is low, the chances of your ad getting viewed and eventually being clicked on also reduces -- which results in a low quality score! To get out of this cycle, marketers need to work on the ad’s relevance and viewability.
- Ad relevance: Relevance is not only vital for your ad copy but also for your keywords, landing pages and placements. All of it should be sending across the same message to the right audience. Any slip-up here can cost you greatly; you will either end up targeting an indifferent set of customers or you will receive empty clicks from customers uninterested in your product or service.
- Viewability: Each platform has its own way of measuring viewability but the general rule is that your ad is ‘viewable’ when it is ‘above the fold’ or on the first available space on the screen. In other words, if the user has to scroll down to see your ad, it becomes less viewable. Hence, viewability is about the impressions created by the user.
- Device: Click-through rates differ vastly on mobiles and desktops and it has been generally noticed that CTR is higher on mobile devices. But that is not to say ads should not be placed on desktops, just that the different metrics should be kept in mind before doing so.
So what's a good click-through rate?
Click-through rate is calculated by dividing the total number of clicks by the total number of impressions and then finding out the percentage. Once this number is obtained, it has to be compared with the converted clicks. This will help you determine which clicks are irrelevant and thus keep your keywords relevant.
To know what actually a good click-through rate is, it is important to be aware of your industry average and how that score compares with your competitors. On an average though, two per cent and anything above is considered to be good. But do remember that some campaigns inside the account could be performing better than the average and some could be worse.