CTR stands for click through rates. It is basically a percentage rate at which people click on your ad.
So, in simpler words it is just like pay per click. To understand it properly let’s go through an example. If my ad is seen by 100 people but only 4 people are clicking on it, then my CTR goes down to 4% and hence marketing value goes down to the trash.
Mathematically, you can calculate your CTR by a simple formula which is:
CTR= No. of people who clicked on your ad / no. of impressions( no of people who viewed your ad) x 100
It tells about the demand of any product or video that is displayed on the ad. Thus, it is a tool for measuring the success rate of any online marketing campaign.
The CTR tells you about the scope of improvement in your ad. Now, low CTR is clearly stating the low relevancy of your ad which means that the advertiser clearly needs to work on the relevancy of his/her ad to improve its quality score. Low relevancy can now be due to several reasons:
- The ad is targeted to the wrong audience.
- You need to step-up your content game.
- Focus on search query which is high in demand.
More clicks on your ad increases your quality score and decrease the cost of your ad.
A low quality score increases the average rate of your ad.
Where does CTR fits in ppc model?
Pay per click is a social media marketing strategy in which google gets paid for every click that is made on their search engine.
CTR determines the success of your campaigns in PPC.
When you achieve a high quality score, Google increases the visibility of your ad to the customer, hence making your ad search engine optimized.
But when your quality score is really low, then google stops showing your ad to the customer hence further decreasing your CTR.
Now, I may have mentioned the quality score several times so, now the question arises what is quality score?
Quality score is an estimate of the quality of your ad and its relevance in PPC.
It influences the cost you pay for your advertisement and success rate of your search campaigns.
Google rate your ad on the basis of its relevance to the customer and it’s demand in the market.
It is also used to determine your cost per click and ranking your ad in ad auction process.
Higher the bid rate on your ad, higher the position of your Google ad.
How can you increase your quality score
- Increase the relevance of your ad according to the customer need: Now, you need need to get to the head of customer and keep in mind the needs of the customer. The ad made by keeping in mind that it is relevant to the customer. So, if the customer gets what he / she is looking for and no doubt your CTR would hike up.
- Focus on keywords which are search engine optimized: Well working on a relevant keyword improves your chances of attaining CTR. Because a highly searched keyword while automatically drive traffic towards your ad.
- Your content should make sense to the customer: When you have relevant keywords and the audience, the major factor which will tempt the customer to buy it is how well your product will fare with the needs of the customer. Plus the offers you are providing on your products. All these factors are definitely going to make an impact on the customer
- Target the potential customers: well, this is the most important that going to make a major impact on your CTR.
Now, that you have everything in order but your ad is targeted to the wrong audience then all these efforts just doesn’t make any sense.
So,to step up your marketing game you need to search for potential customers and target your as towards them. This is definitely going to hike your CTR.
- Bids: So, to achieve great CTR on your ad, you need to bid higher on your ad. As high bidding on your ad in auction process puts you in better ad position and increases your CTR
Average CTR rate for Google ad
In adword across all industries the average CTR for Google is 1.91% and the display average CTR is. 91%.
But I want a CTR on my profile with low cost per click then I would aim for CTR in range of 8-10%. Any industry that is reaching a high CTR than the average rate, then congratulations you are mastering the PPC game.
So, for a good PPC you need to master the technique of attracting qualified prospects who would hit your landing page and admire it.
So, a good CTR is an important metric for a good PPC campaign. So, optimize your business metric which will attract more customers and hence lead to successfully social media marketing campaigns lead under PPC.
Just keep in mind all the factors explained above while preparing ad for your campaign and voila see a hike in your CTR.