CTR (Click Through Rate) represents the number of clicks that a particular advertisement receives relative to the total number of viewers. The Click-Through-Rate is an efficient way to measure and determine the success of an online advertising campaign.
The CTR is an important indicator of an advertisement's effectiveness. Over time, the click-through rates of advertisements has continually decreased. At first, a five percent CTR was something common, while today a two percent CTR level is considered highly successful. Having this in mind, the average CTR level is somewhere around 0.2 and 0.3 percent. However, depending on the situation, topic, and moment in time - the CTR can be quite varied.
How Does it Work
Once the advertisement published on a website has achieved a significant number of impressions (clicks), the keywords used and CTR are indicators of the advertisement's relevance to the users relevance and the keyword's success. Thus, a well-targeted keyword for a well-targeted advertisement is more likely to create a higher CTR as compared to a general keyword without a specific advertisement. The stronger the relevance between the keywords and the advertisements, as well as the business itself, the higher the probability that a user will click the advertisement after searching based on the specific keywords.
The results of CTR can also be used as a basis for further decisions and actions to improve overall business performance. A 'low CTR level' may reveal poor keyword performance and the need for keyword optimization by means of SEO methods and techniques. In this way, the CTR can be also used to improve the low-performing keywords and improve the keyword optimization.
In order to maximize the results regularly checking the CTR level is recommended; as is implementing the necessary changes to improve the CTR. An advertisement with a low CTR level should be improved by means of various modifications and removed if there is no other solutions for improvement. The CTR evaluation should be performed after an advertisement has received at least 1,000 clicks (impressions).