CTR formula and CTR calculator
What is CTR? What is the CTR formula? What is a good CTR and how can you improve it in order to boost traffic?
Click Through Rate CTR formula
To calculate Click Through Rate (CTR), you will need the following metrics to be used with the CTR formula:
Average Click Through Rate (CTR) across paid digital channels
CTRs vary depending on what type of digital ad it is, as well as how strong the call to action is, but in general PPC ads (1-5%) will generate the highest CTR, followed by larger rich media display (1-3%), social ads (0.20-0.80%) and finally standard IAB display banners (0.05-0.10%).
How do I improve my ad's Click Through Rate (CTR)?
There are a number of ways to improve the CTR of your campaign or ad. We will focus on some of the key actions you can make to increase the percentage of impressions that result in users clicking on your ad.
Ad copy or creative: this involves editing the copy (text) or changing the imagery or design of your ad so that it either appeals more to your audience, it is more eye catching or it is more pursuasive at encouraging a user to click. We recommend you A/B test multiple ad copy or design variations in order to work out which is the most effective. Including a clear call-to-action will go a long way.
Buying method or optimisation setup: this might be an obvious one, but in most DSPs or buying platforms these days, you can set up your campaign so that the DSP will automatically bid for inventory or users who will most likely click on your ad. In Facebook Business Manager, this involves setting your campaign objective to "Traffic". These campaigns will drive low CPCs and higher CTRs than it if were set to deliver against a low CPM or against another non-related metric.
Increase your bid: paying more may pay off in the long-run if you are able to find the efficiency sweet-spot of driving more clicks while only paying a little bit more per thousand impressions or per click.