What is a Click Through Rate?
Your Click Through Rate (CTR) is the measurement of how successful an online advertisement has been. When you place an ad online it will generally have a ‘call to action’ click button to take the reader through to a page which encourages them to complete an activity, this may be to buy something, signup for a newsletter or just to have a look at your website for example.
How do you measure your CTR?
To measure the success of the advertisement, the calculation is:
Number of Clicks
—————————————————- X 100 = % click through rate (CTR)
Number of times the ad was shown
For example, you place a banner advertisement and it is viewed 150 times. From these viewings, there are 3 users who click on it. The calculation would be:
3/150 x 100 = 2% CTR
Things to remember:
Banner advertising needs to follow standard marketing strategies to ensure good CTR- know your product, target customer and know how to communicate best with them to ensure a response to your ‘call to action’.
Broadly speaking, the more click throughs, the higher the cost to the advertiser.
if there are many click throughs, but few taking action (eg purchasing) once they land on your page, then the advertisement is not attracting the right visitors, or your offer is inadequate. This can become an expensive exercise for little advantage.
Depending on your targeting, a good CTR could be anything from 1-3% or something totally different depending on the situation. The important takeaway from this is to measure your campaign against your industry, and more importantly, relative to yourself, one campaign to the next.
Top 10 Tips for improving your Click Through Rate;
Using effective keyword research tools (such as Google’s), determine which keywords appeal to your target market who are most likely to take up your offers
Choose non-general keywords for a more targeted effect, for example, don’t use ‘dress’ when your website is actually focussed on evening wear and formals, use ‘formal dresses’ as a more targeted ad keyword.
Prepare all of your banner advertisements with a keyword in mind, also, generally speaking, it is better to focus on one keyword per advertisement rather than using a scatter gun approach
Ensure your ad keyword is linked by relevant text on the landing page for that advertisement on your website, the web copy should be focussed on the target customer to offer them something unique and excite them to take action
Because banner (also known as online display advertising) is now so common, and often ignored totally, it is even more important to create a whole of market strategy to reinforce the marketing messages. This includes the banner advertising complementing traditional as well as social media.
Take the time to target your advertisement carefully to show only to those who would find it relevant. For example, a Steakhouse banner advert would not be welcome on a vegan website, or 4×4 car sales website might not be the best placement of an ad for a teenage girl magazine like Dolly.
Make the ad interesting- be interactive, show a video, have something change without having to refresh the page- it is more likely to gain attention if the reader has to interact with the ad.
Be current- use a seasonal message in the advert, Christmas, Holidays, long weekends, Fathers’ Day: these all have times when your target market is thinking about them. The Olympics recently highlighted how many companies were able to capitalise on this event.
Use a trademark or brand name, this may be relevant for products and services which carry a high brand consciousness such as clothing or the experience of a well regarded restaurant for example.
Test test test, can I say it more clearly, test. Once you are banner advertising, don’t just set it up and leave it. Try A-B testing, set up two sets of ads with one main difference and see which one works best, then maybe take the one with the best CTR and change one other parameter and measure against itself. Keep doing it.
Overall, most audiences don’t like advertisements full stop. However, if presented with quality, useful ads which give the visitor some relevant information to solve a problem in their life or just make it easier, you will be forgiven for showing them an ad and they may even click on it and buy from you.