Click-Through Rate (CTR)
Click-through rate is a term used by advertisers and is a calculation of the percentage of clicks an ad receives when compared to its total ad impressions. ‘Ad impressions’ refers to the number of times an ad has been displayed in search results.
How to calculate CTR:
An advertiser has noticed an ad has received 15 clicks as well as having 1,945 ad impressions.
Total Number of Ad Clicks = 15
Total Number of Ad Impressions = 1,945
The benefits of improving your CTR include:
- Search engines will calculate a sites organic search result as more relevant to the user if it has a higher CTR. This could lead to a higher rank on the search engines results page. CTR can be increased in organic search with a well written meta description.
- PPC advertisers will see an improved quality score as CTR is increased. Again this links to relevancy to the user and can be enhanced with well-designed ads.
- Improved quality scores in PPC campaigns leads to reduced bid costs and means advertisers can receive more clicks for the same spend.