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Glossary
Marketing & Customer

Click Through Rate (CTR)

The click-through rate is a key figure that describes the relationship between the number of clicks on an ad and the number of impressions.

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What is a Click Through Rate (CTR)?

The click-through rate (CTR) is a key figure in digital marketing that describes the relationship between the number of clicks on an ad or search result and the number of impressions (ads or search results). The CTR is expressed as a percentage (%).

The click-through rate (CTR) is an important Key Figure in online marketing, which provides information about how well an ad or search result is received by the target group. By optimizing CTR, companies can improve the efficiency of their online marketing campaigns and their conversion rate boost.

A high CTR indicates that the ad or search result is relevant and appealing to the target group. The higher the CTR, the more likely it is that users will interact with the ad or search result and take the desired action, such as visiting a website or making a purchase.

Which factors influence CTR?

  • Relevance: The ad or search result should be relevant to the target group.
  • Appealing text: The text of the ad or search result should be appealing and eye-catching.
  • Strong call-to-action: The ad or search result should include a clear call to action that motivates users to click.
  • positioning: The positioning of the ad or search result can influence CTR. Ads that appear at the top of search results usually have a higher CTR.
  • device: The CTR may vary depending on the device you are using (e.g. desktop, smartphone, tablet).

How do you calculate CTR?

CTR is calculated by dividing the number of clicks by the number of impressions and multiplied by 100.

CTR = (clicks/impressions) * 100‍

example: An ad is shown 1,000 times (impressions) and receives 50 clicks. The CTR of this ad is therefore 5%.

How can you improve CTR?

There are several ways to improve CTR, including:

  • A/B testing: A/B testing allows you to test different versions of an ad or search result against each other to see which version has the best CTR.
  • Optimizing the ad text: The text of the ad should be clear, concise, and appealing.
  • Using keywords: Relevant keywords should be used in the text of the ad or search result.
  • Strong call-to-actions: The ad or search result should include a clear call to action that motivates users to click.
  • Optimization for various devices: The display or search result should be optimized for different devices.

Our services related to Business Intelligence (BI) and Data Strategy can help determine and track CTR.

Note: Our team benefited from the support of AI technologies while creating and maintaining this glossary.

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