What does CTR stand for?
Click-through rate. Your click-through rate is the number of times viewers click through your ad to your site, divided by the number of impressions your ad makes. One impression is when a viewer encounters your ad. So the CTR tells you how many people who viewed your ad decided to visit your site because of it. The higher your CTR, the more engaging you know your ad is.
What does CTR stand for?
We use a lot of abbreviations in digital marketing, and one of the most important ones is CTR. That’s click-through rate. Your click-through rate is the number of times viewers click through your ad to your site, divided by the number of impressions your ad makes. One impression is when a viewer encounters your ad. So the CTR tells you how many people who viewed your ad decided to visit your site because of it. The higher your CTR, the more engaging you know your ad is.
Your CTR isn’t just important to you. It’s important to the platforms where you place your ads. A higher CTR tells the platform that your ad is resonating well with the targeted audience. And the platform wants your ad to resonate. If you’re creating ads that users engage with, your business will see positive results from those ads. More sales mean more advertising budget, which means more money for the platform. So platforms actually give discounts to advertisers with strong CTRs. Increasing your CTR not only increases your sales; it lowers your advertising costs.
So how do you raise your CTR? Let’s start with Google. Instead of grabbing all the keywords you can, split your keywords into smaller groups:
“Best plumber.” “Sink plumbing.” “Toilet plumbing.” Then — one group, one ad. Create ads that speak to the people who are searching those specific groups of keywords. “We help you fix sink plumbing” isn’t going to make an impression on everyone who might want to find a plumber, but it’s much more likely to get a click from someone who’s looking for a plumber to fix their sink. Speaking directly to an intended audience is going to increase engagement.
Here’s another reason to group your keywords: It takes time to split keywords out and come up with new copy for each. And each little variation you go after keeps you from reaching users at the scale you want to achieve.
What about Facebook? Let’s say you’re a car mechanic. Obviously, you want to target people who own cars. From there, you can establish new targets. An ad to reach people who own a car and make more than $60,000 a year would highlight your quality service and saving them time. An ad to reach car owners who make less than $60,000 would emphasize discounts.
This is where a lot of businesses miss out with their digital advertising. Your ads aren’t about you. They’re about what your viewers need from you. It’s all about communicating with your audience, knowing who the particular audience is for a particular ad, and starting a conversation that speaks to their needs.
Once you do that, the revenue will come, your CTR will go up and your ad costs will come down.
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