Why is CTR Important

By | 18 April, 2014

CTR (Click-through rate) is an important metric. Why is CTR important should be understood by every newbie digital marketer.  This post tells you why.

A good CTR has many benefits for your online campaign. For example, in Facebook, ads with low CTRs are not usually not delivered as well as ads with good CTR. It is very important that campaigns in your Facebook ad dashboard are having healthy CTR. To be very specific about why is ctr important, you can read the points below.

Benefits of a good CTR

You might be interested to know how to improve clicks on Facebook Ad, a complete article is dedicated to the same topic.

Lower CPC (Cost-per-click)

Ads with higher CTR pay much lesser for the same customer’s link as an ad with a low CTR would. Online marketers can consider this as a reward from the advertisement platform. Your CTR is important is because it brings down your CPC (Cost-per-click), this ultimately impacts the efficiency, indirectly you will be getting a lower cost-per-acquisition (CPA) of a new customer.

Get a higher delivery on Facebook

A good CTR is rewarded well by the Facebook ad engine. If your ad is getting a good click rate then Facebook will push it to more and more new audiences, as the system realizes that this is an extremely relevant ad for its users. Most ads you create on Facebook get a very mediocre delivery of reaching out to 20-25% of your targeted audience. If you work to get more clicks on Facebook ads then the system can delivery ad to almost 50-70% of the audience you targeted while creating the ad.

Relevance

This has less to do with the cost efficiency of your ad campaign and more with the quality of your ad. An ad with a high CTR means that it is reaching an audience who find that ad relevant or interesting. They want to know more.

In case of Facebook ads, if your interest targeting is great. Then in that case you would see good CTR. For example, if your ad is about a Black Lace Dress, and the ad has a high CTR then it implies that people who are seeing your ad are interested in purchasing one for themselves. Whether they convert or not, eventually depends on your landing page.

In case of Google ads, a high CTR on your ad means that the keywords you are bidding on are bang on and visitors who search for the keyword are able to associate complete with your ad copy messaging since it is pretty much what they were looking for!

Hence, CTR is important. A high CTR ensures you get more visitors for the same budget, since your CPC goes down. It also tells you that your ad is reaching the right set of people.

If you are confused about any of the terms such as CPC or CPA. You might want to read about basic metrics used in online marketing.