Jargon Buster – Click-Through Rate.

Clicking on a laptop.

Jargon Buster – Click-Through Rate.

From YMG – Digital Marketing Experts in Chelmsford, Essex.

If we had a Jargon Buster action figure, it’d be inspired by the Turboman doll of 1996’s Jingle All the Way. He’d have a pull string on his back. And when you pull it, he’d say “It’s Jargon Buster time!”.

Now, guess what time it is everyone? Don’t worry if you’re not sure or haven’t read the title of this blog. Because Jargon Buster Man is here to help. Jargon Buster Man, we want to know about click-through rates. So, what time is it?

“It’s Jargon Buster time!”

What Does Click-Through Rate Mean?

Before we get started, click-through rate is often shortened to CTR. So, if we refer to it as the abbreviated version from now on, you know what it means. 

And no, sorry, it doesn’t mean Crash Team Racing.

Your click-through rate is the number of people that click an appropriate link when presented with it. 

Where Does Click-Through Rate Apply?

Anywhere you’ve included a link to somewhere you want your audience to visit, a CTR will apply. 

The most common examples of places a CTR will take include:

Mailing Lists.

Well-crafted mailing lists will contain Call to Action’s (CTA’s). These are the big ‘Click Here’ or ‘Continue Here’ buttons. 

Clicking these will take you to whichever part of the website the sender wants to direct you. Therefore, these are a prime example and one of the main times a click-through rate applies. Seeing as these campaigns are specifically designed to take you to a specific page, CTR’s on mailing lists need to be as high as possible.

Landing Pages.

Although landing pages are often where an audience member will be sent to, they can also include a CTR.

Landing pages often encourage your audience to exchange details to obtain something from your business. To learn more about landing pages, [CLICK HERE].

However, a CTR can be used on these pages too. Of course, details must be correct and valid for the exchange to happen. So, the CTR on your landing page can be used to judge how successful your landing page is. 

Social Media Page Adverts.

Social media page adverts can work similarly to a mailing list. The benefit, however, is that your target audience may encounter your posts without following the page.

Yet, the same principle applies here. The CTR on each post can help you assess how well your adverts are performing. This applies to both existing followers of your page and new audience members. If the ads are performing poorly, you may need to re-structure your approach, as the chances are it’s not appealing to your audience. 

Pay-Per-Click Adverts.

Pay-per-click, as the name suggests, is the big one. 

Your aim is for the CTR of your PPC advertisements is to be as high as possible. If it isn’t, you may be using the wrong keywords for your target audience. 

To learn more about PPC, click here.

How Do I Calculate My Click-Through Rate?

To calculate your CTR, you use a simple equation. 

The number of people that clicked on the intended link divided by the people exposed to it. For example, imagine your email was opened by 100 people, but the link was clicked 3 times. 

3 / 100 = 0.03

Therefore, your CTR would be 3%. 

So, let’s try it with more specific numbers. In this scenario, your email was opened by 241 people, and 10 people clicked the link.

10 / 241 = 0.041493

Of course, you can be as specific with your CTR as you wish. But here at YMG, we would round this down to 4%.

Do I Want a High or Low Click-Through Rate?

Your business will want high click-through rates, regardless of which medium or form you’re using. 

This is to be expected, however. As there is very little benefit for you if your adverts or content are being exposed to people, without them clicking through to where you want them to be. You want to be saying “Hey, audience. Look at this!” And your audience to be saying “Oh, yeah, that looks good to me.” And following through to what you want to show them.

If your click-through rate is low, your audience is saying “Meh, I don’t care for that.” Which, naturally, is not good for business. As it means you’re wasting time and money on content that your audience won’t care for.

What Is a Good Percentage of CTR?

Many industry experts claim that a CTR of around 2% is considered average. 

Is this too low? 

Well, although the number may seem low, it’s an average across all industries and platforms. Which of course means some situations may create a slightly higher or lower CTR. But, in general, this is the area in which you should be hitting if your marketing campaigns are of good quality. 

If your campaigns are hitting a CTR of around 90%, you’re a marketing wizard and deserve a knighthood. 

How Do I Improve My Click-Through Rate?

Sadly, there is no definitive way of improving your CTR.

The best thing you can do is ensure you fully understand your target audience. From this, you can create more appealing content. As a result, this will spark more interest from your audience and ideally increase your CTR.

Conclusion.

You’re now up to date with the basics of understanding what click-through rates are and how they work. 

Monitoring your CTR is one way you can ensure your marketing campaigns are working. This will also ensure all your campaigns and content going forward is exciting for your audience and makes them want to engage. Without this, you’re wasting your time. 

If you’re looking for more information on click-through rates, or need help with yours, get in touch.

YMG are a full-service digital marketing agency based in
Chelmsford, Essex. We specialise in the sporting and fitness market. However,
our elite sporting principles and services can be used to enhance any business.

YMG are the home of the Jargon Buster series, helping
business owners to understand the technical terms of digital marketing.

 

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