Click-Through Rate

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What Does Click-Through Rate Mean?

Someone lands on a landing page or website – this is step one of generating more website traffic. But after visitors land on the website, what’s next? Having visitors click-through a website keeps visitors engaged and, on the website for a longer period of time. Keeping visitors on the website for a longer period of time, can lead to increased interest in the content and potentially generating a new lead or customer. “CTR is a metric that is used to analyze emails, web pages and online search result pages (Google, Bing, Yahoo etc). CTR is normally used to measure the success of marketing efforts” (Source: Optimizely). Measuring the click-through rate is an important metric to measure if you would like to see how visitors are navigating through content on the website.

According to Google, a click-through rate is “a ratio showing how often people who see your ad end up clicking it. Clickthrough rate (CTR) can be used to gauge how well your keywords and ads are performing” (Source: Google). A click-through rate can also determine the effectiveness of a CTA, or call-to-action, on a webpage. It can also determine the effectiveness of any tracking links throughout the site. “Across all industries, the average CTR for a search ad is 1.91%, and 0.35% for a display ad” (Surce: Volovich). The average CTR will vary depending on what element of the website or marketing efforts is being monitored.

“CTR is useful in conversion optimization. It can be used to identify user behavior, user interest and can be used as a micro-conversion to build insights during A/B testing. CTR can help paint a more holistic picture of user behavior in A/B testing” (Source: Optimizely).

Recently a software company, Veeam Software, decided to execute a few conversion optimization tactics, specifically aimed at increasing the click-through rate for a specific product page to generate more sales. They changed the text on the CTA with one theory in mind. “Changing the link text from “Request a quote” to “Request pricing” will increase the click-through rate” (Source: Deswal). By changing the text, Veeam Software was able to increase the click-through rate by 162%. That is a significant increase! By increasing the number of visitors that clicked through to request a quote or request pricing, Veeam Software was able to increase revenue for that time period.

Click-through rate is a good metric to analysis because it is related to conversion rate. If website visitors are not clicking through on CTAs or links, they may be less inclined to take the desired action that the business would like them to take. This metric can be tied to how successful a business is whit reaching a specific goal, simply because it is an actionable item that the website visitor must take. If the information is easy to understand, visible, and enticing, the visitor will take the action. But, if there is a very low click-through rate, it is an indication that the business needs to improve the user experience and make the action clearer.

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Marketing Strategist and Coach showing you how to live a fulfilling life while owning a prosperous business. Based in Austin, TX.

Marketing Strategist and Coach showing you how to live a fulfilling life while owning a prosperous business. Based in Austin, TX.