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What is CTR & Why Is it important for my Austin E-Commerce Site?

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CTR Strategy

It’s one thing to take out ads for your business, but it’s no good if you can’t get people to actually visit your website. That’s why click-through rate, or CTR, is so important. There are more ways than ever to make your digital mark, but you need to know what’s most effective for you and your business. Where you place ads and how you adjust your digital marketing strategy matters. Fortunately for you, Auden Digital can help your e-commerce site boost that CTR and help you attract more paying customers.

CTR Formula

Here’s a simple formula for your click-through rate. Take the number of click-throughs and divide them by the number of impressions, or times the ad is seen. Then take that number and multiply it by 100. That’s your CTR.

So if your ad is shown to 100 people and seven people decide to click on it, then that’s a CTR of seven percent. This rate is then used to determine how effective your ads actually are. The higher the rate, the better you’re engaging with your target audience. Analyzing the click-through rate on specific links or ads can help you better target your attempts to reach out to new customers.

What Tools Can You Use to Determine your CTR?

Google Analytics is one tool we use to track clickthrough rates. We look at the number of impressions ads make vs total click-throughs, which are then used to calculate and monitor relevant key performance indicators and look for ways to improve. Once you have a tool that can track these numbers, you can try to increase your CTR to a “good” level compared to other companies in your industry.

Google Ads is another important tool we use, it’s one of the leading pay per click platforms and uses an internet advertising model to drive traffic to landing pages, where the advertiser pays per time the ad is clicked on.

What’s a “Good” CTR for Organic Traffic?

Currently, the average across all industries is 1.9 percent. That may not seem too impressive, but think about how many ads are served up to the average internet user on a daily basis and how many chances you actually have to make an impression that counts. You should definitely aim higher than the average. Depending on your industry, somewhere between three and six percent is generally considered good.

Why Click Through Rate is Important

Tracking your CTR is important because it can let you know how well the ads you’re paying for are performing. A better CTR can boost your return on investment, helping you reach your online advertising goals. When your marketing campaigns and ads aren’t proving effective and your conversion rates are low, we can help you find out why and improve your strategy, including email marketing, open rate, search engine rankings and more. When your ads are successfully encouraging people to click through to your website, then you know which ads and platforms are most effective for your business.

Your resources aren’t limitless. Knowing which investments pay off and which don’t are critical for any company that’s trying to expand and grow. Figure out which ads are working and make the best possible use of your advertising budget.

Your CTR Experts in Austin, TX

Now that you see how important that CTR formula can be, it’s time to turn to the experts. Talk to the experienced marketing pros at Auden Digital and see how you can turn those clicks into conversions.

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