A good click-through rate (CTR) can vary significantly depending on factors like the industry, type of ad, placement, target audience, and campaign objectives. Generally speaking, the higher the CTR the better, as a high CTR indicates an ad is relevant and engaging to users. However, setting realistic CTR expectations is important – striving for excessively high or low benchmarks can distort campaign performance analysis. Understanding the norms for different ad types and placements is key to defining a “good” CTR appropriate to each campaign.
What is CTR?
CTR stands for click-through rate. It is the ratio of users who click on an ad to the number of total users who view the ad.
CTR is calculated as:
Clicks / Impressions = CTR %
For example, if an ad gets 300 clicks and was shown to 5000 users, the CTR would be:
300/5000 = 0.06 = 6% CTR
CTR is a key ad performance metric as it measures engagement – i.e. how compelling an ad is to get users to click. A high CTR signifies an ad is relevant to the audience and motivates clicks.
However, CTR alone does not fully indicate campaign effectiveness. Other metrics like conversion rate, cost per click/acquisition, and ROI should also be analyzed. An ad with a high CTR will not be successful if it does not convert clicks into business results.
Average CTR Rates
Here are some average CTR benchmarks for different ad formats and placements:
Google Ads
– Search Network – Avg. CTR is 1-3%
– Display Network – Avg. CTR is 0.35 – 0.50%
Facebook Ads
– Facebook feed ads – Avg. CTR is 0.9%
– Instagram feed ads – Avg. CTR is 2.1%
– Right column ads – Avg. CTR is 0.7%
Banner Ads
– High traffic websites – Avg. CTR is 0.2%
– Low traffic websites – Avg. CTR is 0.5%
Email Marketing
– Promotional emails – Avg. CTR is 2-3%
– Standard newsletters – Avg. CTR is 10-15%
Industry Benchmarks
Industry | Average CTR |
---|---|
Retail | 0.35% |
Travel | 0.25% |
Education | 0.45% |
Technology | 0.15% |
As shown, CTR varies significantly by industry due to factors like purchase intent and competition levels. Setting realistic benchmarks requires analyzing averages for your specific industry.
What is a “Good” CTR?
So when can your CTR be considered “good”? Here are some factors to determine appropriate CTR benchmarks:
Ad Type & Placement
Search ads tend to have higher CTRs than display ads. And ads placed on high-intent placements like Google Search will perform better than random display placements. Benchmark against averages for the specific ad format and placement.
Audience & Intent
Ads targeted to highly interested shoppers ready to purchase can achieve much higher CTRs than untargeted ads. Consider your audience and their purchasing intent when defining “good”.
Landing Page Quality
A compelling, relevant landing page leads to higher engagement and clicks. Poor landing experiences will depress CTRs. Benchmark against top-performing landing pages in your niche.
Ad Quality & Competition
Well-designed, relevant ads outperform promotional or generic ads. Also factor in competitor ad quality and bid levels in your niche.
Campaign Objective
Ads focused on brand building or engagement goals may consider a lower CTR acceptable compared to conversion-focused campaigns. Set benchmarks according to what the ad is intended to achieve.
Here is a general framework for defining a “good” CTR:
General Benchmarks
– Great – More than 2x your industry benchmark
– Good – Around 2x your industry benchmark
– Average – Meets your industry benchmark
– Poor – Misses industry benchmark by over 20%
With this context, here are some examples of good CTRs:
– Search ad in legal services – > 4% CTR
– Facebook ad for ecommerce – > 1.8% CTR
– Display banner for travel – > 0.5% CTR
– Email promo for SaaS – > 6% CTR
How to Improve CTR
Here are some tips to improve CTR benchmarks:
Increase Ad Relevance
Use highly targeted keywords, tight ad groups, and laser-focused audience targeting to ensure your ads are matching searcher intent and interests. Ads aligned to the right user signals will perform better.
Enhance Ad Copy & Design
Craft compelling ad copy and headlines focused on creating user interest and desire. Use dynamic ad customizers to show relevant product/brand names. Make design visually appealing. Test different ad creatives.
Landing Page Optimization
Ensure your landing page looks professional, loads fast, and is easy to navigate. Clearly communicate your value proposition and have a strong call-to-action. Remove friction in the conversion process.
Measure & Iterate
Set up conversion tracking to attribute performance accurately. Conduct A/B tests to find top performing ad elements. Analyze performance data regularly and eliminate low-performing elements. Continuously refine targeting, ads, and landing experience.
Monitor Competition
Research competitor ads and landing pages. Improve your ads to meet or beat their relevance. Stay on top of industry benchmarks for ad pricing/positioning.
Conclusion
Defining a “good” CTR requires analyzing benchmarks for your specific ad type, industry, audience, and campaign goals. While there are some broad averages, strive to exceed your own niche benchmarks by 2x or more. Continually optimize ads and landing experience to drive clicks and conversions from your target audience. With well-targeted, relevant messaging and a frictionless user experience, maintaining an above-average CTR is achievable.