The Ultimate Guide To Calculating Your Click-Through Rate (CTR)

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What Is Click-Through Rate?

Starting with marketing can often feel like a shot in the dark. You try creating blog posts, social media content, or running ads, but without looking at the proper metrics you never actually know the impact your content had on the viewers. CTR is a great solution to this problem.

Click-through rate, often called CTR, is a ratio of people who click on a specific link or element compared to the number of people who viewed the page, email, or advertisement. It can be incredibly useful to help you understand to which type of content your viewers respond the best and help you alter your practices so that you prioritize that type of content.

One important thing to keep in mind is that CTR takes account only of the people who clicked on the link at that point and can’t include the people who later, as a result of viewing your marketing assets, looked you up again and opened the link directly.

What Are The Benefits Of Click-Through Rate?

Understanding The Impact Of Changes To Your Marketing Assets

The first and most obvious benefit of CTR is the ability to gauge which changes to your website or marketing campaigns led to an increase in conversions and which didn’t. By assessing your CTR pre and post impactful changes you can determine if you’re moving in the right direction and leverage that information to make the best strategic decision. If your CTR went from 6% to 10% after a specific change, you know you are doing something right. You can then use that knowledge and apply it to your other campaigns.

Calculating The Cost Of Inaction

If your competitors are slowly beginning to take you over in the SERP results, you can use the CTR of that piece of content to calculate if you should invest more resources into SEO so that you keep your spot, or if that piece of content is not profitable enough to spend these resources on.

Ability To Project The Impact Of Your Work

Aside from assessing the cost of inaction, CTR can also help you decide on what actions you should take. By multiplying the number of historical views by your CTR, you will be able to calculate exactly how many converting visitors you have. This gives you a starting point for any projections on how much money a new blog post or a change in a headline will bring, allowing you to make the best possible decisions at that time.

How To Calculate CTR?

You can calculate the click-through rate for many different sectors of your company, like calculating the global CTR for the entirety of your website, or only for a specific blog post. Whatever the case, the CTR formula stays the same throughout.

Before calculating the CTR, you must keep these two things in mind:

  1. Finding the number of clicks: There are two types of clicks that you should be aware of, those are Unique Clicks and Overall Clicks. Unique clicks are counted as one click per user, regardless of how many times that user clicked the link. Overall links, on the other hand, count each and every click on the link as a separate click.
  2. Bounce rates: When you calculate the CTR for emails, you need to be careful to first exclude the emails that bounced (i.e. the ones that didn’t make it through to the recipient). The reason for this is simply because nobody even had the chance to see them they cannot provide valuable information regarding the effectiveness of your emails.

Now that you’re aware of these two points and you choose the type of clicks that are the most applicable for your situation, you can use this very simple formula to calculate your click-through rate:

CTR = (Number of clicks / Impressions) X 100

The number that you get will be the percentage of clicks your content is generating.

A few tips when it comes to CTR:

  • Consistent click type: When tracking CTR over time make sure that you always calculate it with the same click type as mixing them could result in data with little to no relevance.
  • Rates vary: CTRs can vary greatly between different markets, mediums, and channels so don’t get discouraged if your CTR is low on some fronts, and make sure to find out what the average CTR is for that market so that you can accurately estimate your position.

How To Improve Your CTR?

There are so many ways in which you can improve your CTR and it’s important to note that the effectiveness of your actions will vary depending on many factors such as your industry and customer demographics. Generally, the three broad and most widely used approaches to improving CTR are the following:

  1. Design Improvements: It’s no secret that better design can lead to better conversions and improve your company’s image. Even the slightest tweaks to your color scheme, UI, UX, or page layout can lead to drastic improvements in the number of clicks. If you need help improving your website, don’t hesitate to contact WebPhaseStudio for a free consultation.
  2. Strong Calls To Action: It’s really hard for your customers to click on your link if you don’t draw any attention to it. By having the button stand out from the background, it will leave a much stronger impact on your visitors. You can do this by giving it a contrasting color and a bigger font, as well as using powerful words to draw attention.
  3. Content Testing: Finally, you should always pay attention to the effects small or big changes have on your CTR. To test the results of a change you can always use the standard A/B split test so that you can best decide what works and what doesn’t.

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