What the heck is a CTR?

Let’s talk about Click-through Rate (CTR) for a minute. If you’re diving into digital marketing, you’ve probably come across this metric a lot.

So what is it?

Simply put, CTR is how many people actually clicked on your ad, email, or link after seeing it, expressed as a percentage. I.e. if 100 people see your ad, and 2 people click on it, your CTR is 2%.

This number helps you understand how effective your content is at getting people to take the next step—whether that’s visiting your website, signing up for something, or making a purchase. But is it always the be-all and end-all of marketing performance?

Not really! Let’s break it down.

The formula:

CTR = (Total Clicks / Total Impressions)​ × 100

What’s a “Good” CTR, anyway?

How to know you're on the right track? Here’s a general guide:

• Below 1%: This is usually considered unsatisfactory. It means your content isn't really grabbing attention or persuading people to take action. But hey, don’t panic—there’s always room to improve!

• 1% - 3%: This is good! Especially if you’re running social media ads or display ads. If you’re hovering around 2%, you’re in a pretty solid spot. People are clicking, and that’s the goal!

• 3% - 5%: Excellent! Anything in this range means your campaign is doing really well. It shows your content is resonating with your audience, especially in search ads where people are more likely to click based on their intent.

• Above 5%: Exceptional! If your CTR is above 5%, you’ve got a winning campaign. This is common with highly optimized search ads or super engaging email campaigns. People really like what you’re offering!

CTR below 1%, mmm what’s going on?

If you’re seeing a CTR below 1%, don’t throw in the towel just yet. Here are some common reasons why your CTR might be struggling:

1. Poor targeting

If your ad or content isn’t reaching the right people, it doesn’t matter how good the ad is—it’s just not going to click.

2. Weak messaging

Maybe the ad copy, the call-to-action (CTA), or the offer just isn’t compelling enough. People won’t click if they’re not intrigued or if your message doesn’t speak to their needs or desires. Try to make a message more personal with your buyer persona.

3. Unattractive creatives

Bad design or low-quality visuals can hurt your CTR. No matter how awesome the offer is, if your ad looks dull or unappealing, people will scroll right past it.

4. Ad Fatigue

If you show the same ad to the same people too many times, they might start ignoring it. Which would mean that people are just tired of seeing your content. Give a twist! Refresh the whole thing!

5. Not optimized Landing page

This is very important. Maybe the path is good (the ad) but the final destination (ex. the website) is not good enough.

Ensure your landing page is relevant, fast-loading, has a clear message and provides a smooth experience for visitors.

Heads up! Sometimes below 1% is ok!

You might be thinking, “Alright, so low CTR is bad… but what if it’s actually fine in certain situations?” You’re not wrong! Sometimes a low CTR can be totally acceptable—especially if you’re aiming for brand awareness.

If your goal is to get your name out there, not necessarily drive clicks right away, a CTR below 1% could be just fine. You're focused on impressions and reach to get your message in front of as many eyes as possible.

Example:

Let’s say you’re opening a coffee shop.

You’re targeting people who live in the area and have shown interest in cafes.

• Your piece of content gets 5000 impressions, but only 30 clicks.

• Your CTR would be: (30 clicks / 5000 impressions) × 100 = 0.6% CTR

• Now, while a 0.6% CTR is below 1%, that might still be okay. Maybe you’re just getting started with this campaign and people need a bit more time to warm up to your brand. Or maybe you’re really focusing on getting your name out there (brand awareness) rather than expecting immediate conversions. 

Remember:

Understanding your brand’s metrics and establishing benchmark KPIs is crucial for making informed decisions and drawing meaningful conclusions.

At the end of the day, a low CTR doesn’t mean failure, but it does mean there’s room for improvement. Don’t forget to test different elements and track your progress over time.

Don’t worry, we’ll help you understand CTR along the way!