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The click-through rate is the ratio of clicks on an ad to the total number of users of a website. Whoever visits a website perceives an advertisement (impressions) and possibly clicks on it (clicks). The click rate is calculated as the number of clicks on an ad divided by the number of impressions. It is therefore an important key figure and serves to further optimize search results. For example, if an ad shows 1,000 different banners and 30 of them are clicked, the CTR is three percent. The click rate is therefore a key performance indicator that is used to measure the efficiency of advertising campaigns.
CTR provides an indication of how well digital advertising is performing in relation to customers. Individual indicators are the relationship of the keyword to user behavior and the placement of banners in relation to the target group to be reached. The click-through rate is an important measurement in marketing because it can express the effectiveness of the advertising material used in a specific number. It becomes interesting when billing is based on the CPC model (cost per click).
In the field of search engine optimization (SEO), too, the CTR is an indicator for viewing the preview of the content of a website (snippets). A high CTR in the area of SEO indicates whether a snippet leads to a user on Google clicking on a specific link.
Criteria for the optimal or perfect click-through rate cannot be determined because they vary greatly from campaign to campaign. Click rates are very different. They are between 18 and 27 percent for first place on Google.
All factors that influence the creation of ads or banner ads that are designed to generate clicks have an impact on CTR. The respective rate varies depending on the industry. The aim is for banner advertising to turn a visitor into someone who actually performs an action, i.e. a “conversion”. The average rate of this “conversion”, i.e. the purchase of a product that was previously advertised, is around 1.9 percent for Adwords.
A high click rate does not mean the success of an advertising campaign and is not an indicator of its quality. Only the number of conversions shows whether a website visitor has actually undergone a “change”, i.e. made a purchase, for example.
