Click-Through Rate (CTR) Calculator
Click-through rate (CTR) is an essential metric to measure the performance of any online ad campaign. In most cases, CTR is a better measure of success than counting how many impressions or the number of clicks an ad receives.
The click-through rate definition is simple—it’s the ratio of ad impressions to clicks. But what does that mean? Why is it an important metric for publishers?
Let’s look at an example to better understand why CTR is a better indicator of success in digital marketing than the number of impressions or user clicks.
Ad A is seen 500 times and clicked 50 times in a given time period.
Ad B is seen 5,000 times and clicked 100 times.
Ad B is seen 5,000 times and clicked 100 times.
Ad B has received more ad impressions and has had more users clicking it, so if that was all we were measuring, we might think that ad B had better ad copy and that there were more users interested in ad B. But although the total number of clicks on ad B was higher, the ratio of clicks to impressions (click-through rate) was lower, which speaks negatively to the effectiveness of the advertisement.
This example illustrates why CTR is a must-use tool for advertisers, and why CTR tells them more about the performance of their ads than the total number of clicks or impressions. A higher CTR not only indicates a higher level of interest from users on that website, but it also has financial ramifications because the advertiser can reach the same amount of clicks while paying for fewer impressions. CTR is therefore usually used when ad performance is being measured.
What does CTR mean for publishers?
A high CTR means that the ads you are showing are relevant to the visitors to your site and that they feel enticed to click on a link in the ad.
Understanding your CTR (click-through rate), or the percentage of people who click on the ad units on your site, can have a direct impact on publication profitability in multiple ways. In general, the more clicks your publication drives, the more significant it becomes for your ad network. After all, clicks are more meaningful than having someone see an ad. In many cases, they’re a step towards a conversion, such as signing up to an email list or making a purchase.
Some ad networks pay more per click if your website can demonstrate a high click-through rate on a website or landing page. Moreover, some will serve your users ads with a higher CPC rate if they determine that your publication is a valuable partner for a specific audience.
If your publication gets paid per click, calculating CTR helps you and your team figure out annual revenue goals and see whether you’re on track to meet them. If you have a high click-through rate, you can hit your digital marketing goals. If your CTR calculator shows you have a low CTR, you want to know as soon as possible so you can make changes to different elements of your digital marketing strategy or a specific campaign.
How to calculate CTR (formula included)?
A CTR calculator divides the number of clicks by the number of impressions to determine the click-through rate.
The click-through rate formula is simple—you don’t even need a CTR calculator to figure it out. To calculate it, simply divide the number of clicks by the number of impressions of a given campaign. For instance, if a campaign had seven clicks and 100 impressions, the CTR would be 7%.
How to calculate average CTR for publishers (formula included)?
A CTR calculator divides the number of clicks by the number of impressions to determine the click-through rate.
Many publishers use an online CTR calculator, but it’s actually very easy to calculate click-through rate (CTR) without a specific tool. Publishers can use the same CTR formula as advertisers, and simply divide the total number of clicks by the total number of impressions for ads shown on their website or on a specific landing page. Publisher CTR is also one of the metrics in the publisher section of Google Analytics.
DoubleClick for publishers’ average CTR
DoubleClick for Publishers (DFP), the tool that is known today as Google Ad Manager, can also be used to calculate the average click-through rate.
Originally, DFP was an independent ad server for publishers, that was later purchased by Google. Google eventually changed the name from DFP to GAM (Google Ad Manager), but it’s the same thing with a different name, and an essential part of any digital marketing strategy. Therefore, a high CTR on DFP/GAM is the same as a good CTR anywhere else.
How to improve your CTR
You can improve your CTR by testing different formats, optimizing the reading experience, and retaining readers longer.
The higher your CTR, the better. So how do you get it to increase? What factors impact CTR negatively? If you’re not satisfied with the results the click-through rate calculator is showing, here are some things you can do to improve your digital marketing and boost your CTR results:
Test different formats and positions to avoid ad fatigue
Your readers are so used to ads that they almost don’t see them. Try to place your ad units in new places, use different ad unit sizes, and alternate between visuals and text until you find the best combination to attract their attention.
Optimize the reading experience for long-term profitability
Placing 20 ads on a 1,000-word page or using flashy clickbait ads is more likely to send readers running than to your ads. Put your readers’ needs first to make sure you don’t sacrifice revenue from a potential long-term reader for one click.
Retain readers longer
Readers that stay longer tend to trust your publication, and therefore they also trust its ads. In addition, they teach ad networks that the publication’s topic interests them, and are therefore more likely to be served ads that align with what they’re currently reading.
What is a good rate of CTR?
A good CTR varies according to the type of ad, the location, and industry.
No matter what click-through rate calculator you choose, or how you calculate the average click through rate, there is no one number that is the benchmark for CTR in digital marketing. What constitutes a satisfactory CTR depends on several factors including type of ad, location, and industry, and it’s important to compare apples to apples in order to determine a good rate.
Is 5% a good click-through rate?
5% is much higher than the 1.9% average for a search and display ads, so in many types of digital marketing, a CTR of 5% would be a good result. However, some industries have higher CTRs than others on average. For example, the average for dating and personals is over 6%. Therefore, an ad campaign in that industry with a CTR of 5% would not be considered good in that industry.
Is 4% a good click-through rate?
Again, it depends on the industry. In industries like travel and hospitality, or real estate, 4% isn’t considered good. However, in an industry like home goods, it’s above average.
Is 3% a good click-through rate?
The average for a search ad is 3.17%, so 3% is a below-average rate for search ads. However, the average for a display ad is 0.46%, so 3% is a good CTR for display indicating beautifully displaying ads.
In addition to our CTR calculator, you can also check out our CPT and ECPM calculators:
