Click Through Rate

In your work with online marketing, you're bound to come across the term Click Through Rate or CTR for short. Here you can read what it is

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By Vadskær
more than 2 weeks ago
Approx. {eight} minutes

Click Through Rate is used in Google Ads, SEO, Facebook Ads and email marketing. You're bound to come across Click Through Rate if you work with online marketing (and you certainly do if you have a webshop).

Fortunately, it's pretty easy to calculate and is one of the factors you often work to improve. Let's take an example.

When people search for something in Google, they usually get 10 results. Most people click on the top one. Imagine 100 people search for "Swiss Army knife". Thirty of them click on the top result. 21 of them click on the second result. This means that the top result has a Click Through Rate of 30% and the second result has a Click Through Rate of 21%.

So to calculate the Click Through Rate, take the number of people who click on it and divide by the number of people who viewed the ad or result. Then multiply by 100 to turn it into a percentage.

Let's take another example of calculating your Click Through Rate.

You sell dog food and run two different Facebook Ads. One ad shows a picture of a Labrador puppy eating. The other ad shows a picture of the dog food.

The puppy ad is shown to 12,000 Danes.

There are 479 clicks on the puppy ad. If you divide 479 by 12,000 you get 0.0399. You need to multiply that number by 100 to get the percentage. This gives you a Click Through Rate of 3.9%.

The dog food ad has been seen by 13,500 people, of which 520 have clicked on it. To calculate the Click Through Rate, you divide 520 by 13,500. This gives you 0.0385 and to convert it to a percentage, you multiply by 100 to get a Click Through Rate of 3.85%.

This means that your Click Through Rate on the puppy image is the highest.

If you had just clicked on the number of clicks, you might have mistakenly thought "I got 520 visitors from the dog food ad and only 479 visitors from the puppy ad. So the dog food ad is the best". But that's not necessarily the case, as the puppy ad gets relatively more visitors.


But there are other parameters in play...

What if the dog food ad converts much better? Perhaps the visitors who clicked on the dog food have a conversion rate of 4% and those who click on the puppy only convert at 2.3%. Maybe it makes sense to continue with the dog food ad after all.

So there are many parameters at play when optimizing ads, titles and meta descriptions etc.

Click Through Rate is just one of them.

We know online marketing in Shoporama

We've been working with online marketing ourselves for decades. As the only shop system in the country, we have spoken multiple times at conferences such as Marketingcamp, SEOday, Shopcamp, Digital Marketing, E-commerce Manager, Ecommerce Day, Web Analytics Wednesday and many more.

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