What is a Good CTR (Click-Through Rate)?

When you are advertising online, it is very important to pay attention to the click-through rate your ad receives. The click through rate, or CTR, is the percentage of how many consumers see your advertisement and decide to click on it. The CTR for your advertisements is a very important metric to determine how successful your marketing campaign has been. The more likely a consumer is to click on your advertisement, the more likely they are to become customers and purchase your product.

The conversion rate in which consumers who click on an advertisement become customers varies based on the industry. However, it is pretty much unanimous that having a good CTR leads to an increase in sales. This is why it is so important to learn what is a good click-through rate, and more importantly, how to increase your CTR. In this article, we will discuss what a good click-through rate is for different platforms. For example, the average CTR for LinkedIn ads differs from the average Google click through rate.

What Percentage is Good for a CTR?

First of all, do you know what your CTR is? You can use a click-through rate calculator to determine your CTR.

Many consumers actually do not click on advertisements when they see them on their social media timeline or on other websites. CTR rates are often very low, which means that seemingly small differences in the CTR percentage could be very important for profits. For example, a 2% click-through rate is considered very high. Many people argue over what a good CTR rate is because there are a lot of variables to consider. The average CTR can dramatically vary depending on which platform you are advertising on.

Average CTR Rates by Platform:

Different platforms have different click-through rates. You can expect a different ad benchmark from LinkedIn advertising vs. Google advertising.

• Facebook ads have an average CTR of 1.11%
• Google ads have an average CTR of 1.55%
• Instagram ads have an average CTR of 0.22%
• LinkedIn ads have an average CTR of 0.22%
• Twitter ads have an average CTR of 0.86%

In addition to the platform in which you advertise on, you should consider that every industry has different CTR rates. This is partly because they have different types of ads. For example, on LinkedIn you might use Lead Gen Forms and on Instagram you might use carousel ads.

Average CTR Rates by Industry:

Let’s discuss the average click through rates by industry:

• The advocacy industry has an average CTR of 0.59%
• The auto industry has an average CTR of 0.60%
• The dating industry has an average CTR of 0.72%
• The education industry has an average CTR of 0.53%
• The finance and insurance has an average CTR of 0.52%
• The health and medical industry has an average CTR of 0.59%
• The legal industry has an average CTR of 0.59%
• The real estate industry has an average CTR of 1.08%
• The technology industry has an average CTR of 0.39%
• The travel industry has an average CTR of 0.47%

There is not a simple answer for what is a good click-through rate, because there are so many variables you have to consider. For example, a 0.5% CTR would be considered good for the technology industry but horrible for the real estate industry. Additionally, a 0.4% CTR is great for Instagram but bad for Twitter.

A general rule of thumb would be to look at the industry your product is in and the platform you are advertising on and see if your CTR is above the average rates. There are obviously other metrics to judge the effectiveness of your advertisement so do not be discouraged if your CTR falls below average for a certain category.

How to Improve Your CTR

Now that you have an idea of what your CTR should look like, you might be wondering how you can improve your CTR. Luckily there are several ways to improve your CTR including testing different ad types, creating advertisements with images, emphasizing the pricing of your product, adding keywords to your ad copy, and adding a call to action. Obviously there are several others but this is a good place to start improving your click through rate.

Try Testing Different Types of Ads

Sometimes your CTR could be suffering simply because you are using a type of ad format that is less engaging to consumers. The content of your ad could stay the same with small wording differences. You might want to consider using a responsive text ad. Responsive text advertisements are so effective in fact, that they can increase your click-through rate by 12%. Responsive text advertisements allow you to better target your ads towards your consumers.

So how does it work? Responsive text advertisements allow you to create multiple headlines to grab the user’s attention. Additionally you can create different ad descriptions. The search engine or social media site will try different combinations of headlines and descriptions. This is to see which combination gets the best click through rate. After doing several A/B tests the algorithm will determine which gives you the best CTR. Responsive text advertisements can be a great tool to use because sometimes it is difficult to tell what will grab consumers attention. This is also a great way to test out different ideas for ads without having to fully commit if it is not successful.

Create Advertisements with Images

Images have been shown to dramatically increase your click through rate. In fact some studies have found that using an image can increase your CTR by 42% percent in emails. This makes sense when you take a minute to think about it. If you are looking through a bunch of emails that are filled with text, the email with an image will stick out to you. It catches the user’s eye. If this is done correctly, it can convey the message of the ad without the user even having to read.

This works on social media sites too. If you are scrolling through your timeline and it is mostly text, seeing an image will stand out to you. A good example of this are sites like Twitter in which most of a user’s timeline is text with few images. If you are trying to improve your CTR, then you may want to try using an image, the results might surprise you.

Emphasize Your Pricing in Your Advertisement

Many consumers might see your ad and love the concept but not click on it because they may believe it is out of their price range. Highlighting the price of your product within your ad could show consumers that they can in fact afford your product. Even if the consumer cannot afford the product if it is slightly outside their price range they might click on your advertisement just to see if you have similar products at lower prices. This strategy is not for everyone.

However, if your products are competitively priced you should consider it. You could even use this when you are running a sales promotion to increase your click through rate. Pricing is an important deciding factor for most consumers, so it’s crucial to consider when positioning your advertisement.

Add Keywords to Your Advertisement

Adding keywords to your advertisement can help improve the chances that users who are interested in your product see your ad. This increases your ad’s click through rate because if someone is interested in your product already they are more likely to click on the ad.

So how exactly does this work? Say someone is searching for camping gear and your company sells tents. If you put the key term “camping gear” in your advertisement, the algorithm will recommend your ad to the user searching for camping gear. Maybe the user was looking for a fishing rod and now because they have seen your advertisement they remember they need to also purchase a tent. Even if the user does not need a tent they are a lot more likely to click on an ad that is related to one of their interests.This is why you should consider using keywords to improve your CTR.

Use a Call to Action

As silly as using a call to action may seem at first, it is a really simple and effective way to increase your CTR. This could be as simple as saying “Buy Now” or “Learn More.” Or, you could have a longer, more in depth call to action. Regardless of what type of call to action you use, it could increase your click through rate. This is especially true if your ad features a limited time offer. Call to actions like “buy now while supplies last” are used often for a reason.

Additionally, you could even set a timer on your advertisement, which encourages customers that they need to make the purchase before time runs out. If you sell a more expensive product, then you should probably not use a timer. This is because for bigger purchases consumers typically like to take more time before they make a decision. Regardless of the price of your product, using a call to action could increase your click-through rate.

Improve Your Quality Score

For paid search ads, Google will assign you a Quality Score. A Quality Score is a diagnostic tool meant to give you an idea of how well the quality of your ad compares to other advertisers. If you boost your Quality Score, you will most likely get more clicks.

Good Click-Through Rate

Learning what is a good click through rate is not always a straightforward process and requires you to consider several factors. Look at the variables and see if your click through rate is good or not. If your click through rate could be better, do not worry! Even if you aren’t getting clicks, ads are still good for brand awareness. You now have several tips to help improve it. Even if your click through rate is above average, it can always be better. After all, a better click-through rate typically leads to better sales. For help improving your click-through rate, contact SEO Design Chicago today!

Frequently Asked Questions About Click-Through Rate (CTR)

1. How do I calculate my click-through rate?

CTR is calculated by dividing the number of clicks your ad receives by the number of times it’s shown (impressions), then multiplying by 100 to get a percentage. The formula is: CTR = (Clicks ÷ Impressions) × 100. For example, if your ad was shown 1,000 times and received 15 clicks, your CTR would be 1.5%. Most advertising platforms automatically calculate and display your CTR in their analytics dashboards, so you don’t need to calculate it manually. You can also find click-through rate calculators online to help with this calculation.

2. What factors affect my click-through rate besides ad quality?

Several factors beyond ad content impact CTR, including target audience relevance, ad placement and timing, competition level in your industry, seasonal trends, and device type (mobile vs. desktop). Your bidding strategy and budget also affect where and when your ads appear, influencing visibility and CTR. Geographic targeting can significantly impact performance, as different regions may respond differently to your messaging. Additionally, ad fatigue occurs when the same audience sees your ad repeatedly, causing CTR to decline over time. External factors like current events, holidays, or economic conditions can also influence how likely people are to click on ads.

3. Is a higher CTR always better, or can it be misleading?

While higher CTR generally indicates more engaging ads, it’s not always better if it doesn’t lead to quality conversions. A very high CTR with poor-quality clicks (users who immediately leave your site) suggests your ad might be misleading or targeting the wrong audience. Focus on CTR alongside other metrics like conversion rate, cost per acquisition, and return on ad spend. Sometimes a slightly lower CTR with higher-quality clicks provides better ROI. The goal is finding the sweet spot where your CTR is good enough to keep costs reasonable while attracting genuinely interested potential customers.

4. How long should I wait before determining if my CTR is performing well?

Allow at least 1-2 weeks and several hundred impressions before making CTR judgments, as initial data can be volatile. For most campaigns, 2-4 weeks provides enough data to identify meaningful trends. However, the timeline depends on your budget and impression volume – high-budget campaigns may have sufficient data in a few days, while smaller campaigns might need a month. Avoid making major changes too quickly, as algorithms need time to optimize. If your CTR is extremely low (under 0.1%) or much higher than industry averages, you might act sooner, but generally, patience leads to more accurate assessment and better optimization decisions.

5. Can I improve my CTR without increasing my advertising budget?

Absolutely! Many CTR improvements require optimization rather than additional spending. Focus on improving ad copy with compelling headlines, strong calls-to-action, and relevant keywords. Use high-quality, eye-catching images or videos. Refine your audience targeting to reach more relevant users. Test different ad formats and creative approaches through A/B testing. Optimize your landing pages to ensure they align with your ad messaging. Schedule ads for optimal times when your audience is most active. These improvements often increase CTR while maintaining or even reducing costs, as better-performing ads typically receive lower cost-per-click rates from advertising platforms.

6. How does CTR impact my overall advertising costs and campaign performance?

CTR directly affects your advertising costs and campaign reach. Higher CTRs typically lead to lower cost-per-click rates because platforms reward engaging content with better ad placement and reduced costs. This creates a positive feedback loop – better CTR leads to lower costs, which allows more impressions for the same budget, potentially leading to even more clicks. Additionally, high CTR improves your Quality Score on platforms like Google Ads, further reducing costs and improving ad positions. Poor CTR can result in higher costs and reduced ad visibility, making it harder to achieve campaign goals within your budget.

7. Should I be concerned if my CTR varies significantly between different campaigns or ad groups?

CTR variation between campaigns is normal and often indicates different levels of audience engagement, competition, or ad quality across different products, services, or target segments. Analyze which factors might be causing the differences – different target audiences, ad creative, keywords, or competition levels. Use high-performing campaigns as models for improving underperforming ones. However, significant drops in CTR for previously successful campaigns may indicate ad fatigue, increased competition, or external market changes requiring immediate attention. Monitor trends rather than just point-in-time comparisons, and investigate any sudden, unexplained changes in CTR performance across your campaigns.