Clicks hold greater significance for businesses compared to mere views from casual observers. To determine the effectiveness of a Facebook banner, TikTok video, or app ad, the Click-Through Rate (CTR) serves as a valuable metric. CTR represents the percentage ratio of the number of clicks on an ad to the number of times it is displayed.
Increasing CTR leads to a higher ad position and a decrease in the cost per click. What is the purpose of CTR, you may ask?
- Attracting traffic and audience
- Maximizing budget savings and improving the return on investment for products/services
- Enhancing the frequency of displaying ads with high CTR on various platforms
Good creative content benefits everyone involved: users are more inclined to click on it, thereby increasing CTR. Simultaneously, advertisers experience a decrease in the average cost per click (CPC) for the ads.
For advertising campaigns targeting a broad audience, a commendable CTR is considered to be around 2%, while for moderately competitive markets, an average CTR of 4% is desirable. However, if you have a narrow target audience, a CTR below 5% is considered normal.