Click-through rate is the percentage of people who click on a specific link or call to action (such as the ‘Learn More’ text at the bottom of a marketing email) divided by the total number of people who were exposed to it. For example, if 100 people see an ad and 5 click to learn more about the product, that ad has a CTR of 5%.
CTR can be used to measure the success of pay-per-click search results (on Google and other search engines), CTAs on a landing page, or hyperlinks in blog posts and email campaigns.
Let's take the example of a paid ad that directs people to your website, e-commerce store, or landing page. An ad’s CTR lets you know how effective the ad is at drawing in potential customers; you can then compare ads, emails, and CTAs to see which has the highest CTR.
However, CTR is not the only metric you should use to evaluate your ads’ effectiveness, and a high CTR might be a problem for one important reason...
A CTR will tell you the percentage of people who click, but it doesn’t tell you the total number of people who converted (e.g., made a purchase, signed up for your newsletter). In other words, an ad can have a high CTR with a very low conversion rate, leaving you with a high cost per conversion when you’re getting charged per click.
A low-converting ad with a high CTR means that one (or both) of the following is true:
So, how do you increase the odds that only the most qualified customers click?
Ideal customers are those who would get the most value out of what your business has to offer. They are likely to return again and again if you treat them well, forming the backbone of your customer base—so of course you want to target them with your advertising.
The way you figure out who those people are and what they want from a company like yours is by running some research and building user personas.
A simple user persona answers the following questions:
The following tools can help you answer these questions so you can tailor your messaging to their needs, helping to overcome their objections, and drive actual conversions.
Once you’ve got a clear understanding of who your customers are, what they want, and what’s keeping them from getting it, you can create ads that draw in your ideal customers and convince them to convert.