Industry Standard of Click Through Rate (CTR)%
What is Click Through:
Click through is the process of a visitor clicking on an online advertisement and going to the advertiser’s website. The process is called ad clicks or requests.
What is Click Through Rate:
Click Through Rate (CTR) is the total number of clicks divided by the total impressions. The main purpose of calculating CTR is to know the performance of online advertisements or email advertisements. The more Click Through Rate % means the more successful campaign. It also indicates the good percentage on ROI (Return on Investment).
As an example: If an advertiser set up a campaign for 20,000 impressions and at the end, it shows 40 clicks on those 20,000 impressions. That means the CTR is = 40/20000X100, 0.2%. CTR is mainly calculated to check the website’s performance or advertisement performance for given period time or for the specific advertising campaign.
The way of calculating click-through rate is the total number of times a click is made on the advertisement divided by the total impressions spent and multiply by 100 to get the final result in percentage.
Industry Standard of Click Through Rate (CTR)%
What is good click-through rate?
On an average 0.02% to 2% is the standard rate of click through. CTR over 2% can consider above average CTR and can be suspicious but you can determine whether it is good or bad by comparing some other reports like purchase conversion report or your sales. If it is increased then higher CTR is good for you. Generally, sites with above average CTR are considered suspicious and put into Blacklist (if not the site is trusted).
Depending on campaign set-up; like advance targeting or specific viewer targeting may increase CTR though it will reduce your impression goal. In this case, CTR can be more than 5%.
Standard CTR of banner ads is 0.02 – 0.5, which is normal. Generally, banner ads can’t generate good click-through rate. Regular banner ads are normally made for creating awareness rather than creating sales or other. Banner ads, which made for increasing sales are more specific in targeting visitors through specific keywords, gender, ages, location, browser, devices, interest, habits, and others. percentage of click-through rate on mobile device is higher than the desktop for Banner Ads. Usually, it is 137% higher than desktop users.
There are several platforms offering several targeting systems. Example – Simpli.fi is offering Geofence Marketing, which is advanced targeting systems that allows targeting specific location by using google map. So I’d like to start off by describing geofencing. A geofence can be looked upon as a virtual perimeter that you can draw around any location on a map, and then target customers that enter that location. If you want to target specific buildings, specific floor of a building or specific location; like – university area then you have to use Geofence targeting and which can bring highest ROI by getting highest CTR with low cost.
Banner CTR % – Click Through Rate ON DIFFERENT Platforms
Banner ads status in Google
(DFP, DFA) Offering several targeting systems by using key value and advance targeting system through cache & cookie system. Besides these, some other platforms or ad networks (i.e. – tread desk, adtheorent etc.) are offering niche market targeting system which allows you target visitors most specific way to reduce your cost and get good conversion rate. These systems can bring you up to 20% CTR for banner ads.
CTR for Native Ads
Native ads are more likely search ads and very specific, well-customized ads. Native ads have better click-through rate. It is can be more than 5% and have a greater success rate. Again CTR is higher in mobile devices than desktop.
Ads In Social Media
Social media like Facebook, Twitter, Instagram have different advertising types. Facebook offers various types advertising module like – Boosted post, Promoted post (using the Ads Manager/Power Editor), Newsfeed ad (i.e. no organic reach but looking like a normal post but with the word “sponsored” at the top and created in Power Editor). Average CTR is close to 5% and boosted post have higher CTR – 6.75%. On the other hand, Facebook sponsor ads have 0.1 – 0.5% CTR.
Industry Standard of Click Through Rate (CTR)% in other type ads
Another report is showing click-through rates will vary depending on the type of newsletter, among other factors. B2B newsletters with specific and standard content can have higher CTR up to 20%. It actually varies. B2C is also good but have CTR then B2B. However, highly targeted emails (personalized messages, behavior-based campaigns, etc.) can often attain click-through rates above 20%.
Nowadays, user trend is moving to video ads. Video ads become more interactive and according to Facebook “By 2020, 75% of the world’s mobile data traffic will be video due to increasing using new technologies like smart TV, mobile phone, gaming console, and other devices”. So, video ads are getting more interactive and big buyers are mostly spending their budgets on video ads. According to GOOGLE and AOL video platform av, rage CTR is 1.08%
Finally, there are several exceptions in above advertising systems. A good lucrative content can always get a good impression from visitors and can lead to good conversion to sales. Example – Banner ads during NFL session with offer “Online Stream at cheap cost” or “Buy 1 Jersey and get 1 free”.
As I mentioned earlier that sites CTR rate over 2% can be suspicious but the site that has a good reputation in the market; example – Bloomberg, NYTimes is okay with over CTR rate. in this case, CTR can be more than 20%, it does not matter and that indicates good performance.