A click-through rate is a percentage that indicates how many people clicked on an element on your website. It's calculated by dividing the number of clicks on a given element by the total number of visitors to that page.
This metric is used to measure the success of marketing efforts in emails, webpages and online advertising. CTR is normally used to measure the success of marketing efforts.
Click-Through Rate & Search Ads
CTR is a commonly used metric when evaluating search ads in Google Adwords and other ad platforms. Since search ads are most often pay-per-click (PPC) the average CTR helps to determine how a given ad will perform in driving traffic, and how much the ads will cost.
Digital marketing professionals can improve the performance of low CTR ads by improving the ad copy and ad layout.
So, how important is click-through rate? It is crucial for search engine optimization. In fact, it's one of the top two or three ranking factors in Google, according to many industry experts.
Click-Through Rate & A/B Testing
CTR is a metric used by conversion experts to gain useful insights in A/B testing, as a non-primary conversion metric. For example, if an eCommerce store owner is running an A/B test on their landing page of a clothing company, the conversion goal would be to see which of the two landing pages results in more sales.
A secondary metric might be the conversion rate for shipping information. If there is a high conversion rate for shipping information, this might mean that users are interested in shipping. There may be opportunities to gather more insights into shipping preferences and convert them into better customer experience.
CTR is a tool that is useful for conversion optimization. It can be used not only to identify user behavior, but also to predict user interest and conversion rates. CTR can help paint a more holistic picture of user behavior in A/B testing and gives insight into the overall conversion rate for each variant.
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