CTR: What It Is and How High It Should Be

The click-through rate, or CTR, reflects the percentage of users who, after seeing a banner (or other content), clicked on it.

Below, we'll take a closer look at what CTR is, how to calculate it, and how this metric helps businesses.

Here is the formula used for the calculation:

CTR formula

The effectiveness of ads or other content directly depends on their quality and originality. However, a high click-through rate (CTR) does not guarantee a successful campaign. It's essential to evaluate effectiveness comprehensively, considering not only the clickability but also the conversion rate (i.e., how many people made a purchase, subscribed, etc.).

What CTR should you aim for? There's no definitive answer, as a good CTR depends on the industry and the platform you advertise on.

According to Wordstream, as of 2024, the average search ad CTR is 3.17%.

It's important to note that a high CTR is not always an indicator of effectiveness. In some cases, there are many clicks on the ad, but no targeted actions are taken. Here's why this happens:

Poor traffic. Not all clicks are equally valuable. Artificially inflated CTRs by unscrupulous ad platforms that pay people for clicks lead to people who are not genuinely interested in the promoted product or service clicking on the ad. As a result, the budget is spent inefficiently, and campaign metrics are distorted.
Barriers in the user journey. Sometimes the ad format itself becomes a barrier to evaluating its effectiveness. For example, pop-ups that can’t be bypassed without clicking, or excessively large banners that occupy a significant portion of the screen, often provoke accidental clicks from users who have no real interest in the advertised offer.

For example, an ad with a fake X button — you click the x button and go to the app page

Missing the target. Mistakes in choosing the advertising platform or incorrect targeting settings can lead to ads being shown to the wrong audience. The ad message may be visually appealing and have a high CTR, but it doesn’t resonate with the needs and interests of those who see it. As a result, there are clicks, but the conversion to sales is close to zero.
Expectation mismatch. Sometimes, the ad message promises one thing, but the user lands on a page with a completely different offer. This mismatch drastically reduces trust in the brand and the motivation to complete the desired action.

To learn how to build and maintain trust with consumers, check out our article, "How to Gain and Maintain Customer Trust."

For an ad campaign to deliver the desired results, it’s essential to focus not only on the number of clicks but also on the quality of the traffic and ensuring that the ad message aligns with what the user sees after clicking through. To comprehensively assess ad effectiveness, it’s crucial to track conversion alongside CTR. A low conversion rate with a high CTR signals a problem that should be addressed as soon as possible.

Why track and calculate CTR

Why is CTR so important? Here’s what it helps with:

Budget savings. If you pay per click, CTR directly affects your costs. The more clicks your ad gets, the cheaper it becomes, and the more frequently it’s shown. This is how systems like Yandex.Direct, Google Ads, VK Advertising, and others operate.
Understanding your audience. CTR shows which ads attract your target audience and which do not. By analyzing the CTR of various elements (headlines, images, calls to action), you can optimize content to make it more relevant to the interests of potential buyers.
Evaluating advertising platforms. CTR allows you to compare the effectiveness of different advertising platforms where your ads are displayed. This helps you focus your efforts on the channels that deliver the best results.

Is your CTR normal?

Let’s discuss what is considered a good CTR. It’s important to understand that a “good” CTR varies depending on the type of advertising platform, subject matter, and target audience.

Search advertising

Typically, search ads have a higher CTR than other types of ads because they are shown to users who are already searching for information relevant to the product or service offered. The figure varies depending on the niche and competition (selling phone cases is harder than something specialized like concrete mixers).

This is what a Google ad search looks like

Google Display Network

In this network (as well as in a similar network by Yandex), CTR tends to be lower than in search advertising, as ads are shown to a broader audience, not always interested in a specific product. Expecting a CTR of 5-10% isn’t realistic. A 0.46% CTR is considered average, according to 2024 data.

YouTube

Click-through rate impacts a video's position in recommendations. The platform prefers to show videos that attract more clicks and views. The average CTR for video impressions ranges from 2% to 10%, according to YouTube. The click-through rate for video ads is 0.65%, based on 2024 data.

Banners

Typically, large banners have a higher click-through rate compared to regular network ads. This is because ads in networks (such as Google Display Network) can easily be overlooked. Clickable banners, however, are placed in prominent spots, like on the sides of a webpage or between text blocks, making it harder to just scroll past them. A good CTR for banners is usually around 1%.

Banner on the website

Websites in search engines

The CTR of links in search results directly depends on the site's position. Statistics show that the top three links capture a significant portion of clicks — about half. The top spot is the "goldmine," attracting nearly 30% of users. Thus, the higher the site ranks in search results, the greater the chance of getting that valuable click.

To ensure your site ranks among the top results, it's important to work on its SEO optimization. Read more about this in the article "SEO Optimization: What It Is And How It Works."

How to improve CTR if it’s low

A low CTR negatively impacts ad effectiveness. First, it leads to reduced website traffic, which means fewer potential customers. Second, advertising platforms "penalize" inefficient ads. This is reflected in increased cost per click and reduced ad impressions.

To fix this, advertisers should carefully select platforms based on their target audience. It’s also important to focus on making ads more attractive and informative for potential customers.

Below are some simple strategies that can help boost your CTR.

Integrate your USP (unique selling proposition) into the ad. Clearly define the essence of your offer so that the user immediately grasps the benefit. If people are interested, they are more likely to click on the ad to learn more.

Use special words. Ads can effectively trigger users to buy by using phrases like “discounts until a certain date,” “buy and get a bonus.” However, it’s important to provide specifics — exactly how much the user will save or how many bonuses they will receive. Add time limits, such as “available until the start of May,” to urge users to act quickly.

Add a clear and concise CTA. Describe exactly what you want the user to do: “Buy now,” “Order,” “Subscribe.” The clearer your call to action, the more likely the user will follow it.

Conduct A/B testing of ads. Experiment with descriptions, images, and headlines to find the most effective combination. Avoid changing all elements at once, or it will be difficult to determine which part improved the results. Test one parameter at a time to obtain accurate data.

Adapt your ads to the platform and format. When creating contextual ads, selecting relevant keywords is a key factor. For display advertising, the focus shifts to developing creative materials.

Why might CTR be low?

Low CTR is a common issue for advertisers. Below are the main reasons and solutions:

Audience mismatch. The ad is shown to the wrong users who simply aren’t interested in your product. For example, advertising a construction crane on a parenting forum isn't effective.

Solution: Thoroughly study your target audience. Segment it by interests, demographics, and other parameters. Use targeting to display ads to those for whom they are truly relevant.

Unattractive offer. The target audience may be right, but the offer itself doesn’t stand out compared to competitors. There are no discounts, promotions, or bonuses, and prices are too high.

Solution: Improve your ads. Offer discounts or gifts. Compare your prices with competitors and adjust them if necessary. Craft a unique selling proposition (USP) that makes you stand out.

Unappealing ad design. The text and visuals don't catch the eye and are lost among competitors. For instance, dull images and boring text without a call to action won’t attract attention.

Solution: Add vibrancy. Use high-quality images and videos. Create a concise and engaging headline. Include a clear call to action. Experiment with emojis and interactive elements. Test different versions to find the most effective one.

CTR in email marketing

Click-through rate (CTR) for emails is calculated similarly to that of web ads. However, instead of impressions and clicks on ads, it measures the percentage of email recipients who clicked a link in the email and were directed to the sender’s website or another target page.

Simply put, CTR is the total number of clicks that an email generates for its sender. Email marketing specialists use the click-through rate along with open rates, bounce rates, and other metrics to assess the effectiveness of their campaigns.

Conclusion

CTR (click-through rate) is a metric used to evaluate the effectiveness of ads by measuring the number of clicks. A high CTR indicates that an ad is successfully attracting clicks. However, it is not directly related to the number of sales.

To understand what percentage of attracted users completes a target action (purchase, subscription, registration, etc.), it is essential to analyze the conversion rate. This performance indicator demonstrates how successful a campaign is not only in attracting attention but also in achieving final business goals.

Thus, CTR is a valuable tool for assessing how well an ad attracts potential customers. However, for a comprehensive evaluation of a campaign's success, other metrics should also be considered.