Jun 24 2020
Basis Technologies

The Complexity of CTR in Display Advertising


What is CTR?

CTR, short for click-through rate, is one key indicator of how a campaign is performing. Depending on the campaign and industry, there are different ways to understand the rate in which users are clicking on your ads. As large agencies try to move away from this performing metric, advertisers still try to get the most valuable information out of their campaigns. CTR can be calculated by dividing the number of campaign clicks by impressions followed by multiplying by 100 in order to get a percentage. CTR can always be adjusted mid-campaign by following a few simple steps but first let’s discuss what defines a “healthy CTR”.

What Makes A Good CTR?

There are different studies for marketers to determine if they have a healthy CTR. Usually, running a more conversion-based campaign can likely generate a lower click-through rate, while running an awareness campaign, can typically lead to a higher one. A high CTR indicates that your ad or web page is engaging and highly relevant, while a lower one could possibly be due to poor copy and/or creative. If you look at CTR across different industries, the numbers vary. According to Oberlo, for B2B search ads, the average CTR is 2.41%; for eCommerce, the average CTR is 2.69%; and for home goods, the average CTR is 2.44%. Percentages tend to dip a bit for display advertising—for B2B, the average CTR is 0.46%; eCommerce, the average CTR is 0.51%; and home goods, the average CTR is 0.49%.

Improve your CTR for Display Advertising

There are different ways to improve your campaign’s CTR. For display advertising, make sure your creative catches the intended audience’s attention and that all copy/creative is relevant to what you’re marketing to consumers. Creating a thinner, or less broad audience can help as well. Make sure to layer each individual targeting parameter to narrow down your audience. Simply targeting people interested in an industry will not be enough to improve CTR performance. Another adjustment to make is by adding site links to every ad.  According to Google, adding several site links that are related to your initial ad can vastly improve your CTR by about 10-20%. A simple, fine-tune can rapidly increase your CTR.

Making display advertising more specific may also help your click-through rate. This is especially crucial if you are selling a product or service where there is a more saturated market. In many instances, a simple creative refresh can easily improve campaign performance. For search campaigns, focus on audience and keyword targeting—find different keywords that coincide with your brand.

Utilize a Top DSP

Questions on how to improve your CTR? At Basis Technologies, we have the knowledge and experience of our Media Services Organization, backed by Basis—the industry’s most comprehensive and automated digital media platform.

Learn more about Display Advertising with Basis.