Click Through Rates: How to get a positive ROI
Nov 15, 2016 - MARKETING
Transparent
Jorge Lopes

When selling products online, the main goal is to make people click your link to reach your landing page. Getting people to click on your links is half the battle because the more traffic you have, the more products you’ll sell.


There’s a lot of confusion about what Click-Through-Rate (CTR) means and how to use this metric effectively, so we wanted to clarify things a little. The simple definition of CTR is:

The percentage of people who click your link out of everyone who’s seen it.

So if 100 people see your link and 9 people click on it then your CTR is 9%.

This might get a little technical so bear with me. First, we’re going to have a look at the different CTRs of Facebook Ads:

CTR (All) - Click-through rate for all clicks

The total number of clicks your ad received (to view the picture, to visit your facebook page, to write a comment section, etc.) divided by the number of impressions.

An impression is the number of times your ad was presented to a Facebook user (multiple impressions can be shown to a user).

Important: This counts way more clicks than just the people who visit your Moteefe campaign page!

CTR (Link) - Click-through rate for clicks to link

This is the total number of clicks you generated on your ad that directed people to your campaign page, divided by the number of impressions.

Unique CTR (All) - Unique click-through rate for all clicks

This is the number of people who clicked anywhere on your ad, divided by the number of people you reached.

For example, if you received 20 unique clicks and your ad was shown to 1,000 unique people, your unique click-through rate would be 2%.

Unique CTR (Link) - Unique click-through rate for link clicks

This is the number of people who clicked on the link in your ad that directs people off Facebook, divided by the number of people you reached.

My ad's CTR is low. What does this mean and what can I do to fix it?

A low CTR means that your target audience is not engaging much with your ad. There can be multiple reasons for this, such not targeting the right audience, having a poor quality image, bad ad copy, a product that looks cheap or just an uninteresting topic.

There are a few ways to improve a low CTR:

  • Adjust your targeting: finding the perfect targeting on Facebook, takes time and a lot of testing. If your CTR is low, start again, try different target groups, change the age range, the interests, the demographics, add an intersection. Good targeting is key.

Note: if your interests are targeted by other advertisers this might make the Cost per Mille or CPM increase more than         average thus forcing you to increase your budget to deliver your ads to your desired audience. 

(Cost per Mille: The average cost you've paid to have 1,000 impressions on your ad.)

  • Improve your design: Take a look at your design and investigate if your niche has been targeted by a similar or better design in the past. Is your design worthy of higher CTR?
  • Create a great ad copy: Ask people to click and to engage. Something like: “Tag all your friends who are fans of “your niche”  will increase your CTR. Find the call to action that works for your audience and pay attention to how your mockup looks, low resolution mockups will lower your CTR.
  • Move on… some concepts just don’t work which means that your CTR is going to be low. When you’re targeting perfectly, your design’s good and you have great creatives (copy and pictures) but your CTR is low, start preparing the next design!
  • Change your ad objective: PPE and Website clicks don't have the same percentage CTR , PPE ads have traditionally a lower CTR for link clicks.

Conclusion

Ultimately, the CTR that really matters is the one that actually gets you visitors so the one you want to focus on is CTR (Link) and if you bear in mind some of the tips above then your CTR is going to increase over time as you optimise.

As always, the key metric to look at is Return on Investment. But if you’d like more info on how to analyze other metrics, including CTR, check out our blog post on How to spot a winner.

For more support join us on Moteefe Hangout!

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