What is my Click-Through-Rate and Why is it Important?

What is a Click-Through-Rate?

A click-through-rate or CTR is something commonly talked about in digital advertising. Simply put, a CTR is how many people saw your ad and actually clicked on it to find out more information. A high CTR means that you have a lot of people clicking on your ad, and a low CTR means there are not as many.

Why is your CTR Important?

Many dealers want to know what their CTR to make sure they are getting their money’s worth on digital advertising. At Mudd, we also use the CTR on a campaign as a metric that helps us determine what campaigns are running successfully for our clients and what campaigns need improvement. A higher CTR is a gauge of more interest in that specific campaign, where a lower CTR can show that your ad may not be as relevant. High CTRs are important because they show that more people are clicking through to your website, but they are also good for other reasons. High CTRs also help us gain favor with Google and Bing to let us show our ads in a better position for less money. Search engines like Google want you to have high CTRs because relevant ads are what google is all about.

What Type of CTRs Do My Campaigns Get?

We are often asked what kind of CTRs we get on campaigns, but keep in mind, the success of your campaign cannot be determined solely by the CTR you get. Different campaigns have different levels of interest which ultimately results in different CTRs, but a lower CTR doesn’t necessarily mean your campaign was unsuccessful. For example, a brand campaign where someone is searching directly for the name of your dealership should have a higher CTR because the user is searching directly for your dealership. In those campaigns, we have seen CTRs of nearly 30%. However, if someone is searching for something less directly related to you, the CTR could be more like 2%. Your CTR can vary greatly, but at Mudd, we have people in place that know the numbers and know how to determine the best use of your money. Our Digital Strategists and Search Engine Marketing Account Managers work to determine the best way to use your dollars, so you can get the most for your money. We crunch the numbers, so you can sell the cars.