Click Through Rate is easily defined as the number of times prospects see your digital ad and actually click on it to get more information. It is not as easy to define its importance as a metric used to determine campaign effectiveness.
It is perhaps most important for straight-forward display ad campaigns, though other factors like positioning, the product/industry, frequency, etc. Generally speaking, however, a high Click Through Rate indicates the ad is performing well.
The emergence of new ad formats are changing this perception. Take video campaigns for example. Now you not only want to know how many clicks are generated, but how many prospects play the video and how long they spend watching it. Depending on campaign objectives this information could be more relevant than pure Click Through Rate.
It is now best to view Click Through Rate only as part of a multi-tiered spectrum of metrics as follows:
- During campaign. Here you look at Click Through Rate and Cost Per Click. Use the information to make adjustments to message, positioning or target keywords.
- Immediate post campaign. Use cost per lead, ROI and conversion rate metrics to determine campaign cost efficiency.
- Campaign revenue evaluation. Upon completion of the campaign what was the total revenue and customer acquisition.
Using Click Through Rate as your primary campaign metrics isn’t necessarily wrong. But there is so much more available information you can use to help you evaluate campaigns and plan future efforts.
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