A clickthrough rate is a metric providing marketers with clear insight related to the number of clicks garnered by their web campaigns, indicating overall ROI. It is determined by dividing the total number of views a piece of content receives by the amount of a clicks on the message or specific calls to action it contains.
With web marketing, businesses often struggle to determine the true value of their campaigns. Clickthrough rate often offers a clear picture of effectiveness since it clearly demonstrates the frequency with which visitors click through to read more, fill out a related form, sign up for an event or otherwise further engage with a brand.
Additionally, the metric will tell marketers which of their campaigns or ads are most effective. A report from iMedia Connection found that clickthrough rates for banner ads have fallen dramatically in recent years.
Clickthrough rate and PPC
In PPC campaigns, search ads with higher clickthrough rates often receive lower rates and costs from the search engine company. Since search companies’ product is their engine, they hope to provide ads that satisfy seachers. Ads with a higher Quality Score will be less expensive and the campaigns more effective.
Clickthrough rate and email marketing
Among the greatest benefits of web marketing compared to older marketing campaigns is the ability to make adjustments quickly based on analytics and other data.
In email marketing campaigns, any of which are sent out weekly or daily, clickthrough rate helps determine which content and types of content are most successful. From there, marketers can be sure to optimize their email marketing material to maximize conversion opportunities.