CTR measures the number of times an ad is clicked versus the number of times it has been viewed (impressions).

There are a number of ways to measure the success or disappointment of your online advertising campaigns. Ultimately, the most important metric in e-commerce is a sale. However there are many other metrics that can show you the effectiveness of an online keyword driven ad campaign.

Click-Through Rate (CTR) tells you if your ad text and information are best for your selected search keywords. For example, if you sell boots and you have a Click-Through Rate on your ad above or equal to the industry norm of 2.69%, you have a good advertising campaign. This tells you a few things. Firstly, your ad creative is good and written well enough to attract potential buyers so they click your ad. Secondly, it tells you’ve selected good target keywords to advertise against. Thirdly, it demonstrates your negative keyword list is robust enough to fend off frivolous clicks.

Click-Through Rate is calculated by dividing the number of total clicks by the number of total impressions and multiplied by 100. For example, if your online advertisement for boots generated 200 clicks and 8,000 impressions, the CTR is 2.5%

Formula: 200 ÷ 8,000 x 100 = 2.5% (CTR)

However, don’t be fooled into thinking your CTR is the most important metric. Simply put, it is not. It is one of many metrics that can reveal how certain aspects of your online e-commerce advertising campaigns are performing. You can have a CTR of 5-10% and not convert any of those clicks to sales, your campaign is a disappointment and ineffective. What this scenario tells us is the ad and keywords are great but the product is not desired. Therefore you must reassess aspects of your campaign. Perhaps a change in ad text, keywords search terms or a more robust negative keyword list.

If you would like help with your online advertising campaigns, or for additional e-commerce services, contact E-commerce Direct on info@e-commercedirect.com on +44 (0) 208-004-7769 in the UK, ++1 (714) 782-7826 in the USA.

About E-commerce Direct Ltd
E-commerce Direct Ltd is a bespoke advertising, marketing and sales growth agency, supporting businesses using e-commerce sales platforms such as Amazon, eBay, Google, Shopify, WooCommerce and many other local and regional sales channels, helping to increase their online brand awareness and product sales.
The company generates millions in annual sales revenue for its clients who span from individual e-commerce sellers and Amazon vendors to Fortune 500 and FTSE100 companies.
E-commerce Direct has received many awards recognising the Company’s commitment to innovation and their clients. Awards include “Best eCommerce Solutions Provider – UK”, “Best eCommerce Sales Consultancy” and “Leading Specialists in Online Lead Generation”.
E-commerce Direct is a talented and experienced team, made up of individuals who specialise in distinct disciplines including; advertising, e-commerce sales, language translations, public relations, research, social media, website development and programming.
The company is headquartered in London, England with additional operations in the European Union, Australia, Asia and the Americas.
E-commerce Direct can be reached via email on info@e-commercedirect.com, live chat on its website www.e-commercedirect.com and via phone in the UK +44 (0) 208 004 7769 and ++1 (714) 782 7826 in the USA.

About SMBE Direct Ltd
E-commerce Direct is a subsidiary of SMBE Direct, a world reaching B2B and B2C business services conglomerate, giving rise to exceptionally talented and well-experienced professionals organised into business units, that provide direct services to SMEs and enterprise level businesses, whereby increasing their brand awareness and sales.
SMBE Direct can be reached via email on info@SMBEdirect.com, through its website www.SMBEdirect.com and via phone in the UK +44 (0) 208 004 4545.