As you learn more about display advertising, you’ve probably heard about click-through rates. To understand how well your online campaigns are performing and decide whether there is room for improvement, you need to know what a good click-through rate for ads is.
Click-through rate, or ad-click rate, is a metric used to measure the number of clicks an online ad receives. Click-through rate is one of the best metrics available for gauging ad performance. This makes it an especially important one for advertisers and publishers to understand.
Calculating an ad’s click-through rate isn’t hard. You just take the number of clicks an ad receives and divide that number by its number of impressions, or times the ad was shown. The formula looks something like this:
Clicks ÷ Impressions = Click-Through Rate (CTR)
If you had 7 clicks and 100 impressions, then your click-through rate would be 7%.
Having a high click-through rate is a good sign that visitors find the ads on your website to be helpful and relevant to the content you’re publishing. This leads to the question that nearly all publishers have on their minds: what is a good click-through rate for ads?
Broadly speaking, a good click-through rate for ads is anything that beats industry standards. In 2021, the internet average click rate is .06%. That means that for every 1,600 views a display ad gets, just one person clicks on the ad. That’s pretty dismal, and it’s something publishers and advertisers are working to improve.
Bumping ad click rates above industry averages is something that takes a bit of trial and error. Local news websites tend to have ad click rates that are slightly better than the internet average. It’s not uncommon for local news websites to sustain click-through rates of .1%, meaning that one person actually clicks on an ad out of every 1,000 people who view the ad. While better than overall averages, there remains plenty of room to improve this number.
Establishing what is a good click-through rate for ads is only the beginning. With industry averages at your disposal and your site’s past performance, you’ll have a target in mind. The next step is figuring out how to meet or exceed it.
Getting more clicks on display ads requires choosing the right mix of ad sizes and page positions. It also means optimizing ads for maximum viewability across both mobile and desktop devices.
The highest performing display ads are usually large. At Broadstreet, we frequently tell our clients that one of the keys to getting more clicks is to use bigger ad sizes. Another strategy is to improve the page position of ads. The better the page position, the higher the click-through rate.
What is a good page position for a display ad? The higher on the page, the more visible the ad will be. Visibility lends itself to clicks. This is why leaderboard ads are so popular among advertisers. They’re usually placed along the top of a webpage, or the header, and thus are often one of the first things visitors see. Another popular position for ads is between paragraphs of content. Readers have no choice but to see the ad as they read through the article on the page, and that visibility almost guarantees a good click-through rate.
With mobile usage at an all-time high in 2021, it’s more important now than ever that ads are optimized for viewability on smartphones and tablets. Optimizing ads for viewability on mobile ensures that they don’t drop to the bottom of the page. This significantly decreases the chances of the ads being viewed and clicked on.
Some of the best ad formats for getting more clicks include The Billboard and Amazing Cube ad formats. When placed in a prominent position on the page, these ad formats regularly achieve click-through rates of .5% to 1%, or about 10x the internet average. That performance keeps advertisers happy and and leads to extended renewals.
As we wrap up this article, let’s go over some of the key points to understanding what is a good click-through rate for ads.
To learn more about the specific ad formats publishers are using to generate exceptional click-through rates, read 3 Underused But Highly Effective Ad Formats for Local Publishers.
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