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 Tags: Ecommerce

If you're sending emails or running ads, you've likely noticed a metric called the click-through rate or CTR. This metric is individual to each communication you send customers. Click-through rates are essential to understanding how effective your advertisement or communication is. 

What is a click-through rate or CTR?

A click-through rate (CTR) is the percentage of people clicking on a link or call-to-action within a specific communication. The higher the click-through rate is, the more people clicked on a call-to-action that were sent a message.

What is a good click-through rate?

Click-through rates are on average 1.66% for ecommerce (Source: Hubspot). The higher your click-through rate is, the better. 

Email: The average click-through rate for email is 2.5%.

Facebook Messenger & SMS: The average click-through rate for Facebook Messenger and SMS is 43%.

How is a click-through rate calculated?

For advertisements (like Facebook ads):

[ clicks ÷ ad impressions ] x 100 = click-through rate (CTR) in percentage

For communications sent (like emails, Facebook Messenger, or SMS): 

[ clicks ÷ emails or messages sent ] x 100 = click-through rate (CTR) in percentage

Why is it important to increase your click-through rate?

The higher your click-through rate is, the more people are selecting your call-to-action. This means that if your conversion objective is for your audience to make a purchase from the call-to-action, increasing your click-through rate can increase the conversions that lead to purchase. 

How to increase your click-through rate or CTR?

The fastest way to increase your click-through rate or CTR is to use channels that have traditionally higher click-through rates. For example, expanding your messages from email with 2.5% average click-through rates to Facebook Messenger or SMS which has 43% average click-through rates.

Beyond expanding channels, click-through rates can be largely impacted by your call-to-action's placement in the advertisement or message, the language of the call-to-action, or the what the message is altogether. Once you're using channels with the highest click-through rates, you can test the copy and call-to-action to see what works for your audience. 

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