What Is A Click Through Rate And Why Does It Matter?

Brendan Egan

What Is A Click Through Rate And Why Does It Matter?

A click through rate is simply the percentage of people who click on an advertisement or search engine result. To get this percentage, we simply take the number of people who click on the link and divide this by the number of people who viewed the link .
Over the years, click through rates are rumored to be much more important for both search engine optimization as well as pay per click campaigns.
When it comes to search engine optimization, you certainly want to achieve a high click through rate not only to deliver more traffic to your website, but to also please the search engines. For example, if search engines have your website ranked in the number 1 spot on page 1 but Bob’s Burgers is ranked in the number 2 spot and receiving a higher click through rate than your website, then the search engine is more likely to move Bob’s Burgers into the number 1 spot because it is viewed as more relevant for the given keyword.
I have seen countless times websites get moved up as well as down based on seemingly no other factor except their click through rate. There are three main things we do to your website once we start your small business SEO campaign to improve your click through rate, and these small changes often lead to a much higher click through rate which leads to more traffic for your website as well as a greater chance of staying towards the top of search results.
When it comes to pay per click campaigns, click through rates are also extremely important. You might personally not care about click through rates because you are only charged if someone clicks on your ad, but the advertiser certainly cares about click through rates because a higher click through rate means more money for them as well as you.
Google Adwords, for example, is a prime example of this. We have managed certain ads that weren’t well written and received low click through rates. The advertiser will then increase your average cost per click to make up for this lower click through rate, so you’re actually getting less traffic but paying more for it!
Simple SEO Group’s pay per click management focuses on improving your click through rate through well targeted keywords and well written text scripts to not only drive your website more leads, but to also keep your costs lower.
CPM advertising is a final type of ads we will discuss in this article. In CPM advertising, you are charged per 1,000 impressions that your advertisement receives, regardless of your click through rate. This makes the most sense for the company posting your ad, but if you have a low click through rate can mean an extremely high average cost per click for you.
When it comes to CPM advertising, this is generally done through 3rd party websites and requires an agreement directly with the website owner. The most important thing to remember about CPM advertising is you get charged the same amount if no one clicks the ad or if 100 people click the ad. Obviously in CPM advertising a catchy ad is required to try and achieve a high click through rate.
Hopefully you now have a better understanding not only of what a click through rate actually is, but more specifically how it applies to various types of advertising. If your small business is ready to get started with an SEO, PPC, or CPM campaign, contact Simple SEO Group through the form directly to the right and receive a free no obligation consultation with one of our small business SEO and marketing specialists.