What is ctr
Click-Through-Rate (CTR) is the determination of how much of a percentage people click through your ad. In most cases, Link Click-Through-Rate (LCTR) is the determination of how much of a percentage people click through the ad to a link whether it's a funnel, or landing page.
This is one of the most important attributes because it's Facebook number one source to determine how relevant your ad is to the audience, and how much you will be spending to get a click (and also lead).
improving your ctr will lower your cost
When it comes to statistics it's definitely a numbers game. A science.
If you get 100 impressions. And 1 click out of 100 impressions you will receive a 1% CTR.
In most markets a 1% CTR is an average good CTR.
Notice how the CTR for the top one is .47% but the one below that is .24%.
The lower the CTR the more expensive the click will be in most cases due to relevance of the ad to the market.
Facebook wants you to show more ads that are relevant or what the market seems most interested in. This will give you the cheaper costs. The cheaper leads. The more leads you will get within your budget.
How to improve your ctr
Below are a list of things to focus on to improve your CTR.
Remember, improving your CTR will decrease your cost, and thus give you more ROAS.
Fix your image....
By improving your image, you will get more attention. So for example if your ad is shown to 100 people. But only 20 people notice it and out of 20 people who notice it. 10 people read the copy on it. And out of the 10 people who read the copy 1 person clicks.
This gives you a 1% CTR. (1/100)
Let's say you change the image to something more attractive. And 40 people notice it. Out of 40 people who notice it, 20 people read the copy. Out of 20 people who read the copy 2 people click. That's a 2% CTR.
So if your CTR was 1% but now it's 2%. Your cost was $5 per click, you could have reduced your cost by 200-450%. Thus your cost will be $2 or so.
Getting a $2 click within a $50/day ad spend will give you 25 clicks to the funnel.
You were getting $5 clicks which gave you 10 clicks.
And you know the numbers continue. Let's say out of 10 clicks your get 5 sign ups.
That means you spent $50 to get 5 leads which cost you $10 per lead.
When in fact by changing the image you are now getting 11 leads (25 clicks gets you 12 leads)
That's $2 per lead.
You just spend the same budget to acquire more leads by changing only the image.
Fix Your Copy
The copy on your ad, will also determine your CTR. If you have copy that suck, you will likely not get a lot of interested people wanting to learn more.
If you have copy that is on point, you will get a lot of people clicking the ad wanting to know more about what you have to offer.
If you have 100 people that read your ad, and only 25 people click through it because they want to learn more.
By changing the copy, let's say you have a stronger Call To Action. So out of 100 people that read it, 50 people click through.
You just doubled your CTR by improving your copy on the ad.
Tips and tricks