Glossary
Mobile App Terminology simply explained

What Is Click-Through Rate?

Click-through rate (CTR) indicates the percentage of app users who have viewed an ad and then clicked on it.

Simply put, your click-through rate measures how compelling an ad is –that is, how many viewers are driven to click on your ad to take them to a particular landing page. In terms of mobile advertising, your CTR tells you the rate of users who clicked on your ad and were redirected to the app store.
Key Takeaways
  • Calculate your CTR using the number of impressions and number of clicks for your ad
  • A high CTR indicates high user intent and interest in your app
  • Carry out A/B tests to especially boost your CTR among your high-quality users

How Do You Calculate Click-Through Rate?

First things first, to calculate click-through rate, you need two pieces of data:

  1. The total number of visitors to an app, also called impressions
  2. The total number of clicks to an ad

The CTR formula takes the total number of clicks and divides it by the total number of visitors – or impressions – before multiplying it by 100. For visual learners, here’s the formula.

(Total clicks ÷ total visitors (impressions)) × 100 = click-through rate

Let’s look at examples: 

  • If an app has 1,000 impressions and 25 clicked on the CTA, the CTR would be 2.5%.
  • If there are 1,000 impressions and 303 visitors click on an ad, the CTR would be 30.3%.

Why Is CTR Important?

Crucially, your CTA reflects a user’s interest in your app. The higher the CTR, the stronger the user intent. It also tells you how well your ads resonate with users. 

Ideally, the better your ad creatives connect with the viewer, the more clicks and hopefully converted users you will see. But remember: If your creative is great, but it doesn’t reflect your app, you might see a high click-through rate and low installs or engaged users.

So, although a CTR will not tell you the quality of traffic you’re driving to your app, it still remains one of the most valuable metrics in mobile marketing for determining the success or failure of ads, their creatives, their content, and their placement.

To really deep-dive into the performance of your ads, you can additionally check out your ad’s conversion rate or click-to-install rate. By doing this, you’ll be able to better understand how many users truly engaged with your ad and completed an action, rather than how many clicked on it.

How Do I Increase My Click-Through Rate?

A high CTR shows that your ad is working. If your CTR is not meeting your KPIs, you can carry out various A/B tests

This will be necessary if you want your ad to drive high-quality users to your app, but it fails to do so. You can investigate whether changing the ad creative, placement, CTA, or other ad elements would make a positive impact on your CTA.

Conclusion

In mobile marketing, getting a good click-through rate from your ads is just one piece of the puzzle. But it is an important one.

CTR helps you better understand your users; it tells you what works and what doesn’t work when trying to reach your target audience and drive them into your app. And by analyzing the performance of your apps, you can assess which ads need improvement through A/B testing.


FAQs

What Is Click-Through Rate?

A click-through rate or CTR is a measurement that shows the percentage of users who view and then click on your ad.

How Do You Calculate Click-Through Rate?

Calculating the click-through rate is easy. First, divide the total number of clicks by the total number of visitors. To get the percentage, you need to multiply this number by 100. This is the rate of how many users both viewed and clicked your ad.

How Do I Increase My Click-Through Rate?

To increase your click-through rate, you can carry out A/B testing to see whether users respond better to your ads when you change certain ad elements. This could include switching up your creatives, your placement, or your CTA.


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