What is click-through rate (CTR)?

A click-through rate (CTR) is the ratio of clicks to impressions on a mobile advertising campaign. CTRs are calculated by taking the number of clicks on a mobile advertising campaign, dividing it by the overall impressions, and then expressing the resultant figure in percentage terms. CTR is a performance metric that quantifies the effectiveness of digital marketing efforts by measuring the proportion of users who click on a specific link, advertisement, or call-to-action (CTA), relative to the total number of users who viewed the content—referred to as impressions. 

In mobile app marketing CTR is a critical indicator of how well an app’s promotional content is resonating with its target audience, providing insight into user engagement and the success of the campaign.

CTR is calculated by dividing the number of clicks by the number of impressions. For example, if a company runs an iOS mobile advertising campaign that generates 10,000 impressions and 500 clicks through to the App Store, the CTR of that campaign would be 5%.

Click-through rates are a highly valuable way of understanding mobile advertising performance. In the increasingly competitive mobile app marketing space, CTR serves as an indicator of how well an app’s ads, in-app messages, or other clickable elements are resonating with users. A high CTR suggests that the app’s ads and content are compelling and effectively engaging its audience, while a low CTR may indicate the need for optimization in targeting, messaging, and design of creatives. 

By placing the CTR of one campaign in the context of other campaigns, it becomes possible to benchmark campaign performance. This can be done in a number of ways. CTR can be used to compare like-for-like performance via A/B testing to identify high performing formats, styles, and channels (more on this below). By comparing the CTR for banners, interstitials, video, and other formats, advertisers can determine their effectiveness and make data-driven decisions around where to allocate budgets for the best performance. Similarly, by using the same creatives and formats across different channels, you can see which channels provide the highest CTRs, and which deliver users with the highest value. 

CTRs can also be used to some effect within the broader attribution funnel to assess user quality. By tying campaign performance to in-app behavior, an advertiser can discover whether a high CTR necessarily corresponds to increased user value. This can help advertisers tempted by channels offering high CTRs to identify whether they will offer high-quality traffic–or simply a high volume of users–and to adjust advertising investment accordingly.

Note that in some cases, a high CTR won’t correspond with good conversion rates, so it’s important to define your KPIs. For example, let’s say you have an e-commerce app and your most important conversion is a purchase event. You may notice in your analytics that Network A has a CTR of 10%, while Network B only has a CTR of 7%. However, Network A has a conversion rate of 5%, while Network B has a conversion rate of 20%. In this case, Network B has a better ROI, despite having a lower CTR.

A “good” click-through Rate (CTR) can vary significantly depending on several factors, such as the industry, ad format, platform, ad budget, and the audience being targeted. In the context of mobile app advertising, what is considered a strong CTR will often depend on the specific goals of the campaign and the context in which the ads are displayed.

CTR benchmarks for mobile ads differ based on the platform (e.g., social media, in-app ads, search ads) and the type of ad being used (banner ads, native ads, video ads, etc.) and can sit anywhere between 0.5% and 5%—and sometimes higher. Ultimately, while a “good” CTR is often benchmarked against industry standards, what matters most is how well your campaign is performing relative to your goals. If your goal is to drive app downloads, conversions, or specific engagement actions, a good CTR is one that effectively pushes users down the funnel and supports your broader marketing objectives.

Despite the high level of variance, when analyzing your CTR data, it’s common to question what CTR benchmarks exist and what the average CTR is. As we stated above, this is highly subjective and depends on everything from the app vertical to the channel to the campaign goal. It’s important to keep these things in mind when working on improving your CTR and conversion rates. Remember, increasing CTR on a channel where conversion rates are high is likely a better strategic approach than allocating more budget to a channel where CTR is high but conversions are low. 

Regardless of the numbers you’re benchmarking against, the following seven best practices will provide you with the direction needed to improve your CTR. 

1. Optimize ad creatives

Compelling, contextual, and relevant ads get more clicks.

• Eye-catching visuals: Ads with visually striking images or videos perform better. Mobile screens are (relatively) small, so advertisers need to ensure that their creatives stand out immediately. High-quality images, vibrant colors, and clear visuals draw attention and encourage clicks. 
• Smart, personalized copy: Ad text on mobile should be short, engaging, and aligned with user intent. Use concise messaging that focuses on user needs or pain points, and include a strong value proposition to incentivize action. 
• A clear call-to-action (CTA): Effective CTAs are crucial, or users might not even notice they need to click. Phrases like ‘Download now,’ ‘Try for free,’ and ‘Get started’ all create a sense of urgency and make it clear what action a user needs to take next.

 

2. Audience targeting

The more accurate your targeting, the better the results will be. 

• Behavioral targeting: Use data on user behavior to target ads more effectively. Ads that align with user interests and behaviors will result in more clicks. For example, targeting users who have previously engaged with similar apps or categories improves the likelihood of engagement. 
• Demographic targeting: Advertisers should refine their audience based on demographic factors—where relevant and consented. These can include age, gender, interests, and more, ensuring the ads that reach users are relevant to them. 
• Geolocation targeting: Using location data (again, when consented), allows mobile advertisers to serve ads that are relevant to a user’s current physical location, increasing the likelihood of engagement, especially for local businesses of events. A shopping or e-commerce app might offer a push notification with a deal, for example, when a user is near a physical store.

 

3. A/B testing for optimization

Testing iterations will help you set a benchmark for what a good CTR looks like for your brand.

• Test multiple ad copy variations: Determine what copy and style works best and where the most revenue-driving balance of CTR and conversion rates is. By comparing different versions of an ad (e.g. headline, image, and CTA) you will gain insight into what drives the highest CTR, and can then allocate more budget into what works best. 
• Experiment with ad formats: Like with text, the formats of the ads themselves will yield different results. From interstitials to native ads, banner ads, video ads, and more, you’ll likely determine which formats work best and which iterations of those formats result in higher CTR.

 

4. Enhance ad relevance with contextual advertising

Contextual advertising improves the performance of almost all advertising metrics, including CTR.

• Contextual alignment: Ads that are contextually relevant to the user’s current app experience or content tend to have higher CTRs. For example, an ad for a music streaming service is more likely to get clicks when placed within a music-related app or environment.
• Personalization: Personalized ads based on user behavior, preferences, and past interactions lead to more relevant and engaging content. Tailoring ads to individual users significantly improves the chance of driving clicks (CTR rates).

5. Optimize for mobile user experience

It’s essential to design and size ads for the specific device and screens they’re intended to be displayed on. Mobile-first ads will perform best on mobile devices. 

• Mobile-friendly landing pages: The landing page that users are directed to after clicking the ad must be mobile-optimized, if they’re not being deep-linked to your app itself. If the user experience on the landing page is poor—such as slow load times or difficult navigation—the advertiser risks losing potential conversions even if the CTR is high. Ensure the landing page is fast, responsive, and easy to navigate on mobile devices.
• Seamless ad experience: Ads should load quickly and not interrupt the user experience. Slow-loading or intrusive ads can negatively impact CTR, user engagement, and app retention.

6. Capitalize on video and interactive ad formats

Video performs better across the board from paid to organic, and whether measuring impressions, clicks, or uplift for other campaigns/channels.

• Use video ads: Video ads tend to have higher engagement rates than static ads. They are immersive and can convey more information in a shorter amount of time. Incorporating a strong CTA at the end of the video will also increase clicks.
• Interactive ads: Incorporating interactive elements such as swipeable galleries, quizzes, or mini-games encourages user interaction and boosts CTRs. These ads offer a more engaging and memorable experience, prompting users to click through.

 

7. Time ads strategically

Getting timing right is crucial for creating an ad experience that gains a positive emotional response. The right moment to serve and ad will differ significantly by segment.

• Optimize ad timing: Delivering ads at the right time is essential for improving CTR. Advertisers should consider the times of day when their audience is most active or engaged with their devices. For example, ads served during commute hours or peak mobile usage times tend to see higher engagement.
• Leverage retargeting: Retargeting users who have previously interacted with an app or product but didn’t convert will likely improve CTR. These users are already familiar with the brand, making them more likely to click on follow-up ads.

The CTR of a single advertising campaign means little in isolation. On its own, a CTR doesn’t  reveal how creative, channel, user quality and other factors (such as advert timing) affects performance. It’s essential to contextualize CTR by looking at a broader data set. Comparing multiple campaigns across multiple channels will help to provide a more effective read on what is a ‘good’ or ‘bad’ CTR and will prevent advertisers from making decisions based on limited evidence.

By using Adjust’s Measure and Analyze, including Datascape, advertisers can see all of their data, KPIs, and metrics in one place, for smart, fast decisions. CTR is one of many Datascape metrics, showing the percentage of clicks you received per impressions served. With this clear view of real-time behavior around (and relationship between) key metrics, you can quickly determine which campaigns should be paused and which should be scaled. 

For more information how Adjust can grow your app, reach out to your contact person or request a demo.