What is Click-through rate (CTR) in email marketing?
Email Click-through rate (CTR) is the percentage of the number of people who clicked on your email link(s).
Email Click-through rate is calculated by multiplying the number of clicks by 100 and then divide by the number of people who received the email.
Example of CTR: If you sent a newsletter to your subscribers and 1000 subscribers receive the email and 200 of them click links in the newsletter then the click-through rate will be calculated as follows:
(200 x 100) ÷1000=20
Therefore, the click-through rate is 20%.
Ideal Click Through Rate
Industry standards consider 3% and above as good click through rate. You should be concerned if your click-through rate is anything below 2%.
Difference between CTOR and CTR
CTOR means click to open rate. The difference between CTOR and CTR is that click-through rate measures the percentage of email links clicked from received emails while CTOR measures the percentage of email links clicked from opened emails.
Example of CTOR: If you sent a newsletter to your subscribers and 1000 subscribers received it but 500 of them opened their emails and 200 of them clicked on links in the newsletter then click to open rate will be calculated as follows:
(200 x 100) ÷500=40%
CTOR is considered as a better way of measuring the performance of your newsletter than CTR.
Emails with High Click-through Rate
Transactional emails are considered to have high CTOR and CTR. Industries with high CTR include News Sites, Deals sites, social media sites, and Hobbies sites. Industries with low ctr include politics, real estate, marketing, insurance, and public relations.
Benefits of High CTR
The major significance of CTR in email marketing is that it leads to more conversions. The more people click on your email links the more you are likely to earn through ad impressions or product purchase.
A high click-through rate also means that your site will get more traffic and studies have shown that pages with high traffic rank better on search engines than those with less.