CTR indicator in arbitrage – what it is

What is CTR

In traffic arbitrage, the user first encounters the creative – the visual or textual element that presents the offer.
Creative is what attracts attention and creates a first impression of a product or service.
For example, if the creative is bright and eye-catching, more people will want to try the product itself, i.e. click on the ad and go to the landing page.
It is the number of these clicks that is determined by the CTR.

How CTR is calculated

CTR (Click Through Rate) is a metric that shows the clickability of an ad.
It is measured as the ratio of the number of clicks on an ad to the number of impressions.
CTR is calculated using the following formula: the number of clicks divided by the number of impressions, and then multiplied by 100%

CTR = Number of clicks / Number of impressions x 100%

For example, if your ad was shown 8,000 times and clicked on 320 times, the CTR would be as follows: 320 divided by 8,000 and multiplied by 100%.
As a result, your CTR will be 4%.

What does it mean to have a “good” CTR

The concept of “good CTR” is highly dependent on the context and platform.
In search engines, a CTR above 4% is considered good, and for the Yandex Advertising Network (YAN) – from 0.5%.
There is no universal standard for CTR in arbitrage, but arbitrageurs have the opportunity to influence this indicator.

Factors affecting CTR

1. Match the visual to the vertical For different niches (verticals), the appropriate visual elements will differ.
   For example, for gut-o-philes often use images of fruits, vegetables or before/after photos, while for casinos – money and bright emotions.
2. Quality of creative High quality of editing and accuracy of synchronization of sound with image (lipsing) in video creatives, as well as correct translation of text.
3. Geographic Consider local holidays, celebrities, language and cultural traditions of the country the campaign is targeting.
4. Target Audience Creative must meet the requirements and expectations of the target audience defined by the advertiser.

Application of CTR

1. CTR advertising campaign analytics helps to evaluate how attractive a creative is to the target audience.
   A high CTR does not always guarantee a large number of leads, so it’s important that the creative matches the content of the landing page.
2. RTB Auctions In real time, an auction is held on advertising platforms to determine whose ad will be seen by the user.
   A high CTR makes your ad more attractive to the site and increases the chance of its display.
3. Split Testing In A/B testing, CTR is a key metric.
   By testing different variants of creatives, the arbitrageur chooses the one that shows the best result and scales it.

Why CTR is important

CTR allows you to evaluate the effectiveness of the first stage of the sales funnel.
Unlike the final user action (e.g. purchase), CTR can be directly influenced by the arbitrageur.
Without analyzing CTRs, it’s impossible to understand which creative works best.
Although too high CTR does not always mean success, it is important to analyze results and test new hypotheses to constantly improve your advertising campaigns.