CTR & CVR are two important metrics that many digital marketers use today. In this digital era, one of the most effective ways to promote or advertise anything is through the internet. Though this may sound easy enough to many people, it can be pretty hard to gauge the rate of success of advertising campaigns or projects on the surface.
Since digital marketing is a methodical process that requires technical analysis, posting and uploading creative and relatable content is only one of its many aspects. Understanding CTR & CVR can allow you to fully assess whether your efforts are truly making a difference. For many digital marketing specialists, it is also a way to show their clients the results of the advertising methods they’ve implemented.
To put it simply, CVR stands for conversion rate and it measures the number of people that were influenced to take action after seeing a specific advertisement. This includes both clicking and actually purchasing a product after seeing an ad. Knowing the CVR of a particular product allows you to easily assess and observe the efficacy of your marketing efforts.
Your marketing strategy also affects your CVR as various industries may target different demographics. For example, a travel company may target people who are specifically looking for a weekend or holiday getaway. Thus, the CVR can measure the number of people who inquired about their touring services and actually made a booking after seeing an advertisement.
If a person interacts with your advertisement and actually makes a purchase, then you can consider them “converted”. This is essential when it comes to determining the appropriate figures for your CVR. All you have to do is divide the number of people who were “converted” by the number of people who only clicked your ad. After doing so, you can simply multiply the number by 100 to get your total percentage.
CTR stands for click-through rate and just like the CVR, it can also give you an insight into whether your marketing campaign is working or not. The CTR is often measured to see how many people were drawn to click on your advertisement. It shows marketing specialists how well their tactics are working by giving them a more tangible number.
However, both the CTR & CVR are necessary elements when it comes to analyzing a specific marketing campaign. They need to go hand in hand because the CTR alone cannot provide you with the full picture of your project’s efficacy. You can get your total CTR percentage by simply dividing the total number of interactions by the total number of times the ad was shown. After doing so, you can simply multiply the number by 100 to get the percentage.
CTR & CVR Combined
As aforementioned, these two metrics are important and must go hand and hand. Though digital marketing might seem easy to people outside of the field, factors like the CTR & CVR as technical aspects that can help you with your marketing campaign. It can also help you strategize the next type of marketing method you can use in the long run.
If you have a high CTR but a low CVR, this could mean that you’ve done a great job in making an eye-catching visual ad, however, it’s not reaching the right audience. This is why finding the right balance between the CTR & CVR is highly important for any type of digital marketing project.