What's a good Click through rate for Facebook ads

What’s a Good Click Through Rate for Facebook Ads 2024

Just Tell Me What CTR To Expect

Small business owners ask me a lot of different questions about Facebook ads, with a very common one being “what is a good Facebook ad click-through rate?” and my answer is the same for most questions when it comes to key metrics- “that's depends”

I know that's frustrating because you just want to know! However, it's important to   understand your Facebook ad's Click-Through Rate (CTR) is more than just looking at a percentage. It's about understanding how effective your ads are at capturing the attention of your target audience and enticing them to take action.  

When running Facebook ad campaigns where competition is intense and the audience is almost 3 billion, understanding this key metric can be the difference between a successful campaign and one that is a disappointment.

Meme of Adam Sandler frustrated just wanting the answer

Understanding the Basics

Definition of Click-Through-Rate-CTR

Basically, CTR is calculated by taking the number of clicks your ad receives and dividing it by the number of impressions (times your ad is shown)  This gives you a percentage which represents the percentage of people that were curious enough to click on it.

Factors Impacting CTR in Facebook Advertising

Understanding the various elements that can impact your CTR is crucial to creating successful campaigns. Let me break it down:

Campaign Objective

Every ad has a purpose. Whether you're aiming to increase brand awareness, drive link clicks, or get sales, your campaign's objective will influence your expected CTR.

For example, a campaign focused on brand awareness might have a lower CTR than one aiming for website visits, If your main goal is brand awareness, you might prioritize reach and impressions over link clicks, leading to a lower CTR but broader visibility.

On the other hand, if you're focused on driving traffic to a website or landing page, you'd aim for a higher CTR with a strong emphasis on link clicks.

Target Audience

One of the most significant factors that can influence your CTR is your target audience. Ensuring that your ad reaches the right people can make all the difference.

Facebook offers detailed targeting options, allowing advertisers to get specific about who sees their ads, which is the magic in Facebook ads.

The number of people that see your ad doesn't matter if they're not in your target market.

In fact, the more people that see your ad and don't click will effect your ad spend. 

Different Industries

Your niche or industry has an impact on CTR. A good example is, an ad in the e-commerce industry will most likely have a higher CTR than a more information-heavy ad in the finance industry. Knowing industry-specific benchmarks is crucial to setting realistic expectations, but it's also important to understand it's all just averages and circumstances can vary widely.

This Image is from a Wordstream Study

Screenshot from Wordstream study of average click through rate by industry

Ad Design 

The design of your ad plays a significant role in capturing attention. You want to have images that will stop people from scrolling because it caught their eye. It's imperative that your ad is optimized for mobile devices because if your potential customers can't see the entire design or if it looks wonky, they won't be stopping or clicking. The best way to know what designs are working are to test with the right audience.   

CTA button

Additionally, the Call to Action (CTA) button guides the user towards the desired action. An unclear or non-relevant CTA can deter potential clicks. If your goal is to have people click the link, then it makes sense you would have  higher click-through rates with a “click now” or something like that. 

Ad Placement

Where your ad appears on Facebook  or instagram can influence CTR. Ads placed in the newsfeed might get different engagement compared to those in the sidebar or within stories. Testing different placements and analyzing their performance can provide insights into where the better CTR are.

Ad Frequency

The amount of times a prospective client sees your ad can affect the CTR. If an ad is shown too frequently to the same user, it can lead to ad fatigue, reducing the chances of them clicking on it.

It’s essential to monitor ad frequency and make necessary tweaks to avoid audience burnout.

Relevance Score

Facebook provides a relevance score for ads, indicating how relevant an ad is to the targeted audience. A higher relevance score can lead to lower costs and better engagement, including a higher CTR. Ads with low relevance scores might indicate a mismatch between the ad content and the targeted audience. 

See Image Below: I wouldn't think “Average” is a metric to celebrate but according to Meta, that's almost the top!

Inside Facebook Ads Manager Reporting screen with quality ranking

Ad Copy

Sometimes good ad copy can make all the difference in Facebook campaigns. The creative or image might not get them to click, but if the copy speaks to your potential new customers and resonates, there's a good chance they'll click to read more. 

By understanding and optimizing these factors, advertisers can craft campaigns that not only reach their intended audience, but have a message they're interested in which will leading to improved CTR and better ad performance.

Get Free Checklist Here ⬇️

Meta Ads Audit Checklist free download

Importance of the CTR Metric

Click-Through Rate (CTR) is one of the most common metrics to check for multiple reasons: 

  1. Indicator of Relevance
    A high CTR usually indicates that the ad content is relevant to the audience it's being shown to. It implies that the ad successfully captured the user's attention and piqued their interest.
  2. Cost-Efficiency
    On platforms like Facebook, where ad delivery is based on an auction system, a higher CTR often leads to a more favorable Cost Per Click (CPC). Ads with higher engagement (like clicks) can be deemed more relevant by the platform, potentially leading to lower advertising costs.
  3. Impact on Conversions
    While CTR is a top-funnel metric, it can indirectly influence bottom-funnel metrics like conversion rates. Higher CTR means more traffic to the landing page, which can lead to more conversions if the landing page is optimized.

Please Note

CTR in isolation isn’t enough; it's necessary to see it in conjunction with other metrics to get a full picture. A low CTR wouldn't be reason enough to turn off an ad, especially if you're hitting all your other KPI's.

What’s a Good click-through rate? 

While a universally good CTR can vary, for Facebook ads, an average click-through rate of around 0.9% – 1.5% is generally considered decent. However, it's essential to benchmark against industry standards to get a more accurate assessment. For instance, a retail industry might see a higher CTR than a B2B software industry.

With all that said, comparing your marketing efforts with another business in your industry is not something I recommend. When it comes to Facebook ads there are too many variables that can effect the results. The best advice I could give is to do your own testing with your audience and products and find a CTR that works for your business and have that be the comparison benchmark. 

Facebook Ads Manager report screen showing unique outbound click through rate next to click through rate all under 1% needs improvement
This campaign had poor KPI's in addition to this mediocre CTR so I turned it off

Average Cost and Conversion Rate

Typically, a higher CTR can lead to a lower Cost per Conversion (CPC) as ads with better engagement might be rewarded with lower costs. Furthermore, a higher CTR ensures more users land on your designated page, increasing the potential for conversions and sales.

However, the final conversion rate will also depend on the user experience and relevance of the landing page. An ad with a high CTR but a non-optimized landing page might still result in low conversions.

Pro Tip

Test the ad with a landing page that has already converted well.

Strategies to Improve Facebook CTR

Crafting ads with high CTRs requires a blend of creativity, strategy, and continuous optimization. I say this so much, but Facebook ads are all about testing. You won't know what works well until the ad is actually running.

Campaigns that had excellent click through rates, can have completely different results next time depending on time of year, competition in the space, what's happening in the world, and a bunch of other reasons we may not know.

However the best tips I'll share are: 

  • Refining Ad Campaigns
    Consistent evaluation and tweaking are vital. Use A/B testing to experiment with different ad creatives, headlines, or CTAs to find out what resonates most with your audience.
  • Engaging Themes and Content
    It’s crucial to keep the content fresh and aligned with current trends or seasons. For example, an e-commerce brand might use festive themes during the holiday season, leading to higher engagement and CTR, and a travel business might leverage special events happening in various locations, and restaurants can take advantage of new menu items, or special theme nights. 
  • Optimize for Mobile
    With a significant portion of Facebook users accessing the platform on mobile, ensuring ads are mobile-optimized can improve CTR. This includes ensuring quick load times for landing pages and using mobile-friendly ad formats.
    This is an often overlooked piece to the CTR puzzle, but if your potential customer can't see your ad on mobile, they're not going to click on it!
  • Utilize Video Content
    Videos often have higher engagement rates than static images. Using captivating video content, can lead to improved CTRs, but again, test other types of creatives as well. Carousel ads can improve CTR if you are telling a story, or giving step by step ways to do something.  
  •  Retargeting and Lookalike Audiences
    Leveraging Facebook's retargeting options allows you to reach users who've already shown interest in your brand or product. Additionally, lookalike audiences can help tap into a new user base with similar interests to your existing customers, potentially leading to higher CTRs.

    This ad below was made on Instagram App as a reel but when uploaded into ads manager, it wasn't optimized- most of the text during the video wasn't shown
A Facebook Ad with the text cut off indicating it's not optimized for mobile

Frequently Asked Questions

What is a good CTR for Facebook ads?

A good CTR can vary based on industry, target audience, and ad objective. However, an average CTR of around 0.9% – 1.5% is generally considered decent for Facebook Ads. It's essential to benchmark against industry standards for a more accurate assessment, and more so to test your ads against your typical CTR. 

How does the choice of CTA button affect CTR?

The CTA button plays a significant role in guiding the user to take action. An unclear or non-relevant CTA can lead to lower CTRs. It's essential to choose a CTA that aligns with the ad's objective.

What role do custom audiences and lookalike audiences play in improving CTR?

Custom audiences allow advertisers to retarget previous visitors, leading to potentially higher CTRs. Lookalike audiences help in reaching people similar to your best customers, increasing the chances of a higher CTR.

How does the average cost relate to CTR?

Typically, a higher CTR can lead to a lower cost per click (CPC) as Facebook rewards relevant ads. However, it's also essential to look at the overall metrics and not just focus on CTR and CP

Should I turn off an ad with a low CTR?

Not necessarily. It's important to understand all of your metrics when deciding between testing an ad or turning it off.

To sum it up

Understanding the intricacies of Click-Through Rate (CTR) in Facebook advertising is more than just a game of numbers. It's about understanding your audience's interests, aligning your ad strategies with industry benchmarks, and consistently checking your data and tweaking different variables to keep testing. 

It's not always just about achieving a highest CTRs, but about knowing what it signifies about the rest of your campaign;  the relevance of your content, the effectiveness of your targeting, and the potential for conversions.

One of the most important things to understand is: Success in Facebook advertising doesn't rest on a single metric, but on a multitude of factors working together.

The right ad, with the right message, to the right audience at the right time. 

Want More? Join My Facebook Group

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.