CTR Benchmarks for the e-Commerce Industry

When you’re practicing in any particular field, you need to pay attention to the benchmarks which apply to it. If you don’t know what the benchmarks are, you’re not going to aware of whether you’re meeting the mark or missing it by a wide margin. Regardless of the kind of data or results you are getting, if you don’t know in what context they apply to your business, you’re not going to be able to improve or make changes.

For this reason, you need to be aware of the benchmarks that apply to you, particularly when you’re using Click Through Rate a.k.a CTR for your website and are functioning in the e-Commerce industry. Luckily, there are various benchmarks that apply and you can look at the following areas to know what to keep an eye on.

Various Benchmarks for the e-Commerce Industry

Data Collection

When it comes to the benchmark for data collection, the lowest time for it is a difference of a year. The click through rate differs each month and it is difficult to make a correct reading of the results you’re going to get. For this reason, it isn’t uncommon to see proper CTR readings being done over the course of a year. Some businesses even tend to focus on this aspect on a two-year basis so that they can study the fluctuations and other issues with more ease.

The reason why data collection is encouraged for a longer period of time is that it allows for the problems to be correctly visible and be easier to identify. A click through rate can be rather fickle and what looks bad in one month might make a complete recovery in the next one without requiring much intervention from your side. Once your data has been collected though, you can move toward the next benchmark that you should follow.

Dividing Into Segments

The data you garner shouldn’t just be piled under one category. For a correct view at the click through rate your e-Commerce business enjoys, you need to define the data and consider a few other factors in mind too. By dividing it into segments, you end up increasing the significance of the data in hand. With e-Commerce businesses in particular, you want to understand which platform the clicks are coming from. This will give you a bigger understanding regarding the success or failure of your total click through rates.

On this basis, you can have it dividing into three major sections such as mobile, tablet and desktop. Not only does this allow you to optimize your e-Commerce strategy to capitalize on this aspect, it also ensures that you can apply various other functions which can make your store more attractive for users. It also helps evaluate and break down the revenue that your store generated and through which areas this was forthcoming.

Knowing Your Average

Once you have garnered the data and broken it down into different segments, you want to be aware of where your standing is in comparison with your competitors. While growth in the e-Commerce industry is fast, the competition you face is usually fierce because there are plenty of stores and products as well as industry giants such as Amazon and eBay. For this reason, working out where you stand here will help you understand the kind of changes you need to make. Knowing your industry standard can play a huge impact on determining how far or how short of the mark you have fallen.

By understanding this aspect, you will be able to work out your progress and the growth you need to experience. Keep in mind that getting the average for your total click through rates can be tricky as it is not just different from industry to industry; it is also different for each segment within the same industry too. For this reason, you can turn to online tools that can crunch all the industry data and show your average in comparison to the e-Commerce industry.

Comparison through Correlation

Now that you found the average of your click through rate which applies to the industry average as well, you need to focus on the correlation of your data. Correlation will allow you to make more accurate comparisons regarding the data you get. It also gives you a clearer image of the kind of benchmark expected from you and the kind of progress you should be making.

Correlation also gives you a clearer picture of each component in your CTR strategy and how it is working out to be. At the end of the day, it also helps to highlight which areas need more work and which are underperforming. Using a simple graph and a formula, you can easily make sure that you have all the components you need to excel and grow with ease.

With these industry benchmarks, you will be able to utilize and improve your click through rate with bigger success.

The Importance of Click-through Rate (CTR)

Monitoring the success of your digital campaign rests on several key factors. One of these key factors is an important but often overlooked metric; click-through rate. The metric often tends to get overshadowed by other metrics such as cost-per-click and the number of purchases made by a customer.  Cost-per-click is just one part of the whole picture and will shed little light on the success of your marketing campaign without taking into account other key metric indicators.

The click-through rate (CTR) measures how frequently an ad or page was clicked compared to how often it was viewed. A high CTR directly affects your quality score and the amount you pay each time someone clicks on your advertisement. The average CTR on AdWords is somewhere around 2%, a higher number doesn’t necessarily mean you’re on the right track though. CTR is very industry specific, so while 2% may be high for a nutritionist business, it might be considered too low for a paid publication. Remember that it is easier for you to gain an increment on your CTR and conversion rates than to try increasing traffic to your website. You can’t just snap your fingers and bring new visitors out of thin air.

There are subtle changes you could make to your ad or content which can profoundly impact the CTR of your digital campaign such as:

  1. Making sure that the background of the ad has a different contrast to the website’s overall look and theme. If the ad blends in with the rest of the page, it really wouldn’t capture the reader’s attention, will it?
  2. Once the reader does happen to look at the ad or page, your next step would be to ensure that the headline is capable of maintaining that attention. Using catchphrases such as “Watch this video”, “Phenomenal success with weight loss” will eventually push the reader to click on the ad. Remember that you’re dealing with human psychology and are finding ways of piquing a person’s interest – the numbers only reflect how well you’ve been able to grab a person’s attention.  
  3. Sometimes it is not a good idea to make your ads stick out too much from the rest of the content on the website. The more your ad resembles the colour thematic of the website, the higher are the chances that users will click on it. It is even better if the ad and content actually helps to supplement the information already present on the website.  

See also: The Secret Sauce for a Successful Digital Marketing Strategy

Why Click-through Rate (CTR) is Important

1. Directly affects your Quality Score
Think of the quality score as your credit score. A bad credit score hampers your chances of qualifying for a loan, similarly a lackluster quality score will increase the price you pay for each click. On the flipside, a higher quality score means Google will be charging you less per ad click, while simultaneously placing your ad and content at a higher rank.

2. It will help you understand what kind of messages matter to your customers
Since CTR is directly affected by how frequently a user clicks on them, a higher percentage will indicate if your ads or content are properly able to communicate with the audience or not. CTR can effectively help you fine tune messages so the next time someone sees it, they will spontaneously click on it.  

3. Target the right kind of audience
Although, a large portion of readers might be able to spot your ad on a particular website, only a small portion actually want to click on it. You might be wondering why? Your keywords are not accurately geared towards attracting customers from your particular niche. For instance, if your ad contains the word ‘nutrition’, it may be seen by readers looking for nutritional pills rather than nutritional tips.  A giant portion of your digital budget might be going to waste by reaching the wrong kind of audience who might be accidentally clicking on your ads, inflating your CTR percentage slightly so, but never translating to a call to action.

4. Predict offline conversions
According to Google, only around 45% of people that search for products online go through with transactions, instead preferring to make their purchase offline by making a visit to the retailer. The CTR percentage can be used as an indication of a customer’s interest level for your product. So while their curiosity might not actually translate to a call of action such as filling a form or making a purchase, it might strongly correlate to offline purchases.

5. Higher CTR score equals lower cost per click
The way Adwords decides your ad’s price is by multiplying your quality score with the bid price. A high quality score significantly reduces your cost per click. The quality score itself is a function of CTR; the rule of thumb is that a higher CTR results in higher quality score.

5 Small Companies Doing Analytics Right

The Australian market and economy is currently undergoing a major boom which is brought on by the weakening of the dollar and technology bridging gaps between businesses. The companies that have adopted data analytics and are making business decisions based on them are the ones making a name for themselves in the industry. This is very good news for the Australian economy.

There have been thousands of small companies in Australia who have contributed to the growth of the Australian economy by analysing and using big data properly. Every startups recognise the importance of data analytics and the role it plays in turning average numbers into something that you can use to make better informed decision and grow the business.

However, just having access to data doesn’t mean you will experience success. To be successful you need to implement data analytics correctly.

Why do Companies need Data Analytics and Science?

Australia isn’t the biggest market, especially when compared to the United Kingdom or United States. However, this doesn’t mean that Australian companies can’t make a difference. Especially because the size of the data doesn’t really translate into the type of success the business is going to achieve.

Australian companies realise that due to a small market size, they need to be highly effective in implementing advanced analytics and data science. However, before we discuss the 5 small companies doing analytics right, let’s first find out why they need data analytics and science?

A small business is generally operating in a competitive market, and they know that to compete effectively they will need to make informed decisions to help them survive. Yes, all small companies must first survive in the market before they go on to make a name for themselves. The way a company implements data analytics and science is the difference between failure and success.

You must be thinking that if every business knows the true value of data analytics, then why is it that only a handful of businesses are implementing it properly?

To understand that, we must look at the current Australian market.

The Way Corporate Australia Functions

Australia’s corporate market is not using data analytics and science effectively because businesses aren’t prioritising investments. Other businesses are still transitioning and only a few have achieved a state of maturity to understand and use analytics effectively. This may seem surprising, because you expect big corporations to grasp the importance of analytics and use it properly.

Most corporations are hesitant about changing the way they operate and are skeptical about the hype around technology and the pace with which it has progressed. That is why they haven’t really committed to analytics and are failing to implement it effectively.

So, let’s celebrate the small companies that are doing analytics right, and are making a name for themselves in the Australian market. These companies are:


Australia has seen a massive increase in car rental and taxi booking apps. Ingogo is one startup that wants to take advantage of the taxi industry. However, Ingogo knows that to take full advantage of the industry they need to do analytics right, and that means ensuring customer success. Ingogo lets customers book rides 2 days in advance, and offers customers AUD 10 ($9), if their driver cancels.


Ingogo offers these sweeteners to customers because it wants to compete with Uber, which is a giant of the industry. By using analytics, Ingogo forced Uber to cut down its own prices since it was losing customers. Ingogo has made a great name for itself in the taxi booking industry and is soon going to be listed on the Australian Stock Exchange.


RecruitLoop is a recruitment agency that helps businesses recruit talent at low prices online. By using analytics, RecruitLoop could find out how to get ahead of other more experienced recruiters in the market. They know that customer success is a priority if they want to succeed, and will immediately delist a recruiter if they get one complaint. It also charges clients on hourly rates instead of on commission.


Using analytics properly, RecruitLoop could help companies reduce recruitment costs by 90% and managed to annihilate their competition in the process.


Hipages is a startup in the highly competitive home improvement market. Knowing that it is going to be tough to compete with established companies, Hipages used analytics right and started making money from companies who list their services on the website.


Using this model, they could connect 40,000 trades people with 500,000 customers! Those are highly impressive numbers, and allowed the firm to engage with the massive community of customers looking for homes and professionals that are dealing in the home improvement market.


P2P lending is damaging personal loans all over the world, but one small company SocietyOne, is going about it the right way by using analytics properly. They help match borrowers with investments through their platform and have developed a new form of lending which has helped stabilise the financial sector. The success of SocietyOne is a clear indicator of things that small companies can achieve if they do analytics right.



Tapestry has also used analytics properly and came out with its own social network, which helps tech-savvy youth connect with those that are less capable. They have helped bridged the digital divide, and made a difference in the lives of people. The network has two types of accounts, ‘Sharing’ for the tech-savvy and ‘Simplicity’ for the ones that aren’t.


Both accounts have different interfaces, and Tapestry has successfully allowed older people to connect with their family and friends through analytics.