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What is a Good CTR for Facebook Ads?

As an e-commerce business owner, you understand the importance of effective marketing and advertising in driving sales. One of the most popular digital marketing channels used by online retailers today is Facebook advertising. With over 2.9 billion monthly active users, Facebook offers a massive potential customer base. However, with so much competition for attention on the platform, it's important to create engaging ads that encourage users to click.

This is where the click-through rate or CTR comes in. CTR is one of the key performance metrics that determine the success of your Facebook ads. It measures the percentage of people who clicked on your ad out of those who saw it. A higher CTR usually means your ad copy and visuals are compelling enough for people to take action.

So what is considered a "good" CTR for Facebook ads? This blog post breaks down everything you need to know about interpreting and optimising CTR to maximise returns from your Facebook advertising campaigns.

What is the Average CTR for Facebook Ads?

The average CTR for all Facebook ads globally is around 2%. However, this number can vary significantly depending on the industry, type of ad objective, creative elements used and audience targeting.

Some general guidelines on average CTR benchmarks include:

  • E-commerce ads - An average CTR of 2-3% is considered good for shopping and product catalog ads. Highly visual and personalized creative usually performs better.

  • Brand awareness ads - CTRs of around 1-2% are average as the goal is impressions over clicks. Improving targeting and relating messages to audience interests can boost CTR.

  • Lead generation ads - Targeting a 3% CTR or higher ensures you collect enough quality contact information. Make forms easy to complete on compelling value propositions.

  • Local business ads - CTRs of 3-5% are quite achievable by focusing ads around the location with relevant images and value props.

  • Video views ads - Aim for 1-2% CTR with high-resolution videos that capture attention in the first 3 seconds.

So in summary, while the platform average is 2%, your type of business and ad goal will influence the specific benchmarks. Track your stats over time for an objective industry comparison.

Optimising Creative Elements for Higher CTR

The ad copy and visuals are extremely important in driving clicks. Here are some best practices as established by top-performing Facebook advertisers:

  • Highly visual ads usually outperform text-heavy ones. Use bright, minimalist images that immediately communicate value.

  • Keep ad copy short - 70 characters or less for maximum impact. Include clear calls to action.

  • Leverage video and carousel ad creatives for high-engagement categories like fashion.

  • Use lifestyle imagery that tells a story people can relate to rather than just product shots.

  • Personalise ads with audience interests and make offers time-sensitive for urgency.

  • Test different headlines, images, and text combinations regularly to find the highest-testing variants.

  • Ad format testing is also important. Single image, carousel, slideshow, etc.

By optimising creative elements based on audience insights and regular A/B testing, you can often significantly increase CTR beyond average benchmarks. Tools like Copy Testing on the Facebook ad library help identify top performers.

Targeting Strategies that Boost Facebook Ad CTR

Building the right target audience is half the battle won when it comes to online advertising. Refining interests and behaviours targeting can boost CTR as follows:

  • Narrow targeting to closely matching interests over broad interests for better ad relevance.

  • Bid higher for engagement on Lookalike Audiences as they resemble existing customers.

  • Target users browsing categories or products related to what you sell for high purchase intent.

  • Geotarget ads to where your physical store or customers are located.

  • Use advanced options like Detailed Targeting and Exclusions to direct ads to high-potential segments.

  • Consider targeting engaged Shopify merchants in your category as wholesale/reselling may apply.

  • Time targeting to when users are online shopping based on past behaviour and interests. For example, fashion boutiques can target women interested in brands they stock who live near the store and engage during weekend evening browsing sessions. Such hyper-specific targeting significantly improves ad relevance and CTR. The Shopline platform also offers robust CRM and marketing automation tools to segment and engage customers across channels based on their profiles and behaviours.

Facebook Ad Frequency and Scheduling Tips

While delivering your message to the right people is important, ad frequency also impacts engagement metrics like CTR. Some scheduling best practices include:

  • Run campaigns for 14 days minimum before tweaking as it takes time to gather performance data.

  • Schedule ad delivery in a consistent daily/weekly cadence rather than blasting all at once.

  • Prioritise frequency over total reach as too many impressions at once can decrease CTR over time.

  • Avoid oversaturating audiences as it leads to ad fatigue. Limit to less than 5% of their newsfeed per week.

  • Consider frequency capping tools and schedule in quieter parts of the day/week for better CTR.

  • Highly visual creatives work well as single image, carousel or slideshow ad formats running 2-5 times per week.

With effective ad optimisation over 3 to 6 months based on your goals and benchmarks, most retailers can average click-through rates in the ideal 2-5% range using Facebook ads. Our UK-based platform SHOPLINE, https://uk.shopline.com also offers tools like Ads Dashboard and Performance Insights to closely track and improve campaign metrics like CTR over time.

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