Average CTR for Display Ads (2025–2026): Industry Benchmarks & Optimization Tips
November 27, 2025
14
minutes read
In an advertising landscape reshaped by AI-driven optimization and the phasing out of third-party cookies, relying on outdated performance benchmarks is a recipe for wasted spend. The definition of a "good" Click-Through Rate (CTR) for display ads has evolved, demanding a fresh, data-informed perspective. This guide cuts through the noise, providing digital marketers with the 2025–2026 CTR benchmarks they need—segmented by industry, format, and device. Beyond the numbers, we delve into actionable strategies for creative refinement, precision targeting, and intelligent placement that boost engagement without sacrificing bottom-funnel metrics like CPA and ROAS. Learn how to leverage next-generation tools to not just meet but exceed industry averages in the privacy-first er
Click-Through Rate (CTR) calculated by dividing the number of clicks an ad receives by the number of times it's shown (impressions), remains a fundamental pulse check for digital advertising campaigns. For digital marketers, performance managers, and media buyers, it is a direct indicator of an ad's initial ability to capture attention and provoke a desired action in a crowded digital space.
However, in 2025, the context for CTR has profoundly shifted. The global average CTR for display ads, often cited as a meager 0.05% to 0.1%, is a misleading oversimplification. This figure masks dramatic fluctuations: a high-impact video ad in a premium publisher environment can achieve CTRs 5-10x higher than a standard banner, while a programmatic native ad in the Finance sector might consistently outperform one in eCommerce. Factors such as industry vertical, ad format and size, user device, and, most critically, the sophistication of your targeting and creative strategy now dictate what constitutes a "good" CTR.
This is where a modern, AI-driven approach becomes indispensable. At AI Digital, we've built our platform to address this exact complexity. Our Elevate platform uses AI-powered creative orchestration to dynamically test and serve the most engaging ad combinations, directly lifting CTR. This is complemented by our Smart Supply system, which optimizes programmatic delivery for maximum placement efficiency and viewability—because a seen ad is a clickable ad. For a deeper dive into this critical metric, see our article on Digital Display Advertising.
This article moves beyond the generic average to explore the updated 2025–2026 benchmarks you actually need for strategic planning. We will break down the key factors—from creative fatigue to the rise of AI-powered placement—that influence your CTR and provide a data-driven playbook of optimization tactics. The goal is not just to chase a higher percentage, but to understand how improving CTR works in concert with other vital metrics like viewability, Cost-Per-Acquisition (CPA), and Return on Ad Spend (ROAS) to drive sustainable growth.
What is a good CTR for display ads?
The most common question in any media buy debrief is also the most difficult to answer with a single number: "Is our CTR for display ads good?" In 2025, the honest answer is, "It depends." The concept of a single industry standard for display ad CTR is obsolete. What constitutes a good CTR for display ads is now a variable defined by a campaign's specific context—its industry, ad format, target device, and the quality of its targeting data. Chasing a generic benchmark CTR can lead to misguided optimizations that sacrifice higher-funnel brand building or, worse, attract low-quality click fraud. The true goal is to outperform your own sector's competitive CTR while maintaining efficient conversion metrics.
For instance, the average CTR for programmatic display across the open web remains low, often hovering between 0.05% and 0.08%. This is a critical baseline for display advertising statistics. However, a hyper-targeted programmatic campaign using first-party data can easily achieve CTRs 3-5x this figure. This variance underscores why understanding the nuances behind display ad metrics is crucial for accurate performance analysis. To master these nuances, a solid foundation in programmatic advertising is essential.
Global CTR benchmarks for 2025–2026
While a global average provides a starting point, savvy strategists dig deeper. The overall average click-through rate for display ads continues to be suppressed by the sheer volume of banner impressions served in low-engagement environments. Current data suggests the global average CTR for display ads sits at approximately 0.06%. However, this number tells only part of the story.
These display advertising statistics highlight that your primary benchmark should be your own historical performance and the performance of direct competitors within your vertical.
CTR by ad format
The format of your ad is arguably the single greatest factor influencing your click-through rate for display ads. The passive, static nature of a standard banner cannot compete with the immersive experience of a rich media or video unit. The following breakdown illustrates the significant disparity in performance across common formats, showcasing why a one-size-fits-all approach to display ad metrics is ineffective.
⚡For a detailed comparison to guide your planning, explore our breakdown of Native ads vs. display ads, such as key differences, examples, and when to use each.
💡 Understanding this strategic distinction is key to allocating your budget effectively and choosing the right format to meet your specific KPIs, whether you're prioritizing direct response or upper-funnel engagement.
CTR by device
In the multi-screen world of 2025, the device a user is on is a powerful predictor of engagement. The average CTR for display ads is no longer a uniform metric across screens; it's shaped by screen size, user context, and intent. Understanding these device-level display advertising statistics is crucial for allocating budget and tailoring creative.
Display CTR by industry
Understanding the broader landscape of display advertising statistics is crucial for setting realistic performance expectations. The following chart provides a comparative view of average CTR for display ads versus search ads across key verticals, based on 2025 industry data. This visualization powerfully illustrates the fundamental performance differential between intent-driven search and awareness-focused display campaigns.
When evaluating your display ad CTR, context is everything. The notion of a single "good" click-through rate for display ads is a myth; performance is intrinsically tied to your industry's unique dynamics. User intent, purchase cycle complexity, and the very nature of your product or service create significant variances in display advertising statistics. A competitive CTR in one vertical would be a red flag in another. The following industry-specific breakdown moves beyond a generic benchmark CTR to provide the nuanced understanding you need to accurately gauge performance and set realistic, data-driven goals for your campaigns.
Retail & eCommerce
The Retail & eCommerce sector is the engine of the display advertising world, characterized by massive impression volume and a wide range of performance. The average CTR for display ads in this vertical typically hovers around 0.51%, but this figure is deceptive. Performance is intensely fragmented. Broad, upper-funnel brand awareness campaigns often see CTRs closer to 0.04-0.07%, while hyper-personalized Dynamic Product Remarketing (DPR) ads can achieve stellar rates of 0.2% to 0.5% or higher. The key differentiator is data and personalization which is possible through retail digital marketing.
💡A good CTR for display ads here is one that efficiently drives viewability for new customers and high-intent clicks from retargeted users, directly impacting ROAS.
Finance & Banking
As a high-consideration sector, Finance & Banking consistently reports a strong display ad CTR, with an industry average around 0.52%. Users researching financial products—from credit cards to mortgages—exhibit high intent, making them more likely to engage with relevant, trustworthy ad creative. The competitive CTR in this space is driven by a focus on security, value proposition, and precise targeting based on life events and financial behaviors. Success relies on balancing engaging creative with stringent compliance, making CTR a useful indicator of an ad's ability to break through consumer skepticism without relying on sensationalist claims.
Healthcare & Pharma
The Healthcare & Pharma vertical operates under unique constraints, resulting in a more conservative average click-through rate for display ads, often around 0.59%. Strict regulatory guidelines often necessitate direct, informational creative that may not be as "clickable" as other industries. Furthermore, the sensitive nature of health information means users are cautious. Therefore, while CTR is a relevant display advertising metric, it is secondary to metrics like viewability, brand lift, and driving traffic to authoritative, educational content. Campaigns are designed to build trust and awareness over time, rather than solicit an immediate click.
Travel & Hospitality
This sector thrives on aspiration, which is reflected in its display advertising statistics. With an average CTR of 0.47%, performance is highly creative-dependent. Lush, high-quality imagery and video of destinations are paramount for success. The sales cycle is long, so a good CTR for display ads in travel often comes from retargeting users who have already shown intent by searching for flights or hotels. These campaigns can significantly outperform the industry average, making CTR a valuable measure of creative relevance and audience-list quality at different stages of the customer journey.
Technology & B2B
This broad category encompasses everything from consumer electronics to complex B2B SaaS solutions. The overall average CTR for programmatic display is solid, but the B2B segment often sees lower initial click rates (around 0.46%) due to longer, multi-touch sales cycles and committee-based buying decisions. In B2B, a click is a significant signal of interest. Therefore, a good CTR for display ads is one that identifies and engages a target account. Success is less about raw volume and more about driving engaged visitors from high-value firms to landing pages where they can be identified and nurtured.
Entertainment & Media
Driven by the need to promote new releases, streaming content, and events, the Entertainment & Media industry leverages highly emotive and visually compelling creative. This results in a strong average CTR of 0.51%. The goal is often immediate action—watching a trailer, signing up for a service, or purchasing a ticket—which creates a sense of urgency that boosts engagement. This vertical excels at using rich media and video formats to capture attention, making CTR a key performance indicator for campaign launch momentum.
Other Industries
Numerous other verticals—from Automotive to Legal Services—leverage display networks with unique strategies. The benchmark CTR for any industry is ultimately shaped by customer intent, purchase cycle, and creative flexibility. Understanding the underlying technology stack that powers this ecosystem is key to optimizing across any vertical.
While industry benchmarks provide a target, your actual display ad CTR is determined by a complex interplay of strategic and tactical factors. Understanding these levers is the first step toward systematic optimization and achieving a competitive CTR. A high click-through rate for display ads isn't accidental; it's the result of orchestrating several key elements, from the technical quality of the impression to the emotional pull of the creative.
The following hierarchy illustrates the relative impact of the primary factors influencing your average CTR for display ads:
Here’s a breakdown of these critical drivers:
Creative Format and Messaging (High Impact): This is your most powerful lever. A static banner will deliver a different average click-through rate for banner ads than an interactive rich media unit. Compelling, value-oriented messaging with a clear call-to-action (CTA) is non-negotiable. In the cookieless era, creative itself is becoming a key targeting vector, where dynamic creative optimization (DCO) powered by AI can tailor messages in real-time, significantly boosting relevance and engagement.
Audience Targeting and Relevance (High Impact): Showing the right ad to the right person is the cornerstone of performance. As third-party cookies depreciate, the accuracy of targeting is evolving. Strategies leveraging first-party data, contextual targeting, and AI-powered predictive audiences are becoming essential to maintain a good CTR for display ads by ensuring your message resonates with the user's current interests and intent.
Ad Placement and Viewability (High Impact): An unseen ad cannot be clicked. Viewability—the percentage of an ad that is actually visible to a user—is a direct prerequisite for CTR. Placements above the fold, within content, and on high-engagement sites naturally yield higher display ad metrics. This is intrinsically linked to the next factor.
Publisher & Media Quality (Medium Impact): The environment matters. Ads placed on reputable, brand-safe websites through Supply-Path Optimization (SPO) generate more trust and engagement than those on low-quality, cluttered sites. Investing in fraud-free, premium inventory not only protects your brand but also improves the performance of your banner impressions by ensuring they are seen by real humans in a positive context.
Frequency and Ad Fatigue (Medium Impact): Even the best creative wears out. Oversaturating a user with the same ad leads to banner blindness, a sharp decline in your CTR for display ads. Managing frequency caps and having a robust creative refresh schedule are vital to maintaining campaign effectiveness over time.
Device and Environment (Medium Impact): As discussed, user behavior differs by device. A mobile-optimized ad with a thumb-friendly CTA will have a different average CTR for programmatic display on a smartphone than a desktop skyscraper. Understanding the user's context allows for better format and messaging choices.
The Impact of Privacy and the Cookieless Era (Foundational Impact): This is the new foundational layer affecting all others. The shift towards a privacy-first web is reducing the precision of traditional behavioral targeting. This makes the factors of contextual relevance, compelling creative, and AI-driven prediction more critical than ever.
💡 The shift towards a privacy-first web is reducing the precision of traditional behavioral targeting.
⚡ This makes the factors of contextual relevance, compelling creative, and AI-driven prediction more critical than ever. To understand how AI and machine learning are shaping this new paradigm and enabling sophisticated optimization at scale, explore our insights on AI in Digital Marketing.
CTR vs other performance metrics
While Click-Through Rate (CTR) is a vital sign of initial ad engagement, it is just one data point in a comprehensive campaign health assessment. Relying on display ad CTR alone is like judging a book by its cover—it tells you something caught attention, but not if the story was worthwhile. In 2025, with sophisticated attribution and a focus on bottom-funnel outcomes, savvy digital marketers must balance CTR with other critical performance indicators.
A high click-through rate for display ads is meaningless if those clicks don't contribute to business objectives. The following metrics provide the essential context needed to evaluate your display campaigns truly.
CTR vs. Viewability: A high viewability rate means your ad had the opportunity to be seen; a high CTR means it was compelling enough to act upon. They are complementary. An ad with high viewability but a low CTR for display ads likely suffers from poor creative or mistargeting. Conversely, a high CTR with low viewability might indicate your budget is being spent on fraudulent or poorly placed banner impressions.
CTR vs. Conversion Rate (CVR): This is the most critical comparison. CTR measures the top-of-funnel click; CVR measures the bottom-funnel action (purchase, sign-up, etc.). You can have a stellar industry average CTR for display ads, but if your conversion rate is low, it indicates a disconnect—perhaps your ad creative is misleading, your landing page experience is poor, or you're attracting low-intent clicks.
CTR vs. Cost-Per-Acquisition (CPA) & Return on Ad Spend (ROAS): Ultimately, marketing must drive efficient growth. A campaign with a modest average CTR for programmatic display can be highly profitable if it drives conversions at a low CPA and a high ROAS. Conversely, a campaign with a high CTR that fails to convert or drives insignificant revenue is inefficient, regardless of how it stacks up against display advertising statistics.
CTR vs. Post-Click Engagement: Metrics like bounce rate, pages per session, and average session duration reveal the quality of the traffic driven by your ads. A high CTR coupled with a high bounce rate suggests your ad is relevant, but your landing page is not, or you may be attracting the wrong audience.
💡CTR is an excellent diagnostic tool for creative effectiveness and initial audience relevance. It answers the question, "Is my ad compelling people to take the first step?"
However, it should not be optimized in a vacuum. The goal is not to maximize CTR at all costs, but to find the optimal range where a strong CTR works in harmony with strong conversion rates, acceptable CPA, and positive ROAS. Use CTR to guide your creative and targeting A/B tests, but always evaluate the winners based on their impact on your primary business objectives. In the AI-driven landscape, the most sophisticated platforms balance these metrics automatically, optimizing not for clicks, but for tangible business outcomes.
How to improve CTR for display ads
A low display ad CTR is a solvable puzzle. Moving your click-through rate for display ads from average to exceptional requires a disciplined, test-and-learn approach focused on the key levers of audience, creative, and placement. Below are actionable optimization strategies that marketers can implement to immediately boost engagement and drive more value from their display campaigns.
Test and Optimize Creatives
Your creative is your most powerful tool for improving display ad metrics. Even the best targeting will fail with a weak ad. To beat the industry average CTR for display ads, you must relentlessly test and refine.
Use Contextual + AI Targeting
The deprecation of third-party cookies makes precise targeting more challenging but not impossible. The future lies in combining contextual intelligence with AI.
⚡ AI Targeted Advertising is changing everything because it moves beyond static audience segments and one-dimensional contextual signals.Instead, AI and machine learning models analyze vast, complex datasets in real-time—including browsing behavior, content engagement, purchase intent signals, and even weather or time-of-day context—to predict which user is most likely to engage with your specific ad creative at a specific moment.
Leverage Dynamic Creatives and Personalization
Generic ads get generic results. Personalization is the key to cutting through the noise and making a user feel like your ad was made just for them.
Improve Placement via Programmatic & Smart Supply
Where your ad appears is almost as important as what it says. A beautiful, well-targeted ad on a low-quality, irrelevant site will fail.
⚡ Programmatic buying is the engine of modern display advertising, and the Demand-Side Platform (DSP) is its intelligent control center.Rather than manually negotiating ad space on thousands of websites, a DSP allows media buyers to access millions of ad impressions across the globe in real-time through a single interface. This ensures your budget is allocated to the highest-value opportunities, systematically improving placement quality, boosting your average CTR for programmatic display, and maximizing ROAS.
Monitor Performance and Iterate
Optimization is not a one-time task; it's a continuous cycle. The market, your audience, and ad fatigue are constantly evolving.
How Smart Supply improves CTR and performance
In a complex digital ecosystem, even the most compelling creative can fail if it's served in the wrong place, at the wrong time, or to a non-human entity. This is where the quality of your media supply becomes the critical foundation for performance. AI Digital's Smart Supply is engineered to directly address this challenge, systematically boosting your display ad CTR, viewability, and ROAS through intelligent supply-chain optimization.
Smart Supply acts as your AI-powered filter for the entire programmatic landscape. It doesn't just buy impressions; it buys quality impressions. By leveraging machine learning and advanced Supply-Path Optimization (SPO), the system continuously analyzes the supply chain to:
Eliminate Fraudulent and Low-Quality Inventory: By cutting out invalid traffic (IVT) and made-for-advertising (MFA) sites, Smart Supply ensures your budget is dedicated to real, viewable banner impressions that have a genuine chance to engage users.
Prioritize High-Engagement Placements: The AI identifies and favors publisher environments and specific ad placements with a proven history of high viewability and user interaction. This means your ads are more likely to be seen and clicked, directly elevating your average CTR for programmatic display.
Optimize for Efficiency and Outcomes: By streamlining the path to premium inventory, Smart Supply reduces wasteful ad spend. This freed-up budget is reallocated to the most valuable impressions, improving overall campaign efficiency and driving a higher Return on Ad Spend (ROAS).
💡The result is a virtuous cycle: cleaner inventory leads to higher viewability, which creates more opportunities for engagement, which in turn drives a stronger click-through rate for display ads and more efficient conversions.
It’s the essential backbone that allows your creative and targeting strategies to shine. To see how this intelligent infrastructure can transform your campaign results, explore Smart Supply.
Conclusion: The role of CTR in 2026
As we look toward 2026, the role of the Click-Through Rate (CTR) in a marketer's dashboard remains secure, but its context has irrevocably evolved. It is no longer a standalone success metric but a crucial diagnostic tool—a leading indicator of creative resonance and initial audience relevance. The true measure of campaign success, however, lies in balancing this initial engagement with the quality and business outcomes that follow.
A healthy display ad CTR should work in concert with strong viewability, a low bounce rate, a positive conversion rate, and an efficient ROAS.
In an era defined by AI and supply-path complexity, achieving this balance requires more than just manual tweaks; it demands an intelligent, orchestrated approach. The goal is not to chase clicks, but to cultivate valuable customer journeys that begin with a compelling ad impression.
Your Actionable Takeaways for 2026:
Orchestrate with AI, Don't Just Optimize Manually: Move beyond A/B testing in silos. Leverage platforms like AI Digital Elevate to deploy AI-powered creative orchestration. This allows you to dynamically test and serve the most effective ad combinations at scale, directly lifting engagement while gathering the data needed to inform broader marketing strategy.
Prioritize Quality Impressions Over Cheap Clicks: A low-cost, low-quality impression is a poor investment. Integrate Smart Supply into your media buying foundation to ensure your ads are placed in premium, brand-safe, and high-viewability environments. This builds brand trust and ensures your creative has a genuine chance to be seen and clicked by real people, improving both your CTR and post-click performance.
Fuse Context, Creativity, and First-Party Data: With the deprecation of third-party cookies, your targeting strategy must adapt. Combine the power of contextual signals, your own first-party data, and AI-driven predictive audiences to reach users with unparalleled relevance. This holistic approach is key to sustaining a competitive CTR in a privacy-first world.
Measure CTR as Part of a Performance Symphony: Always view your CTR within a dashboard of complementary metrics. Use it to gauge the initial pull of your creative and targeting, but let metrics like Conversion Rate, CPA, and ROAS conduct the final performance. This ensures your display advertising efforts are not just generating clicks, but are actively driving sustainable business growth.
Blind spot
Key issues
Business impact
AI Digital solution
Lack of transparency in AI models
• Platforms own AI models and train on proprietary data • Brands have little visibility into decision-making • "Walled gardens" restrict data access
• Inefficient ad spend • Limited strategic control • Eroded consumer trust • Potential budget mismanagement
Open Garden framework providing: • Complete transparency • DSP-agnostic execution • Cross-platform data & insights
Optimizing ads vs. optimizing impact
• AI excels at short-term metrics but may struggle with brand building • Consumers can detect AI-generated content • Efficiency might come at cost of authenticity
• Short-term gains at expense of brand health • Potential loss of authentic connection • Reduced effectiveness in storytelling
Smart Supply offering: • Human oversight of AI recommendations • Custom KPI alignment beyond clicks • Brand-safe inventory verification
The illusion of personalization
• Segment optimization rebranded as personalization • First-party data infrastructure challenges • Personalization vs. surveillance concerns
• Potential mismatch between promise and reality • Privacy concerns affecting consumer trust • Cost barriers for smaller businesses
Elevate platform features: • Real-time AI + human intelligence • First-party data activation • Ethical personalization strategies
AI-Driven efficiency vs. decision-making
• AI shifting from tool to decision-maker • Black box optimization like Google Performance Max • Human oversight limitations
• Strategic control loss • Difficulty questioning AI outputs • Inability to measure granular impact • Potential brand damage from mistakes
Managed Service with: • Human strategists overseeing AI • Custom KPI optimization • Complete campaign transparency
Fig. 1. Summary of AI blind spots in advertising
Dimension
Walled garden advantage
Walled garden limitation
Strategic impact
Audience access
Massive, engaged user bases
Limited visibility beyond platform
Reach without understanding
Data control
Sophisticated targeting tools
Data remains siloed within platform
Fragmented customer view
Measurement
Detailed in-platform metrics
Inconsistent cross-platform standards
Difficult performance comparison
Intelligence
Platform-specific insights
Limited data portability
Restricted strategic learning
Optimization
Powerful automated tools
Black-box algorithms
Reduced marketer control
Fig. 2. Strategic trade-offs in walled garden advertising.
Core issue
Platform priority
Walled garden limitation
Real-world example
Attribution opacity
Claiming maximum credit for conversions
Limited visibility into true conversion paths
Meta and TikTok's conflicting attribution models after iOS privacy updates
Data restrictions
Maintaining proprietary data control
Inability to combine platform data with other sources
Amazon DSP's limitations on detailed performance data exports
Cross-channel blindspots
Keeping advertisers within ecosystem
Fragmented view of customer journey
YouTube/DV360 campaigns lacking integration with non-Google platforms
Black box algorithms
Optimizing for platform revenue
Reduced control over campaign execution
Self-serve platforms using opaque ML models with little advertiser input
Performance reporting
Presenting platform in best light
Discrepancies between platform-reported and independently measured results
Consistently higher performance metrics in platform reports vs. third-party measurement
Fig. 1. The Walled garden misalignment: Platform interests vs. advertiser needs.
Key dimension
Challenge
Strategic imperative
ROAS volatility
Softer returns across digital channels
Shift from soft KPIs to measurable revenue impact
Media planning
Static plans no longer effective
Develop agile, modular approaches adaptable to changing conditions
Brand/performance
Traditional division dissolving
Create full-funnel strategies balancing long-term equity with short-term conversion
Capability
Key features
Benefits
Performance data
Elevate forecasting tool
• Vertical-specific insights • Historical data from past economic turbulence • "Cascade planning" functionality • Real-time adaptation
• Provides agility to adjust campaign strategy based on performance • Shows which media channels work best to drive efficient and effective performance • Confident budget reallocation • Reduces reaction time to market shifts
• Dataset from 10,000+ campaigns • Cuts response time from weeks to minutes
• Reaches people most likely to buy • Avoids wasted impressions and budgets on poor-performing placements • Context-aligned messaging
• 25+ billion bid requests analyzed daily • 18% improvement in working media efficiency • 26% increase in engagement during recessions
Full-funnel accountability
• Links awareness campaigns to lower funnel outcomes • Tests if ads actually drive new business • Measures brand perception changes • "Ask Elevate" AI Chat Assistant
• Upper-funnel to outcome connection • Sentiment shift tracking • Personalized messaging • Helps balance immediate sales vs. long-term brand building
• Natural language data queries • True business impact measurement
Open Garden approach
• Cross-platform and channel planning • Not locked into specific platforms • Unified cross-platform reach • Shows exactly where money is spent
• Reduces complexity across channels • Performance-based ad placement • Rapid budget reallocation • Eliminates platform-specific commitments and provides platform-based optimization and agility
• Coverage across all inventory sources • Provides full visibility into spending • Avoids the inability to pivot across platform as you’re not in a singular platform
Fig. 1. How AI Digital helps during economic uncertainty.
Trend
What it means for marketers
Supply & demand lines are blurring
Platforms from Google (P-Max) to Microsoft are merging optimization and inventory in one opaque box. Expect more bundled “best available” media where the algorithm, not the trader, decides channel and publisher mix.
Walled gardens get taller
Microsoft’s O&O set now spans Bing, Xbox, Outlook, Edge and LinkedIn, which just launched revenue-sharing video programs to lure creators and ad dollars. (Business Insider)
Retail & commerce media shape strategy
Microsoft’s Curate lets retailers and data owners package first-party segments, an echo of Amazon’s and Walmart’s approaches. Agencies must master seller-defined audiences as well as buyer-side tactics.
AI oversight becomes critical
Closed AI bidding means fewer levers for traders. Independent verification, incrementality testing and commercial guardrails rise in importance.
Fig. 1. Platform trends and their implications.
Metric
Connected TV (CTV)
Linear TV
Video Completion Rate
94.5%
70%
Purchase Rate After Ad
23%
12%
Ad Attention Rate
57% (prefer CTV ads)
54.5%
Viewer Reach (U.S.)
85% of households
228 million viewers
Retail Media Trends 2025
Access Complete consumer behaviour analyses and competitor benchmarks.
Identify and categorize audience groups based on behaviors, preferences, and characteristics
Michaels Stores: Implemented a genAI platform that increased email personalization from 20% to 95%, leading to a 41% boost in SMS click through rates and a 25% increase in engagement.
Estée Lauder: Partnered with Google Cloud to leverage genAI technologies for real-time consumer feedback monitoring and analyzing consumer sentiment across various channels.
High
Medium
Automated ad campaigns
Automate ad creation, placement, and optimization across various platforms
Showmax: Partnered with AI firms toautomate ad creation and testing, reducing production time by 70% while streamlining their quality assurance process.
Headway: Employed AI tools for ad creation and optimization, boosting performance by 40% and reaching 3.3 billion impressions while incorporating AI-generated content in 20% of their paid campaigns.
High
High
Brand sentiment tracking
Monitor and analyze public opinion about a brand across multiple channels in real time
L’Oréal: Analyzed millions of online comments, images, and videos to identify potential product innovation opportunities, effectively tracking brand sentiment and consumer trends.
Kellogg Company: Used AI to scan trending recipes featuring cereal, leveraging this data to launch targeted social campaigns that capitalize on positive brand sentiment and culinary trends.
High
Low
Campaign strategy optimization
Analyze data to predict optimal campaign approaches, channels, and timing
DoorDash: Leveraged Google’s AI-powered Demand Gen tool, which boosted its conversion rate by 15 times and improved cost per action efficiency by 50% compared with previous campaigns.
Kitsch: Employed Meta’s Advantage+ shopping campaigns with AI-powered tools to optimize campaigns, identifying and delivering top-performing ads to high-value consumers.
High
High
Content strategy
Generate content ideas, predict performance, and optimize distribution strategies
JPMorgan Chase: Collaborated with Persado to develop LLMs for marketing copy, achieving up to 450% higher clickthrough rates compared with human-written ads in pilot tests.
Hotel Chocolat: Employed genAI for concept development and production of its Velvetiser TV ad, which earned the highest-ever System1 score for adomestic appliance commercial.
High
High
Personalization strategy development
Create tailored messaging and experiences for consumers at scale
Stitch Fix: Uses genAI to help stylists interpret customer feedback and provide product recommendations, effectively personalizing shopping experiences.
Instacart: Uses genAI to offer customers personalized recipes, mealplanning ideas, and shopping lists based on individual preferences and habits.
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Questions? We have answers
What does CTR mean in advertising?
CTR, or Click-Through Rate, is a fundamental digital advertising metric calculated by dividing the number of clicks an ad receives by the number of times it is shown (impressions). It is expressed as a percentage. A CTR for display ads of 0.10% means the ad was clicked once for every 1,000 times it was displayed. It is a direct measure of your ad's initial ability to capture attention and provoke a desired action.
What is a good CTR for display ads?
There is no single "good" display ad CTR, as it varies significantly by industry, format, and targeting. The global average CTR for display ads is approximately 0.06%, but this is a misleading baseline. A good CTR for display ads is one that consistently outperforms your specific industry average CTR. For example, a CTR above 0.50% may be strong for eCommerce but would be underperforming in the Real Estate vertical. Always benchmark against your own historical performance and direct competitors.
Which industries have the highest CTR?
Based on 2025 data, industries characterized by high-intent, problem-solving needs, or visual aspiration consistently achieve the highest display advertising statistics for CTR. The top performers include: Real Estate (1.08%): Driven by users actively searching for properties.
Beauty & Personal Care (0.72%): Leverages visual appeal and direct offers.
Automotive (0.60%) and Health & Fitness (0.59%): Benefit from high user intent and research-driven behavior.
Which formats deliver the best CTR?
Ad format is a primary driver of engagement. The average click-through rate for banner ads is lowest for standard display units, while more immersive and integrated formats excel: Rich Media & Interactive Ads (0.15% - 0.3%+): Highest engagement due to expandable features and in-ad interactions.
Video Ads (0.1% - 0.25%): Auto-playing video captures attention effectively.
Native Ads (0.08% - 0.15%): Blends into content, overcoming banner blindness and building trust.
How can AI improve CTR?
AI improves CTR by moving beyond manual optimization to intelligent, predictive orchestration. It analyzes thousands of data points in real-time to: Serve the Right Creative: AI-powered platforms like Elevate dynamically test and serve the highest-performing ad combinations for each user segment.
Find the Right Audience: AI uses predictive modeling to identify new, high-intent audiences based on your first-party data.
Secure the Right Placement: AI-driven Smart Supply optimizes the media buy itself, ensuring ads run on high-viewability, brand-safe sites where they are most likely to be engaged with.
Is CTR still a reliable metric?
Yes, but with a critical caveat: CTR is a reliable diagnostic metric, not a definitive success metric. It is exceptionally useful for gauging creative effectiveness and initial audience relevance. However, it should never be viewed in isolation. A high CTR is unreliable if it doesn't correlate with positive outcomes like a low bounce rate, a high conversion rate, and a positive ROAS. The most successful strategies use CTR to guide optimizations while focusing on bottom-funnel business results.
Have other questions?
If you have more questions, contact us so we can help.