Ad engagement rate (AER) is a crucial metric to monitor when assessing the effectiveness of your paid advertising campaigns, whether on social networks or search engines. This guide will explore what ad engagement rate entails, how to calculate it, and the best practices for achieving the highest engagement possible on your ads.


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Understanding Ad Engagement Rate

Ad engagement rate, often referred to as AER, is a metric that measures the level of interaction and involvement that users have with a particular advertisement. It typically includes various forms of user engagement, such as clicks, likes, shares, comments, and other actions taken in response to the ad.

For marketing experts, understanding your demographics and tailoring high-quality ad content is key to achieving a high engagement rate and favorable pricing. When your ad campaigns resonate with your target audience, it not only leads to a surge in engagement metrics but also helps lower your cost per click.

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How to calculate the ad engagement rate

You can determine the ad engagement rate by calculating the ratio of total engagement (clicks, likes, shares, comments, etc.) to the number of impressions your ad gets. You can get these metrics on many analytics tools or with an engagement rate calculator online.

Ad engagement rate formula

AER = (Number of Engagements / Number of Impressions) * 100

What is a good ad engagement rate?

A good engagement rate for your ads varies depending on factors such as ad position, industry, etc. For instance, in the technology sector, the average engagement rate hovers around 2.38%, while the dating and personals industry boasts a higher rate of 3.40%. In contrast, the legal sector registers a lower rate at 1.35%. These numbers underscore the range of results in online advertising across different industries.

Generally, a solid average Google Ads ad engagement rate exceeds 4-5% on the search network and 0.5-1% on display ads.

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What is a bad ad click-through rate?

Across all industries, the average engagement rate in Google Ads is 1.91% for search. If your ad engagement rate falls below this benchmark, it may suggest underperformance in search results. However, it's crucial to consider industry-specific averages to ensure accurate comparisons.

Be careful with vanity metrics; for example, a high number of followers or the number of times you post does not guarantee a high engagement rate on your ads.

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Ad engagement rate KPI examples & templates

Incorporate your ad engagement rate into these reports to gain comprehensive insights into your online marketing strategy metrics and overall online performance.

See this KPI in action here!

PPC report template PPC report template

Evaluate metrics from all your marketing channels and social media platforms, including Instagram ads, Facebook advertising, Google Search ads, TikTok, Bing ads, or LinkedIn ads. You can also align this data with your business metrics and industry benchmarks.

See this template live

Advertising Campaign Report Template Advertising Campaign Report Template

Create a beautiful marketing report that includes all your present marketing campaign & future campaign results! Get key metrics like your Instagram engagement rate, revenue, click-through rate, conversion rate, CPA, and social media analytics.

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Executive report template Executive report template

Tailored for small business owners and more prominent company executives, this template showcases critical business metrics, including revenue, new customer acquisition, churn rate, and more.

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Best Practices for Ad Engagement Rate

If your ad engagement rate is lagging, follow these best practices to improve your performance and identify what works.

Advertising cost best practices

step 1 icon Audience Segmentation and Targeting

Audience segmentation and targeting are pivotal aspects of a successful social media marketing strategy. By segmenting your audience based on various factors, such as demographics, interests, and behaviors, you can tailor your content to resonate effectively with each group. This entails creating different types of content or modifying a piece of content for each segment. Additionally, understanding the ideal posting schedule and the period of time when your audience is most active allows you to optimize engagement. A well-segmented strategy involves posting the right number of posts at the correct times, ensuring that your content reaches the intended audience, garners their interest, and leads to higher engagement and conversions.

step 2 icon Upgrade your social media ads

A well-thought-out social media strategy is essential when crafting ad creatives for social media on platforms like Facebook. To maximize the impact of your social media engagement, your ad creatives should be designed to capture users' attention swiftly. Regularly testing different ad variations is a fundamental part of an effective social media strategy, ensuring your Facebook ads and other social media marketing initiatives remain engaging and impactful in the dynamic world of social platforms.

step 3 icon A/B Testing

A/B testing, or split testing, is a crucial strategy for optimizing ad engagement rates. It involves creating multiple variations of your ad campaigns and testing them to determine which elements perform the best. Through A/B testing, you gain valuable insights into what resonates with your audience and can fine-tune your advertising strategy accordingly. You can also test different types of campaigns, whether with influencer marketing, visuals, or targeting specific hashtags.

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