Performance Marketing

Engagement Rate: Importance, Calculation, Benchmarks

engagement rate

You might think an ad being served to thousands of people on social media or displayed on a website where people linger on each page is an indication of marketing success, but prepare to be disappointed. Although there might have been plenty of ad impressions created while those ads were served far and wide, or were on display for extended periods, those efforts and ad spend might have been worthless if there was no user engagement.

Audience engagement with online materials — in this case ads — can take many forms. A click, an upvote, a like, a share, a download, and other actions all count as engagement. When you track audience engagement rates, you can get an accurate sense of how well your ads are performing, or you can discover that people really aren’t responding to them, meaning you need to change course.

What Is Engagement Rate?

“Engagement rate tells you how much your audience is actually interacting with your content, not just scrolling past it,” says Michele Iapicco, CEO of Simplified Media Agency. “It’s usually calculated by taking the total number of likes, comments, shares, saves, and clicks, divided by your total impressions or followers.”

Engagement makes the chance for conversion, be it a sale, a sign up, or a follow significantly more likely. When you know the rate of engagement, you can determine how your ads are performing. Over time, you can see if your engagement rate is improving or getting worse.

Why Engagement Rate Matters

“Engagement rate is one of the most important performance metrics in digital marketing, because it goes beyond reach and tells you how your audience is actually interacting with your content,” says Ryan Croy, founder of Public Haus Agency. “A high engagement rate usually means the content is resonating, which is essential for brand awareness, customer trust, and algorithmic visibility. Engagement rate gives you a truer sense of impact than follower count ever could.”

Basically, engagement rate reflects how well your content resonates with your audience and points to meaningful interactions. A high engagement rate suggests that your content is valuable, relevant, and interesting to your intended audience, potentially leading to increased brand awareness, customer loyalty, and conversions. It also helps you understand what content resonates most with your audience and can help guide your content strategy.

Engagement Rate Calculation

“Engagement rate is calculated by dividing total engagement, which includes likes, comments, shares, saves, and so on, by your total audience or impressions,” says Croy.

To calculate engagement rate, divide the total number of interactions — that’s those likes or shares and such — by the number of followers or impressions, and then multiply by 100. For example, if a post has 100 interactions and 1,000 followers, the engagement rate is (100 ÷ 1000) x 100, which equals 10%.

Engagement Rate by Channel

Different online platforms have very different engagement rates, and many of them are surprisingly low.

Instagram

Instagram is known for its visual focus, which often leads to higher engagement rates. Nano-influencers with 1,000 to 10,000 followers on Instagram can see engagement rates as high as 2.19%, while other influencers generally see rates between 0.8% and 1%, according to data sourced from Social Insider.

TikTok

TikTok’s short-form video format also contributes to higher engagement. Popular with younger audiences, its videos can range from a few seconds to an hour. Its average engagement rate is around 4.07%, per data from Brandwatch.

Facebook

While Facebook has a large user base, its average engagement rate is lower compared to Instagram and TikTok. While some studies have shown that Facebook has an average engagement rate of 5.07%, other data suggests an average engagement rate of just 0.15% for Facebook posts, according to information from Social Insider.

X (Twitter)

Formerly known as Twitter, this platform was rebranded as X in 2023. X’s real-time, news-oriented nature can result in lower engagement rates, with an average engagement rate of 1.6%, per data from Influencity.

YouTube

YouTube’s engagement rate varies depending on subscriber count. Channels with 1,000 to 5,000 subscribers can see an average engagement rate of 5.60%, while those with 100,000 to 1 million subscribers have an average of around 2%, per InsightIQ.

LinkedIn

LinkedIn’s focus on professional networking typically results in lower engagement rates compared to more visually driven platforms. Its average engagement rate is around 4.8% for LinkedIn posts, per information sourced from the platform itself.

Social Media Engagement Rate

As we see from the numbers above, social media engagement rates are surprisingly low. Even a 3% engagement rate for a platform like Instagram or TikTok would be considered quite good. That’s not necessarily a commentary on the quality of advertising you are creating, but speaks more to the sheer volume of content on social media, and the more than 5 billion people using it worldwide.

Website Engagement Rate

People tend to engage more meaningfully with websites than they do with social media, which makes sense: While social media often involves mindless scrolling, website visits are usually made with more purpose. The average website engagement rate is generally considered to be between 60% and 70%, per data from Fathom Analytics.

However, engagement rates vary significantly by industry and the specific types of content or features offered. Engagement with websites can be measured in a variety of ways, such as time spent on a page, bounce rate, scroll depth, and more.

Email Engagement Rate

The average email engagement rate, measured by open rate, is around 36.5% across all industries. Click-through rate (CTR) averages around 2.66%, per Mailchimp, and the click-to-open rate (CTOR) is typically between 10-25%, depending on industry, per Salesforce.

Note that newsletters with a predictable weekly cadence have higher open rates than email blasts that occur at more random times.

Engagement Rate Industry Benchmarks

Engagement rate industry benchmarks can help businesses understand how their advertising performance compares to others in their field. Generally, a good engagement rate on social media is considered to be between 1% and 3.5%. However, this can vary depending on the specific platform, audience, and industry. For Facebook, for example, 1% is a good benchmark, whereas for Instagram, 3% is the goal. Note that engagement differs based on industry — here are a few examples of that:

Finance

For businesses in the finance industry, social media engagement tends to be around 1.48%, per data sourced from Influencity.

Gaming

Engagement rates for gaming brands are usually around 0.95% per MarketingCharts, with TikTok gaming content converting a bit better on average.

Tech

Tech brands usually see between a 1% to 3.8% engagement rate on social media, per SocialChamp.

Food and Beverage

Food and beverage companies have an average social media engagement rate around 1%, though brands with smaller followings tend to have more loyal and engaged followers, per data from Brandwatch.

Fitness and Lifestyle

Brands in the fitness and lifestyle spaces usually see social media engagement rates around 1.65%, per MarketingCharts.

Travel

Travel-themed brands usually have an average engagement rate of 1.5%, per Influencity.

Automotive

Auto-themed brands have an overall social media engagement rate around 0.06%, according to RivalIQ.

Factors Affecting Engagement Rate

Several factors influence engagement rates, including content quality, platform, posting frequency, audience relevance, and algorithm changes. The effectiveness of calls to action, the overall user experience, and even external factors like news events can also play a role. Here are some of the most common issues.

Content Quality

If the ads you’ve created aren’t interesting or engaging, then of course the engagement rate will be very low. To be sure, even the best ads might go largely missed due to myriad factors, but it’s a sure bet that advertisements with uninteresting copy, poor graphics, and a convoluted layout just aren’t going to get shares, likes, or clicks.

Post Frequency and Timing

Consistent posting, at the right time of day and day of the week, can greatly influence engagement. That said, posting too frequently can overwhelm audiences, while posting too infrequently can cause content to be forgotten.

Platform and Algorithm

Different platforms have different algorithms and user behaviors. Instagram, for example, tends to have higher engagement rates than Twitter, and platforms like TikTok often have very high engagement rates for specific content types. Algorithm changes can also significantly impact engagement.

Audience Relevance

Understanding your target audience’s demographics, interests, and behaviors is vital for creating content that resonates with them. You can find this data using tools like social media analytics or trend research tools like Google Trends.

How to Improve Engagement Rate

“Engagement rate is a measure of how well you’ve earned someone’s attention,” says Joel Luks, an adjunct professor with the University of Houston who teaches marketing and advertising. “Not just made them look, but made them care enough to do something about it and take action. It’s the difference between being seen and being relevant.”

Improving your engagement rate means you have improved the way your audience perceives and interacts with your brand.

Create Great Content

It’s easier said than done, but if you can create high-quality ads, you will see a better engagement rate. Focus on compelling or amusing copy, attractive images and graphics, a clean layout, and clear and readily actionable calls to action.

Be Consistent

You need to be consistent in your advertising campaigns, both in the look and feel of the ads, and in the frequency and method of delivery. You don’t want to run ads for several days, then go completely dark for a week, then reappear for one day, for example. Be consistent and you will steadily build better brand awareness.

Segment Your Audience

Audience segmentation is the process of dividing a large audience into smaller, more specific groups based on shared characteristics like demographics, behaviors, and interests. This allows advertisers to tailor their marketing efforts and messaging to make it resonate more effectively with different subgroups within their target audience. By understanding the distinct needs and preferences of various segments, companies can create more personalized and targeted campaigns, ultimately leading to improved engagement and conversion rates.

Constantly A/B Test

It’s vital to continuously test different aspects of your ads to see where improvements can be made. Take advantage of advertising platforms that offer AI-powered testing, which will let you optimize your creative in real time, leading to more effective results.

Tools for Measuring Engagement Rate

There are a few different tools at your disposal for measuring engagement rate, and you may want to try several out before settling on one — or you may want to use several!

Engagement Calculators

GRIN offers an influencer engagement rate calculator to assess the interaction rates of influencers. Hootsuite provides an engagement rate calculator for platforms like Instagram and TikTok. Phlanx features an engagement calculator to assess social media performance. Modash calculates Instagram engagement rates using a formula based on engagements per follower. Influencer Hero, HypeAuditor, and DashThis each offer free engagement rate calculators with various features. Some of these tools are free or very inexpensive, costing less than $10 per month, but those usually offer limited capabilities; more expansive plans can cost more than $200 monthly.

Social Media Analytics

Hootsuite provides analytics dashboards to track performance across social media networks, including engagement metrics, while Mailchimp provides tools and resources for calculating engagement rates, including metrics like likes, comments, and shares.

Web Analytics Tools

Google Analytics provides detailed insights into website visitor engagement and behavior, while Userpilot focuses on product engagement, using metrics like product adoption, stickiness, and growth to assess engagement.

Key Takeaways

Knowing your engagement rate lets you see how well your ads are performing, and where you might need to tweak and change your approach.

“Engagement rate is one of the go-to metrics in social media,” says Darija Grobova, PR manager with Omnisend. “Basically, it tells you how many people interact with your content compared to how many saw it — think likes, comments, shares, and saves. But, having a high engagement rate doesn’t necessarily mean your content is helping your business — a post can go viral and bring you zero sales. Audience size can also alter the numbers; smaller accounts can often have higher engagement rates because their audience is tighter and, in turn, more connected.”

Keep in mind that low engagement rates are common with social media, so don’t be put off by numbers that seem quite low, even down in the single digits percentage-wise. On the other hand, website engagement tends to be much greater and meaningful conversions are possible there. The same is true with email marketing, where properly timed and well-executed emails can see much greater engagement.

Frequently Asked Questions (FAQs)

How do you calculate engagement rate on Instagram?

To calculate your Instagram engagement rate, divide your total engagement numbers (likes, comments, shares, saves) by your total followers, and then multiply the results by 100. This gives you the percentage of your followers who have interacted with your content.

What is a good email click-through rate?

A good email click-through rate (CTR) generally falls between 2% and 5%, but it can vary significantly based on industry and email type. Some industries, like non-profits, may see higher average open rates and CTRs (40.04% and 3.27%, respectively), while others, like e-commerce, may have lower rates (29.81% and 1.74% respectively). A CTR of 20% or higher is considered excellent and is much higher than most industry averages.

How important is engagement rate for SEO?

Engagement rate is a very important factor in SEO — although to be clear, Google doesn’t directly use it as a ranking factor. High engagement signals to Google that users find your content valuable, relevant, and satisfying, which can indirectly improve your rankings, though. By improving user experience and content quality, higher engagement rates can lead to better search engine visibility and authority.

How does video content affect engagement rate?

High-quality (and usually short-form) video content generally leads to higher engagement rates compared to other content formats, like text or images, because it’s more immediately engaging and memorable. Videos are more likely to be watched and shared, and people can retain more information from them than from reading text.

What is the difference between reach and engagement?

Reach refers to the total number of unique users who see your content, while engagement refers to the number of interactions those people have with your content. Reach is about visibility, while engagement is about active participation. You can’t have engagement without reach, but reach alone can mean very little if people don’t take action.

How do you track engagement rate over time?

To track engagement rate over time, you’ll need to regularly calculate your engagement rate using the formula (Total Engagements ÷ Total Followers or Reach) x 100. Then, you’ll track these engagement rates over time, ideally by creating charts or graphs to visually represent the trends. This allows you to see how your engagement fluctuates and identify any patterns.

How does personalization impact engagement rate?

Personalization significantly improves engagement rates by making the user experience more relevant, timely, and enjoyable, which leads to increased interaction, retention, conversion, and overall customer satisfaction. By tailoring content, recommendations, and interactions to individual preferences and behaviors, personalization drives users to engage more deeply with your brand and the products or services you’re promoting.

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