Click-Thru Rate (CTR)

What is Click-Thru Rate (CTR)?

Click-Thru Rate (CTR)- stands for click-through rate: a metric that measures the number of clicks advertisers receive on their ads per number of impressions.

The average number of click-throughs per hundred ad impressions expressed as a percentage.

It is important to distinguish what a click-through rate does and does not measure. The CTR measures what percentage of people clicked on the ad to arrive at the destination site; it does not include the people who failed to click, yet arrived at the site later as a result of seeing the ad.

As such, the CTR may be a measure of the immediate response to an ad, but not the overall response to an ad. The exception involves ads that display no identifiable information about the destination site; in these cases, the click rate equals the overall rate.

Merely getting visitors to a site had to value when Web site traffic was generally accepted as a measure of success. The trend towards profitability, along with better tracking tools, has resulted in less interest in clickthrough rates and more interest in conversion rates.

A high clickthrough rate does not assure a good conversion rate, and the two rates may even share an inverse relationship. An advertisement geared towards curiosity clicks will result in fewer sales, percentage-wise, than an advertisement geared towards qualified clicks.

A ratio showing how often people who see your ad end up clicking it. Clickthrough rate (CTR) can be used to gauge how well your keywords and ads are performing.

1. CTR is the number of clicks that your ad receives divided by the number of times your ad is shown clicks ÷ impressions = CTR. For example, if you had 5 clicks and 100 impressions, then your CTR would be 5%.
2. Each of your ads and keywords has its own CTRs that you can see listed in your account.
3. A high CTR is a good indication that users find your ads helpful and relevant. CTR also contributes to your keyword’s expected CTR, which is a component of Ad Rank. Note that a good CTR is relative to what you’re advertising and on which networks.
4. You can use CTR to gauge which ads and keywords are successful for you and which need to be improved. The more your keywords and ads relate to each other and to your business, the more likely a user is to click on your ad after searching on your keyword phrase.

Conclusion

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