| Topic C |
| Click Through Rate |
| Definition |
| The average number of click-throughs per hundred ad impressions, expressed as a percentage.
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| Information |
| Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if your banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1%. |
| Banner ad click-through rates have fallen over time, often measuring significantly less than 1%. By selecting an appropriate advertising site with high affinity (e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher click-through rate. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads. |
| Or in other words you can say |
| CTR is most commonly defined as number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the earlier definition but would stay the same in term of later definition. |
| 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 seen as 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 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 click-through rates and more interest in conversion rates. |
| A high click-through 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. |
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