What is CTR – Click Through Rate?

Amarnath Prabhakar February 6, 2009 0

To press down and release a button on a pointing device in order to select an item on a display screen or activate a command or function

That is a click and what is a click through?

A click through is coming through to something with a click. Say for instance you see a link and you want to know more. So, you click on that link and open it for more information. That is a click through.

A click through rate (CTR) is the average number of click-through per hundred ad impressions, expressed as a percentage. The CTR is used for calculating the efficiency of an advertising campaign on a website.

For example if an advertisement is shown 100 times (100 impressions) and the advertisement has been clicked 5 times then the calculation would be as below

So, the CTR for the example would be 5% (five percentage).

Although calculating the CTR is very easy, there are a few considerations to keep in mind while calculating the Click through rate. They are

- CTR is an indicator of the number of clicks on the website. If there is a person who clicks the advertisement more than a few times, it will show a skewed data. This is because the number of impressions would remain to be one and the number of clicks would exceed one and you will see the CTR at more than a 100%

- Depending on the type of advertisement the CTR will differ

- The CTR does not calculate the revenue, it is just an indicator of how well a campaign is performing

CTR is a definitive indication on your websites performance on advertisements and a wonderful number to show to advertisers to get more ad revenues. In the posts to come we will look at ways and means to increase the CTR for a website. Ensure you be back for more.

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