CTR, or Click-Through Rate, is a metric in digital advertising that measures the percentage of clicks an ad receives relative to the number of times it is shown (impressions).
What does CTR mean?
CTR, or Click-Through Rate, is a crucial metric in digital marketing that measures the effectiveness of an online advertising campaign or an email marketing campaign.
It is calculated by dividing the number of clicks an advertisement receives by the number of times the ad is shown (impressions), and the result is expressed as a percentage. For instance, if an ad is displayed 1000 times and receives 10 clicks, the CTR would be 1% (10 clicks / 1000 impressions x 100).
A high CTR indicates that the ad is effective in capturing the audience’s interest and prompting them to take action, such as visiting a website or making a purchase, making it a vital metric for evaluating the success of online ads and email campaigns.
| Abbreviation | Meaning | Using by | Year coined |
| CTR | Click-through rate | Advertisers | Mid 1990’s |
Examples of Click-through Rate (CTR)
CTR Example 1:
A tech company places a banner ad for a new smartphone on a popular tech blog. The ad is displayed 10,000 times (impressions), and 100 visitors click on the ad. The Click-Through Rate (CTR) for this ad is calculated as (100 clicks / 10,000 impressions) * 100, resulting in a CTR of 1%. This indicates that 1% of the people who saw the ad clicked on it.
CTR Example 2:
A bookstore sends out an email campaign to 5,000 subscribers promoting a sale on novels. The email contains a link to their website, and 250 subscribers click on the link. The CTR for this email campaign is (250 clicks / 5,000 emails) * 100, which equals a 5% CTR. This suggests that 5% of the email recipients were engaged enough with the content to click through to the bookstore’s website.
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