CTR stands for Click-Through Rate. It is a metric used in digital marketing to measure the effectiveness of an online advertising campaign or the performance of a specific advertisement. CTR represents the percentage of people who click on a particular link or advertisement after being exposed to it.
CTR is calculated by dividing the number of clicks on an ad by the number of impressions (or views) it receives and then multiplying the result by 100 to get the percentage. The formula for CTR is:
CTR = (Clicks / Impressions) x 100
For example, if an ad receives 500 clicks and 10,000 impressions, the CTR would be (500/10,000) x 100 = 5%.
CTR is an important metric for advertisers as it provides insights into their campaigns’ engagement level and effectiveness. A higher CTR generally indicates that the ad resonates well with the target audience and generates interest. As a result, advertisers often strive to optimize their campaigns to achieve higher CTRs, as it can lead to increased website traffic, conversions, and overall campaign success.