Click Through Rate.The percentage of those clicking on a link out of the total number who view the link or text ad.
CTR full form is Click-through rate is a way of measuring the success of an online advertising campaign.
In other words it is the Percentage of a website’s visitors who click on an advertisement to go to the advertiser’s site. A website is rated on the basis of its CTR which typically ranges from 1 to 3 percent by Advertisers. CTR is also known as ad click rate.
A CTR is obtained by dividing the number of users clicking on an ad on a web page by the number of times the ad was delivered.
Suppose that if two out of every 100 visitors to a Web page clicked on a given ad, that ad would be said to have a 2% clickthrough rate. (In most cases a 2% clickthrough rate would be considered very successful).
Formula to calculate CTR: CTR = (clicks / impressions) × 100
Click through rate is significant because it gives you a good idea on how well your copy is working. There are various factors that determine what a good CTR is. The industry a website deals in and what type of ad are used are the most important. Some examples are like:
If a business is sending out emails then it should be able to get at least a 50% CTR. If it is running a Google Adwords campaign then it needs at least a 1% CTR rate for its keywords. If a website has a Google Adsense on the site or blog then it needs at least a 10-15% CTR. For article marketing on Ezinearticles one should try to get at least a 15% CTR on its resource box.
A low CTR indicates poor keyword performance, demonstrating a need for ad or keyword optimization. CTR is also used to find out your keyword’s Quality Score.
The CTR may be seen as a compute of the immediate response to an ad, but not the overall response to an ad as it does not include the people who failed to click or yet arrived at the site later as a result of seeing the ad.
A high CTR 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 or percentage-wise rather than an advertisement geared towards qualified clicks.