Home   Forums   401k   401k Rollovers  

What is CTR?

What is CTR?

© Money-Talk.org

The formula for click thru rate is:

    CTR = # of clicks / # of exposures

  For a given campaign over a given period an ad was displayed 1000 times and got 50 clicks.

    CTR = 50 / 1000
    CTR = 0.05
    CTR = 5%

Thus, the CTR is 5%.
CTR stands for click thru rate, which is a percentage representing how often an ad is clicked relative to how many times it has been displayed.

The CTR metric can be used to analyze and compare many aspects of an ad campaign.
  1. Measure the overall effectiveness of an ad campaign.
    If the CTR is only 0.01%, you might not be interested in renewing a given advertising package, or possibly you'd want to try to refine your link text or banner design to improve the CTR.

  2. Compare different campaigns.
    Perhaps you get a better CTR when using an animated banner instead of a static banner, or maybe your CTR is better when your ad is displayed on more relevant pages.

  3. Compare changes to a campaign over time.
    Is your advertising as effective this month as last month?
Many factors affect CTR, including ad text or banner design, ad placement on the webpage, and topical relevance of the ad to people viewing the page. In practice CTRs can vary wildly. On the low-end, from a CTR of 0.1% with 1 click per 1000 exposures or less, to the high-end with a CTR of 25%, with 1 in 4 visitors deciding to click or more. In practice, CTR for banner ads are typically in the 0.1% to 1.0% range, while CTR for well-targeted text ads are generally higher, in the 1% to 15% range.

If you know the CPM and CTR for advertising, you can compute the actual cost per click, also known as CPC.

SEO Basics | SEO and Directories | Alexa Toolbar | What is CPM? | What is CPC? | What is CTR?