Click Through Rate (CTR)

What is Click Through Rate (CTR)?

Analytics

Click-through rate (CTR) is a metric that measures the number of clicks an ad or a link receives relative to the number of impressions, or views, it generates. CTR is expressed as a percentage and is calculated by dividing the number of clicks by the number of impressions and then multiplying by 100.

For example, if an ad received 1,000 impressions and 50 clicks, the CTR would be calculated as follows:

CTR = (50 clicks / 1,000 impressions) x 100% = 5%

CTR is an important metric for digital marketers, as it provides insights into how effectively an ad or a link is engaging its target audience. A higher CTR generally indicates that an ad or a link is more relevant and appealing to its target audience, while a lower CTR may suggest that the ad or link needs to be revised or optimized to better resonate with its audience.

More Terms

You Might Also Like

This is some text inside of a div block.

Fulfillment by Amazon (FBA)

What is Fulfillment by Amazon (FBA)?

Fulfillment by Amazon (FBA) is a service provided by Amazon that allows third-party sellers to store their products in Amazon's fulfillment centers

This is some text inside of a div block.

CPM

What is CPM?

CPM stands for "Cost per Mille" (also known as "Cost per Thousand"), which is a metric used in advertising to measure the cost of reaching one thousand impressions or views of an advertisement.

This is some text inside of a div block.

Free Cash Flow (FCF)

What is Free Cash Flow (FCF)?

Free cash flow (FCF) is a measure of a company's financial performance that represents the amount of cash generated by the business after accounting for capital expenditures required to maintain or expand its operations.