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  1. Glossary
  2. Marketing and Financial Glossary

Click-Through Rate (CTR)

PreviousVisitsNextAverage Order Value (AOV)

Last updated 4 years ago

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Click-through rate (CTR) is an indicator that tells you the number of out of the total of an advertisement. Or, in other words, CTR is a ratio between the number of and the number of . It shows how often people who see the ad click on it.

CTR indicator is commonly used to measure the attractiveness of web advertisements that enables a quick inter campaign comparison regarding effectiveness. Or, it can simply show how the ad content and ad placement resonates with the audience. Moreover, the significance of this indicator is seen in the fact that CTR is a part of SEM algorithms for ad evaluation.

Here are some attributes you can focus on optimizing to achieve better Click-through Rate:

  • Ad placement

  • Keyword targeting

  • Text

  • Color

  • Creativity

Parameters

Calculation: CTR = /

Example: CTR = (20 000 / 1 000 000) * 100 % = 2 %

Unit: Number

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clicks
impressions
clicks
impressions
Clicks
Impressions