What is CTR?

click through rate is the percentage of the no.of clicks on an advertisement compared to the no.of times the advertisement is shown.
 
Click-through rate is the percent of ad views that result in clicks, and it is one of the key factors in Google’s search engine results ranking formula.
 
Short for click-through rate, the ratio of the number of times a user clicks on an online advertisement per number of viewers who view the Web site that has the advertisement on it. For example, if one out of 100 people who visit a specific Web site click on an advertisement and are taken to the advertiser's site, then the CTR of that advertisement is 1/100, or 1%.
 
One important thing to keep in mind when measuring click through rates are that the "impression" values as well as the "click" values can often be heavily skewed by accident. For example, Google sends bot traffic to evaluate any new ads you put up on Google AdWords. You aren't billed for these clicks, nor do they show up in AdWords reporting, but if you have any third party reporting, they may pick these up as "visits" or "clicks" by accident, which can really throw off your metrics. This was a common problem with a company I worked for, who also had a homegrown reporting system. I was constantly having to explain this to them.
 
The purpose of click-through rates is to capture customers' initial response to websites. The page click through rate (CTR) is the number of ad clicks divided by the number of page views.
Page CTR = Clicks / Page views
 
Click-through rate (CTR) is the ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement. It is commonly used to measure the success of an online advertising campaign for a particular website as well as the effectiveness of email campaigns.

Click-through rates for ad campaigns vary tremendously. The very first online display ad shown for AT&T on the website HotWired in 1994, had a 44% click-through rate. Over time the overall rate users click on webpage banner ads has decreased.
 
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