Click-Through Rate
Click-through rate (CTR) is the percentage of website visitors who click on an online ad. It is calculated by dividing the number of clicks into the number of ad Impressions (user views).
Click-through Rate = (Ad Clicks/Ad Impressions) x 100
It is used to measure how effective an ad is. A high CTR means that many users who viewed the ad actually clicked on it. A low CTR means few users who viewed the ad actually clicked on it.
A low CTR may mean that the ad is not reaching the right targeted audience. Or it may mean that the offer in the ad is not enticing to users.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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