What is a CTR?
What does CTR mean?
CTR stands for Click-Through Rate, and is a better measure of most campaigns performance than just clicks. This is because if you want to compare campaigns which have had different amounts of impressions, then it is unfair to just see which had the most clicks (as more impressions will usually mean more clicks).
Using the Click-Through Rate allows you to see what different campaigns could have achieved if they had the same amount of impressions.
Most ad servers provide the Click-Through Rates of campaigns, for you to compare them. Of course if the goal of an ad campaign is something other than clicks, it is not always the most useful measure.
The CTR equation is:
Click to enlarge
CTR = (Clicks x 100) / Ad impressions
As a general rule of thumb a placement/page/site shouldn’t be judged until something has served over 1,000 impressions. This is because you want to give something a reasonable chance to get a click before writing it off, and 1,000 impressions is actually not that many. It is also a great benchmark because:
- One click in 1,000 impressions is equal to a CTR of 0.1% (which is the internet average)
- 1,000 impressions is like one unit of advertising – hence why ads are sold on a CPM basis (cost per 1,000 impressions)
Other names for CTR (synonyms)
Click-Through Rate, Click Rate
Not to be confused with
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Author: Justin Driskill
Justin is the founder of The Online Advertising Guide and a freelance Digital Projects Manager.