The higher the click-through rate, the more successful the ad has been in generating interest. A high click-through rate can help a website owner support the site through advertising dollars.
It measures the effectiveness of an advertisement. It is calculated using the following formula that involves the number of clicks and impressions:
CTR = (Clicks/Impressions) x 100
A high CTR means that it attracts attention and get clicks often. A low CTR means the ad is under performing and should be evaluated further. Other similar terms include response rate, click-thru ratio.
Example: A 1.0% CTR means that for every 100 impressions, there is one click.
Why is CTR important?
Click-through rates help determine the relative success or failure of an email campaign based on the engagement of your recipients. The higher the click-through rate, the more successful an email campaign is considered to be. However, there is no standard value for what constitutes an ideal click-through rate.
This is because many different factors can affect the click-through rate of an email, such as the type of email being sent, the sending frequency, your company’s industry, and even the time of day.