Click-through rate

Click-through rate

Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if a banner ad was delivered 100 times (impressions delivered) and one person clicked on it (clicks recorded), then the resulting CTR would be 1 percent.

Banner ad click-through rates have fallen over time, often measuring significantly less than 1 percent. By selecting an appropriate advertising site with high affinity (e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher click-through rate. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads.

CTR is most commonly defined as number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the latter definition but would stay the same in term of earlier definition.

References:

Sherman, Lee and John Deighton, (2001), "Banner advertising: Measuring effectiveness and optimizing placement," Journal of Interactive Marketing, Spring, Vol. 15, Iss. 2.

Ward A. Hanson and Kirthi Kalyanam(2007), Internet Marketing and eCommerce, Chapter8, Traffic Building, Thomson College Pub, Mason, Ohio.

See also

* CPM - Cost Per Mille
* eCPM - Effective Cost Per Mille
* CPM - Cost per thousand
* CPI - Cost Per Impression
* PPC - Pay per click
* CPA - Cost Per Action
* ad serving
* Click fraud
* Cost Per Click

External links

* [http://www.redcardinal.ie/search-engine-optimisation/12-08-2006/clickthrough-analysis-of-aol-datatgz/ Click-through rate analysis] based on the AOL disclosure data.
* [http://www.micro-sys.dk/blogs/2007/02/23/get-more-clickthroughs-in-google-adwords-using-nice-urls/ Test and analysis of CTR] depending on url shown in ad


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Look at other dictionaries:

  • click-through rate — UK US (also clickthrough rate) noun [C] (also click rate, ABBREVIATION CTR) ► E COMMERCE, MARKETING the number of people who click on an advertisement on a website to go to another website, compared to the total number of people who saw the… …   Financial and business terms

  • Click-through-Rate —   [Abk. CTR, dt. »Durchklickrate«], Maß für die Effizienz eines Banners bei Werbung im Internet. Die CTR ist definiert als der Quotient aus der Zahl der Mausklicks auf ein Banner und der Zahl der Abrufe dieses Banners vom Server …   Universal-Lexikon

  • click-through rate — / klɪk θru: reɪt/ noun a method of charging an advertiser for the display of a banner advertisement on a website. Each time a visitor clicks on a displayed advertisement which links to the advertiser’s main site, the advertiser is charged a fee.… …   Marketing dictionary in english

  • Click-Through-Rate — Die Click Through Rate (CTR) ist eine Kennzahl im Bereich Internet Marketing, welche die Anzahl der Klicks auf Werbebanner oder Sponsorenlinks im Verhältnis zu den gesamten Impressionen darstellt. Wird eine Werbung hundertmal angezeigt und dabei… …   Deutsch Wikipedia

  • Click Through Rate (CTR) — The percent of individuals viewing a Web page who click on a specific banner ad appearing on the page. Overall click through rates have declined substantially since the early days of electronic commerce on the Web …   Investment dictionary

  • Click-through rate — PodADV The average number of clicks per hundred ad impressions (views), used to determine which keywords are used and the marketing that attracts buyers …   Audio and video glossary

  • Click-Through Rate — PodWEB The average number of clicks per hundred ad impressions (views), used to determine which keywords are used and the marketing that attracts buyers …   Audio and video glossary

  • click-through — ˈclick through noun [countable, uncountable] 1. MARKETING the action or process of clicking on an advertisement on a website in order to see another website : • Search engines are able to monitor and track click throughs. 2. MARKETING another… …   Financial and business terms

  • View-through rate — (VTR)  показатель субъективной привлекательности рекламного средства, состоящего из рекламного носителя и рекламного сообщения, оценивается как процентное соотношение числа просмотров к числу пок …   Википедия

  • click rate — also click through rate ➔ rate1 * * * click rate UK US noun [C] ► E COMMERCE, IT, MARKETING CLICK THROUGH RATE(Cf. ↑click through rate) …   Financial and business terms

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