What is Click Through Rate (CTR)

Click-through rate (CTR) measures the effectiveness of an advertisement or is a metric that measures the number of clicks advertiser receive on his/her ads per the number of ad impressions.

click_through_rate

CTR Can Be Calculated for the Following
1. CTR for Adsense
2. CTR for Adwords, Pay Per Click (PPC) Ads
3. CTR for Banner Ads
4. CTR for Video Ads
5. CTR for Email Campaigns

A higher Click through Rate (CTR) shows that an ongoing ad is receiving more clicks. And a low CTR means the ad is not performing up to the mark or getting less clicks from users. Thus Click Through Rate is very important as it affects the ads quality score. And Quality score is directly plays a role achieving in the ad position. A good quality score can help to get higher place in the ads results.

Formula for Calculating CTR
CTR = (Number of Clicks/Number of Impressions) * 100
Example

Suppose an Ad gets 1 click for every 100 impressions then CTR will be calculated as

CTR= (1/100)*100

        = 1.0%

So by calculating and monitoring the CTR of your ongoing ad you can have a clear view how good your ad is performing or it requires more evaluation.