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  Q: I'm new to online advertising, what is CTR?
 
 
 

A:

CTR stands for 'Click-through rate'.

CTR is one of the most important facets of a campaign of online advertisements. The formula for working out a CTR percentage is as follows,

number of ad impressions / number of unique click = CTR percentage

If you had one hundred impressions (page views of ad) and the ad was clicked upon ten times, then your CTR percentage would be ten percent.

Obviously, as a publisher of online ads, the higher the CTR percentage the better. A typical banner ad used to have a click through rate of around four percent. As users have become more savvi about online ads, the average click through rate has been calculated at lower than one half of one percent. Any ad campaign which has a CTR over two percent should be considered a success. However, textual forms of ads, such as Adsense, tend to have an increased CTR, compared to the old style graphical ads.

 

 
 

 

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