CTR - Click Through Rate Explained

As a PPC Marketer, it's likely that you have heard the term, "Click Through Rate".   

Here is what it means:

Click Through Rate (or CTR) is a simple way of measuring the success of an online campaign. A CTR is obtained by dividing the number of visitors who clicked on your ad, by the number of times the ad was showcased, or seen (impressions).  

For example, if your ad was shown 100 times and only one person click on your advertisement, your CTR would be 1%.   

If your ad was shown 100 times and 10 people clicked on your link, your CTR would be 10%.

CTR is typically defined by the number of clicks divided by the number of impressions and generally not in terms of how many people clicked the link. This is a very important distinction because if one person clicked on a link 10 times, the CTR would not be accurate, otherwise.

Click Through Rate is a very important aspect of PPC marketing, because it can directly affect the associated advertising costs.   Your CTR is also used when determining your quality score. The higher your CTR is, the lower your advertising costs will be for the exact same exposure.

This means that you can end up paying less for top position than the advertising vying for the spot below you!