Understanding Click-Through Rate in Digital Advertising
· 11h ago · Originally reported by PPC Land
Click-through rate (CTR) measures how often people click on an ad after seeing it. This metric is crucial for determining ad effectiveness, setting prices in cost-per-click auctions, and evaluating ad performance.
Why it matters
CTR is a key indicator of how well ads engage audiences and directly impacts how much advertisers pay and how ads are ranked. Knowing how CTR works helps advertisers optimize campaigns and budgets.
Explain it like I’m new here
Click-through rate is like counting how many people open a door after seeing a sign for a store.
Terms in this story
CTR (click-through rate)
CTR (click-through rate) is the percentage of ad impressions that result in a click, calculated as clicks divided by impressions, multiplied by 100.
Impression
An impression is one instance of an ad being served and counted as displayed to a user; it is the basic unit that most online advertising is bought and sold by.
Go deeper
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