Click-Through Rate (CTR)

DEFINITION of 'Click-Through Rate (CTR)'

The percentage of individuals viewing a web page who click on a specific advertisement that appears on the page. Click-through rate measures how successful an ad has been in capturing users' interest. The higher the click-through rate, the more successful the ad has been in generating interest. A high click-through rate can help a website owner support the site through advertising dollars. Because Internet users have become desensitized to ads on web pages, a typical click-through rate is only about two to three users per 1,000.

BREAKING DOWN 'Click-Through Rate (CTR)'

A high click through rate means that lots of users are clicking on an ad, but it doesn't tell us anything about the number of sales the ad ultimately generates. For this reason, conversion rate, the percentage of click-throughs that lead to actual sales, may be a more useful metric of an ad campaign's success.

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