# Click-through rate

Click-through rate (CTR) is the ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement. It is commonly used to measure the success of an online advertising campaign for a particular website as well as the effectiveness of email campaigns.[1][2]

Click-through rates for ad campaigns vary tremendously. The very first online display ad shown for AT&T on the website HotWired in 1994, had a 44% click-through rate.[3] Over time the overall rate users click on webpage banner ads has decreased.

## PurposeEdit

The purpose of click-through rates is to measure the ratio of clicks to impressions of an online ad or email marketing campaign. Generally the higher the CTR the more effective the marketing campaign has been at bringing people to a website.[4] Most commercial websites are designed to elicit some sort of action, whether it be to buy a book, read a news article, watch a music video, or search for a flight. People rarely visit websites with the intention of viewing advertisements, in the same way that few people watch television to view the commercials.[5]

While marketers want to know the reaction of the web visitor, with current technology it is nearly impossible to quantify the emotional reaction to the site and the effect of that site on the firm's brand. However, click-through rate is an easy piece of data to acquire. The click-through rate measures the proportion of visitors who initiated an advertisement that redirected them to another page where they might purchase an item or learn more about a product or service. Forms of interaction with advertisements other than clicking is possible, but rare; "click-through rate" is the most commonly used term to describe the efficacy of an advert.[5]

## ConstructionEdit

The click-through rate is the number of times a click is made on the advertisement divided by the total impressions (the number of times an advertisement was served):

${\displaystyle {\text{CTR}}={{\text{Number of click-throughs}} \over {\text{Number of impressions}}}\times 100(\%)}$ [5]

The click-through rate of an advertisement is defined as the number of clicks on an ad divided by the number of times the ad is shown (impressions), expressed as a percentage.[5][6] For example, if a banner ad is delivered 100 times (100 impressions) and receives one click, then the click-through rate for the advertisement would be 1%.

### Estimating the Click-Through Rate for AdsEdit

Search engine advertising has become a significant element of the Web browsing experience. Choosing the right ads for the query and the order in which they are displayed greatly affects the probability that a user will see and click on each ad. This ranking has a strong impact on the revenue the search engine receives from the ads. Further, showing the user an ad that they prefer to click on improves user satisfaction. For these reasons, there is an increasing interest in accurately estimating the click-through rate of ads in a recommender system.

### EmailEdit

An email click-through rate is defined as the number of recipients who click one or more links in an email and landed on the sender's website, blog, or other desired destination. More simply, email click-through rates represent the number of clicks that your email generated.[13][14]

Email click-through rate is expressed as a percentage, and calculated by dividing the number of click throughs by the number of tracked message deliveries.[15]

Most email marketers use this metrics along with open rate, bounce rate and other metrics, to understand the effectiveness and success of their email campaign.[16] In general there is no ideal click-through rate. This metric can vary based on the type of email sent, how frequently emails are sent, how the list of recipients is segmented, how relevant the content of the email is to the audience, and many other factors.[17] Even time of day can affect click-through rate. Sunday appears to generate considerably higher click-through rates on average when compared to the rest of the week.[18]

Every year studies and various types of research are conducted to track the overall effectiveness of click-through rates in email marketing.[19][20]

## ReferencesEdit

1. ^ American Marketing Association Dictionary. "Archived copy". Archived from the original on 2012-11-21. Retrieved 2012-11-29.. Retrieved 2012-11-02. The Marketing Accountability Standards Board (MASB) endorses this definition as part of its ongoing Common Language in Marketing Project.
2. ^ "Increase your Organic Traffic using CTR Magnet Method now!", Jave Lin, 20 Apr 2016
3. ^ Wasserman, Todd. "This Is the World's First Banner Ad". Mashable. Mashable. Retrieved 11 September 2015.
4. ^ "Increase your Organic Traffic using CTR Magnet Method now!", Jave Lin, 20 Apr 2016
5. ^ a b c d Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0-13-705829-2. The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in Marketing Metrics as part of its ongoing Common Language in Marketing Project.
6. ^
7. ^ Shimp, Terence A. (2008). Advertising Promotion and Other Aspects of Integrated Marketing Communications. Cengage Learning. p. 415. ISBN 0324593600. Retrieved 18 September 2016.
8. ^ a b Stern, Andrew (February 1, 2010). "8 ways to improve your click-through rate". iMedia Connection. Retrieved February 7, 2010.
9. ^ a b Li, Hairong; Leckenby, John D. (2004). "Internet Advertising Formats and Effectiveness" (PDF). Center for Interactive Advertising. Retrieved 26 February 2010.
10. ^
11. ^ Carter, Josh (August 30, 2014). "Google AdWords Management:Understanding Click-Through Rate". Your Clicks. Retrieved August 30, 2014.
12. ^ "Email Campaign Performance Metrics Definitions". Retrieved December 18, 2012.
13. ^ Kevin Gao. "Click Through Rates: Click Through Rates Numbers and Their Meaning". Retrieved December 18, 2012.
14. ^
15. ^
16. ^ "Average Email Click-Through Rate". Retrieved December 20, 2012.
17. ^ Pete Prestipino (July 21, 2011). "EMail Marketing Metrics 2011".
18. ^ Matt McGee (July 23, 2012). "E-mail Open Rates Declining, Click-Through Rates Rising [Study]".
19. ^ David Moth (July 24, 2012). "Email marketing stats: consumers open just 20% of messages".