Key Performance Indicators Examples
Click-Through Rate (CTR) is a metric used to measure the effectiveness of an online advertising campaign. It is calculated by taking the number of clicks on an advertisement (or link) and dividing it by the number of times the advertisement (or link) was shown (also known as impressions). The resulting percentage is the Click-Through Rate.
The formula for calculating CTR is:
Clicks / Impressions x 100 = CTR (%)
For example, if an advertisement is shown 100 times and receives 10 clicks, the CTR would be:
10 / 100 x 100 = 10%
A higher CTR generally indicates that the advertisement is more effective and relevant to the target audience. However, it’s important to note that a high CTR does not always translate to a successful campaign, as it doesn’t take into account other important factors like conversion rate, bounce rate, and revenue generated.
CTR is widely used in online advertising and marketing campaigns, it’s used to measure the effectiveness of search engine marketing, email marketing, social media advertising and display ads. It’s also used to measure the effectiveness of website design, landing pages and call-to-action buttons.
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