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Formula
Click-through Rate (CTR) = (Total Clicks / Total Impressions) * 100
Know your metric
Importance of
Click-through Rate (CTR)
Ad Effectiveness
CTR is a key indicator of ad effectiveness, showing how compelling an advertisement is to its audience.
User Engagement
High CTRs indicate strong user engagement, suggesting that the content is relevant and appealing to the target audience.
Campaign Optimization
Tracking CTR helps in optimizing marketing campaigns, and guiding adjustments in ad copy, targeting, and creative elements.
Drawbacks of
Click-through Rate (CTR)
Does Not Measure Conversion
CTR measures the initial click but doesn't provide information about what users do after clicking, such as whether they make a purchase or fill out a form.
Susceptibility to Fraud
CTR can be susceptible to click fraud in digital advertising, where false clicks are generated to inflate advertising costs or skew campaign data.
Variable Norms
CTR norms vary widely across different industries and platforms, making it challenging to set universal benchmarks for campaign success.
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