Click through ratio
Also known as: ctr
The click-through rate or click through ratio (ctr) is the ratio of the number of clicks on a banner or text link to the number of impressions from it. The ctr is expressed as a number or percentage. If a banner is clicked as many times as it is displayed, the click-through ratio is 100%. If a banner has 1000 impressions and is clicked 10 times, then it has a ctr of 1%.
The click-through rate is an indication of the effectiveness of a banner, text link or ad. If the ctr is low, it may mean, for example, that the ad does not stand out enough or entice click-throughs, or that the audience that sees the banner does not sufficiently match the advertiser's target audience.
The ctr can also be used to calculate the effectiveness of an ad campaign in financial terms. Suppose an ad is shown based on a fixed rate per 1000 impressions of €10 CPM and has a ctr of 4%, the effective cost per click is €0.40 eCPC.
Within Google Ads, the ctr of a text ad is one of the factors that determines how much an advertiser pays per click. A relatively high ctr results in a slightly lower CPC.
