Click-Through Rate (CTR) is a metric used in digital marketing for measuring the effectiveness of display ads, email campaigns and other forms advertising targeted at driving clicks. CTR measures how much users are interacting with the ads, and is calculated by dividing the number of clicks by the number of times it is shown (impressions). A higher CTR generally indicates that an ad or link is relevant and appealing to the audience, while a low CTR could suggest that the ad needs adjustments, such as better targeting or improved content.
Click-Through Rate (CTR) = Number of Clicks / Number of Impressions.
To arrive at a percentage, one can multiply the number above with 100%.
If your campaign delivered 10,000 impressions and you receive 100 clicks, your Click-Through Rate is 1% .
Number of Impressions | 10,000 |
Number of Clicks | 100 |
Click-Through Rate | 1.00% |
Click-Through Rate is a highly standardized metric and generally available from all platforms where advertising is being executed, including email marketing platforms, such as Hubspot, and digital advertising platforms, such Google Ads.
In addition, one of the easiest way to track CTR across all platforms, is to use a holistic measurement platform, such as Sellforte, which automatically consolidates all digital data into one platform and processes it for easy analysis. Below is an example of advertising channel -level tracking view from the Sellforte demo.
Click-Through Rate is a performance ratio in the Media Metric funnel. Media Metric funnel is an abstraction of consumers' buying journey:
Cost-efficiency metrics in the funnel include: Cost Per Mille (CPM), Cost Per Click (CPC), Cost Per Conversion, Return On Ad Spend (ROAS).
Performance ratios in the funnel include: Click-Through Rate (CTR), Conversion Rate, and Average Order Value.
Click-Through Rate is used by digital marketers in following use-cases:
Several elements can affect your CTR, as an example: