Definition of CTR
The page click through rate (CTR) is the number of ad clicks divided by the number of page views. Page CTR = Clicks / Page views. For example, if you received 2 clicks for 250 page views, your page CTR would be 0.8%. CTR is the relationship between impressions and clicks: out of the number of times, your ad or search result is shown to a visitor, how often users click it. Basically, the click-through rate is the number of times an ad is clicked divided by the number of times the page or ad unit is viewed.
CTR = No. of clicks / No. of exposures
CTR% = No. of clicks * 100 / No. of exposures
So, for instance, an advertisement on your website is viewed by 100 people. If 5 of them click on the ad, your CTR would be 5 per cent. With a PPC Model, the higher the CTR percentage is, the better earnings your site will generate for you.
In the Internet marketing world, CTR (click-through rate) matters a lot, not only for advertisers but also for publishers. The main role of an advertiser is to create an ad or copy that can get a higher CTR. Similarly, publishers need to place these ads in a way that generates the highest CTR for them.
From a publisher’s viewpoint, click-through rate is one of those essential factors that help them generate money and retain advertisers. If you somehow fail to give adequate clicks, your advertisers are likely to flee. Therefore, it is important to understand what it exactly is.