The Click-Through Rate (short: CTR) is a widespread unit in online and mobile advertising. It measures the ratio of how many people click on an advertisement to the number of total page impressions.
It is simply calculated diving the number of clicks by the number of impressions. So if an advertisement is displayed a hundred times and is clicked once, the Click-Through-Rate will be 1%.
The click-through rate is a very important unit in the field of mobile advertising because it measures how well the keywords and advertisements of a company are performing. A high CTR is a good indication that users find a company’s advertisements relevant and helpful. Nevertheless, a good CTR is also depending on the kind of product a company is advertising and the networks it uses.
Apart from this, a high CTR is very important in terms of search engine marketing (SEM) because
- high click-through rates lead to high Quality Scores.
- high Quality Scores allow companies to improve their ad position for lower costs.