Clickthrough Rate

Also known as CTR, the Clickthrough rate shows you what percentage of viewers saw your ad and then clicked on it, taking them to your landing page. The Clickthrough rate is calculated by dividing the number of impressions (each time an ad is displayed it's called an "impression"), by the number of Clickthroughs.

So, as an example, three of the viewers of your ad click on your particular ad for every100 times your ad was displayed on a computer screen clickthrough rate will be 3 percent. The success of a company's online ad campaign is sometimes defined by the clickthrough rate.

Clickthrough rate doesn't measure how many stayed on a website long enough to make a purchase or make a phone call, and currently the emphasis in the online business world is less about increasing clickthrough rate and more about increasing customer conversion rate. While clickthrough rate does reveal customer trends and interest, many of the clicks are just "curiosity clicks" that may or may not actually impact sales and profit.