💼 CTR (Click-Through Rate)

CTR (Click-Through Rate)#

The share of impressions that result in a click.

Important

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What it is#

Click-through rate is the share of people who click an ad or link after seeing it — clicks divided by impressions:

\[\text{CTR} = \frac{\text{clicks}}{\text{impressions}} \times 100.\]

It is the earliest online-advertising metric, dating to 1994 banner ads.

What it signals#

CTR is a top-of-funnel engagement gauge — it measures whether the creative, targeting, and message capture attention. On ad platforms a high CTR raises the quality score, which in turn lowers CPC and wins better placement, so relevance compounds.

Its trap#

A high CTR is not success by itself — if those clicks don’t convert, you’re paying for traffic that doesn’t pay back. CTR must be read with conversion rate: high CTR + low CR usually means the ad over-promises relative to the landing page or offer.

Theme: Business & Growth Analytics · All terminology

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Mind map — connected ideas

Conversion Rate (CR) · Cost-Per-Click (CPC) Models · Conversion Rate Uplift · CAC (Customer Acquisition Cost) · True Conversion Rate · A/B Testing

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More in Business & Growth Analytics

Blended CAC (Customer Acquisition Cost) · CAC (Customer Acquisition Cost) · Cannibalization · Channel-Specific CAC (Customer Acquisition Cost) · Churn · Cohort · Cohort-Based LTV (Simple Version) · Conversion Rate (CR) · Cost-Per-Click (CPC) Models · Cross-Selling · Customer Lifetime · Customer Segmentation · D2C (Direct-to-Consumer) · FTEs