Clickthrough rate
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This article includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations. Please improve this article by introducing more precise citations where appropriate. (October 2009) |
Clickthrough rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the "number of users who clicked on an ad" on a web page by the "number of times the ad was delivered" (impressions). For example, if a banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1 percent.
Banner ad click-through rates have fallen over time; when they first started to appear, it was not uncommon to have rates above five percent. They have fallen since then, currently averaging closer to 0.2 or 0.3 percent.[1] In most cases, a 2% click-through rate would be considered very successful, though the exact number is hotly debated and would vary depending on the situation. The average click-through rate of 3% in the 1990s declined to 0.28% by 2003.[2] Since advertisers typically pay more for a high click-through rate, getting many click-throughs with few purchases is actively undesirable to advertisers.[1] Similarly, by selecting an appropriate advertising site with high affinity (e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher CTR. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads, however overly intrusive ads are often avoided by viewers.[2][3]
CTR is most commonly defined as "number of clicks" divided by "number of impressions" and generally not in terms of the "number of persons" who clicked divided by the "number of impressions".[citation needed] This is an important distinction. As a person clicks a single advertisement multiple times, the CTR increases using the former definition, whereas the CTR doesn't change using the latter definition.
[edit] See also
- CPM - Cost per thousand
- CPI - Cost Per Impression
- PPC - Pay per click
- CPA - Cost Per Action
- ad serving
- Click fraud
- Cost Per Click
- View-through rate
- Clicktag
[edit] References
- ^ a b Stern, Andrew (February 1, 2010). "8 ways to improve your click-through rate". iMedia Connection. http://www.imediaconnection.com/content/25781.asp. Retrieved February 7, 2010.
- ^ a b Li, Hairong; Leckenby, John D. (2004). "Internet Advertising Formats and Effectiveness". Center for Interactive Advertising. http://champtec.googlepages.com/ad_format_print.pdf. Retrieved 26 February 2010.
- ^ U.S. Patent Application 20090157495
[edit] Further reading
- Sherman, Lee and John Deighton, (2001), "Banner advertising: Measuring effectiveness and optimizing placement," Journal of Interactive Marketing, Spring, Vol. 15, Iss. 2.
- Ward A. Hanson and Kirthi Kalyanam, (2007), Internet Marketing and eCommerce, Chapter8, Traffic Building, Thomson College Pub, Mason, Ohio.
