E-commerce Glossary

Click-Through Rate (CTR)

Percentage of users who click on an ad or link after seeing it.

Click-Through Rate (CTR) measures the effectiveness of an advertising message in capturing attention and generating a click. It applies to ads, emails, search results, and banners.

Calculation: CTR = (Clicks / Impressions) x 100. For example, 500 clicks on 50,000 impressions gives a 1% CTR. Averages vary: 0.5-1% for display, 1-3% for Meta Ads, 3-5% for Google Search, 20-25% for emails.

A high CTR signals good targeting and a relevant message. But a high CTR does not guarantee conversion: cross-reference with conversion rate and CPA. A CTR that is too high with a low conversion rate may indicate a mismatch between ad and landing page.

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