By: Madeline Rain @MaddieAkopaintz
Every industry comes with its own collection of jargon and the world of advertising is no exception. Terms such as ROI, above the fold, CTR, and CPT are no stranger to marking professionals. These terms are often misused and/or misunderstood within our day-to-day communications. According to contacts at Martini Media and Undertone one of the top offending acronyms within the industry is CTR. As CTR is the most commonly used digital performance indicator this lack of common understanding presents a tremendous problem. The fallowing are seven must know facts about CTR:
- Definition: Clickthrough rate or click-thru rate (CTR) is “A ratio showing how often people who see your ad end up clicking it.” (Clickthrough Rate, 2014)
- Calculation: “CTR is the number of clicks that your ad receives divided by the number of times your ad is shown expressed as a percentage (click ÷ impressions = CTR)” (Clickthrough Rate, 2014)
- Information: CRT is usually used to interpret how effective ones ads are and to build an understanding of overall audience influence.
- Indication: It is important to remember what CTR does and does not measure. CTR measures immediate response to an ad, however, does not consider the oval response. (Marketing Terms, 2014)
- Implication: The higher the CTR the more successful the ad has been at supporting the overall brand and/or specific campaign. (Click-Through Rate, 2014)
- Benchmarks: Looking at “ All Countries, All Verticals, All Formats” these are the industry averages for rich media and standard ad units: (Display Benchmarks, 2014)
- Rich Media CTR: 11%
- Standard Media CTR: 14%
- Considerations: As CTR rates only indicate the original audience interest it is important to consider the conversion rate, leads generated, actual sales of each advertising campaign and advertisement.
This may seem rudimentary, but remember the above facts as you communicate, consider, and calculate within the marketing and publishing worlds. CTR is a critical term and calculation within these industries and in order for marketers to take advantage of the information provided all must be on the same page.
Work Sited and for more information:
“Clickthrough Rate (CTR).” – AdWords Help. N.p., n.d. Web. 30 Nov. 2014.
“Clickthrough Rate – Marketing Terms.” Marketing Terms. N.p., n.d. Web. 30 Nov. 2014.
“Click-Through Rate (CTR) Definition | Investopedia.” Investopedia. N.p., n.d. Web. 27 Nov. 2014.
“Display Benchmarks.” Rich Media Gallery. N.p., n.d. Web. 30 Nov. 2014.