Small Business Jargon Decoder
What is CTR ?
Small Business Jargon Decoder
The Technical Definition
Click-Through Rate (CTR) is a metric that measures the percentage of people who click on a specific link or advertisement compared to the total number of people who viewed it (impressions). It is calculated by dividing the number of clicks by the number of impressions and multiplying by 100.
In English, Please
CTR is an important metric in PPC advertising. It tells you how many people actually click on your ad or link out of everyone who sees it. Think of it as a score that shows how effective your message is at getting someone to take the next step.
Do Small Businesses Really Need to Worry About CTR ?
If you’re running PPC ads, then definitely. Tracking CTR can help determine if your campaigns are engaging enough to drive traffic. A higher CTR means more people are interested enough to click, which can lead to more customers. It’s a simple, measurable way to gauge the effectiveness of your digital marketing efforts.
Common Misconceptions
- A high CTR always means success. A high CTR doesn’t guarantee sales or conversions—make sure to track what happens after the click.
- CTR is the only metric that matters. While important, CTR should be considered alongside other metrics like conversion rate and overall ROI.
- Low CTR means the ad is bad. Sometimes a lower CTR can still be effective if the clicks you do get are highly targeted and lead to valuable actions.