What is Click-Through?
CTR is often associated with ad effectiveness but is also important for calculating whether a higher search result is valuable.
You can consider a search result as an advertisement. Both aim to entice a viewer to click.
For example:
Ad ONE – seen 1,000 times and clicked on 30 times.
Ad TWO – seen 10,000 times and clicked on 275 times.
Although Ad TWO has had more clicks, it has also had ten times more opportunity for clicks. If you multiply Ad ONE‘s clicks by 10, it actually has more! This is why it isn’t fair to judge ads simply by clicks. A CTR tells you how ads with equal opportunities can perform.
CTR is therefore usually used when ad performance is being measured. When clicks are the goal of a campaign, more budget should be spent on placements with a higher CTR where possible.
A higher CTR not only implies a higher level of interest from users on that placement, but it will also save the client on SEO or Ad serving fees. This is because you can achieve the same amount of clicks while showing an ad fewer times or having a higher SERP position.
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