Click-through rate (CTR)
Click-through rate (CTR) is the ratio of clicks to displays of each advertisement (banner, text advertising) and indicates the effectiveness of that advertisement. The CTR can be calculated using the following formula:
Click rate (%) = the number of clicks per advertisement / the number of impressions * 100
CTR versus Click-rate
In practice, people often tend to confuse the term CTR (click-through rate) and Click-Rate, as if they were synonymous. CTR is always less than or equal to Click-rate, because the CTR calculates actual users visits to the target page from clicking on the advertisement whereas the Click-rate merely indicates a simple click on advertisement which may or may not lead to a targeted page. There are several reasons behind this, for example, a visitor may change his/her mind and go to another page before the targeted page opens, etc.
More information about the opportunities in internet marketing can be found in the article Building up your traffic.
