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CTR stands for Click-Through Rate. It is the number of clicks on your ad. A high CTR means people click on your ads and visit your website. It’s measured by dividing the number of clicks on an ad by all the times it was shown.
So while CTR is important as a metric, it doesn’t tell you everything about how well your website is doing in advertising revenue.
Table of Contents
History of CTR
The content-based search engine (CBR) ‘s history is long and varied. Using keywords in a web page to determine its relevance to a query has been around since the beginning of time; however, it was only in the mid-90s that this technology gained popularity. Intelligent Minerals created the first known campaign using behavioural targeting in 2003. The company used behavioural targeting to inform its target audience that they were running out of time to purchase or download their product.
In 2005, Google launched AdWords and started buying search keywords from advertisers. It made it easy for advertisers to bid on specific keywords so that their ads would appear when people searched for those terms.
Characteristics of CTR
- The CTR is the number of visitors that click through to the product (call-to-action) or site, and the number of visitors directed there by search engines.
- The higher the CTR, the better it is for you as a business owner because it means more traffic is coming from search engine results instead of direct traffic from social media or other links on your website
- This means more potential sales and more customers.
- The lower your CTR, the more likely you are to lose out on valuable sales and customers; this could be because your competitors have a higher CTR than you do or because you’re doing something wrong (like having too many ads on your site).
Advantages of CTR
- You can target potential customers on their mobile phones
- You can deliver content to people who are most likely to respond to your offer
- You can optimise your ad campaigns by using the information from the previous interaction with the customer
- You can track sales and conversions in real time
- You can use ads on multiple platforms such as Facebook, Instagram, Twitter, YouTube, etc
Disadvantages of CTR
- CTR significantly impacts the user experience in terms of wait time.
- CTR can change user behaviour and confuse users, who may not know why they see the ads.
- The amount of data collected by a CTR is large, which may be too much for some businesses.
- It’s difficult to measure the effectiveness of a CTR campaign because it’s based on past visits, so you don’t know how many people you’re reaching but how many people have visited before your ad was shown to them in the past few months.
As you might expect, the higher the CTR, the better your ad has performed. But ads that perform well don’t always get clicked on. This is because people often don’t want to see an ad and leave without clicking on it or moving to another part of your site (they may not even realise they’ve seen it).
