Posted by Fox on July 30, 2007 at 2:47 PM

Johnder Perez over at webhostb2b.com explains what CTR (Click Through Rate) means.

WHAT IS CTR?

CTR is a measure known as the click-through-rate. This is an important measure for online marketers because it determines how effective the campaign is, and what changes are necessary in order to maintain a sufficient CTR. The click-through-rate is measured in how many clicks have been generated as a percentage of how many times the advertisement has been displayed. While it does provide the online marketer with an idea of how many people have clicked the ad, it should be noted that CTR measures an immediate response to the ad but does not account for overall response. For example, if a visitor sees the ad but fails to click through, but ends up visiting the web site at a later time without clicking through the ad (probably as a direct hit or as a result of visiting the web site directly) that response is not measured but it is clearly an aspect of the campaign that has generated a valid action. As online marketing continues to develop, other measures have taken primary attention over CTR, since the click-through-rate does not necessarily signify conversion and is simply a measure of direct response to an ad.

Example: 30 clicks / 1,000 impressions = 3% CTR

Source: webhostb2b.com

More Jargon Busting:
What is RON? (Run of Network)
What is PPS? (Pay Per Sale)
What is CPL? (Cost Per Lead)
What is PPC? (Pay Per Click)
What is CPS? (Cost Per Sale)
What is CPC? (Cost Per Click)
What is CPA? (Cost Per Action)
What is CTR? (Click Through Rate)