Saturday, November 19, 2011

How to Calculate a Click Through Rate





1. Determine what definition of a 'click-through' you want to use. Not all CTRs are the same. It is a measure of how many times a link is clicked-through to a destination URL. This is usually a web page (also referred to as a landing page).
2. Design the best click-through rate for your purpose. If you need to know how many people clicked through from email, use the number of people clicking on the link (numerator or top number in the rate equation) divided by every 100 emails sent out (denominator or bottom number in the rate equation), delivered or opened.

3. Walk through an example. For example, website statistics show that 40 people click on your ad per every 100 impressions. The CTR is 40 (40 click-throughs per every 100 clicks). If website statistics show that 100 people opened an email after 1000 were sent out, the CTR is 100 / 1000 = 10. The most important thing is that you calculate the CTR the same way every time.

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