What is CTR (Click Through Rate)?
Click through rate, also known as CTR, measures the percentage of users who see an advertisement and click on it. It’s an essential KPI in most app advertising efforts.
CTR Formula
To calculate CTR, simply run your metrics through the following formula:
CTR = (Number of Clicks / Number of Impressions) x 100
We’ll illustrate with an example: Company XYZ runs a marketing campaign to promote their new app in the Apple App Store. The organization’s ad is seen by 10,000 people and generates 200 clicks. So, Company XYZ’s CTR for this specific marketing campaign is 2%.
Why is CTR Important?
Click through rate is an important metric because it reflects user interest. High CTRs indicate the target audience connects with a specific ad and are interested in the app it’s promoting. Low CTRs indicate the opposite: that the target audience either doesn’t connect with the ad they’ve been shown, or the app that the ad promotes.
When you understand your ads’ click through rates, you can make better marketing decisions.
