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Click-through rate (CTR) is the ratio of clicks on a specific link to the number of times a page, email, or advertisement is shown. It is commonly used to measure the success of an online advertising campaign for a particular website, as well as the effectiveness of email campaigns. [1] [2] Click-through rates for ad campaigns vary tremendously.
An impression (in the context of online advertising) is when an ad is fetched from its source, and is countable. Whether the ad is clicked is not taken into account. [ 1 ] Each time an ad is fetched, it is counted as one impression.
Historically, the digital advertising business has relied on the easy to measure click-through rate (CTR) typically provided by the ad server. Most ad server platforms also measure unique or reach impressions based on deduplication of browser cookies. Click-through rates have been known to be on the decline since the advent of the display banner.
Impression fraud is when falsely generated ad impressions affect an advertiser's account. In the case of click-through rate based auction models, the advertiser may be penalized for having an unacceptably low click-through for a given keyword. This involves making numerous searches for a keyword without clicking of the ad.
The two most important metrics that matter to a web publisher looking to monetize their site is "Fill Rate", or the % of inventory where ads can be shown by a partner advertising network, and eCPM, which is the effective cost per thousand impression dollar amount that is paid out to the publisher for showing ads to their audience.
For example, click fraud occurs when a publisher or third parties click (manually or through automated means) on a CPC ad with no legitimate buying intent. [99] For example, click fraud can occur when a competitor clicks on ads to deplete its rival's advertising budget, or when publishers attempt to manufacture revenue.
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Another "commonly known" definition of click-through rate (CTR) is the total numbers clicked divided by the total number of Impressions, as the metric of Click-Through Rate is to measure the ratio of clicks and impressions, not the number of users (who clicked and saw).