The formula to calculate the click-through rate (CTR) is:
\[ CTR = \frac{TC}{TI} \times 100 \]
Where:
Click-through rate is a term used in digital advertising to describe the total rate at which ads are clicked on. This rate is typically measured as a percent. These metrics are analyzed by both advertisers and publishers.
A click-through rate, by definition, is a percentage of the number of times a user clicks on an ad or other media compared with how many impressions that ad received. On the side of advertisers, this metric is used to understand how well a particular advertisement or marketing strategy is performing. The greater the click-through rate, the more enticing the ad is to individuals. On the publisher side (those that display the ads), click-through rate is used to understand how well a certain ad position is performing.
Let's assume the following values:
Step 1: Calculate the click-through rate:
\[ CTR = \frac{500}{10000} \times 100 = 5 \% \]
Therefore, the click-through rate is 5%.
